Today, if a company willingly gives you a warranty of some set duration, it builds confidence towards its product. Warranty began as a marketing strategy and has grown to become a basic expectation for customers.
When companies started giving warranty on their products, little did they know that one day it would become a difficult problem to manage. Statistics show that warranty claims have steadily increased over the years and managing them manually is proving to be difficult and cumbersome. Warranty management costs are rising over the years and are eating into profits.
This has given rise to the need for warranty management systems that help you manage reverse logistics, claims and a variety of other things pertaining to your business model. These systems give you a strategic advantage and help companies improve customer confidence, reduce operational costs and save time. They also help in cross-selling warranty products and policies, hence opening up another avenue for revenue.
While traditional methods of managing warranty have worked well for smaller companies, they are one-dimensional and short-term fixes. Research shows that through warranty management software, costs of handling warranties can be reduced by 55%. The right approach should be something that solves the problem once and for all and also helps the company’s ROI.
Warranty management solutions provide you with a holistic approach to your problem. It streamlines all your company processes to allow you to gauge your warranty costs and hence manage them better. The systems help you in processing claims through automated processes instead of manual and also integrate systems and processes to work in sync.
In these warranty management systems, business processes are driven on the Internet and work on an e-commerce-enabled system application. They have a variety of different models under these systems, which help you take care of various aspects of the warranty. They range from tracking services in databases to taking the requests for warranty, checking up on them, managing inventories as well as checking on different suppliers and vendors. You will never have to worry about remembering which part from which supplier has gone faulty as these systems keep track of all the information related to any product.
Adopting a warranty management system, companies become better equipped to do the following things –
- Faster processing: With all the information at your disposal, there is an increase in the speed and efficiency of claims processing.
- Dealer and customer satisfaction: The faster and more efficient service you give, the more you enhance the user experience.
- Reduced waste and fraud: Tractability of each product and no manual interference leaves very little chance of wastage or fraud.
- Improved flexibility: Companies have the flexibility to enhance and configure the system as and when they find the need to improvise.
Warranty management is the next big thing in building a great customer relationship. By using a strong warranty management solution, a company is safeguarding and maintaining its product value in the market. Today, such a system is considered to be a separate revenue stream for companies as improving practices lead to a reduction in cost of services. It’s a total win-win for all parties involved.
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Photo credit: A&M-Commerce / Sean MacEntee
