Electronics manufacturers, on average, are spending three percent of their revenue on warranty management, with only one percent of it being used for the repair or replacement of defective products. This means a company with a billion dollars in annual revenue may be losing USD 2 million in warranty processing and administration.
For many companies, one of the primary reasons for this revenue loss is the manual, paper-based and high-touch warranty management system. It’s a time-consuming process for both the warranty team and the customer, who is often left feeling frustrated and undervalued by the company. Further, despite the lengthy procedure, manufacturers are left with little data on who their customer is or at what stage of the product lifecycle the issue occurred.
So, despite the mammoth investment, manufacturers reap little reward from their current warranty management system. But it doesn’t have to be like this. The truth is warranty management - when effectively implemented - is a pot of gold.
By digitising warranty management, manufacturers can accelerate the workflow whilst receiving crucial analytics that informs product development and marketing endeavours. Other benefits include:
Customer Satisfaction (and Brand Loyalty)
The last thing you want is an experience which tarnishes your brand image in the consumer's mind. An efficient warranty management system saves your consumers from waiting for hours on hold and all the frustration that comes with it. Instead, consumers can walk away with clarity about their warranties and satisfaction with their products. Together, you hold the key to repeat business and positive word-of-mouth recommendations.
All you have to do is get on board with a digital warranty management solution. Here’s why:
- Customers can register their products with a QR code scan.
- When in need of a repair, they can simply register a claim with a simple tap on their phone.
- A one-on-one consumer-warranty team communication channel makes it easier for customers to voice their concerns and get solutions.
Powerful Communication (and Repeat Sales)
The customer and your relationship don’t end after the sale. You should stay connected with them after checkout to provide a superior after-sales experience and unlock further revenue streams. Implementing an effective solution such as digital warranty management software enables you to facilitate an open channel of communication throughout your product's lifespan. Here’s how:
- You can provide maintenance updates for product upkeep.
- Based on the collected purchase data, you can provide personalised product recommendations.
- Customers can instantly reach out to you in case of any device malfunctions either for support or automated warranty claims.
(Reliable) Knowledge
A digital warranty solution provides data-driven insights into your customers and how your product is performing. Armed with the knowledge of where and at what stage of the product life cycle the issue arose, you can make the adjustments necessary to reduce the cost of future consumer in-warranty repairs. Understanding who is purchasing your products facilitates more effective communication with your audience. Here are a few other plus points:
- You can share the product malfunction statistics with your product team to improve product design, development and improvement.
- You can use the initial warranty cost data as a benchmark for future reductions.
- Customer data will allow you to discover untapped markets.
Lower Carbon Footprint
Efficient warranty management can help you reduce your carbon footprint in numerous ways from reducing transportation involved in the process to lowering e-waste by promoting repairs over replacement. Here’s how:
- Opting for repairs in place of replacement increases product life and saves it from getting landfilled.
- In-depth data and analytics improve present and future products, cutting down emissions associated with warranty claims and repair, and extending product life.
- Digitisation reduces paper usage and waste.
- When companies manage warranties digitally, they reduce the need for shipping products back and forth, lowering associated transportation-related emissions.
The Big Picture: A Reduction in Costs and an Increase in Revenue
Digitising warranty management drastically slashes the budget required to maintain the current administration process. It also reduces the risk of common processing errors and increases the speed at which warranty claims are settled. The combined power of these factors including enhanced consumer communication and data can boost your revenue and produce loyal customers. Some other pros include:
- You improve marketing and sales through data and analytics such as targeting new customers.
- You reduce future warranty costs by improving your existing products and avoiding commonly occurring issues in new products by utilising the claims data.
- Customers enjoy your post-purchase services, which leads to further sales not only by them but also through their recommendations.
- Efficient warranty management leads to significant administration cost savings.
- You tap into the sustainable consumer marketplace.
- You save costs associated with paper use and transportation of malfunctioning products.
How Does iWarranty Help Manufacturers and Retailers in Adding Value to Business?
At iWarranty, we specialise in digital warranty management by utilising AI and machine learning to make it simple, approachable and sustainable for manufacturers, retailers and consumers.
Here’s how we can revolutionise your post-purchase customer experience:
- Customers get the ease of registering their product warranty through a simple QR code scan.
- Customers can make instant warranty claims through their phones, which are received instantaneously on your warranty team’s dashboard. Fraudulent claims are filtered automatically.
- Our warranty software and consumer app are seamlessly integrated with each other ensuring instant data updates to the warranty management teams and the customers.
- The platform is equipped with advanced warranty data and analytics providing real-time insights into your product claims, cost and quality.
- One-on-one communication between the customers and the warranty teams eliminates the stressful lengthy conventional communication.
- Our platform has over 500 repairers and allows for the integration of external repair partners. This brings all warranty management elements together, enabling communication and updates to be sent and received from customers, warranty teams and repairers.
Contact us to learn how we can help you streamline your warranty management process and enhance your customer experience.
