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Mastering Warranty Management: Common Mistakes and Solutions

richardsmith

May 6, 2024

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Introduction

Warranty management is often considered a drain on resources and revenue, it is a cost of the goods that have been sold. Manufacturers need to invest in an efficient warranty management software such that the warranty claims processing is automated and streamlined, has no errors and provides transparency to manufacturer, dealer, customer and the supplier.

It is an intensive task that often lacks the level of efficiency manufacturers look for but this has the scope and gives an opportunity for OEMs to improve the brand experience and advocacy from customers and build better relationships with the dealer and supplier network.

Now let’s check what are most common mistakes that OEMs do when managing the warranties of their products and how a warranty management system can help eliminate them:

Avoid Duplicate Data Entry

Without the presence of a system that captures all the data from a claim and automates the processes, it is quite possible that there is a duplicate data entry in such cases. Data redundancy also poses a big challenge for businesses. In such situations , the need of a centralized, automated system is the need of the hour. A warranty management system ensures there is no duplicate data and avoids any data redundancy.

Efficient Management of Claims

Management of claims pertains to the entire process right from the generation of the claim to resolution to supplier recovery. In such cases, often there is mismanagement of claims as the customer might not speak to the same person at all times and there should be a system that records all information and provides the latest data and progress report of a claim. In such cases, a warranty management system ensures that the claims are efficiently managed and are updated. This system also facilitates constant communication with customers to schedule service, provide updates throughout the claim and provide explanations when the customer needs it.

Take Note of Recurring Issues

When organizations use a centralized warranty management system, it makes them aware of the issues that are recurring in nature so that they can work on resolving such repeated problems. Without a central system, it is extremely challenging to dig out the data from the last 6 months and check the analytics from the reported issues/claims. A warranty management system is able to give insights into the most commonly reported issues and helps improve the product quality, brand experience and service standards.

Improving the Reporting Processes

In the traditional warranty management process, reporting continues to be a challenge. There is no means to compile the data and without it, there is no meaning to the data. With a warranty management system, reporting is not only streamlined but OEMs also get better insights on the types of claims raised, resolution time, feedback, etc. The warranty management systems can compile the data from previous claims and enable manufacturers to take data-backed decisions to improve the service.

Conclusion

A warranty management system is more than necessary when it comes to efficient management of warranty claims. Manufacturers need to identify the right warranty management software for their business that also helps them grow their business and improve the brand experience, customer satisfaction and service standards. A customer can return to a business by the way an organization handles their claim and provide customer satisfaction.

A meticulously designed warranty management software can reduce the company’s expenses and have a positive impact on the bottomline of the business.