Tech mahindra
Tech mahindra

Delivering Customer Delight through Digi-E-Warranty

Posted by: Kannan M Rohit Sharma On March 31, 2017 03:00 PM

Today, Field Quality has grown beyond just curbing warranty expenses it helps improve the bottom line of Original Equipment Manufacturers (OEMs) and deliver customer delight. However, when it comes to warranty, OEMs and customers have their share of troubles, with manufacturers looking for a solution for all their warranty problems and customers looking for reliability. Since warranty on new products is commonplace, the focus is now on extended warranty. An extended warranty assures your customers that you, as a company, stand by your product after expiration of the factory warranty. In fact, with proper management, it can work in favour of the company by breeding differentiation and creating surplus.

Why would a consumer need extended warranty?

Essentially, consumers need a protection plan (extended warranty) to cover things they buy and to take care of expensive repairs. According to a study by Warranty Week, the Extended Warranty market in USA alone was estimated to be $39.5 Billion* in premiums paid. However, many OEMs/manufacturers find it difficult to do well in this area.

Current Scenario in the Extended Warranty Market

As of now, cross-sell and up-sell for extended protection plans generally offered to customers only at PoS interactions for big-ticket items. For example, when a customer tries to finalize on a vehicle, home appliance or an electronic gadget the sales person tries to convince customer to opt for an extended protection plan. Also such sales happen during special and festive occasions, or when factory warranties are approaching expiration dates.

What can we do to serve our customers?

With studies claiming, “Consumer decision are based on factors like resources at stake and faster availability of the product/service” third party extended warranties providers have a distinct advantage: online comparison with relevant information, faster sale and competitive pricing than traditional sell approach.

This makes increasingly important for OEMs to nurture better relationship throughout product life cycle triggering loyalty through customized product offerings of value.

Tech Mahindra’s Field Quality and Cost Control Solution understands problems faced by today’s OEMs in the Extended Warranty space. Through our Digital Marketing piece powered by our Field Quality and Cost Control, clients can observe and achieve:

• Higher Customer Delight & Brand Loyalty

• Improved Warranty Contract Up Sell and Cross Sell by 3 to 7 Percent

• Better Penetration among Digital channels like Mobile, Social Media, Emails, Apps, which are used for selling extended Warranty package

About the Author

Kannan M, Principal Consultant Auto-Discrete Manufacturing

Kannan M holds an MBA degree in Automobile engineering. He specializes in Warranty Process and with over 30 years’ experience in IT services and Manufacturing, he also advises on strategic aspects of management.

Rohit Sharma, Business Associate

Rohit Sharma holds an MBA and is a certified inbound Marketer. He works on Warranty and Automation Market research with focus on business processes streamlining. As a technology buff, he Spends his spare time reading about tech trends and writing technology blogs.

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