“When you reduce the cost of failure, you see a big eruption of innovation.” – Gary Hauthier
And this quote seems relatable to the current global warranty management system.
Since the turn of the century, the total annual warranty management expenditure of the U.S. automotive industry has risen from $10 billion to $14 billion, while annual sales remained stagnant.
And the average profit per vehicle of $200 is overshadowed by the corresponding average warranty cost per vehicle of $800.
On top of that, research group AMR estimates a rise of 16% in warranty management costs due to the industry pressures.
At the same time, companies that have a holistic approach to warranty management see a 150% lower average warranty expenditures while processing warranty claims 4 times faster.
Clearly, the bottom performers who see an unreasonable warranty expenditure are using an approach that is compartmentalized, automation driven with outdated technology and tools. This clearly has a negative business impact.
While the current warranty management approach negatively impacts businesses, on the contrary, a holistic approach to warranty management adds to strategic business advantage, as it did to many companies around the globe already.
Companies around the globe are saving up to $60 million on warranty expenditures annually with the holistic approach to warranty management. Not just a huge reduction in costs, but a lift in the customer experience and therefore differentiating themselves from the competitors.
How a leading Telco Company achieved growth with Effective Warranty Management Solution
A leading telecoms manufacturer transformed its warranty and spare parts operations, cutting warranty processing time by 40% and saving $10M a year.
This company has embedded intelligence and flexibility into the company’s aftermarket operations by using an analytics-driven ‘warranty as a service’ platform. The solution accelerated the claim lifecycle and ensured the team could meet high customer service standards while scaling up operations in tandem with the wider business.
By embedding intelligent operations, this company has ensured streamlined warranty processing and enhanced customer service as it scaled up to become a billion-dollar player in the global communications market.
NeuroTags’ Unique Warranty Management Solution
The NeuroTags’ warranty management solution is especially beneficial for the physical-product companies. NeuroTags smoothly brings your offline customers into the online world and makes it easy for you to communicate with these customers.
The warranty registration process is extremely simple that NeuroTags saw a 300% increase in the warranty registrations. This warranty registration does not require any app and is QR-code scanning from the mobile camera that registers the customer.
Companies have full ownership of the vital customer data collected during the warranty registration. NeuroTags’ integrated B2C customer data platform provides intuitive analytics dashboards and smart insights.
The data is no more in silos and is integrated across the organization. NeuroTags Customer Data Platform gives a unified, singular view of individual customers, as well as a holistic view of real-time data.
SYSKA transforms Warranty Management to witness growth in customer participation
SYSKA, a domestic pioneer with a diversified product range in segments like LED, personal care, accessories, home appliances and wires & cables, streamlined the warranty management process with the help of NeuroTags.
It helped Syska to double the customer engagement with the brand. Also, it saw a huge increase in customer participation in the digital warranty.
Warranty registrations have risen over 300% by customers and the brand saw the bar rising for its customer experience.
Syska now has a direct communication channel with its customers and this helps Syska prevent its customers from going to its competitors.
“NeuroWarranty has helped us in a big way in implementing anti-counterfeit and paperless warranty solution for our brand.
They have a great technology, and the implementation & integration setup was really quick.”
Mr. Gurumukh Uttamchandani
Executive Director, SYSKA LED Lights
Affordable solution providers, on the other hand, give no other benefit than warranty management. Neurotags offers several solutions at no additional cost, along with a super-efficient tool to manage your warranty system.
Anti-counterfeiting, built-in CRM, customer data, cross-selling opportunities, independent identity, direct communication with the customers, and the pathway to grow and increase turnover are just some of the tangible benefits.
Gone are the days of overwhelming Warranty Solutions that are overkill to your teams and still often fail to create happy customers.
Top market leaders are realising the true potential of a sophisticated Warranty Management Solution and getting tremendous results after implementing them.
Want to know more? Book a free consulting session with our experts here.