Proper warranty maintenance can be a great promotional tool.
Warranty is a critical element of new product strategy. It not only provides assurance to customers, but also serves as a very effective promotional tool. A change in the approach to warranty management is needed so that warranty-related decisions are made in the context of the product life cycle and take into account the interaction between warranty and other decision variables.
The markets for all types of new products -- consumer durables, industrial or commercial products -- are characterized by the following:
1. New models are appearing at an ever increasing pace making existing products obsolete at an ever increasing pace.
2. Products are becoming more complex due to a significant increase in their capabilities and/or performance relative to the products which are being replaced.
3. Customers, educated by the web and other industries like auto, are more demanding with regard to product performance and support.
4. Governments have passed stringent regulations to protect consumers against products not meeting explicit or implicit performance standards.
5. Markets are becoming more global and competitive. New entrants from Asia are disrupting old standards with deliberation or ignorance.
Before making decisions on individual warranty and extended warranty programs - before selecting a deductible or terms like travel time and miles - take time to set out the goals that your warranty programs must achieve. It makes a fundamental difference on the outcome if expense containment is the driver vs. a plan that puts ever growing customer demands for repair and replacement first. Is your warranty the gap coverage for the difference between the designed equipment life and the actual performance? Is customer peace of mind at point of sale the goal or customer concern for value at the used equipment sale? Are you driving customer behavior or are you being driven?
Let ADI marshal the resources to think through the issues and develop the very best use of your time, money and name when creating point of sale products.