84 Reasons that Your Manual Warranty System is Strangling Your Business!

Is Your Manual Warranty System Strangling Your Business?

Yes, there are 84 actual ways that your business is being hurt by your current manual warranty system.

We know there are even more, but we think the examples below will convince you of the profits you risk losing every day that you stay with your manual system.

84 Problems with Manual Warranty Systems

1. Dealer Claims

Time spent entering manual claims

Dealer complaints for lateness and errors

No ability to appeal misunderstandings

No ability to approve before the repairs

Errors- no validation

Slow turnaround to payment

Lost or late claims

Claims held up due to late or lost returned parts

Misunderstood goodwill policies

Misunderstood limits of warranty

Lost dealers (dissatisfied)

Claim rework- mailing claims back & forth

Answering followup calls- no escalation

Difficulty in researching claims- no history

Improper repairs without service bulletins

No learning cycle for improving repair process

2. Claim review

Routing to improper person

No ability to eliminate claim reviews on low dollar claims

No validations

Wrong parts

Wrong pricing

Wrong serial number

Wrong labor hours

Double paying claims

Paying invalid claims

Cost of not catching errors

Error resolutions - time consumed in correcting

Searching for in - process claims - no electronic searches

Lack of failure data to improve quality

No ability for photo attachment

No identification of fleets for improvement

No ability to validate usage against previous claims

3. Registration

Lack of registration & ability to check coverages

No customer information for marketing or recalls

No tracking of equipment status and age

No tracking of customer demographics

4. Fraud

Failure to identify trends or problems

Failure to identify fraudulent dealers

Failure to identify fraudulent customers

No ability to identify duplicates

No special attention to high dollar claims

No classification of bad dealers for special review procedures

5. Returns

High admin cost of tracking returns

No tracking parts returned

No matching claim to receipt

No matching inspections data to claim

Excessive freight cost of returning unneeded parts

Parts not returned because of dealer lack of requirement

Lost parts

Returning too many parts

6. Failure detection

No detection of problem trends

No ability to quickly identify problems

Poor customer image of product

Lost customers

High cost of recalls due to lack of early detection

No quick feedback for engineering

7. Accounting

Time wasted reloading claim payments to accounting

8. Supplier Recovery

Lack of ability to identify problems for suppliers

No sharing of warranty problem costs

No improvement in supplier recovery

No choice of the best performing supplier

No automatic conversion to supplier terms of coverage

No quality improvement by supplier dollars

9. Goodwill

Huge cost of following claims for compliance

Large administrative task of checking off each consumer

High level of customer and dealer complaints

Lost sales due to unsatisfied customers

10. Products

No validation of the proper part for that model and version

No tracking of sub - components for special warranty coverage

High cost manual process to return supplier items

11. Coverages

Inability to handle large variety of coverages

Hard to update coverages

No sub - coverages for special supplier coverages

12. Labor management

No ability to adjust prices for high price cities

No ability to standardize labor hours per type of claim

13. Process improvement

No ability to manage queues to speed the process

Dealers- no feedback mechanism

Reviewers- no claim history

Suppliers- no repair details

No ability to change the process for special items

No ability to escalate for slow claims

14. Campaigns

Hard to enforce limits

Huge cost of following campaigns for compliance

High cost of checking off each consumer

Suits because of failure to correct defect

15. Extended Warranty

No extra revenues from service contracts

No quality knowledge from extended product history

16. Reporting and Analytics

Extra time spent creating monthly reports

Delayed knowledge of problems

17. Other

People turnover costs

People training costs