Technological advances are changing the delivery and effectiveness of warranty coverage. Here’s how.
Let’s take a brief trip down memory lane.
In days past, whenever a consumer wanted to make a major purchase—like, say, for a large appliance or the latest electronics—they had to leave the house and visit their local retailer. If they were concerned about the well-being of their new investment, well, they’d need to make sure they added a little warranty coverage once their transaction was complete. And in the event something with their new fridge or stereo system went wrong, they’d need to pick up the phone to schedule a service visit.
Thanks to technology, things have changed. Let’s take a look at just how much technology is influencing purchasing habits and changing the warranty experience for consumers, retailers, and providers.
Click for Coverage
Today, when consumers need to make purchases both big and small, they’re often opting to make them online. For big box retailers, incorporating additional warranty protection functionality on their websites to accompany those purchases is no sweat; they’ve got the capability and budget to do so. But what about smaller retailers?
According to a report by CBRE Group Inc., about 30% of ecommerce retail is sold by small and midsize companies. While many of these companies might want to offer online consumers the benefits of product protection like their big box counterparts, integrating third-party warranty protection with a retail ecommerce platform can be cumbersome. Thankfully, some providers have cracked the code and developed apps that allow smaller retailers to level the playing field and easily establish and manage valuable warranty programs.
Make the Connection
As the Internet of Things grows and consumers replace their obsolete non-IoT devices, the true benefits of connectivity will continue to be revealed. For example, smart home technology will take the guesswork out of claims. Service providers and technicians will no longer be forced to rely on a customer’s diagnosis of the problem because devices will be able to accurately relay the info they need to fix the issue.
Even with the obvious benefits of this technology, warranty industry adoption has been slow. But, given the potential for increased customer satisfaction and lower costs, service contract providers should get on board sooner than later.
Thanks to the intimate connection to products and data offered by IoT, the opportunity to customize service contracts and protection programs has never been greater. Now with the help of analytics, the failures, causes, and costs that impact consumers most can be identified to help create intelligent extended protection programs.
Additionally, new technology provides opportunities to grow the scope of protection plans beyond repair or replacement to include data security and tech support for those who need it.
While some may long for the old days, the benefits of new technology offer a chance to look on the bright side. For providers, retailers, and customers, advancements have changed the warranty protection experience for the better.