Medusa

Extended Warranty: The Art Of Building Customer Loyalty

Warranty administration

<p style&equals;"text-align&colon; justify&semi;">The rationale behind a manufacturer offering warranty and extended warranty is about the same&period; However&comma; the difference is that just warranty on a consumer vehicle is mainly for legal compliance&period; Irrespective of the product&comma; the law is that manufacturers are bound to provide full value for money&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">It makes sense for manufacturers to extend warranty on a product as it indicates confidence&period; The buyer also gains confidence that the product will not cause him trouble&period; The customer views a warranty as insurance&colon; should the vehicle cause any problem&comma; the manufacturer will rectify the defect at no extra cost&period; A warranty for a new vehicle is therefore a great feature for increasing sales&period; Today&comma; no customer will buy a vehicle without warranty&period; Although extended warranty has received criticism in recent years&comma; paying for it seems to be a more popular option than not paying for it&period;<&sol;p>&NewLine;<h3 style&equals;"text-align&colon; justify&semi;"><strong>Extended Warranty<&sol;strong><&sol;h3>&NewLine;<p style&equals;"text-align&colon; justify&semi;">In certain ways&comma; extended warranty is based on the same philosophy&comma; but there are subtle differences&period; The customer deliberately pays extra for the extended warranty&comma; but treats the extra cost as a kind of insurance being paid up front&period; The extra cost is expected to be amortized at the time of a defect in case it appears&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">The customer is only too happy that when an untoward defect does happen&comma; finances won’t be an issue&period; Warranty administration&comma; on the other hand&comma; demands that extended warranty be sold to customers as a way to increase revenue&comma; while the spinoff comes in the form of building customer loyalty&period; To the customer&comma; that means a peace of mind&period; There is the feeling that financing a potential repair would have been worse&period; It is another issue that he may never need a repair&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">If the customer does not need a repair&comma; it speaks well of the reliability of the vehicle and this fact will bolster the confidence of the customer in the manufacturer&comma; the brand&comma; and the product&period;<&sol;p>&NewLine;<p style&equals;"text-align&colon; justify&semi;">There are yet two other points that are common to both&comma; warranty coverage and extended warranty coverage&period; When customers have warranty or extended warranty coverage&comma; they know that the law is on their side&period; This gives adequate confidence since the automotive shop would definitely wish to stay on the right side just so that they continue to get future business from the manufacturer&period; The second point refers to the resale value of the car&period; A car with warranty coverage will always fetch a higher price in the resale market&period;<&sol;p>&NewLine;<h3 style&equals;"text-align&colon; justify&semi;"><strong>Good Business and Customer Loyalty<&sol;strong><&sol;h3>&NewLine;<p style&equals;"text-align&colon; justify&semi;">A warranty or extended warranty therefore makes good commercial sense from the viewpoint of the manufacturer&period; Since in a new car&comma; an extended warranty represents an effective sales incentive&comma; the coverage is good warranty administration&period; To the manufacturer&comma; customer loyalty is a bonus while there will naturally be an increase in competitiveness due to extended warranty&period; There will also be a promotion in the after-sales business as well as an image enhancement due to the offer of additional service&period;<&sol;p>&NewLine;

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