The global economic downturn is impacting organizations across all industries and businesses are struggling to improve bottom line results. The automobile industry is no different.
Managing costs, tracking fraudulent claims, and improving customer satisfaction are some of the major concerns for organizations in the warranty management environment. Close to 70% of the warranty expenses dwindle due to repetitive failure in the performance of parts. Identifying the root cause of such failures is the one of the biggest challenges in the industry today.
How can organizations thrive in such an environment?
Warranty Analytics is the only solution. Making correct use of the opportunity requires robust warranty analytics that can integrate raw data into actionable plans to accomplish the desired results. Successful organizations leverage that as the key to increasing revenue and optimizing customer success.
Analytics is the application of statistical tools that convert raw data into business solutions. It incorporates a predictive technique to review future trends and improvise current processes. Insights gained through analytics add value to all the key spectrums of a business, including customer management, product quality, and process enhancement.
Analytics solutions give a microscopic view into key business functions along with statistical features, predictive analyses, and forecasts for optimal business decisions. Analytics helps assess gaps and analyze the root cause of individual elements that hamper overall processes. Detecting the root cause enables companies to determine the best course of action and save on costs through early detection of failures. It further helps organizations improve resource allocation and realign focus on core strategic functions.
Business Case Study
A leading manufacturing unit with operations in 26 countries specializes in products and services across industries. It offers services such as protecting food and perishables, securing homes, and enhancing industrial efficiency and productivity.
Each business function has multiple units with varied requirements. Those units used ad hoc retrieval methods that resulted in inefficiency in tracking failure patterns and measuring ROI from individual units.
The organization had also branched out lately to wider geographical boundaries. The lack of inventory management and a centralized system proved a potential business threat. The organization needed a comprehensive warranty system that maximizes the utility of data for optimal business growth.
The Solution
A centralized web-based warranty solution was integrated to obtain a clearer perspective on parts failures, fraudulent claim processing, and better customer management. The software-based analytics system helped in providing operational feedback, turnaround time, parts performance, and determining the warranty cost per product.
Some of the benefits experienced through warranty analytics:
• Improved customer loyalty, product quality & brand image
• Early detection of parts failures with an increase in bottom line results
• Effective management of claims processing and warranty reserves
• Predictive analysis to increase financial performance
• Warranty cost management to understand and manage expenses
• Smoother transactions between units and greater information flow
• Faster and easier settlement of warranty claims
Those benefits when enjoyed together can bring an organization exceptional advantage. Much like the manufacturing organization in the case study, Warranty Analytics is being used by more and more businesses that aim to thrive with higher returns and greater customer success.
