This customer story is an adaptation of our webinar on Why Retailers Should Not Neglect Faulty Products & Warranty Claims – How To Exceed Customers' Expectations with Kenneth Nørgaard, CEO of BabySam.
Why faulty product claims & returns drained BabySam’s business
Product warranty claims have always been a pain for most retailers. One major challenge is having to keep track of different claim guidelines and individual supplier procedures that needs to be adhered to, causing the process to be very time-consuming. Over the past few years, the market has significantly changed with customers demanding convenience. Digitalization has made the customer journey more complex than ever before, causing the current claim handling process to be outdated due to the manual workflows and procedures.
BabySam, a leading Danish retailer of Baby & Nursery products, has always gone out of its way to ensure an excellent experience for its customers. The customer lifetime value of customers buying baby products is fixed, and the importance of retention to increase the share of wallet has always been a top priority for them.
As the business was expanding, BabySam realized that its current claim handling process was not sufficiently scalable and, therefore, desperately needed to streamline the process to continue being able to deliver the best possible customer service, especially during this fragile moment of the customer journey.
“A dissatisfied mom will also take 10 of her closest friends with her if she leaves your business because of a negative experience.” - Kenneth Nørgaard
Keeping a clear overview of warranty claims and making data-driven decisions was very difficult without a streamlined process – especially with 29 brick-and-mortar stores and a growing online presence. It was inefficient and tricky for store staff to keep track of hundreds of individual brand guidelines in order to know how to help customers right away. Having to manage claims within B2B systems was a too manual process and required an estimated 4 full-time employees. As a result, claims were poorly documented, customers were sometimes forgotten, and everyone involved was spending more time than needed, which was slowly draining the business.
How Claimlane transformed BabySam’s claim handling process
With Claimlane for Retailers, BabySam now has a dedicated Inbox to see the status of each claim, so nobody is forgotten, automate and unify the process for all their brands, and utilize the data to get a better understanding of how claims directly impact the business. BabySam has leveraged its warranty claims to create brand ambassadors by providing an effortless claim experience that exceeds customers’ expectations.
“You can build your strongest ambassadors by ensuring that if anything does wrong, you are there to provide the convenience they seek.” - Kenneth Nørgaard
Being a leading omnichannel retailer, BabySam wanted to offer preferred solutions for its customers in an effortless and fast way. With the Self-Service Portal on their website, customers are now welcomed with a clear and straightforward process for submitting warranty claims to provide a seamless customer journey, which helps build stronger customer relationships.
Having a streamlined and convenient way of dealing with warranty claims is business-critical for retailers of the modern age. Customers have higher demands and expect nothing but excellent customer service whenever something goes wrong – especially when products break. BabySam has joined the customer-centric retailers using Claimlane to reduce the number of faulty returns, improve the overall customer experience, and use the built in Analytics to make better decisions that are now based on real insights.
Investing in the claim handling is more important than ever before
Warranty claims put your brand to the test, and the way you handle them can make or break your business’ reputation. This is where you have the opportunity to create brand ambassadors and build strong customer loyalty simply by going above and beyond to deliver an unforgettable experience. A majority of customers today prefer self-service solutions and expect digital claim handling options. Retailers should, therefore, take advantage of this by investing in convenient omnichannel warranty claim solutions that tailor to shifting customer demands.