Why Your Warranty Claim Process is Key to Earning Customer Loyalty
Marc Mayland Jensen
September 15, 2022
The current economic instability has put customer retention on a pedestal and the competitive retailer is realizing the need to shift focus towards loyalty-developing initiatives. Customers are 93% more likely to shop with you again if they feel valued and heard when a problem occurs.
Despite most companies agreeing that enhancing the customer experience is an important strategy to grow their business, 38% still underestimate how often bad CX takes place. This often happens in the aftersales customer journey – especially when a customer needs to report a warranty claim for a faulty product.
Just like bad news, bad reviews will travel fast
A study found that businesses can enjoy a 5-9% increase in revenue for every one-star increase on sites like Trustpilot. However, handling customer complaints about faulty products tends to be a manual and time-consuming process that often leads to frustrations, slow resolution times, and angry customers.
We all know the saying the customer is always right. If that’s the case, you have to find a suitable solution as quickly as possible to protect your brand reputation from bad online reviews. In fact, nine out of ten consumers make the effort to read a review before making a purchase.
Faulty products are critical for your customers
It’s a critical moment for customers when a product becomes faulty, and a business can face serious consequences for lagging behind the competition. If a product is faulty, customers expect the issue to be resolved quickly, and the process needs to be fast and hassle-free.
If you don’t take ownership, you will encounter unhappy and dissatisfied customers that will leave your business. On the other hand, if you help them and exceed their expectations by providing the best aftersales service, they will become advocators of your brand as seen below.
It cannot be underlined enough how important customer complaints about faulty products need to be taken serious to ensure happy customers. You risk 65% of customers leaving your business for the competition due to a poor experience. You need to be customer-centric to stay ahead of the competition, and optimizing the post-purchase experience is a great way to start improving your customer loyalty.
Manual processes make claim handling a pain
Good customer service goals might be to improve your customer retention, lifetime value, or satisfaction. Reducing your claim handling resolution time will do all three. However, manual and disjointed processes are common challenges many retailers run into, slowly draining the business. Here’s why:
Most brands will typically have their own claims guidelines
Emails are often the standard for dealing with warranty claims
Difficult to ensure customers submit all the needed information
Customer service teams need to copy data into different systems
Long resolution times due to a lack of claim data from customers
Wasted time and resources on manual and redundant workflows
Each brand typically has its own claim guidelines for what information they need if a product becomes faulty within the warranty period. Emails are often the standard when dealing with customer complaints. Long email conversations are common, as customers almost never submit all the needed data right away. Streamlining the claim process is difficult due to this and a major pain point for customer service employees. You should, therefore, quit emails to beat the odds and try to move away from manual workflows and decrease wasted resources.
A streamlined warranty claim process is key
The warranty claims process must be streamlined to avoid manual workflows and can be executed by having all the correct data collected from customers right away. It’s also important to ensure customers don’t have to repeat themselves, as 66% claim this as being the most annoying aspect of customer service, and make the claim process feel as seamless as possible from a customer perspective.
We are going through a digital transformation, and 90% of customers expect the convenience of using an online self-service portal to start their claims. A stellar claim experience is therefore crucial to higher customer satisfaction and is a powerful way to turn warranty claims into a source of revenue by earning your customers’ loyalty.
The claim solution for the competitive retailer: Claimlane
With Claimlane, you can proactively streamline the claim handling process of faulty products with customers and suppliers (brands), all from a single integrated platform. You also gain control over your customer journey to ensure a seamless claim experience every time with the customizable Customer Self-Service Portal. Furthermore, the platform gives you access to advanced Analytics and a data-driven overview to help you reduce the resolution time on claims, prevent unnecessary returns, and avoid customer complaints. Below you can see a brief overview of how the Claimlane platform works.
BabySam, a leading retailer of baby products in Denmark, has leveraged Claimlane to get ahead of the competition. They are now even more data-driven and collect data on faulty products as well as having one unified workflow for all their brands. Claimlane is a must-have in your tech stack to provide an unforgettable aftersales experience that exceeds customer expectations.
Marc Mayland Jensen
August 16, 2022
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