Warranty management: It´s time to get proactive
Explore the challenges of warranty management and learn how to cut costs and drive customer satisfaction
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Contents
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The big warranty challenge
Discussing the business issues and major impacts
shaping today’s warranty landscape
In the experience economy, your customers hold the power and their expectations are growing by the day.
Today, consumers increasingly demand three things: convenience, speed and reliability, a trifecta that has grown to define the modern age.
Customers want to find desired products easily, receive them quickly and depend on them daily, and they won’t hesitate to voice their dissatisfaction should interruptions arise during this consumption process.
In the modern era, proactive planning and rapid resolutions are the only viable approaches to inevitable warranty issues, as with each passing day, a decline in both brand and product perception is sustained.
For manufacturers who already spend 2% of total sales to cater to warranty obligations, these negative impacts can be catastrophic – particularly when product complexity is increasing and possible points of failure grow.
To reduce warranty spend, limit customer dissatisfaction and maintain brand reputation, you must reduce the time taken to detect issues, identify root causes and resolve faults – and the pressure is mounting.
So, what can you do?
Advanced analytics hold the key to transforming the art and science of warranty management.
Let’s take a look at what this could mean for your business.
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2%
The cost to cover
warranty obligations
as a percentage of
total sales
Warranty works better with analytics
Summarizing the value and practical application of data analysis on warranty
Analytics applied to warranty is the No. 1 differentiator between best in class and laggard service organizations1.
The last decade has seen rapid advances in connectivity, mobility, analytics and data processing, creating what some call the fourth industrial revolution or Industry 4.0.
A hallmark of Industry 4.0 is advanced analytics, which when applied to your warranty management processes can deliver impressive results, strengthen your manufacturing processes and bring them forward into a powerful digital age.
- Increase automation
- Improve recall precision
- Reduce costs
- Faster problem resolution
- Recover more warranty costs
- Increase extended warranty profit
- Enhanced synergy across products and factories
- Improved performance
- Improved customer experience
- Enhanced brand equity
- Increased market share
1. Aberdeen Group. Year. Article title. Findable: online << insert link online.
Warranty works better with analytics
Summarizing the value and practical application of analytical analysis on warranty
With the help of advanced analytics, manufacturers today can digitize operations, transform efficiency and supercharge profitability. The diagram below demonstrates where advanced analytics can save manufacturers time and money, alongside real-world data of the sorts of improvements that can be achieved.
How the Application of Advanced Analytics Delivers Value Across the Product Lifecycle and Detection Timeline
Analytics can minimize the impact of aftersales defects and increase efficiencies across the detect-prioritize-define process by:
- Identifying issues early
- Accelerating problem-solving
- Minimizing recall size
- Improving customer satisfaction
- Reducing bad claims
- Increasing service contract profit
How to win with warranty
Transform your processes with analytics to deliver superior financial and brand outcomes According
Manufacturers will win the war on warranty costs with proven advanced analytics.
Advanced analytics, with the help of artificial intelligence (AI) and machine learning (ML), can help quality engineers detect emerging issues sooner, find root causes faster, reduce problem resolution cycle times and ultimately lower warranty costs.
This is all made possible when creating a holistic view of quality and generating a robust feedback loop to connect asset performance analytics, quality product analytics and field quality analytics in one system.
The result?
Detect product field quality issues and resolve matters detected faster by analyzing warranty claims data with production, sales and telematic data.
Meet the ever-growing demands of customers by shortening issue resolution times and reducing service incident rates.
Release more high-quality products into the marketplace by detecting and correcting production faults. Grow trust and brand performance.
2. Citation goes here IDC. Year. Article title. Findable: online << insert link online.
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According to IDC,
the biggest differentiators are:
- Analytics systems
- Fraud detection tools
- Early warning systems
- Advanced analytics2
How manufacturers have transformed
their warranty challenges with SAS
Showcasing the real-world value customers gain with SAS
SAS offers the world’s most advanced analytics. We unite AI and machine learning, proactive real-time modelling and a team of experts in data science to help predict the next warranty issue. We combine field performance data with key customer, product, manufacturing and geographic information to create a comprehensive view of quality. Our AI predictive modelling allows you to make smarter decisions, predict issues before they happen and proactively escalate areas of improvement before they cause irreparable damage to your brand reputation.
But don’t just take our word for it.
HONDA
HONDA
American Honda Motor Company Inc.
The business issue:
- Lengthy warranty claim analysis and scrutinization
- Manual noncompliance identification
- Inaccurate forecasting for parts and usage
HONDA
American Honda Motor Company Inc.
The solution:
SAS Analytics combines business intelligence with advanced analytics to accurately identify claims that are incomplete, inaccurate or non-compliant. Before SAS, it took Honda examiners 3 minutes to identify a non-compliant claim in 35% of cases. Now, it takes less than a minute and Honda is finding a non-compliant claim 76% of the time – an improvement of more than 2x.
HONDA
American Honda Motor Company Inc.
The results:
3%
faster claims analysis
52%
of labor codes saw a reduction in labor costs
2%
non-compliant claims found
"Looking backward on a year-by-year basis, we’ve been within 1% of where we forecast to be." Kendrick Kau, Assistant Manager, Advanced Analytics group Honda
KIA
Kia Motors America
The business issue:
- Desire to continue delivering a better motoring experience
- Ambition to continue to rank #1 for quality in mass-market brand
KIA
Kia Motors America
The solution:
SAS uses advanced analytics and AI to take safety and quality to a new level for Kia Motors America. From the use of SAS Visual Analytics to provide technicians faster access to quality information, to the use of SAS Automation to accurately forecast failure rates and to minimize warranty spend, SAS plays a critical role helping Kia drive customer satisfaction.
KIA
Kia Motors America
The results:
"The SAS automation capability is unique."
in its ability to perform the Weibull Analysis across all car lines and model years in one process
5
consecutive years as the top-rated mass-market brand for quality
8.6 million
vehicles sold in the U.S.
"SAS gives us a huge advantage. Without it, we’d have to wait years to see durability failures and understand their impact in terms of customer satisfaction and warranty costs." John Thornton, Kia Motors America
KIA
See what SAS can do for you
Interested to find out whether SAS can help you achieve similar results? Take us for a test-spin today. Try a demo ››
Why choose SAS?
Why the manufacturing industry has relied on SAS for 40+ years
The convenience, speed and reliability trinity prevalent in today’s experience economy has increased the strain on manufacturer’s warranty management processes.
As a result, companies find themselves tasked with searching for solutions to help them become proactive rather than reactive, cutting the cost of warranties and driving customer satisfaction.
The way to win with warranty is to embrace Industry 4.0 and leverage advanced analytics to minimize the impact of aftersales defects, identifying issues quickly to address them before they escalate and irreparably damage brand reputation and profitability.
As the world leader in advanced analytics and AI, SAS is the analytics provider your organization needs to take its warranty management process and systems to the next level. Our full spectrum of market-leading advanced analytics solutions can integrate and operate on data from any source – from IoT to Cloud – in real-time. Our solutions are purpose built to deal with high-volume, variable sensor data sets, enabling you to extract value and insights from disparate systems quickly to keep up with the pace of change.
- Lower warranty costs
- Enhance product optimisation ROI
- Increase customer satisfaction
- Improve brand equity
- Identify potential warranty issues before they spread
- Benefit from 40+ years of trusted manufacturing experience
What analysts say about SAS:
Ready to reduce warranty
costs and improve profitability?
Embrace proactivity and learn about the difference SAS can make to your warranty management, now.
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