Challenges Faced by Manufacturers in Implementing Extended Warranty and Service Contract ProgramsJun 07, 2023
While extended warranties and service contracts can offer significant benefits to manufacturers, implementing these programs is not without its challenges. In this blog post, we will discuss some of the most common obstacles manufacturers face and how they can address them.
Customers may perceive extended warranties and service contracts as unnecessary or overpriced. Manufacturers need to effectively communicate the value and benefits of these offerings to overcome this perception.
Lack of awareness
Manufacturers must invest in marketing and promotional efforts to ensure that customers are aware of the available extended warranty and service contract options.
Complex warranty terms
Manufacturers must make sure their warranty terms and conditions are easy to understand to avoid confusion and skepticism among customers.
Manufacturers must carefully price their extended warranty and service contract offerings to balance customer price sensitivity with the need for profitability.
Trust and reputation
Manufacturers must build a reputation for honoring warranty claims and providing excellent customer service to build trust with their customers.
Addressing these challenges can be difficult, but an audit program can help manufacturers navigate these obstacles and optimize their extended warranty and service contract offerings. In our next blog post, we will discuss the benefits of our Extended Warranty and Service Contract Audit program and how it can help manufacturers unlock their aftermarket revenue potential.
Learn more about how you can maximize these extended warranties and service contracts through our expert audit program by clicking this link.
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