Warranty management involves creating and implementing warranties for companies to ensure customer satisfaction while making a profit. It covers warranty creation, fulfillment, and monitoring for fraudulent activity. Proper handling is important to avoid losing money on faulty products and boost profits through refurbishing.
Warranty management is a professional field of practice that focuses on the effective creation and implementation of warranties for companies. While this type of work is typically done for companies that manufacture products, any company that offers warranties will typically have an interest in the services offered by professional warranty management companies or companies. Such work typically governs the establishment of warranties, usually by creating a warranty that instills sufficient product confidence in customers without costing a business too much and resolving warranty issues. Warranty management can potentially have a huge impact on a company’s bottom line, as improper management can cost companies a great deal of money.
Proper warranty management for a business typically deals with three main aspects of the warranties a business might offer: warranty creation, warranty fulfillment, and warranty fulfillment monitoring for fraudulent activity. Just like any other aspect of a business, warranty management is primarily concerned with ensuring customer satisfaction while making a profit. Customer satisfaction can be increased by creating guarantees that provide greater consumer confidence in a product. A customer is usually more likely to buy a product with a warranty that seems fair and indicates to him that a company believes the product will continue to work for a good amount of time.
Customer satisfaction is one reason why warranty management can be very important to a business. On the other hand, the firm should try to be sure that the guarantee does not eventually come back to hurt its bottom line. For example, a 90-day replacement warranty might be issued on a product that has not been properly tested and found a defect that has caused many of the products sold to stop working within 45 days. This would result in the company likely losing money on the product due to numerous replacement orders placed under warranty. Proper warranty handling is not just about the language used in a warranty, but also about ensuring that the product can live up to the warranty.
Warranty management typically also covers the process of actually fulfilling warranties created for a product. This usually means determining how a guarantee will be backed by a business. Some warranties may refund a customer the value of the product, while others will send the customer a replacement for a product that is not under warranty. Replacement warranties have become increasingly popular as they ensure that the customer continues to use the company’s product.
This type of replacement also typically requires a customer to send in the original product. Such steps are one aspect of warranty management that can boost profits and reduce fraud. A company can guarantee that the original product was truly defective in order to avoid fraudulent claims and can potentially refurbish the product for resale or use it to satisfy future warranty replacements.
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