Whether your business is conducted within the consumer market or with other businesses, warranties are almost essential to delivering exceptional value to the customer. They need to be managed efficiently in order to ensure benefits to both the business and the customer. Offering additional warranties are a clever way to give you the leg up on your competitors, as a consumer usually takes potential service costs into mind when selecting a product. Below is a diagram illustrating the three levels of product:
Source: Marketing Insider
In the middle is the core benefit of the product. This is basically the benefit that the customer gets from acquiring the product. For a washing machine, the customer is buying an efficient way to clean clothes. After that comes the actual product, that is the features and such. All washing machines clean clothes, but some do so better than others, which is reflected in the price. Finally comes the augmented product, which is the focus of this article.
The augmented product consists of additional benefits outside of the physical product itself, such as warranties and after-sales service. Companies that offer extended warranties and additional after-sales service stand out from competitors who don’t, as it is an additional benefit to the customer and shows that the manufacturer is willing to stand for the product’s quality.
After-sales service can make or break brand loyalty. A company that provides quality after-sales service creates a great impression on the customer, resulting in referrals and positive word-of-mouth.
However, warranties do not, and should not last forever. Providing unlimited service to the same product drains on resources such as labour and parts. Also, there comes a time when you want to encourage the customer to trade up, to take advantage of more recent innovations and technologies.
This is where service contracts are useful. With service contracts, you can set a limit for any of your customers’ accounts, as well as keep track of past service requests. This post is a simple, basic and instructional introduction to creating and managing warranties in Second CRM.
The Service Contracts module in Second CRM is used to manage both warranties and support contracts. See the post on support contracts here.
Creating a warranty
Here’s an example of what a warranty in the [Service Contracts] module looks like:
From here you can see information such as the contract start and end date, who it is assigned to, the related account and more. Another important field is the total and used units, which tracks the number of service instances offered and those that have been used. You can see more details about service requests related to this contract by clicking on the [Service Requests] tab on the right.
To begin creating a service contract, click on the [Service Contracts] module and click [+ Add Service Contract]. Fill in the fields with the relevant information and click Save.
Inputting the various products and services offered by your company in Second CRM makes creating documents easier, as you can simply select the relevant product from a menu. You can search for an existing product or service using the [ ] icon, or quick create a new one with the [ + ] icon, shown above.
Linking service requests
To link a service request to a particular service contract, you should create the service request from within the detail view of the related contract. Go to the detail view of the relevant service contract, as shown in the first figure, and click on the [Service Requests] tab on the right.
From here, click on the [+ Add Service Request] button and follow the prompts, entering the relevant information. Click Save to finish.
Managing service contracts
You can use the filtering function to locate and manage the service contracts within Second CRM. You can apply a filter to show only warranties out of all the other contracts you may have, show contracts expiring on that particular month, or filter by related product. Learn more about creating custom filters here.
An administrator can create a workflow to send reminders to selected recipients when a service contract is about to expire. Learn more about creating workflows, and explore the various functions of Second CRM with the User Manual.
Keep thorough records
Keeping thorough records in Second CRM will always make navigation easier. It allows Second CRM to work for you, making generating support contracts and warranties easier, besides keeping track of everything you’ve done and plan to do to close the deal. This way, you won’t lose track of which stage of the sales process you’re in with a customer, and will be able to organise and provide exceptional after-sales service, giving you the ability and peace of mind to run your business how you want it.