Volume + Variety = Velocity: How Big Data Is Boosting Warranty Revenue


Delivering warranty services and new parts in the aftermarket is naturally a burden for vehicle manufacturers confronted with consumer grievances. Sometimes, the burden of cost has to be borne by manufacturers in spite of the suppliers or the original equipment manufacturers (OEMs) being at fault. This could lead to increase in budgets for warranty departments. But big data technologies and mobile apps have turned that around.

Owing to an unprecedented amount of data and cutting-edge technologies, vehicle makers are now able to speed up processes, utilize resources more meaningfully and even discover profit margins. While their services are becoming quicker, accurate, and cheaper, greater customer satisfaction is turning out to be a by-product.

Data enabling velocity in the warranty business

Claims data– When vehicle owners faced problems earlier, they would describe it to warranty personnel and wait while they analyzed several aspects in the course of verification. However, with modern-day web technologies, it is possible for vehicle owners to log in to the manufacturer’s portal, register their complaint, and provide specific inputs for the manufacturing portal to programmatically verify the claim. The result is speed, accuracy, and smooth customer service. But without a large data set of all the relevant parameters, the verification process should not be automated.

Service data–Global service units are common for manufacturing companies these days. Technical expertise of service personnel allow them to identify specific problems, convey what they discover to manufacturing headquarters, and let them verify the defect through a mobile app. In most cases, this is essential for quick turnarounds and preventing decision-making faults.

Supplier data–The analysis of a defect claimed under warranty may sometimes lead the manufacturer to a part that has come from a supplier. In that case, the data of root cause analysis of the defected part should be linked to the supplier, the date of supply, method of supply, etc. It holds a specific supplier accountable, without room for discrepancy. Such data should be associated with specific products, so the system can intelligently predict supplier non-compliance, issue warnings to the manufacturer, and take timely actions to mitigate loss.

Social data & salesforce– It is important that manufacturers use cloud technology to go the extra mile in customer service. If a pattern of defects or poor service has emerged in the vehicle aftermarket, the information should be used to address and advise customers in distress. Salesforce is a useful tool to apprise and network with value chain partners on emerging problems and address them before it is too late. Such platforms can also be used for promoting thought-leadership in a competitive market.

Until the last decade, most manufacturers believed that warranty department was just a cost center. Turning it into a productive revenue machine was inconceivable. But all that changed due to data and cloud-based enterprise platforms.

Silicon Valley has created the scope for warranty personnel to identify potential profit areas and terminate costly processes. It also makes sense to use the scope the technology offers today for customer convenience. Cloud access implies real-time information across the globe. So if you want customers to feel that your service under warranty is a great option, it needs to be quick and accurate.

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Aashish Sharma is an Internet Research Analyst and an aspiring social media marketer. He possesses hands-on experience in optimizing and promoting websites on leading search engines and web media. His passion is to keep updated with what masters of the internet such as  Google, Yahoo, Twitter, Facebook etc. are up to innovate & deliver. At Tjabh Blog, he aims to be a part of most active online community and most widely-read blogs on the web, covering the insights of Tjabh Blog that will help in preparing the leaders of tomorrow.