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- ⌛️ Warranty Work Has Its Challenges – and Consumers Are Noticing
⌛️ Warranty Work Has Its Challenges – and Consumers Are Noticing
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We recently came across an article on USA Today aimed at helping consumers understand what to expect with warranty work. Inspired by these insights, we’ve tailored the conversation to bring you a firsthand look at what consumers are saying when they think we’re not listening.
Warranty work has always brought unique challenges, from part delays to mandated OEM (Original Equipment Manufacturer) standards. Now, in 2024, as consumer expectations evolve, dealerships face increasing pressures to ensure warranty services help shape customer satisfaction and loyalty. This guide explores what consumers are saying about the process, along with actionable insights to keep them informed and satisfied.
Warranty Work vs. Regular Repairs: Managing Customer Expectations 🚗
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When customers bring in their vehicles for warranty work, they often brace for delays, especially if specific parts are needed. Unlike regular repairs, which often use readily available aftermarket parts, warranty work requires OEM parts. This adds unavoidable delays, especially given current supply chain issues. Consumers appreciate transparency here—dealerships that proactively communicate these factors and offer accurate timelines see stronger satisfaction.
Tip: Setting realistic expectations from the start can make all the difference. Let customers know that warranty repairs may require additional time for OEM compliance, and consider offering a portal or app for tracking repair statuses.
Why Warranty Claims Take Time: Shop Load & Manufacturer Regulations ⏳
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The timeline for warranty work varies widely. Simple updates may be quick, while complex repairs like engine replacements naturally take longer. Additionally, claim processing often involves extra communication with manufacturers, especially if inspections are required for larger repairs. Some manufacturers enforce time restrictions, which can add pressure on techs to move quickly, creating a potential for customer frustration.
Tip: Streamline communication between your service team and customers. Share expected delays and their reasons upfront, and prioritize quick-fix claims like software updates to free up shop capacity for larger jobs.
Managing Supply Chain and Parts Delays in Warranty Work 🛠️
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In 2024, parts delays remain one of the biggest pain points for warranty work, especially with OEM requirements. Since these parts are often not locally sourced, ordering can delay repairs significantly. Dealerships can cut down on some of this time by pre-ordering high-demand parts for specific repairs when possible.
Tip: Be proactive with parts orders. Collaborate with OEMs to create a high-demand inventory based on common repairs. For known issues, order parts in advance to avoid delays.
Customer Education: Simplify the Warranty Process 📘
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Customers can feel overwhelmed by warranty claim rules, especially if they have an extended warranty with more flexible options. Dealerships that take the time to explain these options (such as multiple repair shops for extended warranties) can help customers feel more in control and alleviate frustration.
Tip: Help customers understand their options with a quick FAQ on warranty repair times and policies, available in-store and online. Training service advisors to discuss coverage and timelines with customers can further enhance transparency and satisfaction.
Putting Retention First: Prioritizing a Seamless Warranty Experience
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Warranty work is more than just repairs—it’s an essential part of retaining customers and strengthening relationships. In today’s market, where auto sales slowdowns make retention critical, a smooth warranty process is essential. When customers feel informed and supported, they’re far more likely to return.
Next:
Enhance transparency: Clearly communicate repair timelines and parts availability.
Pre-order high-demand parts: Establish proactive ordering protocols for common warranty issues.
Use service advisors as educators: Ensure customers understand warranty timelines and options.
By staying ahead of warranty challenges, dealerships can build trust, improve satisfaction, and strengthen customer relationships, all while meeting today’s demands for service transparency.
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