What is Extended Warranty?
The term "extended warranty" is generally applied to coverages that protect the product owner from the cost of repairs or replacement in the event of a mechanical or electrical breakdown during a specified period of time after its factory warranty expires. Throughout the global marketplace, warranties have evolved into a powerful and flexible tool for strategically enhancing business.
In order for warranty programs to be effective, an experienced partner is needed to avoid possible marketing and financial pitfalls. The following are the examples of extended warranty programs that Techmark Japan offers :
Implemented by: Retailers, distributors, eCommerce websites etc
Outboard extended warranties: By paying warranty fees, end-user has the choice to add-on an extended warranty program at the time of a product's purchase.
By implementing the outboard extended warranty, an additional source of profit is created through collection of commissions on warranty sales. Repairs under warranty programs are directed back to retailers, increasing retailers' service business. The increased interaction promotes the development of long-term relationships resulting in greater customer loyalty and repeat sales.
Implemented by: Manufacturers, distributors, leasing companies
Inboard Extended Warranty: The extended warranty program is already included as part of the product or leasing service. Usually manufacturers or retail companies add the program to a specific product aimed at a specific group.
By implementing the inboard extended warranty, companies may seek a competitive edge by extending factory warranties longer than their competitors. Longer warranties provide buffers against price competition by avoiding discount comparisons and raising customers' quality perception of the product.
Implemented by: Credit card issuers etc
Credit card attachment: The extended warranty program is included as one of the benefits of the credit card. When one purchases a product using that card, an extended warranty program is automatically attached.
By implementing the extended warranty program as part of a free service for credit card members, credit card issuers will be able to add a service that increases the credit card's frequency in use, the total amount used with the credit card, and raise the customers' quality perception of the card.
Since all extended warranty programs are underwritten by highly credible insurance companies, there is no need to save repair funds, and it is probable to plan and equalize expenses. Financial closing would therefore be simplified and our clients are able to provide clear explanations to their stakeholders.
Utilizing Techmark Japan's data containing over 80 million products and 6 million claim processing data, Techmark Japan provides manufacturers with thorough analyses that identify the product's failure symptoms, the causes of such defects, and suggests ways to improve the product's quality with the goal of lowering claim costs. For distributors, Techmark Japan provides information that they could use to analyze the product's quality that they sell.