A broken product is bad enough. But a broken promise? That’s even worse.
In your customers’ eyes, those extended warranty premiums they’ve been paying are a promise you’ll take care of their claim fast, from start to finish. But our industry views those claims as an expense that must be minimized at all costs.
A conflict of interest, to say the least — and one that might lead to droves of cancelations.
The reality is a third of customers will walk away from a business if they have just one bad experience. And in the extended warranty space, your claims process is the experience.
Here’s what you should do to make sure you’re delivering an excellent experience for everyone. Even your own administrators.
Phase 1: Frictionless First Impressions
Let’s be realistic. Your individual customers likely aren’t making a claim every year, let alone every month. That welcome email you sent outlining the claims process? It’s probably buried in an inbox somewhere (if it hasn’t been deleted).
If your customers call in their claim over the phone, the last thing they want to experience is being put on hold only to be bounced around while repeatedly explaining their situation to multiple reps.
And if they fill out a claim online, they likely don’t remember their policy number, which introduces friction.
That means your claims initiation process should be:
- Omnichannel and available via an app, online, phone, email… even social media
- Auto-populated with your customer’s account information
- Set up to auto-generate claim numbers and email or text next steps
Why Should You Do This?
For starters, things like self-service portals can reduce claims costs associated with customer service by up to 30% — a significant number.
More importantly, when you give your customers more options to initiate a claim — and make it easy no matter the method — you make them feel like you’re giving them what they need in the moment.
Not miles of red tape to navigate.
Phase 2: The Critical Middle
Once your client does their part, it’s your time to shine. How your business conducts itself from this moment on will define your customers’ perception.
Bluntly, these present real (pardon the pun) “make it or break it” moments.
Your team should have a dedicated system in place that:
- Captures the details of each claim, rather than a black hole where data disappears
- Instantly validates (or denies) the claim based on the policy and associated coverage
- Directly connects to your preferred vendors or contractors for fulfillment
Now, there will always be an exception where a certain claim needs to be escalated for manual human review.
But we’ve designed our warranty claims software to process as much as possible, including rules-based authorization for payouts, integration with AutoCheck and Carfax to prevent fraudulent claims and compatible OEM/carrier formats.
Why Should You Do This?
Efficiency, efficiency, efficiency.
Customers want their service to be expedited, with 70% saying speed is directly correlated to their level of satisfaction.
Plus, the more you don’t have to do frees your time to focus on improving other operational areas.
Phase Ongoing
We stated in Phase 1 that you should send a follow-up text and/or email giving your customer, at minimum, their claim number.
But that’s just the first update you should send.
The best-performing extended warranty companies send frequent updates:
- If an auto or RV extended warranty, a list of partner repair shops
- If an extended home warranty, the name of the contractor and their expected ETA
- Whenever a part ships (or gets backordered)
- When the product is fixed or the claim is fulfilled
The best companies, though, provide a “live look” dashboard displaying the current status and remaining time or steps needed to fulfill the claim.
Why Does This Matter?
During this phase, there’s no such thing as overcommunicating. Providing an update at each milestone signals visibility and transparency — anything less is like being left in the dark. Including a direct number to call or other ways to get more information breeds this visibility and should be considered a must.
That’s why our contract management platform comes with built-in SMS notifications for clients: when they’re in the loop, they won’t need to call in for an update. That saves them — and you — frustration.
Phase 3: Client Fulfillment
Just because a claim is fulfilled doesn’t mean it’s really fulfilled. Actually, this line of thinking can lead to a drop-off in client satisfaction and your organizational health.
Here’s why.
Following the above steps outlined will result in, at worst, your customers getting what they think they deserve. Remember: they believe your company is simply doing what they paid you to do.
So, how do you make this interaction feel less transactional?
You ask them to tell you about their experience (ideally within 24 hours) while it’s still fresh in their mind:
- Was it easy to submit a claim?
- Did anything confuse them?
- Was their claim finished in a timely manner?
- Did you live up to their expectations?
- Would they recommend you to a friend?
Why Does This Matter?
You gain customers through a product — and keep them through service.
Hearing what customers think about your company in their own voice gives you the unvarnished truth about what’s working and what’s not.
Phase 4: Rearview Refinement
Now, you can’t count on customers to leave a review because less than 10% will. But you can analyze what happened throughout their experience through reporting, such as:
- Time-to-close from initial claim date
- Overall profitability
- Cost efficiency
- Number of touchpoints
- Billing account balance
Those are the basic reports any extended warranty administration tool should provide, but you can customize nearly unlimited reports to your liking with Inline Admin.
Why Does This Matter?
Data is digital gold that generates continuous improvement.
It's Time for You To Claim a Better Experience
Yes, every claim is an expense. At the same time, it’s an opportunity to get free marketing from customers turned brand advocates and loyalists.
If you need help adding more extended warranty customers or managing their claims faster and easier, we can help with a no-obligation demo.
