Warranty and service coverage can vary between business-to-consumer (B2B) and business-to-consumer (B2C) customers and not all apply to each sector: Once you discover the many benefits of implementing programs that apply to your markets, there are seven key factors to consider in maximizing the return on service contracts and expanded warranty offerings. Establishing an effective line of communication with the group responsible for managing service contracts in your client`s business facilitates renewal rates and helps resolve disputes ahead of contract terms. Many products such as manufacturing facilities or industrial electronics require regular evaluation and recalibration to maximize performance. Such activities are good candidates for inclusion in your service contract coverage options. If you`ve purchased a new vehicle, you`re protecting your investment from costly car repairs by activating your service contract program. Simplify the buying process by offering credit card, PayPal or other electronic payment services. Sellers authorized to offer negotiated prices to customers at the time of the first sale have greater potential to complete the sale of the warranty or extended service contract (attachment rate). It is precisely in the case of B2B contracts that negotiations are common in the setting of contract prices. Factors may include the volume of customer turnover, the price of covered parts, the cost of labour for technical service personnel, the customer`s location and much more. Each of these authorizations must contain all details as a service on the same day, the next day, the next business day, etc. The costs and special costs that may be incurred must also be documented. Learn how the BWB – Billing Workbench Solution in SAP streamlines operations, solves typical contract billing problems, provides real-time insights, increases productivity and increases service revenue? Take a look at the system, demonstrate the SAP BWB – Performance Based Billing Solution, let`s do the rest: To provide the required level of performance while automatically generating the related billing and accounting entries, several approaches to service contracts must be taken into account: When were the renewal notifications made to the customer? Have they resulted in contract renewals or renewals? Have new services been added? How many notifications did they take place before the end of the sale? Establishing a complex mix of service contracts that meet conditions such as car warranties or IT services requires flexibility and configurable conditions for coverage requests and billing accuracy.
Doing this correctly is a key to maximizing the HANA ROI SAP. If your company has not implemented a comprehensive warranty and service contract management program, you could leave considerable potential on the table for extended profits, future sales and customer satisfaction. Attachment rates are measured as a percentage of service contracts or guarantees signed at the time of the first sale of your product or service. According to studies, a 5% increase in attachment rates corresponds to a 9% increase in service revenues. Providing your sales teams with the tools they need for configuration, price and supply (CPQ) allows you to work much more efficiently and more precisely with software tailored to these business needs. For customers with an extended warranty service contract, you can, using privilege management, determine, during an annual performance evaluation, the credits or charges that will be granted to the customer, depending on whether the aircraft has flown more or less hours than expected. The following questions will help you decide if your organization has a solution for program/service contracts.