Last month we looked at how keen negotiation by dealer groups in the procurement of warranty products can lead to compromise in both product coverage and agreed labour rate reimbursement.

What has become apparent from feedback received is that these are not the only compromises that can cause a disconnection.

One compromise that causes a major disconnection between stakeholders (dealers, suppliers, customers) is the product type. The correct choice will have a direct influence on the perceived value and quality of that product within the eyes of the key stakeholders.

With the myriad of warranty products that are currently on offer, is it any wonder that the customer has become confused?

Their lack of in-depth knowledge, coupled with a less than detailed explanation of product type by the supplying dealer, can only lead to misunderstanding and dissatisfaction.

The key to solving this problem and subsequently eradicating the customers’ issues lie in two areas. The first is in clarification of the product type. From customer feedback it is clear they consider manufacturer approved and branded programmes to be best value for money.

It is clear that the product type that creates most retail customer concern is a dealer guarantee or uninsured type product. The belief is that they lack credibility and offer the greatest potential for rejection of claims.

The second area to resolve is one of dealer education.

It is essential that the dealer staff are trained correctly and become fully conversant with product type, coverage levels and sales processes.