Embracing cutting-edge technology in the automotive warranty industry

September 12, 2023

In an era of rapid technological advancement, the automotive industry is undergoing a digital transformation, and automotive warranty providers are using technology to enhance customer experiences and be better partners for dealerships and OEMs. As we move forward, the automotive industry will need to continue to integrate technology in an effort to create a seamless car buying experience, benefiting dealerships, OEMs, and customers alike. In this article, we’ll cover:

Why is it important to embrace technology as an automotive warranty provider?

The importance of staying relevant in a rapidly changing market cannot be overstated. As technology continues to advance at an unprecedented pace, so do consumer needs and expectations. To continue to provide excellent customer service, automotive warranty providers should welcome the use of technology in all facets of their operations.

Further, embracing technology also enables warranty companies to remain top-notch partners for OEMs, dealers, and other stakeholders. It not only ensures relevancy, but also enhances efficiency, streamlines processes, and offers innovative solutions, solidifying their position as valuable partners in an increasingly interconnected business landscape.

How are automotive warranty providers embracing technology?

Accelerating claims processing with artificial intelligence (AI)

AI has revolutionized the way automotive warranty companies handle claims processing, significantly accelerating the entire workflow and creating a better experience for everyone. Thanks to AI-driven systems at LGM, the majority of the firm’s claims are now adjudicated in under 5 seconds. This rapid processing time has profound advantages for both dealers and customers. For dealerships, faster claim approvals translate into quicker responses to customer concerns, and gets them back on the road sooner, meaning dealerships can see more customers throughout the day. Customers see a reduction in the time their vehicle spends in the repair shop, which minimizes inconvenience and creates a better experience overall.

Read more: Streamlining efficiency for automotive warranty providers with AI and automation

Enhancing service with chatbots and virtual assistants

Technology is also being used by warranty providers to enhance customer service with the power of chatbots and virtual assistants. Chatbots and virtual assistants have become invaluable in handling routine customer queries, providing instant support, and guiding customers and dealer partners through the claims process. This streamlines operations and reduces any frustrations associated with waiting for assistance. Furthermore, automotive warranty providers are incorporating virtual feedback tools that enable them to gain valuable insights and learn from their customers how to continuously improve their services.

Read more: Introducing Live Chat: A new time-saving feature for enhanced service

Supplying F&I Managers with digital selling tools for a holistic, customer-centric approach

Warranty providers are also harnessing technology for a customer-centric approach to selling. At LGM, one of the remarkable innovations in this space is the eMenu, a digital menu selling tool that’s transforming the way protection options are presented to customers. In a dealership, menu selling refers to the ethical practice of offering customers a comprehensive view of protection plans and coverage options in a transparent and straightforward manner. This holistic approach empowers customers to make informed decisions about the products that best suit their needs. Digital menu selling technology provides an interactive and multimedia platform with easy-to-understand information, making it more accessible and convenient for customers.

Read more: Menu Selling and what it means in the dealership

Empowering customers with digital, self-serve F&I information

Another noteworthy innovation is the use of digital, self-serve information tools for customers. Much like the Build and Price tools offered on OEM websites, these digital resources are designed to empower automotive customers to make informed decisions about F&I products right from the comfort of their homes. These tools are important educational resources to have available to customers online and offer a holistic view of the protection options available, enabling customers to explore their options, understand the coverage in detail, and assess their individual needs before even setting foot in a dealership.

Learn more: LGM’s Recommendation Engine

Extending the experience beyond the sale with mobile apps and consumer portals

Automotive warranty providers have developed mobile apps and consumer portals to extend the customer experience beyond the vehicle sale by putting essential information right at their fingertips. These tools can offer a host of functions, including giving the customer full access to their policy details and the ability to control their personal information. This not only enhances customer convenience and autonomy but also reduces time-consuming administrative burdens for both customers and dealers alike.

Providing more learning opportunities with on-demand training for dealers

In the fast-paced world of car dealerships, time is of the essence, and dealers are often juggling a multitude of tasks. Harnessing technology that provides digital, on-demand training solutions that cater to the dealer’s schedule is a game-changer. These digital platforms give dealers the flexibility they need, allowing them to access training materials and resources whenever it suits them best. This on-demand approach not only respects the time constraints of dealers but also ensures that they can continuously enhance their knowledge and skills and stay up-to-date with the latest industry developments.

Read more: It’s time to think differently about how to increase profitability in the business office

Personalizing communications to customers

Another powerful digital tool is a Customer Relationship Management (CRM) system. These systems enable personalized communications for a more meaningful interaction, and ensure customers receive messages that are tailored, relevant and timely. From product-related communications and updates to crucial, service-related information such as upcoming policy expirations or renewal opportunities, CRMs allow providers and dealers to stay seamlessly connected with their customers. This not only strengthens the bond between providers, dealers and customers, but also ensures that customers are well-informed about their warranty coverage and options, fostering trust and loyalty.

How will technology create a more seamless car buying experience in the future?

The automotive industry has undoubtedly made substantial progress toward a digitally connected future. Nevertheless, as dealers, OEMs, F&I providers, and other stakeholders adopt unintegrated technology, which sometimes results in an inconvenient and fragmented digital customer experience. Achieving a truly seamless and customer-centric experience demands a more united effort. LGM envisions a future of Responsible Mobility for All where information sharing is not only streamlined but also effortlessly integrated into every aspect of the car buying experience.