Today’s mattress market is big business with the global mattress market currently valued at around $81 billion. For decades, shifts in the mattress industry occurred gradually. Early on, the modern market was ruled by only a handful of companies that dominated all the depot stores and offline retail. These big brands all followed pretty much the same business model: Distribute mattresses to department and furniture stores, where they’d be sold by middlemen who’d collect some of the profits.
But in 2014, the industry underwent a major change. Thanks largely to the emergence of the Casper brand, which helped pioneer the model of mattresses being sold online directly to consumers, the bed-in-a-box trend took off. In less than seven years, the number of new players in the mattress space has ballooned.
Research by the BSC research group showed that more than 40% of customers considered reputation and warranty as to their biggest factors while making a product choice.
A hassle-free warranty process is the most important service a warranty brand can offer to their customers to build trust and stay ahead of their competitors. And as the mattress industry is moving to an increasingly D2C model, it becomes imperative for mattress brands to develop a solution that will help them bring customers to their website and remarket and retain them.
Are you looking for these features in a Warranty Management Software for your mattress brand?
- Access to data of your Amazon/ retail end customers
- The ability to bring retail customers to your website.
- Unparraled warranty claims experience for your end customers.
- Warranty claims tracking
- Elimination of fraud/ expired claims
- Introduction - Helping Flo develop a hassle-free warranty experience for their end-users.
- What were the issues Flo was facing?
- Challenges -
- A difficult warranty claims process for end customers -
- High operational costs -
- Know how you can reduce your warranty costs.
- Not being able to cross-sell, upsell to existing customers.
- Increased Fraudulent Claims -
- How did NeuroWarranty help Flo Mattress?
- Transforming Flo's post-sales service -
- Simplifying customer communications and building a connect with end-customers -
- Getting access to data of end customers -
- The Results?
- How can your Mattress brand benefit from this solution?
How has NeuroWarranty helped Mattress brands with its Digital Warranty Management Solution?
Introduction - Helping Flo develop a hassle-free warranty experience for their end-users.
Flo focuses on providing best in class mattresses to its consumers since its inception. Flo aims to become the biggest mattress brand in India and change the industry by making it customer-centric and taking it truly D2C.
What were the issues Flo was facing?
- A difficult warranty claims process for end customers
- Not being able to cross-sell, upsell to existing customers.
- High warranty-related costs.
- Increased Fraudulent Claims.
- Hassle in managing product warranties for multiple SKUs.
What did NeuroWarranty notice?
While many Mattress brands focussed heavily on acquiring customers and giving discounts, the importance of a delightful post-sales customer experience was ignored by many brands. Research showed that close to 40% of customers chose a brand based on the above factors, hence for unparalleled growth, Flo needed to revamp its post-sales service.
How does NeuroWarranty digitize your warranty process?
A difficult warranty claims process for end customers -
Flo was using a traditional paper-based warranty process to serve its customers, but due to the long life cycle of products in the mattress industry, the paper-based warranty cards were often misplaced by customers. Once the warranty card was lost, customers could no longer claim a warranty for their products.
In an industry where customer trust is crucial if customers had to face difficulties in claiming a warranty, they would simply switch to competitor brands.
High operational costs -
Flo had a major problem with their warranty costs. Their operations were extremely dependent on paper-based systems, and these high overheads accounted for a huge percentage of the total spending in this department. As a result, their warranty services cost increased multi-fold due to four main factors:
- Labour-intensive manual claims process.
- No direct communication between customers who claim a warranty and client servicing teams.
- Fraudulent/ Expired warranty claims.
- Lack of access to warranty data.
Know how you can reduce your warranty costs.
Not being able to cross-sell, upsell to existing customers.
Mattress brands have a very high customer lifetime value, but not having effective channels for cross-selling and upselling restricts mattress brands from unlocking the true value of their customers.
Data from Oberlo shows that 80% of businesses consider email marketing as the most effective strategy for retaining customers. The lack of access to customer data like emails and phone numbers made Flo struggle with their cross-selling efforts.
Not being able to target the right segment of customers at the right time resulted in Flo losing invaluable repeat business.
Increased Fraudulent Claims -
Our client was receiving numerous monthly fraudulent claims. A traditional warranty solution used by Flo could not differentiate between fraudulent, expired and genuine claims. This affected its revenue and caused a poor brand image, thus, increasing warranty costs and cutting margins.
Stop warranty claim frauds faced by your brand now.
Flo was using a Traditional Warranty Management System. In the absence of AI and IoT based tools, it was facing an increase in cost and time elements.
- Huge time investment in the claim settlement process.
- Increased warranty frauds due to reliance upon paperwork. And we know how manual data recording is prone to errors.
How did NeuroWarranty help Flo Mattress?
Flo realized that to built brand trust and become a D2C leader it had to -
- Simplify the warranty process for its end customers.
- Access customer data of retail and amazon customers to Cross-sell and up-sell to existing customers effectively.
Flo trusted NeuroWarranty with its best warranty management solution. With NeuroWarranty, customers of Flo can simply scan the tag placed inside the package to register for a warranty and track and manage it digitally.
The scan gathers relevant consumer data for Flo, which is being leveraged in several innovative ways to resell, cross-sell and upsell to existing customers. The digitization even consolidated all data in one place, allowing Flo to track its sales across geographies and demographics and take informed business decisions.
Transforming Flo's post-sales service -
NeuroWarranty replaced Flo's traditional paper-based warranty with a QR code-based digital warranty. The new warranty software allowed Flo to deliver an unparalleled customer experience across all touchpoints.
How was the mattress brand's post-sales service improved?
- Customers no longer had to go through the hassle of finding old bills and warranty cards to claim a warranty.
- Customers could track the status of their warranty claim in real-time.
- Using the Inbuilt CRM customers can communicate directly with customer support executives to solve their queries.
Simplifying customer communications and building a connect with end-customers -
NeuroWarrnty's Inbuilt CRM helped Flo manage all their post-sales customer communications on a single dashboard. The simplified customer interaction helped Flo reduce customer complaints calls and help tickets while reducing their customer service costs by 30%.
Flo had identified the need to be customer-centric. They needed to connect with their end customers at scale to provide an unparalleled customer experience.
NeuroWarranty helped Flo increase their customer engagement by enabling them to respond to individual customer queries and acknowledge customer feedback and reviews.
Getting access to data of end customers -
Mattress brands like Flo struggled to remarket effectively, as their sales channels (retail and marketplaces like Amazon) did not give them the end-customer data needed to reach the customers.
NeuroWarranty helped Flo by giving them complete access to the personal data of every registered customer including - Names, Email Ids and Phone Numbers. Access to end customer data allowed Flo to reengineer its remarketing strategy and achieve the highest percentage of repeat sales in the industry segment.
Get data of your Amazon and other marketplace customers now!
Digitizing and automating warranty claims -
In an industry where it is crucial to building trust among your customers for a long term relationship, the easy and hassle-free warranty claims process soon became a key differentiator between Flo and its competitors.
NeuroWarranty replaced Flo's traditional warranty with a QR code-based Digital Warranty Solution. With the process of 'NeuroTagging', NeuroWarranty not only helped Flo automate its warranty but also made product serialization more effective for the improved supply chain management.
Customers of the mattress brand no longer had to secure old purchase bills and warranty cards to claim a warranty, which was one of the main reasons for rejecting warranty claims as warranty cards get easily misplaced. The automated warranty claims process resulted in an 80% decrease in warranty processing costs for Flo.
Download the complete case study to know more on how NeuroWarranty helped the consumer product leader Syska digitize its warranty process and increase repeat sales. Download Complete Case Study.
- With its simplified warranty claims process, Flo was able to position itself as the most trusted, customer-centric mattress brand and the hassle-free warranty process continues to be among its USPs.
- As the scan gathered personal data of its customers, Flo was able to use this data to cross-sell and resell effectively and bring customers directly to its website.
- As the warranty process was automated Flo reduced its warranty processing costs by more than half.
How can your Mattress brand benefit from this solution?
NeuroWarranty's warranty management software is helping Flo, Sleep Ayurveda, Syska and 100+ leading brands increase their repeat sales by transforming their postsales services.
What are you waiting for?
Make Digital Warranty Management System your Strategic Advantage!
Check out the list of the best warranty management solftware for the year 2022.
NeuroWarranty guarantees -
- Increase in revenue and profit
- Up to 90% decrease in warranty-related costs.
- Up to 180% increase in repeat sales.
- 100% Reduction in fraudulent warranty claims
- Data of your Amazon, Flipkart and retail end customers
- 5X customer engagement compared to your competitors.
- Kickstarting your D2C journey.
If you wish to convert your warranty expenses into a profit-making asset, schedule a call with our solution experts and get a solution that has delivered results for market leaders in the mattress segment. Schedule a call now.