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Seagate's Sharad Srivastava says that the company may increase its warranty
period beyond five years to prove its product's reliability to buyers. But
Samsung's Vivek Prakash feels that his organization's zero turnaround time
and service centres in 60 cities will attract customers to go for its HDDs.
Increased warranty to five years...
We were earlier offering three-year replacement warranty, but we raised this
to five years because that is what our customers wanted. The new five-year
warranty enables our partners to sell the best drives to their customers and
minimizes the cost and time they spend on warranty-related issues. It also shows
that Seagate leads the industry in deploying innovative programs to meet the
needs of the channel.
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“Warranty is not the only aspect that attracts customers to buy a particular product or brand. Reliability is of an equal or more importance”
-Sharad Srivastava
Country Manager, Seagate India |
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Product reliability more important...
Warranty is not the only aspect that attracts customers to buy a particular
product or brand. The product's reliability is of an equal or more importance.
And we consider this as a priority in our business strategy. At the same time, a
longer warranty period can convince the customer to buy a product and it also
reflects the company's seriousness about its commitment.
32-city service network...
We have our service network spread across 32 cities spread in India, which
entertain any walk-in customer. Alternatively, buyers can also courier their
defective drives to our Seagate Service Center at Chennai, which will send it
back to the customer directly. We have the capability to deliver prompt service
to our customers through a widespread channel base of more than 700 partners,
covering 84 cities.
Two to four days of TAT...
The turnaround time (TAT) of replacing the defective drive with a fresh one
takes two to four working days and we stick to this commitment. Shorter
turnaround time is crucial as the customer can't wait for long period for the
drive to be repaired, given the importance of data these days. Also, it reflects
very badly on our logistics management to stretch the TAT to beyond four days.
No need to increase warranty...
I don't think there is a need to extend the warranty period, as of now. At
the moment, we are focusing on sustaining our image by delivering what we are
promise. One has to bear in mind that technology is changing rapidly and
customers would like to have go for upgradations in less than five years, so
offering longer warranty period might not be required.
Received great response so far...
As of now we have received very positive feedback from customers for the
increased warranty period, which has had a positive effect on our business.
Partners are more comfortable selling our HDDs with five-year warranty and are
transferring our confidence in our products to their customers.
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“The five-year warranty is a proof of our confidence in our product's quality and our desire to provide maximum satisfaction to customers”
-Vivek Prakash
VP, Samsung Electronics India Ltd |
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Five-year replacement warranty...
Samsung is the only brand in the country today to offer a full five-year
warranty. Other brands offer a return for credit instead of a replacement
warranty. But we offer, full warranty, where for five years, the customer shall
get a replacement for a defective drive. This clearly shows our commitment to
the Indian market. This move has had a direct impact on our sales as well as
marketshare, due to an increased preference for our brand.
Customer satisfaction matters...
There is a change in customer expectations, who want good value for their
money and the best service possible. At Samsung, we believe in leading customer
satisfaction. The five-year warranty is a proof of our confidence in our product's
quality and our desire to provide maximum satisfaction to customers.
Service centers in 60 cities...
At present, we have 262 authorized service centers across India, of which 15
specialize in HDD-related problems. We have also increased our buffer stocks in
the country and plan a higher investment on our service infrastructure in India.
This move was planned because there was HDD shortage, which was not good for our
customers as well as the channel. In over three months, Samsung has more than
11,000 buffer HDDs available with its partners across the country, thereby
reducing turnaround time.
Zero turnaround time (TAT)...
Our zero turnaround time (TAT) service is unique as it sets a new benchmark
for the industry in leading customer satisfaction. We offer this service wherein
we replace the damaged drive within 24 hour of getting the drive, which saves
the buyer a lot of time and heartache.
No plans to extend warranty...
We do not have any plan to increase the warranty period from the existing
five years. This is the maximum life of a PC and its components, in its current
form. So increasing the warranty period beyond this time frame is not essential,
as very few customers will require or avail of it.
Market reaction...
The market reaction to our warranty policy has been extremely good, which
has been reflected in our sales. We have experienced a growth of 48% over last
year, which proves the positive reaction from customers. This shows that we
understand the market and its requirements well and are geared to match than.
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