eCommunications Industry | Day 2 - Topic 4

Entitlements

What is an Entitlement?

An entitlement defines what support services a customer is eligible for based on their contract, subscription, or warranty. Entitlements control SLA levels, support channels, and service availability.

Entitlement Types

1. Standard Warranty

  • Coverage: 1 year from device purchase
  • Services: Defect repair, replacement for hardware failures
  • Exclusions: Accidental damage, water damage, lost/stolen
  • Example: Customer bought iPhone in Jan 2024 → Covered until Jan 2025

2. Extended Warranty

  • Coverage: 2-3 years (purchased separately)
  • Services: All standard warranty + accidental damage (2 incidents/year)
  • Cost: $99/year for smartphones

3. Premium Support Plans

  • Coverage: Ongoing (as long as subscription active)
  • Services: 24/7 phone support, priority SRs, device upgrades every 2 years
  • Cost: $15/month per line
  • Example: "TelecomCo Premium Care" subscription

4. Enterprise Service Contracts

  • Coverage: Custom negotiated (e.g., 500 lines for 3 years)
  • Services: Dedicated account team, on-site support, guaranteed uptime (99.9% SLA)
  • Cost: $50K/year

Entitlement Verification

When Customer Requests Support:
  1. Check Product: Is device still under warranty? (Purchase date: Jan 2024, Current: Nov 2024 → Yes, covered)
  2. Check Coverage: What's included? (Standard warranty = Defects only, no accidents)
  3. Check Entitlement Status: Active or Expired? (Contract end date: Dec 2025 → Active)
  4. Approve/Deny Service: "Your repair is covered under warranty at no charge"

Entitlement Rules

Service Channels by Tier

  • Basic (No entitlement): Self-service portal only, community forums
  • Standard (Active account): Email support (24-hour response), phone (business hours)
  • Premium (Paid plan): 24/7 phone, live chat, priority queue
  • Enterprise (Contract): Dedicated hotline, on-site visits, custom SLAs

Incident Limits

  • Standard Warranty: Unlimited defect repairs, but no accident coverage
  • Extended Warranty: 2 accidental damage claims per year (3rd claim = customer pays)
  • Premium Support: Unlimited SR submissions

Entitlement Expiration Handling

Automatic Notifications

  • 30 days before expiration: Email "Your warranty expires soon. Renew now for $99/year"
  • Expiration day: "Your warranty has expired. Repairs now cost $149"
  • When expired SR submitted: "Your warranty expired on Dec 1. Would you like to purchase a repair for $199?"

Grace Period

  • Some contracts allow 7-day grace period after expiration
  • Example: Warranty expired Dec 1, customer submits SR Dec 5 → Still honored

Entitlement Hierarchy

Example: Enterprise Account with Multiple Entitlements
  • Account-Level: "HealthCorp" has Enterprise Support Contract (500 lines, 24/7 support, 99.9% uptime SLA)
  • Product-Level: 100 iPhones have Extended Warranty (accidental damage covered)
  • User-Level: Executive users (10 people) have VIP support (15-min response SLA)
  • Rule: System checks most specific entitlement first (User → Product → Account)

Example: Entitlement Check Scenario

  • Customer: Jane from HealthCorp calls: "Dropped my iPhone, screen cracked"
  • Agent checks entitlements:
    • HealthCorp account → Enterprise contract (Active)
    • iPhone serial #ABC123 → Extended Warranty (Active, purchased Oct 2023, expires Oct 2026)
    • Warranty covers accidental damage (2 incidents/year used: 0)
  • Agent: "You're covered! We'll ship a replacement today at no charge. That's incident 1 of 2 for this year."
  • System: Creates SR, ships replacement, updates entitlement (1 incident used)