Presentation from "Benchmark and Optimize Warranty Management" webinar hosted by Mize, the leader in warranty management software.
• Benchmarking your warranty practices and performance against your peers
• Best Practices, strategies, and actions to achieve world-class warranty performance
• Enabling technologies and tools to optimize warranty management
Presenters:
• Eric Arnum, Editor, Warranty Week
• Bill Pollock, President & Principal Consulting Analyst at Strategies For Growth (SFG)
• Ashok Kartham, CEO, Mize, Connected Customer Experience Platform
2. Agenda: Benchmark and Optimize Warranty
Key Findings from SFG’s 2019 Warranty Chain Management Survey
• Bill Pollock, President and Principal Consulting Analyst, SFG
State of the Warranty Industry
• Eric Arnum, Editor, Warranty Week
Best Practices to Optimize Warranty Management
• Ashok Kartham, CEO, Mize
Q&A with the Panel
1/19/2019
2
3. 1/19/2019 3
Bill Pollock
President & Principal Consulting
Analyst
Strategies For Growth (SFG)
• Bill Pollock is President & Principal Consulting Analyst at Strategies For Growth℠
(SFG℠), the independent research analyst and services consulting firm he founded in
1992.
• Previously, Bill served as President & Chief Research Officer (CRO) at The Service
Council; Vice President & Principal Analyst, heading up Aberdeen Group’s Service
Management Practice; and Managing Analyst, Services Industry at Gartner.
• Bill has also had more than 350 articles, columns and features published on topics
including
• Field Service Management (FSM),
• Service Lifecycle Management (SLM),
• Customer Relationship Management (CRM),
• Warranty Chain Management (WCM),
• Augmented Reality (AR),
• the Internet of Things (IoT),
• Reverse Logistics,
• and others for leading international services publications.
• Bill writes monthly feature articles for Field Service News, Field Service Digital, Field
Technologies Online, and The Future of Field Service and is a regular contributor to
Warranty Week and other services-related publications.
5. Research Powered By
SFG℠’s 2019 Warranty Chain Management Survey:
Launched on October 30, 2018
Based on data collected
through December 17, 2018
“Live” for 48 Days
105 Total Respondents
6. Research Powered By
(Percent Response)
0.0 20.0 40.0 60.0 80.0 100.0
Process is Fully Automated
Process Is Partially Automated
Process Is All Manual
No Formal Warranty Management Process
27
36
20
16
One-Third (36%) of Organizations Use Either a Manual WM Process –
or None at All …
n = 44
36%
7. Research Powered By
(Percent Response)
0.0 20.0 40.0 60.0 80.0 100.0
Process is Fully Automated
Process Is Partially Automated
Process Is All Manual
No Formal Warranty Management Process
27
36
20
16
… and, While Nearly Two-Thirds (63%) Are at Least Partially Automated …
n = 44
63%
8. Research Powered By
(Percent Response)
0.0 20.0 40.0 60.0 80.0 100.0
Process is Fully Automated
Process Is Partially Automated
Process Is All Manual
No Formal Warranty Management Process
27
36
20
16
… More than Half (56%) Are Still at Least Partially Manual …
n = 44
56%
9. Research Powered By
(Percent Response)
0.0 20.0 40.0 60.0 80.0 100.0
Process is Fully Automated
Process Is Partially Automated
Process Is All Manual
No Formal Warranty Management Process
27
36
20
16
… and Only One-Quarter (27%) Are Currently Fully Automated:
n = 44
10. Research Powered By
0.0 20.0 40.0 60.0 80.0 100.0
Decrease by >10%+
Decrease by 5% to 9%
Decrease by < 5%
Remain the Same
Increase by < 5%
Increase by 5% to 9%
Increase by > 10%+
8
0
10
21
31
10
21
Overall, Annual Warranty Budgets Are Largely Expected to Increase* …
n = 39
* In the next 12 months.
(Percent Response)
11. Research Powered By
0.0 20.0 40.0 60.0 80.0 100.0
Decrease by >10%+
Decrease by 5% to 9%
Decrease by < 5%
Remain the Same
Increase by < 5%
Increase by 5% to 9%
Increase by > 10%+
8
0
10
21
31
10
21
In Fact, Nearly Two-Thirds (62%) Expect Annual Budgets to Increase* …
n = 39
62%
* In the next 12 months.
(Percent Response)
12. Research Powered By
0.0 20.0 40.0 60.0 80.0 100.0
Decrease by >10%+
Decrease by 5% to 9%
Decrease by < 5%
Remain the Same
Increase by < 5%
Increase by 5% to 9%
Increase by > 10%+
8
0
10
21
31
10
21
Although, Only One-Fifth (21%) Expect Increases* of >10% …
n = 39
62%
* In the next 12 months.
(Percent Response)
21%
13. Research Powered By
0.0 20.0 40.0 60.0 80.0 100.0
Decrease by >10%+
Decrease by 5% to 9%
Decrease by < 5%
Remain the Same
Increase by < 5%
Increase by 5% to 9%
Increase by > 10%+
8
0
10
21
31
10
21
Conversely, Only 18% Expect* Their Annual WM Budgets to Decrease:
n = 39
* In the next 12 months.
(Percent Response)
18%
14. Research Powered By
0.0 20.0 40.0 60.0 80.0 100.0
Decrease by >10%+
Decrease by 5% to 9%
Decrease by < 5%
Remain the Same
Increase by < 5%
Increase by 5% to 9%
Increase by > 10%+
8
0
10
21
31
10
21
This Results in Expected* Increases-over-Decreases by a Ratio of > 3:1:
n = 39
62%
* In the next 12 months.
Expected to Increase
over Decrease by a
ratio of > 3:1!
(Percent Response)
18%
15. Research Powered By
(Percent Response)
The Greatest Challenges Facing Today’s Warranty Management Initiatives
Are …
0.0 20.0 40.0 60.0 80.0 100.0
Sale of Extended Warranties
Claims Processing Time & Accuracy
Repair Management
Cost Recovery from Suppliers
ID of Root Causes of Product Failures
28
30
30
45
63
n = 40
16. Research Powered By
(Percent Response)
The Greatest Challenges Facing Today’s Warranty Management Initiatives
Are …
0.0 20.0 40.0 60.0 80.0 100.0
Sale of Extended Warranties
Claims Processing Time & Accuracy
Repair Management
Cost Recovery from Suppliers
ID of Root Causes of Product Failures
28
30
30
45
63
n = 40
17. Research Powered By
(Percent Response)
The Greatest Challenges Facing Today’s Warranty Management Initiatives
Are:
0.0 20.0 40.0 60.0 80.0 100.0
Sale of Extended Warranties
Claims Processing Time & Accuracy
Repair Management
Cost Recovery from Suppliers
ID of Root Causes of Product Failures
28
30
30
45
63
n = 40
18. Research Powered By
(Percent Response)
The Greatest Challenges Facing Today’s Warranty Management Initiatives
Are:
0.0 20.0 40.0 60.0 80.0 100.0
Sale of Extended Warranties
Claims Processing Time & Accuracy
Repair Management
Cost Recovery from Suppliers
ID of Root Causes of Product Failures
28
30
30
45
63
n = 40
19. Research Powered By
(Percent Response)
Other Challenges include High Levels of NFFs, WM Administrative Costs,
Warranty Reserves, Reverse Logistics & Fraudulent Claims Management:
0.0 20.0 40.0 60.0 80.0 100.0
Fraudulent Claims Management
Reverse Logistics Management
Warranty Reserve Accrual Mgmt.
Managing Admin Costs for Warranty
Fulfillment
High Levels of NFFs
5
16
20
23
25
n = 40
20. Research Powered By
(Percent Response)
Other Challenges include High Levels of NFFs, WM Administrative Costs,
Warranty Reserves, Reverse Logistics & Fraudulent Claims Management:
0.0 20.0 40.0 60.0 80.0 100.0
Fraudulent Claims Management
Reverse Logistics Management
Warranty Reserve Accrual Mgmt.
Managing Admin Costs for Warranty
Fulfillment
High Levels of NFFs
5
16
20
23
25
n = 40
21. Research Powered By
(Percent Response)
Principal Drivers Impacting Today’s Warranty Management Initiatives Are:
n = 40
0.0 20.0 40.0 60.0 80.0 100.0
Mandate to Improve Service Profitability
Dealing with Inferior/Deficient Product Quality
Product Defect-related Costs
Customer Demand for Improved Warranty
Services
Desire to Improve Customer Retention
Post-Sale Customer Satisfaction Issues
23
23
28
40
43
60
22. Research Powered By
(Percent Response)
0.0 20.0 40.0 60.0 80.0 100.0
Mandate to Improve Service Profitability
Dealing with Inferior/Deficient Product Quality
Product Defect-related Costs
Customer Demand for Improved Warranty
Services
Desire to Improve Customer Retention
Post-Sale Customer Satisfaction Issues
23
23
28
40
43
60
… First, Customer-Focused …
n = 40
Customer-
Focused
23. Research Powered By
(Percent Response)
0.0 20.0 40.0 60.0 80.0 100.0
Mandate to Improve Service Profitability
Dealing with Inferior/Deficient Product Quality
Product Defect-related Costs
Customer Demand for Improved Warranty
Services
Desire to Improve Customer Retention
Post-Sale Customer Satisfaction Issues
23
23
28
40
43
60
… Second, Product Quality-Focused …
n = 40
Product Quality-
Focused
Customer-
Focused
24. Research Powered By
(Percent Response)
0.0 20.0 40.0 60.0 80.0 100.0
Mandate to Improve Service Profitability
Dealing with Inferior/Deficient Product Quality
Product Defect-related Costs
Customer Demand for Improved Warranty
Services
Desire to Improve Customer Retention
Post-Sale Customer Satisfaction Issues
23
23
28
40
43
60
… And, Third, Profit-Focused:
n = 40
Profit-Focused
Customer-
Focused
Product Quality-
Focused
25. Research Powered By
(Percent Response)
Other Key Drivers Focus on Costs,
0.0 20.0 40.0 60.0 80.0 100.0
Costs Associated with Fradulent Claims
Compliance to Regulatory Requirements
Need to Improve Supply Chain Performance
Mandate to Drive Increased Service
Revenues
Escalating Warranty Administrative Costs
Logistics and/or Reverse Logistics Costs
3
10
13
13
15
18
n = 40
26. Research Powered By
(Percent Response)
Other Key Drivers Focus on Costs, Revenues,
0.0 20.0 40.0 60.0 80.0 100.0
Costs Associated with Fradulent Claims
Compliance to Regulatory Requirements
Need to Improve Supply Chain Performance
Mandate to Drive Increased Service
Revenues
Escalating Warranty Administrative Costs
Logistics and/or Reverse Logistics Costs
3
10
13
13
15
18
n = 40
27. Research Powered By
(Percent Response)
Other Key Drivers Focus on Costs, Revenues, Supply Chain
0.0 20.0 40.0 60.0 80.0 100.0
Costs Associated with Fradulent Claims
Compliance to Regulatory Requirements
Need to Improve Supply Chain Performance
Mandate to Drive Increased Service
Revenues
Escalating Warranty Administrative Costs
Logistics and/or Reverse Logistics Costs
3
10
13
13
15
18
n = 40
28. Research Powered By
(Percent Response)
Other Key Drivers Focus on Costs, Revenues, Supply Chain & Compliance:
0.0 20.0 40.0 60.0 80.0 100.0
Costs Associated with Fradulent Claims
Compliance to Regulatory Requirements
Need to Improve Supply Chain Performance
Mandate to Drive Increased Service
Revenues
Escalating Warranty Administrative Costs
Logistics and/or Reverse Logistics Costs
3
10
13
13
15
18
n = 40
29. Research Powered By
Putting Things in Perspective: Current Strategic Actions Already in Place:
The top Strategic Actions currently being undertaken by Services Organizations
to address the Key Drivers/Challenges of Warranty Chain Performance are:
30. Research Powered By
Putting Things in Perspective: Current Strategic Actions Already in Place:
The top Strategic Actions currently being undertaken by Services Organizations
to address the Key Drivers/Challenges of Warranty Chain Performance are:
➢ 46% Improve Warranty Management-related Planning and Forecasting Activities
➢ 43% Develop/Improve Metrics, or KPIs for Advanced Warranty Chain Analytics
➢ 34% Restructure for Improved Warranty Management Oversight & Accountability
➢ 29% Streamline Parts Return Process to Improve Overall Efficiency
➢ 29% Institute/Enforce Process Workflow Improvements for Supplier Cost Recovery
➢ 23% Provide Additional Training to Extended Warranty Sales Personnel
➢ 20% Purchase and/or Upgrade an Automated Warranty Chain Management Solution
➢ 20% Outsource some, or all, Warranty Management Activities to Third Parties
➢ 17% Implement a Claims Review Process to Curb Fraudulent Claims
➢ 9% Restructure/Update Existing Warranty Pricing Schedule
➢ 0% Foster a Closer Working Collaboration Between Product Design & Service
31. Research Powered By
Putting Things in Perspective: Current Strategic Actions Already in Place:
The top Strategic Actions currently being undertaken by Services Organizations
to address the Key Drivers/Challenges of Warranty Chain Performance are:
➢ 46% Improve Warranty Management-related Planning and Forecasting Activities
➢ 43% Develop/Improve Metrics, or KPIs for Advanced Warranty Chain Analytics
➢ 34% Restructure for Improved Warranty Management Oversight & Accountability
➢ 29% Streamline Parts Return Process to Improve Overall Efficiency
➢ 29% Institute/Enforce Process Workflow Improvements for Supplier Cost Recovery
➢ 23% Provide Additional Training to Extended Warranty Sales Personnel
➢ 20% Purchase and/or Upgrade an Automated Warranty Chain Management Solution
➢ 20% Outsource some, or all, Warranty Management Activities to Third Parties
➢ 17% Implement a Claims Review Process to Curb Fraudulent Claims
➢ 9% Restructure/Update Existing Warranty Pricing Schedule
➢ 0% Foster a Closer Working Collaboration Between Product Design & Service
32. Research Powered By
Putting Things in Perspective: Current Strategic Actions Already in Place:
The top Strategic Actions currently being undertaken by Services Organizations
to address the Key Drivers/Challenges of Warranty Chain Performance are:
➢ 46% Improve Warranty Management-related Planning and Forecasting Activities
➢ 43% Develop/Improve Metrics, or KPIs for Advanced Warranty Chain Analytics
➢ 34% Restructure for Improved Warranty Management Oversight & Accountability
➢ 29% Streamline Parts Return Process to Improve Overall Efficiency
➢ 29% Institute/Enforce Process Workflow Improvements for Supplier Cost Recovery
➢ 23% Provide Additional Training to Extended Warranty Sales Personnel
➢ 20% Purchase and/or Upgrade an Automated Warranty Chain Management Solution
➢ 20% Outsource some, or all, Warranty Management Activities to Third Parties
➢ 17% Implement a Claims Review Process to Curb Fraudulent Claims
➢ 9% Restructure/Update Existing Warranty Pricing Schedule
➢ 0% Foster a Closer Working Collaboration Between Product Design & Service
33. Research Powered By
The Singular Most Important KPIs Currently Being Used Are …
The most important KPIs currently being used by Services Organizations are:
34. Research Powered By
The Singular Most Important KPIs Currently Being Used Are …
The most important KPIs currently being used by Services Organizations are:
➢ 56% Customer Satisfaction
➢ 17% Total Warranty Costs
➢ 11% Analysis Cycle Time
➢ 6% Warranty Costs, per Product
➢ 6% Re-imbursement Cycle time (i.e., from Suppliers)
➢ 0% Time from Defect Detection to Correction
➢ 0% Warranty Reserve Variation
➢ 0% Claims Processing Time
➢ 0% In-Warranty Product Return Rate
➢ 0% Warranty incidents, Per Product
➢ 0% Total Revenues from Extended Warranty Sales
➢ 0% Claims Processing Costs
➢ 0% Time from Product Sale to Defect Detection
Cited by 35%Cited by 17%
Cited by 35%Cited by 56%
Cited by 35%Cited by 11%
35. Research Powered By
Current KPI Values Reflect Mixed Performance Among Respondents …
Mean KPI values currently being used to measure Warranty Management
performance appear to be reasonably high – however, somewhat lower than
in past years:
36. Research Powered By
Current KPI Values Reflect Mixed Performance Among Respondents …
Mean KPI values currently being used to measure Warranty Management
performance appear to be reasonably high – however, somewhat lower than
in past years:
➢ 81% Customer Satisfaction
37. Research Powered By
Current KPI Values Reflect Mixed Performance Among Respondents …
Mean KPI values currently being used to measure Warranty Management
performance appear to be reasonably high – however, somewhat lower than
in past years:
➢ 81% Customer Satisfaction (Declined from 82% in 2017)
38. Research Powered By
Current KPI Values Reflect Mixed Performance Among Respondents …
Mean KPI values currently being used to measure Warranty Management
performance appear to be reasonably high – however, somewhat lower than
in past years:
➢ 81% Customer Satisfaction (Declined from 85% in 2016)
39. Research Powered By
Current KPI Values Reflect Mixed Performance Among Respondents …
Mean KPI values currently being used to measure Warranty Management
performance appear to be reasonably high – however, somewhat lower than
in past years:
➢ 81% Customer Satisfaction (Declined from 82% in 2017)
➢ 9.6 Days Warranty Claims Processing Time
40. Research Powered By
Current KPI Values Reflect Mixed Performance Among Respondents …
Mean KPI values currently being used to measure Warranty Management
performance appear to be reasonably high – however, somewhat lower than
in past years:
➢ 81% Customer Satisfaction (Declined from 82% in 2017)
➢ 9.6 Days Warranty Claims Processing Time (Declined from 7.6 Days in 2017)
41. Research Powered By
Current KPI Values Reflect Mixed Performance Among Respondents …
Mean KPI values currently being used to measure Warranty Management
performance appear to be reasonably high – however, somewhat lower than
in past years:
➢ 81% Customer Satisfaction (Declined from 82% in 2017)
➢ 9.6 Days Warranty Claims Processing Time (Declined from 7.6 Days in 2017)
However, many Organizations are still not attaining even Industry Average
levels of performance:
42. Research Powered By
Current KPI Values Reflect Mixed Performance Among Respondents …
Mean KPI values currently being used to measure Warranty Management
performance appear to be reasonably high – however, somewhat lower than
in past years:
➢ 81% Customer Satisfaction (Declined from 82% in 2017)
➢ 9.6 Days Warranty Claims Processing Time (Declined from 7.6 Days in 2017)
However, many Organizations are still not attaining even Industry Average
levels of performance:
➢ 60% Not attaining at least 90% Customer Satisfaction
43. Research Powered By
Current KPI Values Reflect Mixed Performance Among Respondents …
Mean KPI values currently being used to measure Warranty Management
performance appear to be reasonably high – however, somewhat lower than
in past years:
➢ 81% Customer Satisfaction (Declined from 82% in 2017)
➢ 9.6 Days Warranty Claims Processing Time (Declined from 7.6 Days in 2017)
However, many Organizations are still not attaining even Industry Average
levels of performance:
➢ 60% Not attaining at least 90% Customer Satisfaction
45% Not attaining at least 80% Customer Satisfaction
44. Research Powered By
Current KPI Values Reflect Mixed Performance Among Respondents …
Mean KPI values currently being used to measure Warranty Management
performance appear to be reasonably high – however, somewhat lower than
in past years:
➢ 81% Customer Satisfaction (Declined from 82% in 2017)
➢ 9.6 Days Warranty Claims Processing Time (Declined from 7.6 Days in 2017)
However, many Organizations are still not attaining even Industry Average
levels of performance:
➢ 60% Not attaining at least 90% Customer Satisfaction
45% Not attaining at least 80% Customer Satisfaction
30% Not attaining at least 70% Customer Satisfaction
45. Research Powered By
Current KPI Values Reflect Mixed Performance Among Respondents …
Mean KPI values currently being used to measure Warranty Management
performance appear to be reasonably high – however, somewhat lower than
in past years:
➢ 81% Customer Satisfaction (Declined from 82% in 2017)
➢ 9.6 Days Warranty Claims Processing Time (Declined from 7.6 Days in 2017)
However, many Organizations are still not attaining even Industry Average
levels of performance:
➢ 60% Not attaining at least 90% Customer Satisfaction
45% Not attaining at least 80% Customer Satisfaction
30% Not attaining at least 70% Customer Satisfaction
➢ 75% Not Attaining 2 Days or Less Warranty Claims Processing Time
46. Research Powered By
Current KPI Values Reflect Mixed Performance Among Respondents …
Mean KPI values currently being used to measure Warranty Management
performance appear to be reasonably high – however, somewhat lower than
in past years:
➢ 81% Customer Satisfaction (Declined from 82% in 2017)
➢ 9.6 Days Warranty Claims Processing Time (Declined from 7.6 Days in 2017)
However, many Organizations are still not attaining even Industry Average
levels of performance:
➢ 60% Not attaining at least 90% Customer Satisfaction
45% Not attaining at least 80% Customer Satisfaction
30% Not attaining at least 70% Customer Satisfaction
➢ 75% Not Attaining 2 Days or Less Warranty Claims Processing Time
58% Not Attaining 4 Days or Less Warranty Claims Processing Time
47. Research Powered By
Current KPI Values Reflect Mixed Performance Among Respondents …
Mean KPI values currently being used to measure Warranty Management
performance appear to be reasonably high – however, somewhat lower than
in past years:
➢ 81% Customer Satisfaction (Declined from 82% in 2017)
➢ 9.6 Days Warranty Claims Processing Time (Declined from 7.6 Days in 2017)
However, many Organizations are still not attaining even Industry Average
levels of performance:
➢ 60% Not attaining at least 90% Customer Satisfaction
45% Not attaining at least 80% Customer Satisfaction
30% Not attaining at least 70% Customer Satisfaction
➢ 75% Not Attaining 2 Days or Less Warranty Claims Processing Time
58% Not Attaining 4 Days or Less Warranty Claims Processing Time
33% Taking 15 Days or More for Warranty Claims Processing Time
48. Research Powered By
Key Takeaways from SFG℠’s 2019 Warranty Management Benchmark:
Nearly two-thirds (63%) of respondents manage Service as a Profit Center
A similar percent (63%) are presently using a partially automated WM process;
however, just over one-quarter (27%) are fully automated
Annual Warranty Budgets are largely expected to increase for 2018
Principal Drivers currently influencing today’s WM initiatives are:
✓ First, Customer-focused (i.e., Satisfaction, Retention, Improved WM Services)
✓ Second, Product Quality-focused (i.e., Dealing w/ Product Defects/Inferior Quality)
✓ Third, Revenue/Profit-focused (i.e., Increased Service Profitability)
Top Challenges facing today’s WM initiatives are:
✓ Identification of root causes of product failures
✓ Cost recovery from suppliers
✓ Repair management
Top Strategic Actions currently being taken include:
✓ Improve Warranty Management-related Planning and Forecasting Activities
✓ Develop/Improve Metrics, or KPIs for Advanced Warranty Chain Analytics
✓ Restructure for Improved Warranty Management Oversight & Accountability
49. Research Powered By
Key Takeaways from SFG℠’s 2019 Warranty Management Benchmark:
Top uses of the data/information collected from Warranty-related events are to:
✓ Improve Field Service processes
✓ Improve Warranty Management performance
✓ Make Product Design changes
✓ Make Manufacturing changes
✓ Improve Equipment / Part Return processes
Primary Key Performance Indicators (KPIs) currently being used for WM are:
✓ Customer Satisfaction
✓ Product Failure Rate
✓ Total Warranty Costs
✓ Claims Processing Times
More than half of Organizations are not currently attaining at least 90%
Customer Satisfaction (60%), or 4 Days or Less Warranty Claims Processing
Times (58%).
Revenues from Extended Warranty Sales have increased somewhat over the
past year; but so have Warranty Claims Processing costs
Only just over half (57%) of Organizations are “Somewhat/Extremely Satisfied”
with the performance of their Primary WM solution vendor
50. Research Powered By
SFG℠’s Companion Analysts Take Report (Available through Mize)
Complementary Distribution
via Download through Mize
Based on the results of SFG℠’s
2019 WCM Survey Tracking
Update
51. Research Powered By
SFG℠ Contact Information
Bill Pollock, President
Strategies For Growth℠
(610) 399-9717
wkp@s4growth.com
www.s4growth.com
@PollockOnService
52. 1/19/2019 1
Eric Arnum
Editor
Warranty Week
• Eric Arnum is the editor of Warranty Week, an online publication written for the
warranty industry professional.
• Based in New York and launched in late 2002 as both a free weekly email broadcast
and a website at www.warrantyweek.com, the newsletter has quickly gained a
following among manufacturers, retailers, servicers, and insurance professionals.
• Weekly topics have included specific market close-ups on product warranties,
extended warranties, claims rates in industries such as air conditioning, automotive,
PCs, disk drives, printers, consumer electronics, solar panels, construction, mining,
telecommunications equipment, plasma TVs, jetliners, sports stadiums, new homes,
skateparks, and farm equipment.
• On a quarterly basis, trends in warranty claims and accruals by more than 800
manufacturers are detailed in depth. Also featured are periodic articles about
industry conferences and warranty claim processing and analysis software providers.
• Before launching Warranty Week, Arnum edited two different newsletters about the
data communications industry -- Messaging Online, and Electronic Mail & Micro
Systems (EMMS) -- while also engaging in custom research projects tracking the
growth of the World Wide Web in Europe and the market for Internet services in
South America.
• Eric Arnum is a graduate of Syracuse University with a degree in economics.
53.
54. $0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18
Passenger Cars & Small Vehicles Heavy Trucks & Large Vehicles
Fig 1, U.S. Auto Warranty
Claims per Quarter, 2003-2018
Source: Warranty Week
US$ Millions
61. $0
$10,000
$20,000
$30,000
$40,000
$50,000
'09 '10 '11 '12 '13 '14 '15 '16 '17 '18
Furniture
ESCs
Appliance
Retail ESCs
Home
Warranties
Jewelry ESCs
Computer
OEM ESCs
CE Retail
ESCs
Mobile Phone
Insurance
VSCs
Fig 8, Extended Warranty Market
Premiums Paid by U.S. Consumers, 2009-2017
Source: Warranty Week
62. Eric Arnum, Editor
Warranty Week
10520 66th Road
Forest Hills NY 11375-2179
USA
+1 (718) 896-0367
http://www.warrantyweek.com
earnum@warrantyweek.com
63. 1/19/2019 1
Ashok Kartham
CEO
Mize
• Ashok Kartham is the Founder and CEO of Mize, creator of the Connected Customer
Experience platform that enables companies to maximize the customer lifetime
value.
• Ashok was the founder and CEO 4CS, the leading warranty and service lifecycle
management company, which was acquired by PTC in 2012.
• Ashok has 20+ years of experience as CEO of software and high-tech companies.
• Ashok has 25 years’ experience working with global manufacturers and Fortune 500
companies in delivering enterprise software solutions for Service, Warranty, Parts,
Support, and Knowledge Management.
64. Best Practices to OPTIMIZE Warranty Management
“Warranty as a Profit Center”
1/19/2019 2
Ashok Kartham
CEO, Mize
AshokKartham@m-ize.com
65. Warranty as a Profit Center with Customer focus
Customer-Centric
Differentiate on customer experience and
revenues from customer install base
Support-Centric
Deliver customer service at lower cost –
generally through call centers, returns.
Cost-Centric
Warranty as Cost center with focus on
reducing warranty costs and CPU
Product-Centric
Warranty as profit center with focus on
Product Quality and grow product sales
Customer ExperienceProduct
Differentiation
ProfitCenterCostCenter
WarrantyFocus
Warranty
Strategies
67. #2. Enhance Warranty Service Experience
Check for Warranty eligibility & entitlements
Warranty Service Check-in
Link to Maintenance, Service Bulletins,
Inspections
Simplify access to Service Knowledge
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68. #3. Enable Dealers & Service Technicians
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Make better Diagnosis & Repair decisions
72. #7. Remanufacture Profits from Returns
“U.S. produces more than $45 billion of remanufactured
goods per year” – Remanufacturing Industries Council
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(i) Reduce Returns
with pictures & video
(ii) Streamline reverse logistics; Return
direct to vendor for supplier recovery
(iii) Reman to reduce cost &
sustainable profits
74. #9. Unlock the Value of the Install Base
• Extended Warranty or Service
Programs
• Maintenance Agreements
• Service Parts
• Attachments or Accessories
• Remote monitoring using IoT
• Fleet or Asset management
• Value added services
• Software Subscriptions
• Data analytics to improve
customer business
• Product Upgrades
• Trade-in to purchase new
product
• Remanufacture and recycle
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75. #10. Switch from Warranty Pipeline Model…
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Schedule
repair
Customer
• Repair
Order
• Claim
entry
Dealer
• Process
• Generate
Supplier
Claims
OEM
• Process
• Gen Tier
2 claims
Supplier
• Timeline that spans weeks or even months
• Loss of data quality with each stakeholder
• Long Detection to Correction cycle time
76. #10. to a Connected Warranty Platform
• Platform to connect
Customers, OEMs, Dealers,
and Suppliers
• Enhance Service
Interactions
• Data shared in real-time
• Improved Collaboration
Service
Interactions
Customers
OEMs
Channel
(Dealers)
Suppliers
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78. Summary: OPTIMIZE Warranty Management
Warranty has a critical role in improving customer satisfaction, retention, and
service profits
Enhance Experience at each stage of customer lifecycle from onboarding to trade-in
Enable Dealers and Service technicians to make better diagnostic/repair decisions
and delivery better service
Connect and streamline all warranty processes for seamless customer experience
Connect all stakeholders on the same platform in real-time
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