The Global Warranty Services Market Appears to Be Moving Toward a More Expansive Period of Growth in 2019!

[After conducting our fifth annual Warranty Chain Management (WCM) Benchmark Survey in Q3/Q4, 2018, Strategies For Growth℠ has put together a new results package consisting of an Analysts Take paper, a Webinar and a 2019 WCM Conference workshop and presentation on “The State of Warranty Chain Management (WCM) for 2019 – and Beyond!”. The Webinar was hosted by Mize, Inc. on January 17, 2019 at 1 PM EST. However, you can download a copy of the webinar at https://info.m-ize.com/webinar-on-benchmark-and-optimize-warranty-management. Mize is also distributing copies of the Analysts Take paper at the 2019 WCM Conference in Orlando, FL, March 12 – 14, 2019.

The following is an excerpt from the January 10, 2019 issue of Warranty Week. Read the entire article, including illustrative charts and additional commentary, at Warranty Week.]

The 2019 survey results reflect all of the signals for an expanding market growth over at least the next 12 months, and probably beyond. Nearly two-thirds of respondent organizations are already running their services operations as profit centers with their own P&Ls, and annual warranty-related budgets are expected to increase-over-decline by a ratio of more than three-to-one. This has all of the makings for a fast-growing market.

Further, we are seeing an uptick in the percent of warranty services organizations taking steps to improve their respective planning and forecasting activities, and restructuring, as necessary, for improved warranty management oversight and accountability.

As such, all of the key aspects that can be used to signify both operational and financial improvements seem to be there, leading to an optimistic expectation for accelerated growth in the industry over the next 12 months.

Presently, 63% of respondent organizations manage service as a profit center, keeping pretty much in line with the findings for other related components of the global services industry (e.g., the field services segment, etc.). For many organizations, running services as a profit center allows them to focus more on the processes that may be used to generate higher levels of profitability, which represents one of the three main “clusters” of key factors currently driving the global market.

Warranty Management Organizations Are, Once Again, First and Foremost, Customer-Focused

The respondents to the survey have also once again clearly identified the specific drivers that are pushing them to aspire to the attainment of higher levels of performance. In fact, they have provided responses that solidify that there are still three main “clusters” of factors that drive their respective businesses: Customer-focused, Product Quality-focused and Profit-focused – and in that order.

For example, among the Customer-focused drivers, post-sale customer satisfaction issues (60%, up from 58% in 2018, and only 42% in 2017), the desire to improve customer retention (43%), and customer demand for improved warranty services (40%) remain as the top three drivers with respect to optimizing overall service performance. No other drivers are cited by more than just over one-quarter (28%) of respondents.

The next “cluster” of drivers is Product Quality-focused, and is represented by product defect-related costs (28%) and dealing with inferior/deficient product quality (23%). The third “cluster”, Profit-focused, is represented solely by an internal mandate to drive increased service profitability (23%). As such, the warranty chain management community has made it clear that it is squarely focused on, first, satisfying – and retaining – its customers; second, dedicated to improving product quality-related issues; and third, mandated to drive increased services profitability – again, in that specific order.

These results suggest a continuation of the relative “normalcy” that has characterized the Warranty Chain Management segment over the past several years – that is, a return to focusing on customers, rather than spending most of their time and resources wrestling with cost reductions and other financial issues. Obviously, while financial considerations are still critically important, the industry focus has shifted back, as it always does, squarely on the customer’s needs, requirements, preferences and expectations.

The Greatest Challenges Facing Today’s Warranty Management Initiatives

Aside from the top clusters of customer-, product quality- and profit-focused drivers, warranty services managers are also faced with myriad additional challenges that come from many different areas. The top challenge, as cited by nearly two-thirds (63%) of the survey respondents, is the ability to identify the root cause of product failures. However, nearly half (45%) also cite cost recovery from suppliers as one of their top three challenges. Further, between 28% and 30% of respondents also cite repair management (30%), claims processing time and accuracy (30%), and sale of extended warranties (28%) as significant challenges as well.

Based on the 2019 survey results, the greatest challenges facing warranty services managers today align closely with the key market drivers, as well as with the current and planned strategic actions to be taken. As a result, these data continue to reflect an environment where overall improvements are likely to transpire in the next 12 months, thereby leading to higher levels of customer satisfaction and the further stimulation of financial growth for the segment.

Analysts Take on the Global WCM Community

However, building upon the survey findings from previous years, only a small majority of warranty managers (57%) report that they are satisfied with their company’s warranty claims processing time – and only 22% are “extremely satisfied”. Although these percents represent a significant increase over previous years’ surveys, there are still more than one-in-five (22%) that are currently “somewhat dissatisfied” with their company’s warranty claims processing time performance.

Ashok Kartham, founder & CEO of Mize, concurs adding that “the companies can achieve the key goals of improving customer satisfaction and profitability of service business by connecting all stakeholders and processes in warranty and service contracts. Companies need to connect with customers directly to improve self-service and grow service contract sales. Service technicians need to be enabled to make better diagnostic and repair decisions upfront. Supplier collaboration needs to be improved to drive product quality. Companies can move beyond claims processing to drive customer satisfaction and grow additional revenues from innovative service offerings.”

Kartham further explains that “the warranty industry is facing significant challenges and opportunities with increased customer expectations for product uptime and predictive maintenance. The Mize Connected Customer Experience platform, and Warranty Management solution, enable companies to transform warranty to be a profit center. We are excited to bring the industry benchmarking and best practices to help companies optimize the entire warranty lifecycle and maximize the customer lifetime value.”

[Again, to download a copy of the Webinar, or to obtain a copy of the companion Analysts Take paper, simply click here: https://info.m-ize.com/webinar-on-benchmark-and-optimize-warranty-management.]

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Bill Pollock, of PollockOnService, to Conduct Pre-Conference Workshop at 2019 WCM in Orlando

[Partial excerpt, written by Eric Arnum, publisher of Warranty Week. Reprinted from the February 22, 2019 issue.]

Warranty professionals heading to Orlando for the 15th annual Warranty Chain Management Conference could arrive a day early to attend any of six different workshops on topics such as fraud detection, claims handling, customer satisfaction, and how to launch or expand a commercial or consumer service contract program.

The Warranty Chain Management Conference, less than three weeks away, officially begins with a welcome reception the night of Tuesday, March 12. But for those who can get to town a bit earlier, there are six different pre-conference workshops on the schedule, covering an array of product warranty- and service contract-related topics.

There are three workshops in the morning and three in the afternoon. For attendees looking to strengthen their knowledge of how things work in the service contract industry, there are excellent choices in both timeslots.

Increasing Customer Satisfaction and revenue generation

In the afternoon, from 2 to 5 PM, Bill Pollock, the president of Strategies for Growth, will deliver a workshop entitled, “Transforming Warranty Management Into Improved Customer Satisfaction and Revenue Generation,” which will also be aimed at commercial products.

Pollock said that a central theme of his workshop will be the need for warranty managers, especially those in the business-to-business sector, to not only do a good job, but to also get the word out to customers that the company is doing a good job with warranty.

“A lot of organizations and a lot of managers within those organizations look at improving the processes they use to deliver services as the end-all, be-all,” he said. “But if you’re doing something really good, and you’re not letting the world know about it, then you’re missing an opportunity.”

Pollock said he sees much the same story with many companies that do a good job with fleet management or reverse logistics: they don’t tell their story well, so customers don’t know what makes them better than other companies. On the other hand, those that promote what they do, creating some market awareness about it, find that it draws some customers in who might not otherwise be engaged. And for existing customers, it results in improved customer satisfaction, which leads to better customer retention levels.

“My goal is to be a value-add for warranty managers who are immersed in their activities,” Pollock said, “to let them know there’s the marketing and the promotions that you have to get out there. And if you do that, then you’re going to improve customer satisfaction, and you’re going to generate more revenue.”

Pollock said he’s not suggesting that companies become tedious and off-putting through their constant self-promotions. “But if you’ve done something good, if you’ve upgraded your processes, if you’ve moved from a premise-based system to a cloud-based system, or some sort of hybrid, let the market know about it.”

During the decades he’s been studying companies, Pollock said he’s seen three big themes recur in the surveys and in the research studies he’s helped to produce: 1) companies improving the processes they use to deliver services, 2) companies focusing on the needs of the customer, and 3) the financial costs. When times are tough, cost-cutting takes the lead. But when times are good, and the funds are available, process improvements tend to become priorities. What he’s saying is “don’t forget the customer”.

“Right now, we’re at an interesting time,” he said. “Our 2019 Warranty Management Survey Update has shown for the first time in the last five years, that the number one focus is back squarely on the customer. The number two focus is on improving processes. And the number three focus is on financials. So it looks like, as an industry, we’ve got our act together.”

The first half of the workshop, Pollock said, will focus on ways to promote your process improvements to the market, and how to turn that into improved customer satisfaction and revenue increases. The second half will show the correlation between these suggestions and the actual results of the company surveys Pollock has performed in recent years. And he will ask attendees where they see their organizations fitting into the results.

“Toward the end of that series of charts and interactions,” Pollock said, “I’m going to show the mean averages that warranty managers have been attaining for customer satisfaction, average claims cycle time, and profitability. What I want to do is show attendees that once you start falling behind the curve, the way everything’s moving so quickly, and the way your competitors and peers are embracing new technologies, you’re going to fall even further behind the curve – unless you take the appropriate actions.”

Questions to Ask Yourself About Quality

All businesses want to provide quality products and services, but not every business manager knows exactly how to define quality, or even where to get started. While there is no single best way to build a quality program, or to go about implementing one, there are a number of questions that, once addressed, can at least help to set your business out on the right path.

The 10 basic questions that any services manager should be asking, and a corresponding set of guidelines for addressing each of them, may include:

 1.  How do our customers define quality? What do we need to do to convince them that we have embraced the quality initiative?

Merely embracing a quality initiative may not be as well received in the services marketplace if you have not defined the key elements of quality in the same manner as your customers. For example, if your customers define quality as “delivering services faster”, but your quality program is designed to help you “deliver services better”, you will not be perceived as properly addressing your customers’ primary service quality needs.

2.  How do we know if our organization is ready for quality? How quickly should we move? How soon should we get started?

Whether or not your service organization is ready to embark on a quality program may be irrelevant if your customers think you are already long overdue. You may be undecided; but if it is time, your customers will let you know.

3.  Do we need a separate plan for quality or does it fit in with our overall services business plan? How often do we need to update or revisit our quality plan?

A good quality plan is one that is also part and parcel of your organization’s strategic services marketing plan. A quality plan that is separate from the business plan is typically doomed to failure. Further, quality is an ongoing initiative and not a fixed plan – it requires constant updating and revisiting.

4.  Is there such a thing as too much quality? How far should we go in terms of implementing quality?

There is no such thing as too much of a good thing when you are talking about quality. Rather, the main focus should be on, “Are we implementing the right kind of quality” and not, “Are we offering too much of it?’

5.  How interactive should we allow our customers or vendors to be in terms of participating in our quality program? How far at a distance should we keep these and other outside segments?

Quality must involve all of the organization’s employees, customers and strategic partners. Quality only works if every party participates in it. An “arms length” approach to quality will not be anywhere near as successful.

6.  If our competitors start to implement specific types of quality programs, should we follow them? How important is it to be the first one off the block with a services quality initiative?

Being first is not nearly as important as being best when it comes to quality. Being first does not afford any special marketing benefits either – especially if you can’t deliver. The best quality initiatives are those that “fit” your organization, and not those that mirror what other organizations are doing.

7.  How do we best promote our quality achievements to the marketplace? What can we tell our customers that they don’t already know? What should we tell our non-customers to make them more interested in considering our products and services?

Any achievements you accomplish with respect to quality should be promoted to the marketplace. Digital marketing, Webpage content, marketing collateral, print advertisements, press releases, trade shows and word of mouth are the most widely used means to communicate quality achievements. The only difference between customers and non-customers is that some just happen to be paying you for your products and services. Other than that, they should all be treated in the same manner, and should all be provided with the same positive quality communications.

8.  How well defined does our internal quality initiative have to be? Does it have to extend to all areas of our operations, at all service locations?

We’ve all heard about the chain that is only as strong as its weakest link. The question to ask is, “Are there any of our operational areas where we can afford not to implement quality?” If the answer for any areas of operations is ‘yes’, then perhaps those areas are not worth keeping “as is” anyway.

9.  Can we design, implement, execute and monitor quality on our own, or do we need to seek outside assistance to make it all happen? What types of outside assistance are available?

Your most important mission is running your services business, and not managing quality implementation. However, having a third party manage the entire quality initiative assures that there will be less burden on your part. Accordingly, the best way for ensuring successful quality implementation and maintenance is to focus on what your organization can do best without adversely impacting normal business operations, and using outside assistance where you can gain the greatest advantage.

10.  What are the total costs of implementing quality? What are the total costs of not implementing quality?

The total costs of implementing quality are – well, you can do the math! However, the costs of not implementing quality may range from losing customers and market share, to increasing operating costs and reducing profits, to reducing market potential and continually fighting an uphill battle against more demanding customers and better prepared competitors.

Having all of the answers is not mandatory for implementing a successful quality program. However, asking all of the right questions should get you off to a good start.

Invitation to Register for Two Webinars Covering the U.S./Canada & UK/Europe FSM Markets

To All Field Service Management (FSM) Professionals:

We invite you to register for our two complimentary Webinars on Thursday, February 7th – less than one week from today!
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  • Webinar #1*: “UK/Europe Still Lags Behind the U.S. with Respect to FSM Performance”; Thursday, 7 February at 13:30 GMT (8:30 am ET)
  • Webinar #2*: “The State of Field Service Management (FSM) in 2019 – and Beyond”; Thursday, February 7, at 11:30 am ET (16:30 GMT)

Click here to register for one, or both, Webinars

Based on the results of the 2018 Strategies for Growth℠ FSM Benchmark Tracking Update Survey, here are some of the key Market Drivers that will be revealed:

  • A majority of global Field Services Organizations (FSOs) presently manage their service operations as a profit center (60% for UK/Europe, and 55% for the U.S./Canada)
  • A majority of global FSOs are currently using CRM and Contract Management apps to drive their services business
  • The average services profitability realized by U.S./Canada FSOs is 32%, compared to 36% for UK/Europe FSOsx

[BTW – If you haven’t taken it yet, the survey link for SFG℠’s  2019 Field Service Management Tracking Survey is: 

Thank you in advance for your participation. Hope to see you there!
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Bill

Using Service Lifecycle Management (SLM) to Support Your Customers While You’re Servicing Their Equipment

[Before you read our latest Blog, why not spend 15 minutes or less taking our latest Field Service Management (FSM) Tracking Survey? This is our fifth FSM Survey since 2011, and we would love to share the results with you once we’re finished with the data processing and analysis – sometime in late March! The survey link is: https://www.surveymonkey.com/r/2019_FSM. And, oh yeah, after you finish, please don’t forget to read our Blog!. Thanks, Bill] 

Every day you deal with a multitude of customers who vary by type, size, installed base, usage, personality and everything else that ultimately differentiates one customer from another. However, one thing always remains constant – their business systems and equipment are critically Important to their day-to-day business operations. Despite this common thread that runs through virtually all of the customers you support, it is still important to recognize that each customer account will likely be different in terms of:

  • The various types, brands, models and numbers of units they have installed at their respective sites;
  • The ages of the individual units that are covered under their various Service Level Agreements (SLAs), or supported via a Time & Materials (T&M) basis;
  • The usage patterns of the equipment at their individual locations (i.e., continuous intermittent use; single vs.multiple shifts; simple vs.complex multifunctional peripheral applications; and so on);
  • The volume, capacity or throughput they regularly execute; and
  • Many other unique and/or specific differentiators.

For some of your customers, their equipment is an integral component of what they do on a day-to-day basis. Customers in all industry segments, whether it be legal, financial, medical, real estate, government, or other highly-demanding markets, will tell you that their systems and equipment are essential to their business operations, and that when their equipment is down, their production is severely affected. For some, even a small piece of connected equipment may be the only means they have for providing their customers with a receipt, order confirmation, or other important transaction-generated documents. In fact, for many in the latter category, their reliance on the equipment you support may be even more critical to them (at least on a relative basis).

Regardless of the specific industry market segment or type of customer, there will always be a basic level of reliance on the business systems and equipment they have installed at their facility. In addition, you will find that your customers will also be relying heavily on your organization to ensure that their equipment is always up and running as required – and as expected. As such, it is important to recognize that in the customer’s mind, if the equipment is not working optimally – regardless of the technology that may have been built into it – it is worthless.

Since there is just so much that the customer is either inclined or permitted to do in order to get the equipment back in working order following a failure, in most cases, your field technicians will be the sole entities that they can count on to make that happen (that is, aside from remote monitoring and diagnostics, etc.). Accordingly, they will need to approach the servicing and support of the equipment with a great deal of professionalism and responsibility. Customers usually do not care whether the cause of an equipment problem is due to a hardware or software failure; a paper jam; or whether it was the unit’s fault, their fault, or nobody’s fault in particular. All they know is that when they needed to use the equipment, it simply did not work.

This is typically where the organization’s field technicians come into the picture. In many cases, they represent the only “real” physical manifestation of the service and support that keeps their equipment up and running – or at the very least, they may represent their first line of service and support defense. Your customers may rely heavily on the equipment itself to support their day-to-day business operations; but they rely even more on your organization and your field technicians to ensure that the equipment can continually do what it is supposed to do.

This is a unique area where most services organizations – and their dealers and distributors – can use some help! The good news is that there is a Service Lifecycle Management (SLM) software solution available for users in every industry, size and geographic coverage segment. The implementation of an SLM solution can provide a comprehensive set of integrated business solutions that empower strategic initiatives while driving tactical execution.

Companies that install, repair, and maintain business systems and equipment can increase their competitive advantage, grow top-line revenue, and bolster bottom-line profitability through the use of an effective SLM solution. Among the basic features and benefits of SLM functionality for a typical Field Services Organization (FSO) may best be summarized as follows:

  • Comprehensive Contract and Service Level Management
  • Service and Sales Integration
  • Increased Help Desk/Contact Center Effectiveness
  • Field Service Efficiencies

Comprehensive Contract and Service Level Management

  • Through SLM, customer contracts and Service Level Agreements (SLAs) can be structured in ways that best fit the business, as well as the businesses of their respective customers. Key items such as maintenance and repair service; preventative (or predictive) maintenance; remote monitoring, diagnostics and repair; and draw-down contracts can all be easily established and managed. As such, the organization’s services management can be assured that all of the obligations of its customers’ SLAs are well-planned for – and met – and that all of its mission-critical commitments to the customer are being honored.

In this way, services revenues are maximized, and there is little risk of experiencing lost revenues. Company representatives can quickly and easily verify both the customer and vendor entitlements, thereby eliminating any costs that might otherwise be associated with providing customers with parts, consumables or services they are not entitled to under the terms and conditions of any existing warranties or contracts. This also ensures that any and all dealer claims will be quickly processed.

Service and Sales Integration

  • The Service and Sales Integration functionality of an SLM software suite can be relied on to enable the manufacturer’s and dealer organizations’ field service technicians and contact center personnel to more thoroughly service the company’s accounts, while also driving increased revenue in the process. By placing intuitive, easy-to-use sales tools into the hands of the appropriate service employees, the number of new opportunities to up-sell and cross-sell equipment, parts and consumables to existing customers will increase multifold.

The organization’s service technicians are out in the field every day talking to, and interfacing with, its customers; why not also provide them with the tools and resources they can use to close – or at least open – additional sales opportunities within this virtually captive customer base!

Increased Help Desk/Contact Center Effectiveness

  • SLM can also allow the organization to increase its call handling efficiencies, especially in the areas of first-call resolution and call avoidance rates. This will ultimately result in the lowering of internal service costs, and commensurate improvements in existing levels of customer satisfaction and retention. In many ways, business systems and equipment services have been somewhat commoditized over the years, and the only way that one services organization (or its dealers) can establishment a competitive advantage over another is to differentiate (i.e., improve) the way in which they support the customer base after the initial sale.

The best way to do this is to provide superior levels of help desk and call center support empowered by a robust SLM capability. By arming your call center personnel with accurate and up-to-date customer and installed equipment base information – be it entitlement, configuration, or marketing campaign data – the organization will be able to greatly increase its ability to sell, cross-sell, and upsell its entire portfolio of products, services, parts and consumables.

Field Service Efficiencies

  • Leveraging the field service automation tools inherent in the SLM software allows the organization to optimize its field force capacity utilization, resulting in significant operational efficiencies as field technicians quickly become empowered to increase revenue generation and recovery. By streamlining and managing the invoice process, billing cycles will be lowered, as will other key areas, such as Day Sales Outstanding (DSO), etc.

These improvements will almost immediately go directly to the bottom line as you will be able to manage your cash flow and receivables much more effectively. Similarly, by streamlining and managing your service inventories (such as trunk stock) more effectively, you will also be able to realize significant inventory cost reductions.

What many OEMs and dealer organizations seek is an end-to-end, enterprise-wide SLM solution that addresses the complete equipment/service lifecycle, from lead generation and sales quotation, to service and billing, through asset retirement. They are looking for a solution that both integrates and optimizes the critical business processes that all services organizations have to face with respect to providing their customers with the levels of service and support they require.

Services organizations that provide their customers with any combination of products, parts, services and consumables must be able to not only fix the customers’ equipment, but to fix the customer as well; however, the ability to do so may vary greatly from one organization to another. However, the most successful organizations will ultimately be the ones that have the right mix of management, personnel, tools, resources and solutions (i.e., Service Lifecycle Management), all working together to provide their customers with the levels of service and support they require – and expect!

The Global Warranty Services Market Appears to Be Moving Toward a More Expansive Period of Growth in 2019!

[After conducting our fifth annual Warranty Chain Management (WCM) Benchmark Survey in Q3/Q4, 2018, Strategies For Growth℠ has put together a new results package consisting of an Analysts Take paper, a Webinar and a 2019 WCM Conference workshop and presentation on “The State of Warranty Chain Management (WCM) for 2019 – and Beyond!”. The Webinar was hosted by Mize, Inc. on January 17, 2019 at 1 PM EST. However, you can download a copy of the webinar at https://info.m-ize.com/webinar-on-benchmark-and-optimize-warranty-management. Mize is also distributing copies of the Analysts Take paper at the 2019 WCM Conference in Orlando, FL, March 12 – 14, 2019.

The following is an excerpt from the January 10, 2019 issue of Warranty Week. Read the entire article, including illustrative charts and additional commentary, at Warranty Week.]

The 2019 survey results reflect all of the signals for an expanding market growth over at least the next 12 months, and probably beyond. Nearly two-thirds of respondent organizations are already running their services operations as profit centers with their own P&Ls, and annual warranty-related budgets are expected to increase-over-decline by a ratio of more than three-to-one. This has all of the makings for a fast-growing market.

Further, we are seeing an uptick in the percent of warranty services organizations taking steps to improve their respective planning and forecasting activities, and restructuring, as necessary, for improved warranty management oversight and accountability.

As such, all of the key aspects that can be used to signify both operational and financial improvements seem to be there, leading to an optimistic expectation for accelerated growth in the industry over the next 12 months.

Presently, 63% of respondent organizations manage service as a profit center, keeping pretty much in line with the findings for other related components of the global services industry (e.g., the field services segment, etc.). For many organizations, running services as a profit center allows them to focus more on the processes that may be used to generate higher levels of profitability, which represents one of the three main “clusters” of key factors currently driving the global market.

Warranty Management Organizations Are, Once Again, First and Foremost, Customer-Focused

The respondents to the survey have also once again clearly identified the specific drivers that are pushing them to aspire to the attainment of higher levels of performance. In fact, they have provided responses that solidify that there are still three main “clusters” of factors that drive their respective businesses: Customer-focused, Product Quality-focused and Profit-focused – and in that order.

For example, among the Customer-focused drivers, post-sale customer satisfaction issues (60%, up from 58% in 2018, and only 42% in 2017), the desire to improve customer retention (43%), and customer demand for improved warranty services (40%) remain as the top three drivers with respect to optimizing overall service performance. No other drivers are cited by more than just over one-quarter (28%) of respondents.

The next “cluster” of drivers is Product Quality-focused, and is represented by product defect-related costs (28%) and dealing with inferior/deficient product quality (23%). The third “cluster”, Profit-focused, is represented solely by an internal mandate to drive increased service profitability (23%). As such, the warranty chain management community has made it clear that it is squarely focused on, first, satisfying – and retaining – its customers; second, dedicated to improving product quality-related issues; and third, mandated to drive increased services profitability – again, in that specific order.

These results suggest a continuation of the relative “normalcy” that has characterized the Warranty Chain Management segment over the past several years – that is, a return to focusing on customers, rather than spending most of their time and resources wrestling with cost reductions and other financial issues. Obviously, while financial considerations are still critically important, the industry focus has shifted back, as it always does, squarely on the customer’s needs, requirements, preferences and expectations.

The Greatest Challenges Facing Today’s Warranty Management Initiatives

Aside from the top clusters of customer-, product quality- and profit-focused drivers, warranty services managers are also faced with myriad additional challenges that come from many different areas. The top challenge, as cited by nearly two-thirds (63%) of the survey respondents, is the ability to identify the root cause of product failures. However, nearly half (45%) also cite cost recovery from suppliers as one of their top three challenges. Further, between 28% and 30% of respondents also cite repair management (30%), claims processing time and accuracy (30%), and sale of extended warranties (28%) as significant challenges as well.

Based on the 2019 survey results, the greatest challenges facing warranty services managers today align closely with the key market drivers, as well as with the current and planned strategic actions to be taken. As a result, these data continue to reflect an environment where overall improvements are likely to transpire in the next 12 months, thereby leading to higher levels of customer satisfaction and the further stimulation of financial growth for the segment.

Analysts Take on the Global WCM Community

However, building upon the survey findings from previous years, only a small majority of warranty managers (57%) report that they are satisfied with their company’s warranty claims processing time – and only 22% are “extremely satisfied”. Although these percents represent a significant increase over previous years’ surveys, there are still more than one-in-five (22%) that are currently “somewhat dissatisfied” with their company’s warranty claims processing time performance.

Ashok Kartham, founder & CEO of Mize, concurs adding that “the companies can achieve the key goals of improving customer satisfaction and profitability of service business by connecting all stakeholders and processes in warranty and service contracts. Companies need to connect with customers directly to improve self-service and grow service contract sales. Service technicians need to be enabled to make better diagnostic and repair decisions upfront. Supplier collaboration needs to be improved to drive product quality. Companies can move beyond claims processing to drive customer satisfaction and grow additional revenues from innovative service offerings.”

Kartham further explains that “the warranty industry is facing significant challenges and opportunities with increased customer expectations for product uptime and predictive maintenance. The Mize Connected Customer Experience platform, and Warranty Management solution, enable companies to transform warranty to be a profit center. We are excited to bring the industry benchmarking and best practices to help companies optimize the entire warranty lifecycle and maximize the customer lifetime value.”

[Again, to download a copy of the Webinar, or to obtain a copy of the companion Analysts Take paper, simply click here: https://info.m-ize.com/webinar-on-benchmark-and-optimize-warranty-management.]

Complimentary, Companion, SFG℠ Analysts Take Paper to Our “The Future of Field Service” Article

Sarah Nicastro, in her new position at IFSWorld, has just launched the inaugural issue of her e-journal, The Future of Field Service! It was my honor and privilege to have written more than 30 pieces for her while she was Publisher/Editor at Field Technologies and Field Technologies Online – and I am grateful for the opportunity to continue to write for her in her new role!

Here’s wishing that Sarah continues to enjoy the success she has built all around her for more than a decade serving the Field Services segment!

In the meantime, please feel free to download this complimentary, companion, Analysts Take paper to our first (of many) The Future of Field Service articles; The Future of FSM (Draft-18-11-28-01)