How Best Practices Organizations Are Positioning Themselves to Drive Revenues, Reduce Costs and Compete More Effectively
Putting Warranty Management Metrics in Perspective
Each year, Strategies For GrowthSM (SFGSM) conducts a series of Benchmark Surveys among its outreach community of more than 40,000 global services professionals. Total responses for the updated 2015 Warranty Chain Management Benchmark Survey, conducted over a six-month period ending in Q3 2015, are in excess of 225
Overall, global survey respondents identify the following as the top factors that are currently driving their ability to optimize warranty management performance:
- 56% Desire to improve customer retention
- 50% Post-sale customer satisfaction issues
- 37% Customer demand for improved warranty management services
- 27% Product defect-related costs
- 24% Mandate to improve service profitability
- 21% Mandate to drive increased service revenues
However, in order to effectively execute on each of these drivers – and strive to attain Best Practices – respondents then cite the following as the most important strategic actions already in place at their respective organizations:
- 52% Develop / improve metrics, or KPIs, for advanced warranty chain analytics
- 39% Streamline parts return process to improve overall efficiency
- 35% Improve warranty management-related planning and forecasting activities
- 32% Restructure for improved Warranty Management oversight & accountability
- 31% Foster a closer working collaboration between product design & service
How well an organization steps up to each of these drivers by taking the most appropriate – and effective – strategic actions will ultimately determine its prospects for successfully attaining a desired Best Practices position in the global warranty management services marketplace.
Based on the updated results of the original SFGSM benchmark survey, this report provides additional insight into each of these and other related areas that may be impacting your organization’s ability to attain Best Practices with respect to its overall warranty chain management processes – and it all starts with the need to have a full understanding of the numerous processes, policies and procedures used to run your warranty management operations, coupled with the development of a Key Performance Indicator (KPI) program that can be used to measure your success all along the way.
For the purposes of this report, we define Best Practices Warranty Management organizations as those that have attained both 90% or higher customer satisfaction, and reflect average warranty claims processing times of four days or less. Accordingly, approximately 11%, or 25, of the total respondents are classified as Best Practices.
[To obtain a copy of the full White Paper report, or to register for the March 3, 2016 Webcast of the same name, please visit the Tavant Technologies Webcast landing page at: http://info.tavant.com/Warranty_Webinar_2016.html.]