Building a Best Practices Warranty Management Program for 2016 – and Beyond!

Research Powered By© 2016 Strategies For GrowthSM

“Research Analysts to the Services Industry”Building a Best Practices Warranty Management

Program for 2016 – and BeyondSpecial Webinar Presentation

March 3, 2016

Hosted by:

“How Best Practices Organizations Are Positioning Themselves to Drive Revenues,

Reduce Costs and Compete More Effectively”

Today’s Main Focus:

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DOWNLOAD COMPLETE WEBINAR PRESENTATION

http://www.tavant.com/sites/default/files/download-center/Tavant-Warranty_Webinar-March%2003%202016.pdf

http://tavat.com/sites/default/files/download-center/Tavant-Warranty_Webinar-March%2003%202016.pdf

(Percent Response)

0.0 20.0 40.0 60.0 80.0 100.0

Pure, 100% Service Company

Cost Center in Support of Product Sales

Independent Profit Center, with its own P&L

17

34

49

Overall, Most WM Organizations Are Run as Profit Centers …

n = 213

66%

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(Percent Response)

0.0 20.0 40.0 60.0 80.0 100.0

Don't Know / Unsure

Process Is Fully Automated

Process Is Partially Automated

Process Is All Manual

No Formal Warranty Management Process

2

21

49

20

7

Overall, >Two-Thirds of WM Processes Are At Least Partially Automated:

70%

n = 164

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(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

Don't Know / Unsure 0

32

48

20

0

… Even Though, One-in-Five Still Run on an All-Manual Basis:

n = 25

20%

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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%+

0

0

5

60

5

25

5

A Majority of BP WMOs Plan to Maintain Their Annual Warranty Budgets*

* In the next 12 months.n = 20

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0.0 20.0 60.0 80.0 100.0

More than 50%

41% to 50%

31% to 40%

21% to 30%

11% to 20%

6% to 10%

3% to 5%

2% or Less

None

9

0

0

9

5

18

23

23

14

However, Almost 1-in-10 Cite >50% of Revenues from Extended Warranties

40.0

n = 22Mean = 50.0%Median = 3.1%

64%

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0.0 20.0 40.0 60.0 80.0 100.0

Not Important at All

Not Very Important

Neither Important nor Unimportant

Very Important

Extremely Important

0

8

12

56

24

An 80% Majority Believe Effective Warranty Management to Be Important

n = 25

80%

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(Percent Response)

0.0 20.0 40.0 60.0 80.0 100.0

Mandate to Improve Service Profitability Mandate to Drive Increased Service

Revenues

Product Defect-related Costs

Cust. Demand for Imp'd Warranty Services

Post-Sale Customer Satisfaction Issues

Desire to Improve Customer Retention

24

21

27

37

50

56

Overall, WM Organizations Are, First and Foremost, Customer-Focused …

n = 139

Customer-Focus

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(Percent Response)

0.0 20.0 40.0 60.0 80.0 100.0

Logistics / Reverse Logistics-related Costs Mandate to Drive Increased Service

Revenues

Cust. Demand for Imp'd Warranty Services

Product Defect-related Costs

Post-Sale Customer Satisfaction Issues

Desire to Improve Customer Retention

28

24

20

32

60

68

Plus, a Heightened Emphasis on Cost-related Drivers …

n = 25

Customer- Focus

Cost-Focus

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(Percent Response)

0.0 20.0 40.0 60.0 80.0 100.0

Managing Warranty Fulfillment Admin Costs

Claims Processing (i.e., Time to Process, Accuracy, etc.)

Repair Management

High Levels of NFFs

Identifying Root Cause of Product Failures

32

36

36

40

40

The Greatest Challenges Facing Today’s Warranty Management Initiatives …

n = 25

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Selecting the Appropriate Warranty Management KPIs to Measure & Track:- By Area of Focus -

Area Representative KPIs/Metrics to be Tracked

Customer-focused • Customer Satisfaction

Cost-focused • Total Warranty Costs• Warranty Costs, per Product• Claims Processing Costs

Time-focused • Analysis Cycle Time• Claims Processing Time• Re-imbursement Cycle Time (from Suppliers)• Time from Product Sale to Defect Detection• Time from Defect Detection to Correction

Revenue-focused • Total Revenues from Extended Warranty SalesOther • Warranty Incidents, per Product

• In-Warranty Product Return Rate• Warranty Reserve Variation




Attained KPI Values Reflect High Performance Among BP WMOs …

Mean KPI values currently being used to measure Warranty Management performance appear to be reasonably high for Best Practices organizations:

95% Customer Satisfaction(compared to 85%, overall – plus 10%)

2.22 Days Warranty Claims Processing Time (compared to 5.57 days, overall – 3.35 days quicker)

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0.0 20.0 40.0 60.0 80.0 100.0

Not at All Satisfied

Not Very Satisfied

Neither Satisfied nor Dissatisfied

Very Satisfied

Extremely Satisfied

0

12

28

44

16

Although Roughly 1-out-of-8 are Not Very Satisfied:

n = 25

12%

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What Are the Key Benefits of Providing Best Practices Warranty Support?

Key Benefits of Providing Best Practices Warranty Support

1. Improved revenue streams through the sales of extended warranties

2. Increased knowledge/information flow about product defects and their sources

3. Improved levels of Customer Satisfaction, leading to greater Customer Loyalty

4. Reduction of costs associated with Warranty Claims Processing & Administration

5. Reduction of losses associated with the processing of fraudulent claims

6. Improved Product Design and performance (i.e., “Design for service”)

7. Improved Financial performance:- Increased service revenues- Greater profitability- More predictable revenue streams

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BP Warranty Management- Flexibility to Change

16

KPIs

Identify Improvement

Areas

Implement Changes

Monitor/Control Process

Adjust KPIs

0 60 70

For In

Makin

Improving Depot Repair Processes 28

To Improve Equipment / Part Return… 52

To Improve Field Service Processes

64

10 20 30 40 50PERCENTAGES (N= 25)

Key Uses of Data/InformationCollected

Source: SFG℠’s Warranty Chain Management Survey

To Make Product Design Changes 56

To Make Manufacturing Changes 32

To Make Purchasing Decisions 32

To Make Supplier Selection 20

clusion in Regular Corporate Financial… 20

g Changes to Product Documentation 16


Tavant Proprietary & Confidential



Warranty Management

System

Flexible

Customer Focused

Comprehensive(Closed Loop)

DOWNLOAD COMPLETEWEBINAR PRESENTATION

17



Highly Configurable

Comprehensive closed loop

Modular & Integrated

Tavant Warranty

18

Warranty Management (registrations, claims

management, EW sales)

Recall/field improvement

campaigns

Field Service

Supplier Recovery

Integrated part returns

Fraud Analytics

CORE(rules, workflow, BI)




http://tavant.com/sites/default/files/download-center/Tavant-Warranty_Webinar-March032016.pdf

Tavant Warranty on Demand

19

Tavant Warranty On Demand

Sales Cloud, Service Cloud,Marketing Cloud

(Capture customer touch points)

Salesforce Platform(customer information)

Tavant Warranty On Demandleveraging Force.com cloud environment

Highly Configurable

Very Customer Focused

Social Collaboration





PEOPLE. PASSION. EXCELLENCE.

> Thank you for attending the WebinarWebinar playback will soon be available through www.tavant.com

Any other questions? Feel free to write to [email protected]


http://www.tavant.com/

mailto:[email protected]



Date post:	26-Jan-2017
Category:	Software
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Building a Best Practices Warranty Management Program for 2016 – and Beyond!

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