Mize recently hosted a workshop at the ENG Automotive Warranty Summit USA titled Enabling suppliers to manage claims, returns, and quality for all OEMs. Ashok Kartham, Mize’s Founder and CEO, kicked off the workshop by posing the following question: What is one key factor that drives warranty performance improvement?”. Of course, warranty performance is broad, consisting many measures such as claim automation rate, supplier recovery rate, cycle time for Detection-to-Correction, and related factors such as COPQ. As such, the question is not easily answered. However, the experts at Mize’s have reached a conclusion is that the key factor is the “Connectedness” of the warranty process.
Connected Customer Experience
Customer Experience is a critical factor driving customer loyalty and retention. It is important for companies to focus on these Key Performance Indicator (KPIs) because it takes 5 times as much to attract a new customer as it does to keep an existing customer satisfied. Maintaining high levels of customer loyalty and retention can also have a huge financial payoff. Benchmark studies show that just a 5% increase in retention can yield profit increases in the range of 25% to 95%.
This blog post is based on workshop session by Mize at ENG’s Automotive Warranty Management conference on Oct 16th & 17th in Dearborn, MI. You can download the workshop presentation or read the summary blog post about the conference.
The ENG’s 3rd annual Automotive Warranty Management USA, sponsored by Mize, took place on Oct 16th and 17th in Dearborn, MI. The event attracted over 110 warranty leaders from the automotive industry. This blog post summarizes the key themes, presentations, metrics, best practices, and technologies discussed during the conference.
Replacement Parts cost represents 60% or more of the warranty claim expense. Studies indicate that up to 15% of the parts cost is excessive resulting from:
- replacing good parts leading to NTF (No Trouble Found) issues
- replacing parts when they can be repaired at a lower cost
WSJ article on annual logistics report finds:
- Costs for freight have risen steeply since the middle of last year because of rising interest rates, higher price of fuel, and driver capacity constraints
- Average freight rate per mile have risen between 20% and 30% so far this year