Recently, Mize hosted a webinar titled Reduce Warranty Costs by 15% in the First Year. The webinar featured a case study by Vance Thomas, Corporate Warranty Manager of LP Corporation. Mr. Thomas’ presentation addressed challenges his company faced with respect to utilizing a legacy warranty management system to support products sold within the Building Products industry. He also discussed the transformational journey his company took to replace the legacy system with a new solution from Mize which resulted in a 15% reduction in warranty claims processing costs with the first year.
Connected Customer Experience
If you work for a global manufacturer of durable equipment, then it is likely that your company still operates a legacy system for warranty management. Legacy systems are costly to maintain and modify. Since there are very few people inside the organization who remember how the system works, your company must employ people with specialized knowledge of the system. At issue, these people are usually focused only on the task of system maintenance and may provide little value to the company beyond this task.
Although technology - connectivity, analytics, sensors - has changed a lot and enabled OEMs to implement much tighter controls and detect fraudulent behavior, the general picture looks quite unchanged and warranty fraud continues to be a challenge.
The strategic importance of warranty management has increased and the general maturity of the warranty profession in the industry has improved during the past 15 years. However, the battle against warranty fraud continues to be a challenge for many warranty professionals.
Our previous blog “The Dark Side of Warranty Management “ highlighted the scale of warranty fraud. Depending on the source, warranty fraud is estimated to be 3 to 15 percent of the total warranty cost. In individual companies, the amount of warranty fraud can be much higher
A Service Technician can affect your Warranty costs more than you think. The decisions and actions by a Service Technician (Tech) have a very significant impact the cost of warranty repairs. To reduce warranty costs, warranty and Service departments need to pay more attention to enabling the Tech to make right decisions, capture accurate information, and perform the repairs efficiently.
Companies spend on average 11% of revenues on marketing and 1.5% of revenues on Warranty. Despite the higher cost of marketing, why is warranty considered a cost center, but marketing is not.