Insights

Manufacturers typically don’t have direct interaction with end customers as they mainly rely on mass media to market and channel partners to sell and service their products.

Companies are increasingly focusing to become more customer-centric and elevate customer experience to improve customer satisfaction, loyalty and life-time value.  Durable goods companies that provide high value and complex products face unique challenges. 

In addition to the total number of claims and warranty costs, these five key warranty metrics help warranty managers to drive performance and product quality.

The data and analysis contained in this report are based on the results of Strategies For GrowthSM‘s (SFGSM) 2019 Warranty Chain Management Benchmark Survey, conducted in November/December, 2018. 

Eric Arnum is the editor of Warranty Week, an online newsletter for warranty management professionals. Since 2003, Eric Arnum has been publishing reports on product warranties, extended warranties, and claims rates in various industries. Warranty Week has gained a broad following among manufacturers, retailers, servicers, and insurance professionals.

Benchmarking warranty performance can be a very valuable exercise to gain an independent perspective on how well you are doing compared to other companies. Bill Pollock, President & Principal Consulting Analyst, Strategies for Growth (SFG), has been doing a Warranty benchmark survey for few years and currently conducting a Benchmark Update Survey for 2019. Mize Warranty Insights caught up with Bill to learn more about the Benchmarking survey and process.

The automotive warranty conference is taking place at an exciting time for the automotive industry as there are huge developments in autonomous, electric, and connected vehicles, along with a shift to ride-sharing and mobility models. 

Replacement Parts cost have been represented to be as much as 60% or more of the warranty claim expense. Studies indicate that up to 15% of the parts cost is excessive. 

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