In recent years, leading organizations have found that effective warranty management not only helps to accomplish historic goals of cost containment and enhanced experience but can also be counted on to generate an incremental revenue stream supported by a more aggressive program of extended warranty sales. Top performing companies are looking to implement an end-to-end workflow process to handle claims and product returns, according to the latest research report from the Aberdeen Group.
Research findings in the report, entitled "Warranty Management: The Bridge to Future Revenue Creation," indicate that while all companies are looking to streamline the parts return process to improve overall efficiency, leading businesses are also utilizing analytics to support key processes, regularly and systematically measuring performance, and incentivizing employees to foster improved performance and a stronger end result. As such, these firms exhibited the following:
* A 2.0 days warranty claims processing time, in contrast to 7.2 days for all others
* A 19% reduction in warranty-related repair / return costs over the last 12 months, as opposed to a 1% increase for all other firms
* A 30% decrease in length of time to process a warranty claim over the previous 12 months, when compared to a 4% decrease in performance for all other organizations
