Home Owner Warranty - Warranty Research Report: - Warranty Week

Among those who reported escalating warranty costs, 40% of the respondents cited escalating product costs, while 33% cited escalating spare parts costs and 22% cited escalating personnel costs. Aberdeen asked each respondent to estimate the typical amount of time it takes their companies to process a warranty claim, and the typical cost of warranty claims in terms of percent of revenue. So one could infer that warranty analysis software can help a company cut its claims cost and/or claims processing time. According to the Aberdeen report, 70% of the leaders said they had an integrated warranty management organization combining all service functions in one place, and they had a senior executive (VP or higher) in place with oversight responsibilities for warranty management. In contrast, only 42% of the laggards had a warranty organization in place, and only 38% of the laggards had a senior executive in charge of warranty. The best-in-class group said they measure themselves in numerous ways, including total warranty cost (73%), customer satisfaction (68%), claim processing time (68%), first call resolution (59%), and warranty cost per product (59%). read more

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