High-Tech manufacturers and their channel partners have begun to recognise the strategic value of providing extended warranty and extended service programs in the aftermarket. Indeed, these programs can represent a significant source of profitable and recurring revenue. As result, more and more service executives are tasked with the responsibility of building and growing these programs writes Michael Blumberg, President, Blumberg Consulting Group
At issue, some companies are very effective at marketing and selling these programs while others face challenges. What factors set these companies apart? Does it have to do with warranty price being too high, service offerings being inadequate, sales efforts not effective, or just lack of interest among customers? Which begs the next question… What can service executives and warranty professionals do to overcome these challenges?
To answer these questions, Blumberg Advisory Group in conjunction with Giuntini and Company have launched a market research study among warranty and service professionals who influence, recommend or make decisions about extended warranty and/or extended service programs.
The objective of this survey is to identify best practices involved in marketing and selling extended warranty and/or extended service programs, and evaluate the impact of these practices on key performance indicators (KPIs). The findings will validate which strategies and tactics have the greatest impact on maximizing service revenue which in turn will help managers and executives become more effective in marketing and selling extended warranty/service programs.
More specifically, the survey result will evaluate how various elements of the service marketing mix (e.g., pricing, portfolio, terms & conditions, etc.) and service delivery infrastructure help or hinder KPIs. It will also examine the impact of alternative types of sales approaches and pricing strategies impact attachment and renewal rates. The information will be compiled a new benchmark research study, never presented, as well as from twenty years of progressive industry analysis of best practices.
The survey should take approximately 15-20 minutes to complete. One out of every 50 participants will receive a $100 American Express Gift Certificate, and every participant will receive an executive summary of the survey results.
Please note that the survey will close January 18th 2017. We also expect to publish results of this survey in Field Service News in the March/April timeframe