Category Archives: Customer Experience

Survey says: Service contract purchasers more loyal to brand and retailer.

TWG logoWarranty Week reports that a survey done by The Warranty Group shows that “buyers of protection plans are happier with their purchases and more loyal to both the seller and the manufacturer’s brand than are non-service-contract buyers.” The report does not answer one key question:  Why?.

Any thoughts?

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Some thoughts on how to use warranty to drive sales

warranty on wheels

In a recent webinar, Warranty in Practice – Can a company use warranty to help drive sales?, I talked about the cultural roots of “warranty,” its underlying polices, the laws affecting it, and how in modern times it has evolved from a cost-center to a sales tool. The presentation also touched on ways to use warranty to help increase sales. Here are a few more thoughts on the topic.   Continue reading

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Customer Experience Hypo: What should the rental-car company do for Stan?

carrental

At this very moment a good friend of mine is in a dust-up with a rental car company. After hearing (my friend’s version of) “the facts,” and harkening back fondly to my law school days, I thought his tale just might make an interesting hypothetical to launch a discussion on “customer experience,” and I’m hoping the reader(s) of this blog will chime in. Continue reading

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Filed under Best Practices, Customer Experience, PR & Branding, Resolving Disputes

Warranty in Practice – Can a company use warranty to help drive sales?

Warrantycar

Can a company use warranty to help drive sales? It sure can. Just ask Hyundai Motors. It saw its market share jump from 1.1% to 4% after it extended its powertrain warranty in 1999. You might also want to put the question to Volkswagen, which saw its sales drop 30% in the three years after it shortened its powertrain warranty in 2002. Continue reading

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Read the warranty before crying foul

Suitcase

A recent LA Times piece unfairly accuses luggage maker Victorinox of not living up to its lifetime warranty. But if the article’s author, or the aggrieved customer had only bothered to read the warranty, they’d have found that the company did “no such thing.” Continue reading

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Putting the customer first drives sales … at least KIA Australia thinks so

Kia AU 777

Competition benefits consumers far more than so-called consumer protection laws and the red-tape they’re wrapped in. The former delivers better quality and service and a lower price, while the latter needlessly drives up costs on both sides of the transaction and keeps seedy lawyers in business. Want proof? Look at what Kia is doing in Australia, and why. Continue reading

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Groundhog Day: Another piece questioning the value of extended warranties

Celtic-knot-basic-linear

The same article keeps popping up every other week or so in one publication or another. Its headline either asks if extended warranties are worth the cost or screams they are not. It gives the same advice – “buy smart” – and generally reaches the same conclusion on whether you should buy a service contract – “It depends”. See here, then here, here, herehere, and here.  Why is somebody always picking on extended warranties?

Here are 5 reasons why I think extended warranties make an easy target. Continue reading

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Consumer Reports to consumers: Choose risk or over peace of mind

boxing clip artIn a September 6 piece, Why you should avoid home warranties, Consumer Reports again takes a shot at service contracts. Noting a recent complaint filed by New Jersey regulators against Choice Home Warranty for allegedly making it difficult to obtain benefits, CR “recommend[s] avoiding service contracts” because those “that cover homes and cars, for example, can cost hundreds of dollars.” But what if the car or home costs many thousands of dollars? Isn’t spending a few hundred bucks on a service contract worth it to minimize risk and secure peace of mind? “No,” says CR, “it makes much more sense to buy reliable products and maintain them as the manufacturer recommends.” Now it’s clear, just buy things that won’t malfunction or fail. Continue reading

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Filed under Customer Experience, Resolving Disputes, Risk Management, Service Contract, Warranty

Odds and ends in the world of warranty

notes Some interesting notes about the goings on in the warranty business. Continue reading

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Mary, you’re being quite contrary

see sazw

In her recent column, Everyday Cheapskate Mary Hunt begins by taking a swipe at extended warranties: “While I cannot say that every extended warranty would be a rip off, that’s the way I want you to start thinking of them.” But she concludes her piece by noting that, “On a personal note, there are only two products for which I have and will continue to buy the extended warranty: Apple products … and treadmills.” Confusing? Well not really. Continue reading

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