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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A successful warranty program advances a manufacturer’s fundamental goals of achieving and sustaining profitable sales.
As an outside attorney who has counseled companies on factory and extended warranty programs and defended warranty litigation for over two decades, it’s clear to me that successful programs share two critical traits:
- The smartest programs have freed themselves from traditional thinking that warranty is nothing more than a profit-draining cost center.
- The most successful programs have an unwavering commitment to customer satisfaction through top-level customer service. Continue reading