New Frontiers for Extended Warranties by Aleem Lakhani is a must read for warranty industry professionals. In the article, Aleem examines the impact disruptive technologies and changing consumer expectations are having on warranty, extended warranty and service contract operations. He analyzes the contours of the present day warranty marketplace, the digital transformation of how business is done in the space, and what this transformation means for key stakeholders. Aleem observes that “[t]he primary challenge [disruptive technologies present] relates to how to harness the data to make intelligent use of it in a timely manner for relevant partners in the warranty value chain ecosystem,” and predicts that “[t]hose that take bold steps today will benefit from first-mover advantage, increased market share, and will establish trust, loyalty and confidence about their commitment to innovation with partners, including the expectation of today’s and tomorrow’s customers.”
Aleem, the EVP at AmTrust North America, Specialty Risk Division, is a warranty industry veteran and thought leader. He also serves as on the Board of Directors for the Global Warranty and Service Contract Association. (Full disclosure: I am presently serving as GWSCA president.)
Service contracts can be powerful tools for increasing revenue and customer loyalty. If you sell a product, you have almost certainly considered what type of warranty to offer. But, have you also thought about whether to also give customers the option of purchasing an additional service contract? Here are five things to consider:
This year’s theme is “Knowledge: The Profitable Advantage.”
Industry experts and thought leaders from the warranty and service contract business sectors will be there to share insight, analysis and recommendations for improving all aspects of warranty and service contract operations. Continue reading →
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, here, here, 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 →
In 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 →
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 →
“My crime briefs ‘read like a thriller,’” says Bapoo M. Malcolm, Advocate, Bombay High Court, India.
“Practice has shown that people appreciate simplicity & clarity in comprehension compared to more technical writing (jargons & all),” observes Janice Isu, Acting Principal Legal Officer, Office of the State Solicitor, Dept. of Justice & Attorney General, Papua New Guinea.
“A company can’t hide behind fine print written in legalese. Judges rule for the average person,” declares Paul Eveleigh, a copywriter from Melbourne, Australia.
A dealer screws up, and the service contract company pays … at least on the PR front. A manager of a car dealership who “forgot” to write in that the service contract sold to a foreign student did not cover labor charges was ordered to pay a refund … he gave it to the customer in pennies. Continue reading →
“Can a home warranty fast track the sale of your home.” It just might says a recent piece in the Lodi (CA) News-Sentinel under the headline: Some buyers see great value in home warranties. Continue reading →