When Does it Make Sense to Insure Manufacturer’s Warranty Risk?
Find out how to Fund Warranty Expense with an aim toward Customer Service Excellence and Risk Mitigation
As corporations continue to look for ways to improve service and minimize risks, finance managers are scrutinizing product support costs now more than ever. However, in today’s world of instant online ratings, it is imperative for corporations to deliver excellent service and support experiences to their customers.As a result, corporations continue to increase spending on technology and other resources to improve Customer Experience.
Why? Because smart corporations know that customers are approximately seven times more likely to recommend a brand after a positive service experience.
All of this means that corporations need to adequately fund future warranty costs to maintain customer service excellence. And, while Warranty Reserve funding has been dropping (due to factors such as improving product quality and customer service automation), it’s important to adequately reserve for warranty risk in order to enable customer service excellence. Further, as this white paper discusses, many manufacturers are moving away from the traditional method of warranty cost funding using the Warranty Reserve line on the balance sheet, moving instead to an insured solution which both minimizes financial risk and ensures adequate funding.
In our new ebook, you can find out what a warranty reserve is, and how it's historically been accounted for on the balance sheet. More importantly find out how to insure it to provide balance sheet relief.
Download it today!