on June 19, 2019 blog

Warranty Reserves: To Insure or Not to Insure

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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.Warranty Reserves_To Insure or Not to InsureAs 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!

Download Our e-Book

Jenniffer Breitenstein

Jenniffer, a 25-year veteran marketing, operations and CX executive, has demonstrated success in driving growth and execution for global service industry companies like OnPoint Warranty Solutions, ServicePower, GE, Service Net and Accent Marketing. Jenniffer is a certified 6 Sigma Green Belt, GE MDC graduate, former board member of the GE Louisville Area Education Advisory Committee and Elfun Chapter, co- chair of the GE Women’s Network Community Service Committee and was named one of the 30 Most Inspiring Women In Business in November 2017 by Insight Success Magazine.  She was named a 2019 Powerful Woman in Consumer Technology by Dealerscope and was a 2019 Stevie Award Woman in Business Bronze winner.