Chairman’s Opening Remarks
G. Terry Hawkins, Independent Consultant

~Opening Keynote~
Building Relationships for Life:
Investing in the Customer Experience at Hewlett-Packard

HP is evolving the standard warranty and service contract model, shifting from the traditional “managing cost” mentality to an “investing in the customer” mindset. 

More than a billion people rely on HP technology every day.  Naturally, HP provides warranty services to its customers.  But HP is on a journey to turn the tables and transform its massive service function into a revenue generator.

Cliff Wagner, Vice President of the Total Care Service Organization for Personal Systems Group-Americas is leading this paradigm shift within HP.  During his presentation, Cliff will walk us through the journey HP is on to transform warranty services into a revenue-generating business that not only turns a profit, but delights customers in the process. Cliff will discuss:

    • Investing in the customer experience
    • Analyzing trends among your customer base
    • Providing a unique customer service model for each customer segment
    • Identifying opportunities for up selling and new revenue
    • Shifting from cost center to profit center

Speaker:
Clifford R. Wagner, VP, Total Care Services , Personal Systems Group-Americas,
Hewlett-Packard Company

Panel Session—Best Practice Success Stories:
Improving Customer Loyalty & Brand Image through Your Extended Warranty & Service Contract Programs

Leading edge companies are finding and seizing the opportunities to build relationships with their customers through the warranty and service plans process.  During this session you’ll hear from various organizations that have been successful at creating positive customer experiences with positive benefits.  Topics of discussion include:

    • Identifying relationship building opportunities
    • Strategies for strengthening customer loyalty and brand image
    • Tools for transforming relationships (i.e. inbound call center strategies,
      outbound call centers programs, ancillary services)
    • Managing the customer experience process
    • Managing the purchase to purchase experience: How to use service contracts to
      drive repeat and referral product business
    • Navigating the manufacturer view vs. customer expectation of warranty
    • Understanding the gap between customer satisfaction and brand loyalty

Moderator:
Scott Kranzberg, Founder and Managing Director, Strategic Sales Group, LLC

Panelists include:
Mark Bardusch, National Sales & Marketing Manager—Extended Service Business,
Ford Motor Company
Clifford R. Wagner, VP, Total Care Services, Personal Systems Group-Americas,
Hewlett-Packard Company
Michael Kleinstuber, Sr. Director, Service and Warranty, DIRECTV

Networking Refreshment Break

Strategies for Controlling the Customer Experience Post Factory Coverage

Do you have control of the customer experience after the factory coverage is over?

This presentation will outline the key benefits an extended warranty provides your company and your customers with a focus on how to leverage systems to manage, track and grow your program; whether your program is based in-house or outsourced to a Third Party Administrator (TPA).

Participants will leave with a good understanding of key data elements to track, reporting metrics and ways to work with your internal team or TPA to ensure your customers are having the experience you want them to.  The discussion will also include ways to leverage systems and data to drive Extended Warranty sales, how to build a recurring revenue stream with EW and Maintenance, lower costs and claims against your program and how to better work with your insurance and/or administrators.

Speaker:
Michael Bailey, Partner, 4CS Warranty & Service Solutions

A (Reluctant) Retailers Look at Warranties: Steps to a Successful Consumer Extended Warranty Program

Founded in 1974, Crutchfield has been recognized as an industry pioneer in consumer electronics retailing. Synonymous customer service, Crutchfield has built a brand that has earned Bizrate’s Platinum Circle of Excellence 11 years in a row. This achievement remains unmatched by any retailer across any Bizrate category. For 30 years, Crutchfield stood apart from mainstream electronics retailers by actively selling against extended warranties. This was a unique strategy that worked well until the TV market exploded with new technology 2003. With all the buzz, consumers were itching to get a taste of this new goodness… with one catch. An overwhelming majority wanted additional warranty coverage to safeguard their new showpiece. When they couldn’t get it at Crutchfield, they took their business elsewhere. This ultimately led Crutchfield to acquiesce and get in the game.

During this session we’ll take a look at warranties through a few different lenses:

    • Common questions that customer’s ask
        • What is really covered?
        • What can I expect?
    • (CE) customer/retailer relationship
    • Customer loyalty and lifecycle
    • Product lifecycle
    • Service proposition
    • Transparency – what color is your flag & where does it stand?

Speaker:
Ed Stockwell, Mgr, Customer Care Center Operations, Crutchfield Corporation

Constructing a Successful B2B Extended Service Contract Program

Today, the Cat® brand represents the largest and most respected family of products and services in earth-moving industries throughout the world. Backed by the unmatched support of a global network of Cat dealers, Cat products and services deliver superior quality and long-term value, helping to accelerate the success of our customers worldwide. Cat Insurance plays a key role for Caterpillar in providing Cat dealers and customers with the products and services they need to protect their new, used and rebuilt equipment globally. During the meeting we will examine extended service contracts as it relates to:

        • Life-cycle solutions for Cat machines and engines
        • The positive environmental impact of rebuilding machines and engines
        • Challenges of administering and managing global programs
        • Business to Business (B2B) distribution models

Speaker:
Jimmy Bynum, Business Development Manager, Caterpillar Insurance

Luncheon with Industry Networking Tables

Disrupters vs. Retailers: The Battle for Extended Warranties

As described in the Wall Street Journal, March 7, 2011, “… it has become much easier for consumers to compare prices -- ironically, using applications on the smartphones they can purchase in Best Buy. Shoppers can visit Best Buy stores to examine items before buying them elsewhere. Or, as Greg Melich of research firm ISI Group says, they are using Best Buy as Amazon's ‘showroom.’”  Change is rapidly coming in retail, especially in selling consumer electronics.  Even the retail mega giant Walmart has announced it is reducing floor space devoted to CE.  Driving this change is on line retail and the resulting impact on margins. Next to follow will be the sale of extended warranties.  We will examine:

      • Direct internet sales of extended warranties – the mechanism
      • Disconnecting the sale of the extended warranty from the product
      • Comparison shopping of extended warranties
      • Potential for adverse selection and the impact on insurance rates

Speaker:
G. Terry Hawkins, Independent Consultant

Building a Service Contract Tele-sales Organization

This session will focus on creating an effective telesales operations with specific emphasis on warranty service contracts sales as well as the sale of long term maintenance contracts.  It will include how to:

      • Identify the appropriate market segmentation
      • Internal sales staffing
      • Create the required infrastructure
      • Coordinate with field sales and channel partners
      • Effectively use life cycle marketing programs and on-line portals

Speaker:
David G. Keifer, Manager, Global Customer Support Services, Eaton Corporation

Networking Refreshment Break

Leveraging Analytics to Manager Service Claims & Detect Patterns of Abuse

During this presentation, Mr. Anderson will share his experience deploying ClaimsGator, a loss prevention solution, to audit warranty entitlement and warranty claims. He will explain how Epson is using warranty analytics to manage service claims and to detect patterns of abuse. Topics of discussion include:

      • diagnostic assessment of entitlement, turn around time, and part usage
      • data collection
      • analysis of trends and process gaps in service and support
      • establishing benchmarks measurements to support customers more effectively

Speaker:
Lee Anderson, Senior Manager, Strategic Support Services, Epson America

Utilizing Advanced Pricing Methodologies: Accurately Establishing Cost and Revenue Thresholds to Enable Competitive Price Setting

The service contract industry continues to become more competitive as new parties enter the landscape offering service contracts after the point of sale. As competition continues to increase, prices will experience downward pressure. Advanced methodology used in the insurance industry may be applied to service contracts to determine a minimum threshold to charge for a service contract based on the underlying characteristics of the product.

This presentation will explain several pricing methodologies from a high level and describe potential impacts including the impacts advanced pricing methodology has had on the insurance industry.

Speaker:
Mike Paczolt, FCAS, MAAA, Consulting Actuary, Milliman

Warranty Management Capability Maturity Model:
A Capabilities Benchmarking and Assessment Tool, and Business Advancement Framework

IDC Manufacturing Insights recently unveiled its Warranty Management Capability Maturity Model, an industry framework that helps companies' assess the capabilities of their warranty organization, develop a continuous improvement roadmap and accelerate business transformation.

This presentation will discuss the development of the model and its proposed uses for extended warranty/service contract operations, and present it in the context of a recent industry assessment survey. We will examine the three pronged approach of People—Process—Technology and the maturity markers that enable an organization to set itself up for optimal growth and revenue. Topic discussed:

      • Foundational steps leading to effective extended warranty program
      • Utilizing engineering and field data to improve products quality, lower costs and
         improve customer loyalty
      • Linking base warranty and extended warranty strategies
      • Utilizing engineering and field data to optimize extended warranty programs

Speaker:
Catherine White, Research Analyst-Supply Chain, IDC Manufacturing Insights
Marc McKenzie, President, Institute of Warranty Chain Management

Chairman’s Recap

2012 Trends and Techniques:
A Discussion on Industry Innovations, New Products and New Channels

New challenges from retailers and product manufacturers have served as a wake-up call to the warranty industry, and have spurred fresh thinking that benefits both issuers and consumers.  As head of the U.S. Warranty division of Chartis, the global leader in non-auto warranty coverage, James E. Mostofi will offer his insights into the trends he’s seeing in the industry and how best to capitalize on them. 

He will discuss some of the successful new programs introduced by the world’s largest retailers including buy back programs that give consumers a hedge against product obsolescence and loyalty programs that keep customers coming back. He will also provide a glimpse into what challenges and opportunities lie ahead for the warranty industry:


    • How have falling prices for consumer electronics affected warranty programs
    • How have longer product life cycles affected warranty programs
    • How extended warranty programs can be structured to benefit consumers,
       while giving retailers and other warranty providers a competitive advantage

Speaker:
James E. Mostofi, President, U.S. Warranty Division, Chartis

Networking Refreshment Break

Regulatory Update: New legislation and regulations affecting the service contract industry

This session will provide:

    • An update on legislation passed in 2010 affecting the service contract industry
    • An overview of HUD regulation affecting the service contract industry
    • An overview of Wall Street Reform and Consumer Protection Act and how it
      could affect the service contract industry

Speaker:
Stephen K. McDaniel, Blank & Meenan, P.A., Assistant Executive Director and General Counsel, Service Contract Industry Council

Using Analytics to Maximize Profit across the Service Chain

The IDC Manufacturing Insights’ Warranty Management Capability Maturity Model
has shown that analytics are the critical differentiator between warranty leaders and
 laggards.  Mature service organizations are utilizing analytics to reduce cost and
increase revenue across the service chain.  This session will use real-world case studies
to illustrate how you can integrate analytic best practices into your service chain
processes, including:

    • Service Contract Pricing
    • Service Parts Management
    • Fraud, Waste, and Abuse Detection
    • Product Issue Detection & Definition

Speaker:
David Froning, Product Manager for Warranty Solutions, SAS Institute

Aftermarket Sales Panel:
Reaching Customers & Marketing beyond Traditional POS

This session will focus on designing a marketing plan to reach and convert customers beyond traditional POS.  We will discuss creating a service plan that allows your customers to purchase an extended warranty at any point between the point of sale and the expiration of their basic plan. 

    • Aftermarket touch points—direct mail, telemarketing, email, internet, social media,
      mobile devices—what is the best approach for your organization?
    • Tailoring marketing material for the various touch points
    • Lifecycle marketing—designing an integrated marketing plan

Moderator:
Paul Timm, Global Service Marketing & Sales, Trimble Navigation

Panelists include:
Gary Mitzner, Divisional VP of Service Contracts, Sears Holding Corporation

Arthur R. Mulligan, Product Line Manager-Services, Eaton Corporation
John Watson, Vice President of OEM & ESP Sales, Global Warranty Group
Ed Stockwell, Manager, Customer Care Center Operations, Crutchfield Corporation

Conclusion of Conference