Warranty: Selling More Service Contracts
The other three toughest challenges are insufficient predictability of service revenue, poor visibility into contract details and competition from other service organizations. Best-in-class companies are ahead of all others in dealing with those challenges.
The biggest challenge in signing customers to long-term contracts is they (two-thirds) don’t see the value in them. This could be due to poorly designed/priced contracts, the inability of the vendor/retailer to articulate the contract’s real value, or a combination of the two. DS