Value creation in home appliance aftercare
Developed an ambitious value creation plan with a PE-backed insurance player, transforming every aspect of the customer journey and set to deliver a £65m increase in EBITDA.
Working hand in hand with the executive committee and a dedicated client team, we developed an ambitious and achievable plan focused initially on digital transformation and cost reduction to create a scalable foundation for growth; the plan has already delivered sharply improved customer satisfaction as well as the targeted cost savings.
Context
Management and shareholders were committed to accelerating the historic growth and profitability of this PE-backed global provider of extended warrantees and insurance on home appliances, following a refinancing.
Together, we developed the value creation plan to transform it into a digital-first business, delivering higher levels of customer satisfaction and £35 million of cost savings, as well as capturing top-line gains through pricing and driving market growth.
Approach
We worked with a dedicated client team and the executive committee to develop an ambitious and achievable 5-year strategy and implementation plan, fully supported by the Board and owned by management. Close working with the business ensured plans were grounded in reality, and our team’s analysis and challenge helped maintain stretching ambition.
With the targets established, the team focused on the plan itself, ensuring the resourcing, cost, timing and sequencing were fully evaluated, articulated and understood.
Impact
The value creation plan focused on digital transformation and cost reduction in the first two years, to create the scalable foundation for growth over the next three.
The digital strategy is now transforming every aspect of the customer journey, from registration to servicing and renewal, with customer satisfaction scores improving sharply. And costs are reducing as targeted.
Overall, the plan remains on track to deliver an increase of £65 million in EBITDA over 5 years.