Customer Service improvement strategy Daniel Harrison Mercedes-Benz Customer Service improvement strategy Daniel Harrison

Mercedes-Benz German automobile manufacturer Luxury automobiles Buses Coaches Trucks Multinational division of Daimler AG Part of the “German big 3” car manufacturers alongside Audi and BMW

Mercedes-Benz Mercedes-Benz cars and smart cars make up the passenger vehicle divisions of Daimler Over 1.56 million passenger cars sold in 2013 Total Revenue in 2013 €64 billion (£51 billion) EBIT €4 billion (£3.2 billion) Daimler AG Annual Report 2013 www.daimler.com/company

Mercedes-Benz Mercedes-Benz has maintained a reputation for its quality and durability. However, customer satisfaction hasn’t always been as high as it is today. In 2004 Mercedes-Benz customer satisfaction scores plummeted and its UK JD Power rating fell to 26th place. http://en.wikipedia.org/wiki/Mercedes-Benz http://www.brandbiology.com/our-experience/case-studies/mercedes-benz

Mercedes-Benz Through implementation of its customer service improvement strategy Mercedes-Benz has recovered in the rankings. 3rd in UK JD Power Customer Survey (2010) 1st in New Cars Buyer Survey (2010) 1st in automotive sector – ICS Customer Satisfaction Index (2010) http://www.brandbiology.com/images/media/CaseStudy_Mercedes-Benz_ClassLeadersOnTheRoad.pdf

Mercedes-Benz Customer service is becoming increasingly important as a brand differentiator as automobile manufacturers improve and the industry becomes more competitive. “As products are getting better, the biggest differentiator in this ultracompetitive market will be the customer experience and the absolute power of the brand” – Steve Cannon Mercedes-Benz USA CEO http://www.bloomberg.com/news/2013-11-04/mercedes-dangles-bounties-pushing-dealers-for-top-service.html

Mercedes-Benz Other car manufacturers are also focusing on customer service applying various approaches and strategies. BMW, for example, are introducing BMW Geniuses, similar to Apple, who offer advice with no threat of a salesman’s push. Audi, on the other hand, is taking a practical approach by extending opening times at its dealerships to improve convenience for customers. http://www.bloomberg.com/news/2013-11-04/mercedes-dangles-bounties-pushing-dealers-for-top-service.html

Mercedes-Benz Best Customer Experience - Part of Mercedes growth strategy “Mercedes-Benz 2020” Refocusing sales organisation in line with changing customer demands and expectations. Aim to make Mercedes more attractive to new contemporary-minded customer groups, while maintaining brand loyalty of established customers. A broad range of new approaches in sales, marketing and after sales activities. Daimler Annual Report 2013

Mercedes-Benz Online vehicle sales process implemented to supplement traditional showrooms, primarily addressing young and online-savvy target groups. Mercedes was the first producer of premium automobiles to offer new vehicles on the internet. Mercedes is accessible to customers and interested individuals all the time. Daimler Annual Report 2013

Mercedes-Benz Mercedes connect me and other services and apps introduced taking advantage of modern networking technology. Multimedia systems and apps that, additionally to information and entertainment, include service and diagnostics functions. Daimler Annual Report 2013 https://www.mercedes-benz.com/en/mercedes-me/

Mercedes-Benz Increasingly relying on sales outlets in city centers. Currently 20 worldwide, expanded to over 40 by 2020. Daimler Annual Report 2013

Mercedes-Benz Connection outlets function as Mercedes-Benz “galleries”. Tokyo outlet, which opened in July 2011, has had around 1 million visitors so far. Capture rate of almost 70% i.e. over 2/3 of customers came from different brands. Daimler Annual Report 2013 http://www.daimler.com/dccom/0-5-7153-1-1617988-1-0-0-0-0-0-9293-0-0-0-0-0-0-0-0.html

Mercedes-Benz Temporary sales formats are also implemented in order to provide access to potential customers who previously had no contact with Mercedes. The Launch of the A-Class Mercedes-Benz toured through 90 large European cities over the span of 3 months. Through this over 25 000 people took test drives. http://www.daimler.com/dccom/0-5-7153-1-1617988-1-0-0-0-0-0-9293-0-0-0-0-0-0-0-0.html

Mercedes-Benz The main aim of Mercedes-Benz strategy to improve customer service is to expand the communication channels between them and the customers in all areas from showroom presentation to online support services. “Mercedes-Benz addresses its customers in many different ways – ways that are as individual and flexible as the customers’ personal preferences.”

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