BMW was founded in 1916 and is headquartered in Munich, Germany. It is known for luxury and performance vehicles and owns Rolls Royce and Mini Cooper. BMW aims to increase customer loyalty and sales through loyal customers. It uses customer data and communications like newsletters to engage customers and encourage repeat purchases. BMW measures the success of its customer loyalty program through metrics like repurchase rates and aims to continuously improve conversion rates from prospects to sales.

1. Joy is BMW By: Abbasi Dawood Thiam Karima Patel Shibami

2. Introduction

3. BayerischeMotorenWerke Founded in 1916 by Franz Josef Popp Headquarters in Munich, Germany Known for its luxury and performance vehicles Parent of Rolls Royce and Mini Copper. Global leader in premium car sales

4. Production of Cars

5. BMW Strategy Respect for the individual Competition Mercedes Benz Jaguar Infinity Lexus Cadillac Lincoln Customers The person that appreciates and is willing to pay for the “Ultimate Driving Machine”

7. Increase prospect customers to sales ratio

8. Increase vehicles sales through existing customers

9. Maintain existing BMW household records

10. Keep communication costs down while increasing effectiveness

12. BMW and its customers BMW customer wants A realization of the brand promise Recognition Service Information Convenience Helpfulness

13. BMW and its Customers Loyalty bonus for selling cars Happy with services Good performance Comfortable Luxury with sports Low maintenance

14. Purchasing decisions Personal profit form purchase = -A (usefulness of product) +B (perceived brand value) -C (money cost) -D(time or inconvenience)

15. Situation analysis

16. Situation analysis Bmw has a central system of measurement, Has the ability to view prospects as well as customers in its universe The new marketing databse contains a broad range of information on the BMW consumer

17. Situation analysis Allowing a full view of the BMW customer delivers smarter targeting and profit generating up-sell and cross-sell opportunities

18. Current loyalty program

19. Loyalty situation Fiercely loyal to the brand Can be measured: it has the repurchase rate Successful loyalty is a two way street Can be threatened by relevant and personal communications Initiatives cover the entire ownership experience: welcome kits, newsletters, BMW magazines, multiple vehicle owner program

20. General Goals: Immersion in the BMW Experience Promotion of Owner’s Circle Purchase of BMW accessories To 3 and 4 year BMW owners. Goals: Increase the repurchase rate Multiple BMWs in each household Widespread use of BMW Financial Services products To new BMW owners, Goals: Purchase BMW financial services products Capture information about their preferences, lifestyles, automobile interests, etc. useful for further dialog Loyalty Building Newsletters

21. Ongoing collection of news and information of interest to BMW owners Owner surveys to determine preferences for: News, information, and topics Communication Channel (email) Frequency Begin with a printed newsletter to gather email addresses Move to email newsletters as quickly as possible Multiple offers to generate owner response Promote the use of Owner’s Circle Newsletter Strategy

22. Capture additional information on customers Email Addresses Purchase Intentions: owners identifying themselves as entering the purchase cycle Allow BMW owners to purchase merchandise Provide direction to BMW Online Store for purchase Push registration on Owner’s Circle Each program effectiveness measured by control groups: Control Group: Owners who are not sent the communications Test Group: Owners who get the communications Magazine Strategy

23. Other Loyalty Strategies Security deposit waiver- On your next BMW you may not be required to pay a security deposit if you are a returning BMW FS client and are on good standing with BMW FS. Disposition fee waiver-On return of your current BMW FS lease you will be charged $350 for the disposal of your BMW automobile. If you purchase a new BMW you will nor be charged this fee. Owner Loyalty Lease Cash- BMW may offer lease cash on your next BMW model. Owner Loyalty Rate Reduction-BMW may offer money factor savings on your next BMW FS lease. Pull Ahead Programs- BMW of Freehold may be able to pull you out of your lease early and make your last few payments.

24. Website

25. Prospect management

26. Prospects developed from all contact sources: Telephone, Direct Mail, Auto Shows, Events, Internet Rapidly qualified and scored Centers receive qualified leads electronically within 48 hours of receipt Prospects get BMW message within 48 hours Every lead tracked electronically, with daily, weekly, & monthly reports for BMW management on the web Automated Database Processes

27. Sales Response To electronic vs. paper Predetermined vs. Relational Offers and incentives Modeling success % prospect conversion (historical) Media preference automated system Cost of program Cost of sales Measurements of the Prospect Program

28. Direct Mail and E-mail integrated communication plan Alternating content delivery mediums Each reinforcing the one that came before it Use of database information to drive customization and relevance Each communication introducing a new piece of the BMW Experience All communications tie in to web activities Integration with off-line and online marketing activities Prospects given the opportunity to opt-out at any point Prospects removed from program if they purchase a vehicle Prospect Program Communications Strategy

29. Immerse and invite the prospect into the BMW Experience Reinforce the initial contact with BMW Educate as to the depth of the Brand Products and Services Point the prospect towards a test drive and the dealer Reinforce core marketing communication objectives about: Brand Values Brand Heritage Product attributes The BMW Ownership Experience Program Communications Objectives

30. Increase prospect conversion to sell more BMW automobiles Provide a steady flow of “qualified” leads to BMW Centers Make communications interactive Continually improve the conversion rates by better prospecting Measure the conversion rate by Center, Region, Prospect Lifestyle, Income Goals of the Prospect Management System

31. Measuring success through the dealers Scored leads sent to each dealer Conversions are measured monthly Each dealer conversation ratio calculated Program success measured by comparing dealer to dealer conversion ratio Dealer, Market, Region and National average conversion ratios create measurable benchmarks Above average dealers manage their leads better

32. Increased communication effectiveness Integrated database used by all groups Increased efficiency – The right information to the right customer at the right time Reduced communication expense Fewer pieces mailed with higher effectiveness Increased customer participation Increased customer satisfaction Increased corporate and center profits A higher level of data from and about BMW customers Benefits to BMW

33. Plus improved reporting, query development and a half dozen new ideas to be developed and implemented during the year X Factor: something new every quarter

34. recomendation Bmw should maintain customer loyalty program as Loyalty experts generally agree that loyal customers stick around longer and buy more frequently. Bmw concerning customer loyalty program should understand customer’s driver, rationalized with the company business strategy and supported with measurement systems.

35. Thank you !!!