Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Mercedes
Compiled By:
Jas Singh Bhasin
CRM - Introduction
Customer relationship management (CRM) is a model for
managing a company’s interactions with current a...
CRM – Introduction (contd.)
Builds a database that describes the customers and the
relationship they hold with the compan...
Mercedes – The Company
Mercedes-Benz is one of the world’s most successful
premium brands. Its technical perfection, inno...
Mercedes – The Company
 Historically, Mercedes-Benz was sold in the UK through a
franchised network of some 138 dealershi...
Mercedes – The Challenge
 Autonomous Dealers: Mercedes-Benz was sold in the UK through
a franchised network of some 138 d...
Mercedes – The Challenge
 Communication-Delivery Inconsistency: Customers reported that
there was an inconsistency betwee...
Mercedes – The Challenge
 Isolated Database: Each dealership operated its own database. The
information in this database ...
Mercedes – The Challenge
Keeping the track of the Customer maximizes Lifetime Value:
“When consumers change addresses or c...
Mercedes – The Challenge
Inconsistent Customer Record:
“And Mercedes-Benz buyers are even harder to track than the average...
Mercedes – The Solution
 Adopting New Distribution Model : In 2000, DCUK decided to
adopt a new distribution model for Me...
Mercedes – The Solution
 Every aspect of the customer relationship needed to be carefully
examined, to ensure value was c...
Mercedes – The Solution
 Anew approach to the marketing structure within each MA was set
out, which involved a centralize...
Mercedes – The Solution
 Better Relationship between customer and salesperson : Instead
of a salesman owning a customer, ...
Mercedes – The Solution
Mercedes – The Result
 To win the hearts and minds of leaders and employees, it was
critical that there would be some qui...
Mercedes – The Result
 The MA could justify the significant expenditure on CRM
systems and processes by the impressive fi...
Mercedes – The Result
 The initial results of the CRM implementation have
been very encouraging. There is a great enthusi...
Mercedes – The Result - LIVE
“ Mercedes Benz Canadian Autoshow Tour Uses RFID
CRM & Social Program”
(RFID World Canada) Ba...
Mercedes – The Result - LIVE
The leading-edge RFID CRM
& Social Program enables
attendees of the Mercedes
Benz Canadian Au...
Upcoming SlideShare
Loading in …5
×

Customer Relationship Management - Case Study [Mercedes Benz]

34,727 views

Published on

Historically, Mercedes-Benz was sold in the UK through a franchised network of some 138 dealerships.

Each of these was autonomous, with the exception of three dealerships owned by the distributor Daimler Chrysler UK (DCUK).

DaimlerChrysler had relatively little control over relationships between dealers and customers. Dealers managed their own relationships including customer research, data base management, acquisition and retention processes.

This presentation describes the challenges faced by the company initially and how did they overcome those challenges.

Published in: Leadership & Management

Customer Relationship Management - Case Study [Mercedes Benz]

  1. 1. Mercedes Compiled By: Jas Singh Bhasin
  2. 2. CRM - Introduction Customer relationship management (CRM) is a model for managing a company’s interactions with current and future customers. It involves using technology to organize, automate, and synchronize sales, marketing, customer service and technical support.
  3. 3. CRM – Introduction (contd.) Builds a database that describes the customers and the relationship they hold with the company Provides enough detail so that the company can offer the client the product/service that matches their need the best. May contain information about their past purchases, who is involved with the account and a summary of all conversations.
  4. 4. Mercedes – The Company Mercedes-Benz is one of the world’s most successful premium brands. Its technical perfection, innovative design features and numerous car legends have made the Mercedes star one the world’s best known trademarks today Other premium brands such as BMW, Lexus and Jaguar were competing fiercely in the luxury car market where Mercedes was traditionally very strong.
  5. 5. Mercedes – The Company  Historically, Mercedes-Benz was sold in the UK through a franchised network of some 138 dealerships.  Each of these was autonomous, with the exception of three dealerships owned by the distributor Daimler Chrysler UK (DCUK).  DaimlerChrysler had relatively little control over relationships between dealers and customers. Dealers managed their own relationships including customer research, data base management, acquisition and retention processes.
  6. 6. Mercedes – The Challenge  Autonomous Dealers: Mercedes-Benz was sold in the UK through a franchised network of some 138 dealerships. Each of these was autonomous, with the exception of three dealerships owned by the distributor DaimlerChrysler UK (DCUK). DaimlerChrysler had relatively little control over relationships between dealers and customers. All dealers managed their own relationships including customer research, data base management, acquisition and retention processes. Low Quality of Service: Although the technical quality of the product was highly regarded, customers complained that the service that they received was not of the same high standard. This translated into declining customer satisfaction and increased defection.
  7. 7. Mercedes – The Challenge  Communication-Delivery Inconsistency: Customers reported that there was an inconsistency between the communication that they received and the service that was delivered.  Inadequate Enquiry System: Enquiries from the customer went directly to the dealerships and were handled through their internal processes. These were sometimes inadequate.  Uncoordinated communication received from dealerships: Mercedes-Benz customers received communication from different dealerships that was not always coordinated. Such communication may not match customer needs at a particular point in time in their purchase cycle and may result in conflicting or duplicated messages.
  8. 8. Mercedes – The Challenge  Isolated Database: Each dealership operated its own database. The information in this database could be out of date, inaccurate and missing important information.  Salesperson’s Attitude: Salespeople did not always appreciate that it was essential to record correct and complete customer information if effective contact was going to be sustained.
  9. 9. Mercedes – The Challenge Keeping the track of the Customer maximizes Lifetime Value: “When consumers change addresses or change names due to marriage or divorce, etc., their auto company is probably the last place they’ll think to inform of the change. it’s very hard to keep track of customers through these life changes. And that’s a big problem for an auto company, especially a luxury auto company like Mercedes-Benz. If we’re going to maximize the lifetime value of that relationship, it’s crucial to be able to keep track of our customers through these life changes. If we can’t find them, we can’t tell them about our new models and lines. And then, when it comes time for them to replace that old Mercedes, we might not be able keep them within the Mercedes family”, says Mark Juron, Mercedes’ general manager.
  10. 10. Mercedes – The Challenge Inconsistent Customer Record: “And Mercedes-Benz buyers are even harder to track than the average person. Because of their high incomes, lifestyles and career paths, they tend to be promoted and transferred more often and have the means to buy new houses frequently. They’re frequently on the move. Many times, Mercedes would end up with two or three different versions othe same person on their mailing file”, Juron says. This lead to the requirement of an “de-dupe” file system.
  11. 11. Mercedes – The Solution  Adopting New Distribution Model : In 2000, DCUK decided to adopt a new distribution model for Mercedes-Benz passenger cars. They re-organized the market into thirty five new, larger geographical areas and invited a number of existing dealerships to enter into new retailer agreements. This entailed these dealerships taking over responsibility for the retail sales and service of Mercedes in specific geographic territories or ‘market areas’ (MAs).  Project Management Team was Established : Within DCUK, a project management team was established, drawn from managers in marketing and operations. The project management team set about identifying the key CRM processes and determining how each process would be implemented throughout the new retail structure.
  12. 12. Mercedes – The Solution  Every aspect of the customer relationship needed to be carefully examined, to ensure value was created at every opportunity: for the customer, the 392 Handbook of CRM: Achieving Excellence in Customer Management MAs and DCUK.  Benchmark Mercedes-Benz : The first step was to benchmark Mercedes-Benz against other leading marques as well as best in class organizations. This research suggested that there were several areas where greater value could be delivered to the customer during both the sales process as well as during the ownership experience.  New Retail Agreements started working : Under the new retail agreements entered into by the MAs, DCUK gained closer control of the valuable Mercedes-Benz brand.
  13. 13. Mercedes – The Solution  Anew approach to the marketing structure within each MA was set out, which involved a centralized CRM and marketing team – one for each MA. Each team was given the responsibility of database management, customer support and regional marketing.  DCUK, working closely with one MA on a pilot programme, mapped out each of the critical customer processes. * These included prospect management (enquiry through to sale); * customer contact (communications throughout the period of customer ownership); * complaint management (acknowledging that complaints are an opportunity for improvement and also for forging deeper understanding with customers).
  14. 14. Mercedes – The Solution  Better Relationship between customer and salesperson : Instead of a salesman owning a customer, each relationship was carefully managed centrally through the new CRM marketing team set up within each MA.  Each communication channel was carefully integrated so that the customer received relevant messages by an appropriate channel at various critical points during the ownership cycle.
  15. 15. Mercedes – The Solution
  16. 16. Mercedes – The Result  To win the hearts and minds of leaders and employees, it was critical that there would be some quick wins from CRM. These results could be broadcast through the dealer network to encourage others. One MA was chosen to test out processes and to confirm the benefits. Quickly the financial benefits to the MA were established as well as steady improvements in key measures of customer satisfaction and customer loyalty.  Cross selling and up selling opportunities were used to advantage and the MA reported that relationships with customers were extended and deepened.
  17. 17. Mercedes – The Result  The MA could justify the significant expenditure on CRM systems and processes by the impressive financial returns as well as improvements in critical customer measures.  Communicating these results to other MAs reinforced the business case for adopting CRM. Every opportunity was used by DCUK to share the experiences of dealers in implementing CRM.  Winning the CRM margin has become highly important for dealers and is ensuring that the CRM initiative stays at the forefront of people’s minds. Staff are aware how their individual efforts contribute towards the success of CRM.
  18. 18. Mercedes – The Result  The initial results of the CRM implementation have been very encouraging. There is a great enthusiasm within both the MAs and DCUK for improving the customer experience and establishing closer relationships with customers.  “It is our belief that the Mercedes-Benz experience has to predominate everything we do—everything that touches the customer,” says Juron.
  19. 19. Mercedes – The Result - LIVE “ Mercedes Benz Canadian Autoshow Tour Uses RFID CRM & Social Program” (RFID World Canada) Bash Interactive, announced their launch of a RFID-tap-to-like Facebook & joint E-Brochure CRM program for the Mercedes Benz Canadian Autoshow Tour. The Mercedes Benz RFID, E-Brochure and Tap to Like program officially launched in Montreal, Quebec on January 2012, and will be also used in the Toronto Autoshow starting February 17th, and the Vancouver Autoshow starting April 3rd.
  20. 20. Mercedes – The Result - LIVE The leading-edge RFID CRM & Social Program enables attendees of the Mercedes Benz Canadian Autoshow to interact with the exhibit by “Tapping to Like’ Vehicles, Tapping to Take & Upload Pictures, and receiving a Customized Electronic Brochure with the models of vehicles they selected.

×