2. Company Background
Audi is one of the most popular automobile manufacturers globally.
The firm was technically founded in 1885 by August Horch when the Wanderer
Company was established.
The firm launched its first car in 1910 known as the Audi Type A Sport-Phaeton.
Audi is pursuing its path of becoming a provider of sustainable mobility with its new
models, attractive brands, groundbreaking services and innovative mobility offerings.
The Quattro permanent all-wheel drive is one of the key innovations by Audi in the
recent years.
Audi plans to offer more than 20 electric vehicle models by 2026.
3. Case Summary
Audi has massively invested in car sports.
Various global championships and races have been won through Audi cars.
The company is also involved in sponsorship activities apart from its car
manufacturing activities.
The firm is also a sponsoring partner for leading clubs in Europe such as
Chelsea FC and FC Barcelona.
These sponsorship activities are aimed at popularizing its brand image
and identity.
The company offers innovative products to meet customer demands.
4. Customer Loyalty
The loyalty levels of customers to specific may vary.
Audi will enjoy various benefits by achieving customer loyalty.
Loyal customers are unlikely to buy from other competitors
such as Volkswagen.
Such customers will play a key in marketing the firm through
self-promotional.
Cross selling will be enhanced leading to increased sales.
Loyalty customers will act as tool against competition since
they will help Audi gain more customers.
5. Customer Lifetime Value
Customer lifetime value (CLV) is an important to large
companies such as Audi
CLV provides an indication of the company in long-term
basis and the financial viability
It is an indicator of brand loyalty, product market fit, and
recurring revenue from the existing customers
Audi should focus on achieve customer loyalty and trust
to optimize its CLV
6. Strategies to Achieve Customer
Loyalty
Customer loyalty is an important aspect to any company
Audi should focus on achieving customer loyalty to retain them and enjoy
long-term benefits.
Audi should Integrate “Customer’s Voice Approach” to identify and address
their needs.
Offering products that meet consumer expectations will also help the firm
achieve customer loyalty
7. References
Kuncoro, A., & Sutomo, Y. (2018). Pricing Strategies and Implementation
Promotion Strategies to Improve Customer Loyalty. JDM (Jurnal Dinamika
Manajemen), 9(1), 89-99
Wijaya, I. G. N. S., Triandini, E., Kabnani, E. T. G., & Arifin, S. (2021). E-
commerce website service quality and customer loyalty using WebQual 4.0
with importance performances analysis, and structural equation model: An
empirical study in shopee. Register: Jurnal Ilmiah Teknologi Sistem
Informasi, 7(2), 107-124.
Editor's Notes
1
Audi is one of the most popular automobile manufacturers globally. The firm was technically founded in 1885 by August Horch when the Wanderer Company was established. The firm launched its first car in 1910 known as the Audi Type A Sport-Phaeton. Its successor known as the Type B Audi was lunched the same year. Both Audi models registered massive success especially in the sporting events. Horch was the pioneer of the company’s success in its early years. Horch succeeded in popularizing the company’s brand image. The Audi logo emanated from a merger with other three companies namely DKW, Wanderer and Horch. The Company has continued to register massive success in the car market since its formation. The firm manufactured about 1. 681 million cars in 2021 from the Audi brand. In the same year, the firm manufactured 59, 447 motorcycles and 8, 405 Lamborghini sports cars and achieved a total revenue of 53. 1 billion euros. The firm also registered an operating profit of 5.5 billion euros in 2021. Audi has more than 85, 000 employees worldwide with 58, 000 of them working in Germany. Audi is pursuing its path of becoming a provider of sustainable mobility with its new models, attractive brands, groundbreaking services and innovative mobility offerings. The Quattro permanent all-wheel drive is one of the key innovations by Audi in the recent years. The company has committed itself to electric, fully connected, and digital future through its decision to fully launch electric models on the global market beginning in 2026. Audi plans to offer more than 20 electric vehicle models by 2026. The company has showcased its desire to actualize its sustainability strategy through its commitment to electro-mobility. Therefore, the Audi is committed to achieving sustainability within its entire value chain, being environmentally responsible, and making sustainable corporate governance and strategy an inherent component of its products and decisions.
Audi has massively invested in car sports. Various global championships and races have been won through Audi cars. The company is also involved in sponsorship activities apart from its car manufacturing activities. For example, Audi is known to be the sponsor of Bayern Munich football club. The firm is also a sponsoring partner for leading clubs in Europe such as Chelsea FC and FC Barcelona. These sponsorship activities are aimed at popularizing its brand image and identity. The company offers innovative products to meet customer demands. Customer satisfaction is one of the key strategies for achieving consumer trust and loyalty and optimize their lifetime value. Such approaches have allowed the company to remain relevant and successful
The loyalty levels of customers to specific may vary. Audi will enjoy various benefits by achieving customer loyalty. Loyal customers are unlikely to buy from other competitors such as Volkswagen. Such customers will play a key in marketing the firm through self-promotional. The customers are likely to buy from the company repeatedly leading to increased sales and overall profit (Wijaya et al., 2021). Cross selling will be enhanced leading to increased sales. Loyalty customers will act as tool against competition since they will help Audi gain more customers. Such customers will accelerate word of mouth marketing hence promoting brand awareness. Therefore, there are enough reasons for Audi to invest loyalty for cars.
Understanding customer lifetime value concept maximizes long-term customer profitability. Customer purchases a car in each 5 years and around 10 cars in their lifetime. Let’s assume that Audi makes a profit of $5, 000 from each car, therefore, the profit from the consumer will be $5, 000. Therefore, the NPV on $50, 000 with 15 percent discount rate will be the GLV of that consumer.
Manufacture superior service, products and experiences for the prospective customers.
Embrace cross-departmental participation in managing, controlling, planning and implementing the retention process and customer satisfaction.
Integrate “Customer’s Voice Approach” to identify and address their needs
Initiate loyalty programs so that outstanding employees are rewarded.
Adopt effective communication network to ensure that customers easily reach out to the company and express their complaints, perceptions and needs (Kuncoro & Sutomo, 2018). Organize and formulate an accessible information database on consumer preferences, needs. Purchase frequencies, market dynamics and satisfaction.
