Delivering a unique and unreplicable ownership experience
Mercedes-Benz

Delivering a unique and unreplicable ownership experience

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Challenges and opportunities

CHALLENGES

Mercedes-Benz was battling a downward trajectory in performance due to a combination of product quality factors and advances made by key competitors such as Audi and BMW.

Block exemption legislation was changing, meaning that customers were no longer locked into manufacturer networks to service their cars and maintain their warranty.

Independent dealers, who now had greater access to Mercedes-Benz technical information and tooling could offer extremely competitive servicing

Mercedes-Benz operates a mainly franchised dealership network in the UK and franchisees are of variable quality with strong views on how their businesses should be run.

OPPORTUNITIES

With deteriorating profitability, Mercedes-Benz UK asked Engine help create a new, differentiated after sales experience.

The opportunity was to reverse the decline in market share of the after sales business lost to independent dealerships.

They needed to provide value for money for their premium service offering and also offer a budget solution to win back a greater share of customers from the lower cost independents.

This meant finding a way to re-engage with out of warranty customers for service work and sales. Ultimately, the opportunity was to increase revenue from parts and labour sales.

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What we did

A clear view of the current experience for customers and senior team recognition of the issues and opportunities for improvement and innovation.

A clear view of the current experience for customers and senior team recognition of the issues and opportunities for improvement and innovation.

A deeper understanding of different customer personas and attitudes towards car servicing.

A range of more relevant and valuable propositions and concepts developed to a level of fidelity to inform architectural plans and environments.

A full-scale prototype with which to test and evaluate concepts with customers, frontline staff and stakeholders.

The design of a digital platform through which customers can select and book servicing options and dealerships could schedule and plan for forthcoming bookings.

A Master Plan for deployment of MyService, initially in the UK and in 40+ markets thereafter.

Impact

IMPACT

Retail visits to the pilot dealerships rose by 8.1% versus a decline of 3.1% in the previous year.

Annual revenue from car sales per dealership increased by circa £250k, which was attributed to improved customer engagement in after-sales.

Customer satisfaction scores improved by 50% during the pilot programme.

Retail Hours increased by 16.5%, versus a national decline at other sites of 1.9%. Average Spend also rose by £18 per vehicle serviced.

Since 2012 over one million vehicle services have been completed for Mercedes-Benz owners in the UK using the MyService service.

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