The Mercedes-Benz retail UK network Customer needs and the whole retail environment are changing.

The Mercedes-Benz retail UK networkCustomer needs and the whole retail environment are changing. E must ensure that Mercedes-Benz offers the finest care and support the moment they begin a relationship with us.IntroductionIn 1985 the automotive industry was granted an exemption, en bloc, from Article 81 of the EC treaty — better known as the Block Exemption regulation (BER). This regulation was installed in order to rule out anti-competitive vertical agreements between producers and distributors. In September 2002 this regulation expired and was replaced by a new BER — which has been fully effective since October 2003. This allows active sales outside of establishedRetailing in order to open up competition across the automotive value chain. Furthermore the link between sales and after-sales services has been weakened, gicing independent repairers a new role.New challenges for automotive retailingThe new BER affected Mercedes-Benz, in line with other manufacturers, in both the distribution and servicing of cars and commercial vehicles across the EC. The changes to the regulation allowed large retail organizations, for example TESCO and Virgin, to participate in automotive retailing.The automotive industry lagged behind in terms of CRM and customer focus in comparison to the potential new market entrants. The threat of such organizations entering the car market and changes in the consumer environment (the emergence of the 'never satisfied' customer) forced Mercedes-Benz to react. As a result urgent changes to both structure and customer focus within the organization and the retail network were necessary. An effective, efficient and customer-oriented retail network becomes an even more important success factor in times of such increasingly intensified competition within the industry.The decision to meet the new set of automotive retailing challenges resulted in an unparalleled reorganization of the retail channels. In 2001 DaimlerChrysler UK (DCUK) introduced the market area concept, which is based on fewer dealer operations within larger territories. The newly recreated dealers, in their role as representatives of the brand within their given area of responsibility, are required to improve customer satisfaction and retention rates as well as increase profitability. The improvement of supporting processes, systems and facilities is vital for the delivery of customer experience that is not only leading in the automotive industry but is setting a new benchmark for retailing in general.Customer relationship management at Mercedes-Benz in the UKCRM became a vital strategy supporting the market area concept aimed at enhancing customer relations, both internally and externally. This was necessary in order to optimize the exploitation of the Mercedes-Benz potential through consistent and appropriate customer management and retention in all areas of the operations, that is sales, marketing, after-sales, parts and finance. The CRM strategy is based on four pillars, one of them being a comprehensive CRM training and mind-setting programme, which is outlined below.CRM training at Mercedes-Benz in the UKIn 2002, DaimlerChrysler UK developed a comprehensive training programme in cooperation with the Mercedes-Benz retail network and the DaimlerChrysler headquarters in Stuffgart, Germany. The CRM training programme consists of four individual modules aimed at changing the attitude and motivation of both retail and DCUK employees and management. Furthermore, participants are provided with the skills needed in both systems, processes and their daily work as such (e.g. soft skills, communication skills). As a consequence, the individual modules address different audiences and competences.The first two modules concern change management and provide a general foundation to understand the CRM philosophy and its benefits in order to influence and change the attitude and motivation of the participants. Modules three and four support the participants in delivering the new retail experience of Mercedes¬Benx in their day to day work. These training modules are therefore part of the personal development of both employees and dealers.Each module consists of several individual sections that can be used interchangeably in order to address the specific needs of the participants and to secure maximum flexibility. This helps to ensure that changes and modifications can be made within a reasonable amount of time and budget. The four modules are briefly described in the following sections.Module 1—CRM best practiceTarget audience: Management of the retail network and DCUKThe primary aim of the first module is to encourage management buy-in in term of the required resources (e.g. budget, management time, employees). During the event the philosophy and belief of CRM and service excellence are communicated and transferred in many ways. In order to inspire the participants and to bring the idea of CRM to life, best-in-class companies are presented (business cases, videos and guest speakers) and visited (company visit). As a result a mixture of both learning and motivation is achieved.Module 2 — CRM uncoveredI Target audience: Customer-facing staffThe aim of the module is to generate enthusiasm for CRM in order to bring the customer experience of Mercedes-Benz to life. The participants should understand and experience the benefits of CRM for the customer, the dealership and, at the end of the day, for themselves. Further the course helps the participants to develop an holistic view of the organization and its subfunction due to the exchange with members from various departments and businesses.Module3 — Systems and processes Target audience: Customer-facing staffThe third module aims to help the transfer of knowledge and motivation gained of CRM. This is used within the daily retail business operations in order to develop new systems and process skills. The aim of this module is to share the knowledge of systems and processes about how the various tasks are to be performed.Module 4 — Soft skillsTarget audience: Customer-facing staff4CRM offers opportunities to achieve improved and superior customer interactions. However, this required customer-facing staff to have the social and communication skills to match the new processes and systems. Therefore this last module provides participants with an individual set of skills (ranging from complaint handling to time management) that are required for effective daily customer contact.ConclusionAs a result of profound changes in the business environment, Mercedes-Benz looked for alternative ways to face the competition within the market place and applied changes to both the structure and the degree of customer focus for the entire organization. CRM became a critical success factor in order to maintain the leading position within the market. In order to be successful, the CRM initiatives needed cross functional integration of the various business areas, and that emphasise the role of the company's employees as well as the supporting processes and systems. DCUK integrate its retail network and underlined its responsibility and dedication to tis retail partners. Only if both parties are working together as equal partners can success in the market place be secured.As a consequence of the achievement made in the UK, the programme has been rolled out to various countries throughout continental Europe.Questions1.