Audi is a leading manufacturer in the prestige automobile market. Audi is part of the Volkswagen (VW) Group and is headquartered in Germany. It has over 51,000 employees and sells through over 5,000 dealers across more than 100 countries. This case study shows how Audi takes reactive, proactive and selective approaches to Customer Relationship Management. Audi sees CRM as a strategic marketing discipline for systematically acquiring and retaining customers.
Why did Audi initiate CRM?
Audi believed its acquisition and loyalty rates could be improved and b) more customers were seeking direct contact with their car manufacturer, so the customer experience was not
as dependent on the dealer. Audi identified the importance of CRM in the success of any business. There are multiple customer “touch points” like direct marketing, dealers and trade fairs. Audi faced more difficulty in convincing dealers that it would be worth their while to give valuable customer data back to the manufacturer.
Audi’s customer relationship management (CRM) initiative started because of:
- Changes in customer buying behavior.
- Customer relationship improvements in other industries.
- Competitor pressure, exacerbated by impending block exemption rules in Europe.
- Difficulties in managing customer relationships in a dealer oriented, multi tier sales organization.
CRM strategies of Audi
Audi started by analyzing core competencies and setting performance targets. Its CRM strategy has three step process
Reactive CRM: “Do ordinary things extraordinarily well” by providing excellent inbound customer service processes for customer contacts. These processes cover everything from inquiries about new vehicles to information on financing options.
- Proactive CRM: “Create as many customer relationships as possible,” and increase customer loyalty and market share through improvements to outbound processes such as campaign management.
- Selective CRM: “Select and treat customers by segment” to focus on customer profitability by creating loyalty programs and integrating with dealers more tightly. These three steps are happening at different speeds in different markets and are iterative.
Audi applied these strategies to streamline the CRM process and promote collaboration in an organization perspective and using updated CRM technology
The solution –CRM technology of Audi
The new CRM technology of Audi is KuBa, its customer database. This gives users a complete picture of customer information across the whole of Audi. KuBa displays technical details, interior equipment data for each vehicle and dealer master data. KuBa was built on mySAP CRM — the platform for CRM throughout the VW Group. The nonSAP order management system was integrated into KuBa, so that when an order is created for a new customer, a new vehicle record, and new customer and dealer relationship details are automatically created. The Audi knowledge base, where correspondence templates are stored, is fully integrated into the KuBa system. The vehicle data warehouse has not yet been fully integrated, although some data is extracted from it and fuller integration is planned. An e-service tool called “Ask” has been integrated into mySAP CRM.
Outcomes and Recommendations
Audi has derived a good insight on the key requirements as listed below
- It is critical to have a long-term perspective on strategy, to implement some of that strategy at an operational level, and to re-evaluate it in light of the success, or otherwise, of the
- The internal merger of the customer care units helped coordination.
- Knowledge and mapping of business logic and processes before implementing them in the application technology.
- Implementation of CRM must be carried out one project at a time. Audi has completed over 50 projects, each lasting no more than six to nine months, and has as many as 50 more in progress at any one time. It is measuring the success of each project.
The customer experience is determined mostly by the dealers and by the car itself. So it is critical to improve product quality and to work more tightly with dealers. Audi is training its dealers more intensively in customer service with high standards for its dealers and providing them with better tools and processes for effectively managing customer relationships.
Introduction of a single point of contact in the call center and multichannel access have helped Audi provide customers with a positive experience. Analytics are used to monitor service performance and gain market insights. These enable Audi to continuously improve its customers’ experience, and to tailor products and services to customer segments or individuals. The customer experience is determined mostly by the dealers and by the car itself. Looking for CRM Implementation and Integration ideas and partners, Fynsis is the go to place for you to realize your business goals using CRM Implementation Process.