Dealer, customer relations drive Mercedes-Benz’ recent successes
Mercedes-Benz has now topped Ipsos Group’s dealership satisfaction rankings among premium brands in China for two years in a row, a jump from sixth place in 2013.
Most of the automaker’s roughly 500 dealership partners in China, 50 percent of which have been in operation for under three years, were profitable in 2016, a better result than most of the industry, according to Li Hongpeng, senior executive vice-president of Beijing Mercedes-Benz Sales Service.
“Sweet are the uses of adversity”, a quote from Shakespeare, describes the company’s pursuit of sustaining development with its dealerships in China.
“What we are most proud of is our reputable and good relations with our dealer partners,” Li said, adding that the company’s relationship with its dealer network has become an industry exemplar in just three years.
With a record year in China, Li said the company still insists that what delights it even more than high sales volumes is its relationship with its dealer partners and the solid foundation it has laid.
“In 2014, we proposed that our relations should be like ‘a fish in water’, and it took significant effort before achieving top dealer satisfaction levels among premium brands,” Li said, adding that good manufacturer-dealer relations are key to the company’s success.
According to Mercedes-Benz, to achieve such healthy relations it has built a communications platform to understand dealers’ and customers’ views before making decisions. “With this trust we have the foundation for cooperation,” Li said. “We have shifted our philosophy from managing dealers to serving them.” The company said it also focuses on dealers’ profitability, which remains Mercedes-Benz’s priority in China. “We have to track their profitability to learn whether they match our development level. Based on that we can adjust our business policies and retail support measures,” Li said. Customer-experience Not only ensuring smooth and harmonious cooperation, the manufacturer has made efforts to help dealers to sharpen their overall competitive edge. Digitization is one example. The company has unveiled its pilot digital showroom program, which will be rolled out over the next two years. The move will expand the dealer showroom experience through digitized product presentations and intuitive, immersive brand experiences.
In addition, the company’s new test drive service platform has already launched in many major Chinese cities, further diversifying its customer services offerings.
“The new platform breaks away from the traditional in-store test-drive pattern. Instead, more flexible door-todoor and appointment-driven services will be offered to customers to increase their satisfaction,” Li said.
Following the opening of Mercedes me Sanlitun in Beijing, the brand plans to introduce its “me Café” concept to selected dealer showrooms, offering visiting customers a taste of the Mercedes-Benz lifestyle.
According to the German automaker, known to many by its three-pointed star logo, as well as aiming to always better serve its customers, it is working with its dealerships to live up to its reputation as a responsible corporate citizen.
Mercedes-Benz said a large part of its China commitment is its corporate social responsibility program, which began more than eight years ago. By the end of 2016, the company had endowed its Star Fund with over 100 million yuan ($14.5 million), benefiting more than 1 million people across the country.
Under its slogan “Nurturing the Best for All Our Tomorrows”, the Star Fund is devoted to realizing Mercedes-Benz’s long-term commitment to China, supporting the next generation to live their dreams. Programs supported by the fund cover areas as diverse as road safety, environmental protection and educational support in underprivileged regions. With its dealer partners, the company established 50 Road Safety Education Community Bases in 2016, with social volunteers invited to reach even more people.
Through the Mercedes-Benz Happy Music Classroom program, the company encourages children from remote areas to pursue their musical dreams. Last year, the automaker supported a trip for more than 400 children from its Hope Schools partners to give a performance in Beijing, an experience considered an exciting privilege by the children from rural areas.
In 2017, Mercedes-Benz will focus especially on education and poverty relief, according to the company. “Social responsibility is about bringing together social resources. We will open up our platforms to more people in the future, to fulfill our social responsibility and support Chinese social development,” Li said.