BMW retention strategy
April 19th, 2010 by Richard Aucock
BMW says more than 2 in 3 customers who currently own a BMW will buy another one from their dealer.
It is keeping the other 30 percent within the brand that is occupying the firm at the moment.
BMW has thus carried out studies to find out why people change. And the biggest reason? Not disappointment with the cars; customers ‘just fancy a change’.
This is why, said a spokesman, the company is determined to expand its model range, with more niche variants to add choice for buyers. ‘Models such as the X1, 5 Series GT and X6 are giving owners many more options when it is time for them to change,’ Car Dealer Magazine was told.
‘We will continue expanding the range in this way. The growth markets are in these niche models – we expect sales of conventional series cars such as the BMW 5 Series saloon to remain fairly static.’
BMW will continue this with the new X3 range, which arrives later this year. This will finally make the brand’s SUV range a cohesive one, with clear differentiation between all four ‘X’ variants for the first time. It is a key launch for 2010 that BMW dealers are to receive plenty of briefing on.
Of course, BMW’s approach is not unique. Audi runs an even more aggressive niche model strategy, while Mercedes has also expanded its model line-up enormously. We can look forward to many more such cars from all three in the future.
If you have experience of brands which have done this, what do you see as the benefits, and what are the logistical implications for your car dealership? Share your thoughts here…
By Richard Aucock