Peugeot
Collaboration ensures
achieving and maintaining
aftermarket leadership
| Article

In 2011 Peugeot Denmark and Sweden launched an ambitious partnership with ag analytics, aiming to improve on customer satisfaction and retention as well as strengthen aftermarket services. The results from the collaboration proved to be strong, as Peugeot succeeded in achieving – and maintaining – aftermarket leadership. Furthermore, brands such as Citröen Denmark and Opel Denmark/Sweden followed suit, when also initiating a collaboration with ag analytics.

Initially, it was key to provide Peugeot with tools that allowed them to compete and keep up with the car industry’s highly competitive aftermarket. Focusing on achieving revenue from the aftermarket, made getting customers back for service, repair and maintenance crucial to the overall dealer earnings. Bearing in mind that lost customers decrease revenue streams dramatically, financial stability is strongly connected to the prioritization of customer experience. Not only does a lifelong customer guarantee increase in revenue streams, it also saves the hassle of acquiring a new customer. Acquiring new customers has turned out to be 5 to 25 times more expensive than retaining an existing one. Therefore, guaranteeing revenue streams through lifelong customers became a high priority, why Peugeot dealers had to meet customer expectations every time.

With a focused target, it was key that the approach would provide dealers with tangible and accurate ways to improve. Furthermore, the aim was to not only guide on performance, but also create a motivating environment for the dealers to work in. By giving the dealers several priorities that accurately directed their performance, we helped dealers accomplish a number of quick wins. After prioritizing what areas to improve on, we subsequently began gathering data, which led to better communication between the importer Interdan and the individual dealers.

Through our system and customer satisfaction scores, we assisted Interdan in giving the dealers specific guidance on areas to improve. Furthermore, it resulted in great dealer motivation, as the system eased the execution of their every-day tasks and furthermore visualized results. The approach led to a significant development concerning customer experience and accomplishing great dealer performance. Also, listing priorities and thoroughly communicating helped ensure that the customer satisfaction scores made sense to the dealers as well as Interdan.

After having worked closely with both dealers and Interdan, ag analytics provided a solution that gives Peugeot an advantage, within the competitive automotive market, on the following parameters:

  • Customer retention to maximize potential: By focusing on customer loyalty to Peugeot in the aftermarket, dealers are establishing a source of future earnings. It is essential to maintain customers in a cycle from car purchase to repeat workshop visits to – over time – new car purchase.
  • Maintain the price level: Being an authorized workshop is an obligation. Customers have very specific expectations when choosing Peugeot, and those expectations must be met to match the price level.
  • Differentiation as a trademark: Authorized workshops have various technical advantages for customers, but differentiation lies in the possibility of getting customers to experience these rational benefits as having greater value because of unique service. Delivering an exceptional customer experience is a key differentiator in itself!
  • Efficient and optimal use of resources: By ensuring that existing customers are satisfied, Peugeot reduces the need for follow-up and the resource-intensive battle to recruit new customers. If they didn’t provide the right experience, they’d have to pour enormous resources into regaining customer satisfaction and loyalty, and salvaging their reputation.

“The ag analytics Dashboard is the best system I’ve worked with by far. Nobody’s looking for systems, but the ag analytics Dashboard is really fast, user friendly and has the right focus. We work with customer experience in a far more targeted manner now and focus on a few selected customer processes, such as follow-up after sales and repeat repair.”

– Jesper Bjørn Hansen, COO, Andersen & Martini
Peugeot in Ballerup, Søborg & Greve

Since 2011 and up until today, ag analytics has helped Peugeot have a constant focus on each customer visit. Peugeot has succeeded in delivering an unrivalled customer experience, which has created a unique position for the brand in the aftermarket. In addition, a satisfaction index of 90, based on more than 21,000 interviews in 2018, shows that Peugeot’s initiatives focused on specific business challenges have been a success. 73% of all customers who left a Peugeot workshop in 2018 are now ambassadors – that is, customers who not only are satisfied, but who also will use the workshop for future service and repairs and would recommend the dealer to others.

Peugeot now poses as the leader within the automotive aftermarket, and the collaboration is continued with a stronghold in the initial approach. Results are still ensured through the same guidance and listing of priorities, whilst the importer Interdan and dealers work closely together to ensure superior customer experience every single time.

“ag analytics’ Dashboard is unique. It can handle the depth of working with customer satisfaction while making it simple at the same time, which is part of why it’s become a big success for our company.”

– Henrik Wessel, CEO, Henrik Wessel AS
Peugeot in Amager, Østerbro & Lyngby