Post on 06-Jun-2018
KEN LEE GROUP MARKETING & COMMUNICATIONS DIRECTOR
20 years of
automotive
marketing
experience
Pioneered
Inchcape
Advantage
Why customer service is a differentiator for Inchcape
Service levels and trust
Investment
Industry continues to frustrate
Consistently deliver a superior
customer experience
Customer expectations
continue to rise
Research Process development
Advanced retail technologies Customer metrics
Infrastructure People Inchcape Advantage
What is Inchcape Advantage?
Inchcape's unique programme to deliver a superior customer experience
at each stage of the customer journey
Customer Experience Measurement Kaizen
Consideration Purchase & Ownership Internal & External Best Practice
Continuous
Improvement
IA Metrics Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
What is Inchcape Advantage?
Inchcape's unique programme to deliver a superior customer experience
at each stage of the customer journey
Inchcape
Digital
Standards
StarPlus
Marketing
Model Customer Experience Measurement Kaizen
Consideration Purchase & Ownership Internal & External Best Practice
What is Inchcape Advantage?
Inchcape's unique programme to deliver a superior customer experience
at each stage of the customer journey
Customer Experience Measurement Kaizen
Consideration Purchase & Ownership
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
Internal & External Best Practice
What is Inchcape Advantage?
Inchcape's unique programme to deliver a superior customer experience
at each stage of the customer journey
Customer Experience Measurement Kaizen
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
Customer Experience
Customer Experience Measurement Kaizen
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
Customer Experience
Inchcape
Digital
Standards
Customer
Experience
Live Chat
Customer Experience Measurement Kaizen
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
Customer Experience
Inchcape
Digital
Standards
Customer
Experience
Online Finance Calculator
Customer Experience Measurement Kaizen
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
Customer Experience
Inchcape
Digital
Standards
Customer
Experience
Online Service Booking
Customer Experience Measurement Kaizen
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
Customer Experience
Inchcape
Digital
Standards
Customer
Experience
Driving Customer Conversion
Customer Experience Measurement Kaizen
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
Customer Experience
Inchcape
Digital
Standards
Customer
Experience
Brand Introduction
via common
interests
Research and
discovery
Purchase
engagement
Purchase
intent
Customer Experience Measurement Kaizen
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Customer Experience
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
StarPlus
Marketing
Model
Customer
Experience
Customer Experience Measurement Kaizen
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Customer Experience
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
StarPlus
Marketing
Model
Customer
Experience
Inchcape Advantage processes…
A clear set of processes and standards for each stage of the customer journey based on customer insights and metrics
Vehicle Sales, Vehicle Maintenance and Accident Repair
Multi-language
Customer Experience Measurement Kaizen
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
Customer Experience
Processes:
‘Brilliant Basics’
Customer
Experience
…at each stage of the customer journey • Appointment
• Welcome
• Consultation
• Presentation
• Demonstration
• Agreement
• Communication
• Handover
Customer Experience Measurement Kaizen
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
Customer Experience
Processes:
‘Brilliant Basics’
Customer
Experience
Licensed to make
Customers feel
special Customer Experience Measurement Kaizen
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
Customer Experience
People:
‘Magic
Moments’
Customer
Experience
Sales & Aftersales
• Customer funnel
• Mystery shop
• Net Promoter Score (NPS)
Customer Experience Measurement Kaizen
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
Customer Experience
IA Metrics
Measurement
• Marketing Forums
• Digital Webinars
• IA Calls
Customer Experience Measurement Kaizen
Inchcape
Digital
Standards
StarPlus
Marketing
Model
Processes:
‘Brilliant Basics’
People:
‘Magic
Moments’
IA Metrics Continuous
Improvement
Customer Experience
Continuous
Improvement
Kaizen
Is Inchcape Advantage working…?
Margin Accretive Growth Pricing Power Customer Service
NPS
2009 – 2013
+29%
Margin Growth
0
20
40
60
80
100
120
140
160
180
200
2009 2010 2011 2012 2013
Rebased Sales Rebased PBT
3.5
4.2 4.5 4.6 4.7
0
1
2
3
4
5
2009 2010 2011 2012 2013
Inchcape Advantage remains a key source of competitive advantage
Strengthen
• Market share growth
• Customer retention
• Pricing Power
Expand
• OEM relationships
• Access to market opportunities
UK Retail Premium partners driving premium growth in the UK market
634 664 686 747
815
2009 2010 2011 2012 2013
Inchcape Partners TIV (000’s)
Partner
share of
UK TIV
8.6% 8.8% 9.0% 8.8% 8.9% Inchcape
share
31.8% 36.0%
UK Retail Geographic clusters driving efficiency & economies of scale
M-Benz, VW
JLR, Audi
M-Benz, JLR,
Toyota, Lexus
JLR, Audi,
Toyota, Lexus
VW, Porsche
Major conurbation
BMW, MINI
JLR
BMW, MINI
JLR, VW
BMW, MINI
JLR, Audi, VW
Toyota, Lexus
UK Retail Premium partner focus to drive premium growth
Partner Brands Inchcape Points UK Network % Share
VW Group
Volkswagen Cars
Volkswagen CV
Audi
Porsche
21
3
10
2
205
72
114
34
10.2%
4.2%
8.8%
5.9%
BMW
BMW
BMW Bikes
MINI
14
2
16
146
37
145
9.6%
5.4%
11.0%
Daimler Mercedes Benz
Smart
12
5
145
55
8.3%
9.1%
Tata Jaguar
Land Rover
9
7
87
112
10.3%
6.3%
Toyota Toyota
Lexus
7
3
181
46
3.9%
6.5%
UK Retail Fewer, bigger & better facilities delivering premium customer experience
VW
Chester
Audi
Maidstone
BMW
Norwich
Toyota
Derby
Tyres & SMARTrepair
Livechat & Online Booking
UK Retail Leveraging technology to drive returns & superior customer experience
eVHC & diagnostic equipment
CRM Booking & upsell campaigns
UK Retail Delivering premium returns in the UK
Source : Internal Analysis
Actual 2013 UK Retail Competitor A Competitor B Competitor C
# Sites 111 c.240 c.120 c.95
Turnover / Site £m 19.7 15.7 19.0 13.1
OP / Site £k 493 254 417 95
ROS% (Motors) 2.5% 1.6% 2.2% 0.7%
UK Retail Premium partners already back to peak with strong future growth prospects
Source : Internal Analysis, SMMT, Trendtracker
• Exciting model refreshes
• New models in new segments
with increased premiumisation
• Car Finance (PCP/ Contract Hire)
to accelerate the change cycle
Inchcape Partners TIV (000’s)
725 762
691 634 664 686
747 815
2006 2007 2008 2009 2010 2011 2012 2013
Inchcape’s premium and luxury brands to continue to outperform in the UK
• Investment in customer experience – facilities,
people and processes
• Superior innovation and product offerings
• Aspirational product - motivating consumer demand
• Strong residual values supporting consumer change
cycle
• Structural recovery in UK economy
• Marginalisation of previous mainstay mid-tier brands
Inchcape UK brand
partners have increased
their TIV share by 9% to
36% over last 10 years