“mySAP CRM brings our people together,
making it easier for them to communicate,
exchange experiences, share best practices,
and work efficiently . . .”
Jens Wieland, Program Manager, Customer Solution Center,
Volkswagen AG
VOLKSWAGEN
Putting the Customer in the Front Seat:
Volkswagen Drives Customer Satisfaction with
mySAP™ CRM
Manufacturing and marketing cars used to be relatively
straightforward:
in a manufacturer-driven market, consumers were content to buy
what was being produced. But times have changed. Intense, global
competition and increased market transparency have given buyers
more choices and more leverage. In this consumer-driven market,
manufacturers must make
every conceivable effort to please their customers, take their
wishes and concerns seriously, anticipate market trends and
respond swiftly. That’s why Wolfsburg, Germany–based
Volkswagen AG (Volkswagen), part of Volkswagen Group,
decided to implement the mySAP™ Customer Relationship
Management (mySAP CRM) solution.
Car buyers have fundamentally changed the way they interact
with the motor industry. Manufacturers have experienced a
dramatic increase of inbound contacts from customers who
wish to communicate directly, rather than through a dealership.
They inquire about financing options, service matters, and
vehicle information, and they voice complaints. The
popularization
of the Internet as a convenient information and
communication platform has contributed to this intensified
direct dialog. In response, the car industry needs to have
efficient
systems for supporting customer dialogue and ensuring
customer satisfaction.
A New Engine for Customer Service and Marketing
Volkswagen is Europe’s largest car manufacturer with 9.1% of the
world’s passenger car market. It responded to these challenges
early by expanding its customer-facing activities and adopting
a variety of CRM initiatives, including a mix of stand-alone
software applications and paper-based processes. But as market
competition intensified, these measures fell short of meeting
the
company’s and customers’ requirements.
Data and processes for sales, complaints management, campaign
management, after-sales service, and lead management were not
synchronized, and each revealed only a partial view of a
customer’s
dealings with Volkswagen. It was impossible to obtain a
comprehensive
and consistent view of each customer or obtain information
to support multichannel communications, which have
become increasingly important in reaching customers.
To engage in a more effective dialog, Volkswagen needed software
capable of delivering an integrated, holistic view of current
and
prospective customers. This was essential if the company was to
meet its goals of delivering best-in-class customer service,
improving rates of customer acquisition, and boosting loyalty.
In
specific areas, Volkswagen required functionality for processing
customer inquiries, an open architecture for integrating
external
data, and a strategic marketing tool to help win and retain
customers.
Volkswagen had a vision that all this could be achieved with one
integrated suite of applications extending across departments to
facilitate the sharing of knowledge and encourage collaboration.
On the Road to Meeting the Customer
A key consideration was to implement software applications that
would not require the development and support of interfaces
between components. Following a review of potential solutions,
it became clear that SAP was the vendor best able to provide
software
with the depth of integration that Volkswagen wanted.
Several Volkswagen departments were already running mySAP
Business Suite solutions, which offered an excellent platform
for
expansion.
Volkswagen and its sister brand, Audi, decided to collaborate on
the CRM project. They completed a successful pilot
implementation
of SAP® interaction center software that led to the subsequent
decision to implement mySAP CRM enterprise-wide.
mySAP CRM provides full visibility of customer and vehicle
information and extensive features to link external data
sources.
Volkswagen perceived a high degree of investment protection in
acquiring solutions from SAP. It recognized that, as the market
leader, SAP is quick to adopt and deploy new technology for the
benefit of clients.
Volkswagen worked in close partnership with SAP and its
implementation
partner, syskoplan AG, to build a CRM solution that
has become a blueprint for the entire Volkswagen Group.
A legacy complaints management system was replaced with
software in mySAP CRM. Jens Wieland, program manager at
Volkswagen’s customer solution center, describes the process:
“Our strategy was to begin with the VIP customer and luxury
vehicle segments, then extend each component across the volume
car market. This approach proved very successful.” syskoplan
integrated the carmaker’s vehicle-ordering database and
customer Web site with mySAP CRM. These data sources were
crucial in facilitating an informed and rewarding dialog with
customers.
“Quality customer service means the
many parts of Volkswagen need to
collaborate and share information
through an integrated application
architecture. mySAP CRM fits neatly
into that concept.”
Jens Wieland, Program Manager, Customer Solution Center,
Volkswagen AG
Volkswagen also implemented the SAP NetWeaver® Business
Intelligence component to create a data warehouse to support
integrated reporting and analytics. Volkswagen is now exploring
new ways to use mySAP CRM to build closer, more profitable
customer relationships.
Personalizing Customer Care
To Wieland, the greatest value of mySAP CRM lies in its ability
to
deliver an integrated, consistent, and holistic view of each
customer throughout the enterprise. Customer service agents
can quickly and easily see which products a caller has purchased
in the past and view all of the customer’s interactions with
Volkswagen, regardless of when and where contact was made
and which communication channel was used. “This comprehensive
insight into our business relationship highlights the value
of each customer to Volkswagen. We can quickly assess the best
approach to take with each caller,” explains Wieland.
mySAP CRM answers key questions such as: How much potential
does this customer have? Should this person be included in a
loyalty program? mySAP CRM identifies family and personal
links between customers, allowing Volkswagen to tailor its
marketing efforts more effectively. All this is essential for
the
high-quality, personalized care the company seeks to provide to
each customer.
The integration of Volkswagen’s vehicle database with mySAP
CRM adds a further dimension to the quality of information
available about each customer. When a new customer places an
order, the customer details, vehicle purchased, and dealer are
automatically replicated in mySAP CRM. That information is
then available at every customer contact point. The customer
order can be tracked and customers can be grouped for marketing
purposes by using flexible segmentation options within
mySAP CRM.
Lead-management functionality within mySAP CRM integrates
with the Volkswagen’s dealer management system. When a
customer expresses interest in a product through the Internet,
a phone call, or mail, and that interest can be addressed by a
dealer, the request is entered into mySAP CRM and evaluated by
the customer services team. Qualified leads are forwarded to the
respective dealer’s system. “mySAP CRM tracks inquiries and
applies escalation procedures to ensure that each lead is
processed
efficiently,” Wieland explains. “It acts as a quality assurance
system that ensures the customer receives the highest quality of
service and response through our dealer channels.”
By automating processes across functions, mySAP CRM has
allowed Volkswagen to extend the concept of personalized
customer care into the volume market. “This is a critical
achievement,”
says Wieland. “It helps us maximize customer lifetime
value by meeting customer expectations, being more attentive
to concerns, and reacting to issues promptly.” His
implementation
team has already identified plans to extract further value
from mySAP CRM. “We are using mySAP CRM to enrich the
dialog with customers making inbound communication with
Volkswagen. It is only a small step to use the same integrated
information systems for proactive customer care activities. We
will be taking that step in the very near future.”
“The company is gaining huge value
from having full visibility of each client.
We plan to extend our use of SAP software
and see enormous potential in
standardizing on this integrated solution
to replace legacy applications and complex
interfaces and profit from synergies
in different areas of the business.”
Jens Wieland, Program Manager, Customer Solution Center,
Volkswagen AG
Many Ways of Listening to the Customer
“There are many ways for us to listen to the voice of the
customer,”
Wieland continues. “Our mySAP CRM complaints management
system is a most valuable source of customer feedback. We don’t
sell directly to end customers, so contact points are few. That
is
why the complaints management system is so important to us.
We take what we hear very seriously.”
Using SAP interaction center software, customer service
agents
capture requests for information; positive feedback; and many
comments, ideas, and suggestions for improvements. Each call is
routed quickly and efficiently to the most qualified customer
service representative. The topics addressed are matched
according
to a detailed tree structure, allowing Volkswagen to evaluate
feedback by vehicle model or other relevant criteria. Standard
or
customized reports and flexible analytics functionality within
mySAP CRM help pin down root causes of issues and the results
are forwarded to the relevant departments. Opportunities for
improvement in vehicle design or service quality quickly become
evident, and improvements can be monitored for effectiveness.
“Using mySAP CRM as an additional early warning system for
technical, dealer-specific, and other issues, the complaints
management system, as an accompanying measure, supports
Volkswagen’s quality assurance efforts and enables timely
intervention.
It has become a strategic tool for improving customer
satisfaction,” says Wieland.
Turning Information into Knowledge
When a call comes into Volkswagen’s customer care center,
mySAP CRM immediately presents the agent with a comprehensive
profile of the customer. Extracting data from multiple sources,
intelligent analytics software within mySAP CRM consolidates
information for on-screen presentation and evaluation. “mySAP
CRM helps the agent quickly understand the customer, respond
knowledgeably to the call, and is a potential source to identify
up-selling or cross-selling opportunities,” Wieland continues.
“mySAP CRM gives us intelligence for positively influencing
customer satisfaction and retention. It reveals market trends
which can be used for proactive campaign planning and satisfies
information needs at all levels of decision making.”
Volkswagen’s internal operations also benefit from the new
CRM solution. mySAP CRM reports help management assess
the effectiveness of its customer services, answering questions
such as: How long does it take to respond to a customer inquiry?
How many inquiries are open at any given moment? Which
teams are most effective? This information helps the carmaker
define strategic targets in customer service management and
measure performance to verify that they have been met. “We
have barely begun to explore the full potential of mySAP CRM
to improve selling effectiveness,” says Wieland.
Bringing People Together
mySAP CRM has been a catalyst for improved collaboration
across departments. “All departments that access the CRM
solution share the same information and are encouraged to
collaborate,” says Wieland. “mySAP CRM brings our people
together, making it easier for them to communicate, exchange
experiences, share best practices, and work efficiently for the
benefit of Volkswagen and our customers.”
The benefits derived from mySAP CRM by Volkswagen and Audi
have been received enthusiastically by management across the
group. “The company is gaining huge value from having full
visibility
of each client. We plan to extend our use of SAP software
and see enormous potential in standardizing on this integrated
solution to replace legacy applications and complex interfaces
and profit from synergies in different areas of the business,”
Wieland concludes.
Simplification, higher data quality, exchange of business
information,
transparent licensing, and greatly improved customer
care are strong arguments supporting this agenda. “Quality
customer service means the many parts of Volkswagen need to
collaborate and share information through an integrated
application architecture,” Wieland concludes. “mySAP CRM fits
neatly into that concept.”
With the aim of creating a uniform system to improve
customer satisfaction, the Volkswagen Group decided to implement
mySAP™ Customer Relationship Management (mySAP™ CRM) across its
enterprise.
This decision followed the successful completion of two pilot
projects in 2001: a new service center supporting the launch of
the new luxury car VW Phaeton and a new call center at Audi –
both based on mySAP CRM. The Volkswagen call center followed on
September 28, 2002.
VOLKSWAGEN GROUP
THE VOLKSWAGEN GROUP IMPLEMENTS
mySAP™ CUSTOMER RELATIONSHIP MANAGEMENT
TO LAUNCH CALL AND SERVICE CENTERS
Today, customers no longer interact solely with dealers when
purchasing a new car, exploring financing options, or submitting
a customer service inquiry. Increasingly, customers are
contacting auto manufacturers directly, which is why Audi and
Volkswagen decided to set up call centers. For the launch of the
new Phaeton, the Volkswagen Group also established a service
center specially designed to handle the inquiries of this target
group. In addition, since the fall of 2001, mySAP™ Customer
Relationship Management (mySAP™ CRM) has been supporting
its customer retention project at the VW all-glass assembly
plant called “Transparent Factory” in Dresden.
AROUND THE CLOCK SERVICE FOR 300,000 AUDI CUSTOMERS
By the end of April 2002, the VW Group had another SAPsupported
CRM project up and running: the new Audi call
center. Based in Cologne and Ingolstadt, Germany, some
200 customer care agents serve 300,000 customer and prospect
contacts around the clock. Their new desktops incorporate
computer telephony integration (CTI) components, and all
contact channels – telephone, fax, e-mail, and traditional
letter
– can be managed via mySAP CRM. Written customer documents
are scanned, processed electronically, and then stored.
To make this possible, Audi integrated existing systems such as
document management into the solution. “Regardless of how
a customer reaches us, our internal processes run completely
electronically,” says Christoph Wargitsch, head of CRM and
New Media at Audi.
ACCESS TO VARIOUS DATABASES
Along with an automatic routing system, mySAP CRM integrates
an escalation management tool. As a result, customer
inquiries can be quickly and efficiently channeled to the
appropriate person, which translates into greater customer
satisfaction. To give employees as complete a picture as
possible
of both customer and car, the end-to-end solution interfaces
with an array of databases. This means that users can display
a range of information on their desktops, including technical
details, interior equipment data for each car, and dealer master
data. “Our initial objective was to integrate and optimize
reactive processes for incoming inquiries and complaints
management,” says Wargitsch. Active processes, such as direct
marketing and dealer integration, will follow soon. Audi also
plans to implement the analytical functionality of mySAP CRM
to optimize its marketing activities, based on the data
collected
in mySAP™ Business Intelligence (mySAP™ BI).
A UNIFORM, EASILY INTEGRATED SOLUTION
With the Phaeton VW/Audi project, the Volkswagen Group
has taken its first steps toward the successful implementation
of mySAP CRM across the enterprise. The overall strategy
envisions a uniform solution for the automakers, which are
implementing the CRM solution gradually, making constant
improvements along the way. The VW Group has already
started rolling out the solution at other subsidiaries, with
Audi
Italy currently using mySAP CRM integrated campaign
management capabilities. One of the next phases includes the
implementation of mySAP CRM at VW Financial Services.
“From the beginning, we wanted to select a CRM solution that
would easily integrate with our existing systems,” says Gerhard
Nägele, project leader for the VW Group. “Volkswagen, Audi,
and the VW Bank had already implemented SAP components.
Naturally, this influenced our decision to select mySAP CRM.”
The openness of the SAP platform was key to the success of the
VW and Audi projects, as it enabled different brands within the
group to employ a uniform CRM solution to their advantage.
Further benefits included the sharing of costs and the
opportunity
for one company to profit from the experience of another.
“Regardless of how a customer
reaches us, our internal processes
run completely electronically.”
Christoph Wargitsch, head of CRM and New Media at Audi
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