Roland Berger Customizing Aftersales 20131120

Philipp Grosse Kleimann, Dorit Posdorf, Alexander Brenner,
Swen Beyer, Dr. Ralf Kiene, Torsten Hunstock

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Roland Berger Strategy Consultants

11/2013, all rights reserved
www.rolandberger.com
Customizing aftersales
Delivering the service that customers really want
Study

Study
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Study
Contents
1. Introduction: USPs are critical for survival
2. Aftersales: Massive potential going untapped

2.1 Aftersales is the most important profit driver
2.2 The most important aftersales trends

2.2.1 Stronger consolidation

2.2.2 New players and business models

2.2.3 New mobility concepts

2.2.4 Service must be an individual experience
2.3 Result: The battle for customers has kicked into high gear
2.4 Conclusion: Stand out to survive
7
7
8
9
11
14
15
16
18
3. Customer survey
3.1 RB Profiler the Roland Berger approach
3.2 Our survey of 1,500 service customers...
3.3 ...revealed six customer segments
3.4 What makes each segment unique
3.5 Focus on customer segments two examples

3.5.1 High-demanding Enthusiasts

3.5.2 Status-oriented Youngsters
3.6 Six customer groups Present everywhere but largely ignored
20
20
24
24
27
33
33
35
36
4. C
urrent practice: Today's repair shop
4.1 Current service formats

4.1.1 OEMs battle for customers with older vehicles

4.1.2 Independents position themselves as value champions
4.2 Interview
38
38
39
41
42
5.

6.

Sustainable strategies for aftersales players

5.1 Leverage the strengths of the format
5.2 Develop a company-specific approach
46
46
48
Conclusion
Want an edge over your competitors?
49
50
7. Authors
52
3 |
Customizing aftersales Delivering the service that customers really want
Foreword
Dear reader,
The battle for the customer is heating up in aftersales no less than in new and used
vehicle business.
Most market players have long been aware of this: Four out of five customer contacts are
made after the vehicle purchase. They are the key to a lasting customer relationship, because
they open up opportunities for selling spare parts and services throughout the entire useful
life of a car, van or truck. When handled properly, these opportunities increase customer
satisfaction and consequently the resale rate as well.
The aftersales market is as profitable as it is complex. While earnings from new vehicle sales
are steadily sinking, despite massive efforts, aftersales now accounts for 75-80% of profits
for manufacturers and retail players alike.
This profitability is attracting a growing number of market players: manufacturers, suppliers,
parts wholesalers, authorized and independent repair shops, repair shop chains, insurance
companies, automotive banks, mobility services providers and Internet platforms. All are
crowding onto the customer interface and attempting to decide the battle in their favor.
The aftersales player that best knows its (potential) customers can put together optimal
product packages and accurately design its communication. That's the starting point for our
study: There's more than one type of aftersales customer. And we believe that splitting them
up by vehicle type or, as is often done, by age segment doesn't go far enough. Using our trademarked market research tool, the "RB Profiler", we can show that a person's individual values
system actually decides what aftersales products and services they buy. By testing values-based
statements in conjunction with other criteria, we identify holistic customer segments. This
enables 360-degree segmentation and coupled with the right sales channels the optimal
alignment of marketing activities.
But read it for yourself. I hope you'll find our study interesting. And should a question or
two remain unanswered, our global team of experts would be happy to help you.
Best regards,
Philipp Grosse Kleimann
4 |
Study
The study in seven core statements

> The German aftersales market keeps growing, and growing, and growing...
By 2016, sales are expected to be increasing by 1.2% annually. Despite
Europe's economic crisis or perhaps because of it the number of cars
on Europe's roads is constantly expanding.
> The aftersales business is very profitable: On average, German OEMs
generate just 20% of their revenues but up to 80% of their profits from
aftersales.
> However, margins are feeling the squeeze: More and more players
are competing for customers, who are in turn becoming increasingly
demanding.
> Market players are hunting for the right concept that will allow them
to meet a wide variety of customer demands. Yet no one seems to have
found what we believe to be the secret to success: namely, a differentiated
approach tailored to individual customer profiles. Therefore, customers
just turn to the cheapest provider.
> The most successful market players will be those that best address the
demands of their various customers or customer groups.
> Roland Berger has decoded the DNA of the aftersales customer. The
German market consists of six segments that can potentially be found
in the customer base of every provider.
> With this market study, Roland Berger lays the groundwork for a customerspecific approach. Even the macro-analysis reveals many ways to improve
service, but without the accompanying micro-analysis at the company
and/or market level, the true potential will remain largely untapped.
5 |
1. Introduction: USPs are critical for survival

The future of the automotive industry lies in aftersales. Manufacturers
already generate 75-80% or more of their profits with products and services
for vehicles that have already been sold. That percentage is on the rise. Yet
it's getting crowded up there success awaits only those that rigorously
plug their USP.
Why is aftersales becoming so important? It's because the rules of the
automotive game are undergoing a fundamental change. Current trends will
shake up the industry between now and 2025. Markets and production are
increasingly shifting to Asia, and increasing demand for very inexpensive
cars is giving rise to an entirely new segment at the lower end of the market.
At the same time, the value of automotive electronics is rising. Internet
connections and cloud services are becoming the norm, even in cars. The
conventional powertrain has long had competition: Manufacturers have to
integrate hybrids, electric and gasoline variants into the model and service
landscape. Competition is getting tougher, pressure to consolidate is rising
and the final straw is demotorization among young urban consumers:
Owning your own car is no longer fashionable.
To survive in the market, aftersales players must carefully listen to their
customers, and provide the goods and services they really want. This
must be clear from their approach to communication and product portfolio
design. Micro-marketing with a service offering tailored to each individual
customer would be the ideal solution. The first step on this path is an
in-depth understanding of customer needs, achieved through detailed
segmentation. Attractive offers that are both feasible and profitable for
aftersales players can be put together for each segment.
Using the RB Profiler developed by Roland Berger Strategy Consultants, a
tool that we have been honing for several years now, we analyzed aftersales
customers in various markets including Germany, the US and China. We
then split them into useful segments. This study focuses on the results for
the German market. In Germany, the well-known market research institute
GfK surveyed 1,500 service customers for us. We took a close look at
customers' specific preferences for automotive services, demographic
factors, and general preferences and values.
6 |
Study
The result? Six customer groups that reflect the service behavior, wishes and
desires of the entire German aftersales market. Some of the differences between
the segments are enormous. But every aftersales player whether OEM, parts
distributor or independent repair shop potentially has each of these six
segments in its customer base. Accordingly, they must include them in their
future offering.
Taking the findings regarding customer expectations as a starting point, we
examined how providers currently attempt to retain existing customers and
acquire new ones. Our analysis revealed that apparently no player is rigorously
applying a consistent USP. In the last section of this study, we look at how this
can be changed, what strategies are appropriate for aftersales players and how
Roland Berger can come to the aid of market players in this respect.
Service differentiation in other industries
Telecommunications industry: Service adds an emotional charge to massproduced items

Internet access has long since become a commodity and more or less a product
that customers buy without any brand enthusiasm, such as electricity. This makes
differentiating one's services all the more important. To stand out from the
competition, providers are focusing on speed, reliability, hotline support, on-site
service or add-on services such as anti-virus programs. This enables them to offer
customers different packages with different prices. What's more, customers can
switch plans if their needs should change as long as it's an upgrade.
Airlines: Individual service even before take-off

Airlines promise a similar USP. The customer decides whether to fly eco-nomy,
business or if available first class. They can select a seat online, spontaneously
rebook or, for a surcharge, take excess baggage along according to their personal
preferences. However, even within a class it's possible to select different service
levels and accommodate individual wishes not only for the flight, but also prior
to departure (e.g. Economy Flex vs. Economy Basic). Furthermore, loyal and
frequent fliers receive special services such as upgrades, lounge use and shuttle
services.
Online retailers look to cross-selling

Many online retailers use their customers' previous purchasing behavior to recommend other potentially interesting products by e-mail or on the screen during
a product search. This means customers receive customized, individual offers,
i.e. there is cross-selling.
7 |
2. Aftersales: Massive potential going untapped

It's no secret that the entire service and product business is highly attractive
for vehicle manufacturers, authorized handlers and independent service
providers. The term "downstream business" is also used, since it doesn't
really start until after the car has actually been sold.
Customer service is of critical importance for the overall brand experience
and driver satisfaction. Post-purchase there is a host of crucial customer
touch points, and this is where manufacturers earn the loyalty of their
customers. This is when customers decide to return to the same brand
for their next car or not.
2.1 Aftersales is the most important profit driver
The aftersales market is huge and difficult to grasp. According to the
German Federation for Motor Trades and Repairs, aftersales services
generated approximately EUR30billion in 2012 in Germany alone.
Just how important this sector is for OEMs can be seen by taking a look at
the breakdown of sales and profits. Automotive manufacturers in Germany
continue to generate most of their revenues from sales of new vehicles;
aftersales accounts for just 20%. But aftersales services are responsible
for about 75-80% of manufacturers' core business profits.
OEMs are joined on the aftersales market by a host of other players from
OESs to independent parts suppliers, wholesalers, retailers, repair shop
chains and independent repair shops. What's more, current trends allow
players from other industries to enter the market with innovative business
ideas. The relationships among the different players are very complex. This
lack of transparency allows the providers to charge nice markups without
anybody noticing, but it also leads to uncertainty among customers.
We assume the German aftersales market will continue to see moderate
growth, despite the current weakness in sales volumes. The size of the
vehicle fleet is continuously growing: there are currently 43 million cars
on Germany's roads, and this figure is forecast to rise to 44 million
by 2015.
8 |
Study
Steady growth: Despite weak sales volumes, the number of cars on

Germany's roads is constantly growing [m cars]
Cars on
the road
[m veh.]
70
50
CAGR of cars on the road: +1.0%
4.0
3.1
60
New
registrations
[m veh.]
3.4
3.3
3.2
3.4
3.5
4.0
3.5
3.0
41.7
41.8
42.1
42.8
43.4
44.0
44.4
40
22%
23%
23%
21%
22%
22%
22%
30
20%
20%
20%
21%
22%
22%
20%
20
24%
24%
25%
26%
26%
25%
28%
1.0
10
33%
33%
32%
32%
31%
31%
30%
0.5
2009
2010
2011
2012
2013e
2014e
2015e
New registrations
Age groups
0-3
4-6
7-10
2.5
20
2.0
1.5
0.0
>10
Source: Datamonitor; IHS; Roland Berger
A comparison of new registrations with the existing fleet shows that, every
year, Germans register more new cars than they scrap, export or no longer
use. This drives up average age of vehicles. In 2003, the average German
car was 7.4 years old; in 2012 the figure was up to 8.5 years according to
Germany's Motor Vehicle Authority. In particular, the share of cars aged
7-10 years is on the rise.
The growing number of cars on the road coupled with their higher average
age confirms the importance of the aftersales business. Sales development
provides further proof: According to "Datamonitor 2012", the automotive
aftermarket at the retail level will continue to be a source of stable income,
with 1.2% anticipated annual sales growth for all players by 2016. Spare
parts (service and wearing parts) and accessories each account for over
30% of sales..
2.2 The most important aftersales trends
Due to their importance, certain trends in today's aftersales business deserve
closer scrutiny. Current developments mean that not all players stand to
profit to the same extent. Some may even have to tolerate painful cuts in
their sales and profits. Four market changes stand out as they have a direct
impact on the customer interface. We discuss them in turn below.
9 |
2.2.1 Stronger consolidation

Repair shop insolvencies, mergers and acquisitions the consolidation
trend on the aftersales market has been tangible for a few years now. It eased
somewhat in 2011, but will continue at all sales levels, from wholesale to
retail. Independent repair shops in particular have recently been gaining
market share.
Against the tide: Germany has fewer and fewer repair shops for more and more
vehicles
52%
51%
51%
Share of independent repair shops

52%
52%
52%
54%
Repair shops
['000]
50
41.7
40
30
54%
Vehicles
[m]
45
CAGR -2.2%
40.2
39.8
39.1
38.3
38.1
55%
38.0
40
37.7
33.5
20.1
19 8
19.8
19 7
19.7
18 9
18.9
18 3
18.3
18 1
18.1
17 6
17.6
17.4
15.0
20
10
0
35
30
25
20
15
21.6
2005
20.4
2006
20.1
2007
20.2
2008
Vehicles
Authorized repair shops
Source: ZDK; press research; Roland Berger
20.1
2009
20.0
2010
20.4
2011
20.3
2012
18.5
2015e
10
5
0
Independent repair shops
Of course, the fact that new cars need less maintenance and fewer repairs
during their useful lives is also an important factor. Less mileage and longerlasting parts have continuously pushed down the amount of service provided
by car manufacturers: Since 2005, the amount of recommended service has
declined from 1.15 service appointments to 0.95. Over the same period,
the amount of service actually carried out declined from 0.98 appointments
to 0.90 per year. By 2025, the amount of workshop labor hours is expected
to drop by 20-25%. Drivers are apparently going to repair shops much less
often. The upshot? More insolvencies and accelerated repair shop closings.
Mergers and acquisitions are also leading to further consolidation from
OEMs and OESs to parts wholesalers and repair shops.
10 |
Study
This will shift more power to specific players, while others will have to
struggle for survival. The positive effect of consolidation (see below for
a selection of current examples) is that the surviving repair shops will
ultimately enjoy better capacity utilization: Given the expansion of the
vehicle fleet, they will be able to serve more customers.
Current consolidation cases
In mid-2012, automotive supplier Bosch acquired a manufacturer of diesel

components in order to expand its spare parts business.
In 2011, "team Reifen-Union GmbH & Co. Top Service Team KG" became a
shareholder of Coparts Autoteile GmbH. The goal was to create a network of
independent vehicle parts and tire retailers with nearly 1,200 dealerships.
PV Automotive, a parts wholesaler, took over the pitstop repair shop chain in
2010. Pitstop was able to stay on the market only thanks to the restructuring
program launched. At the same time, PV Automotive was able to secure market
share in the parts business.
US investor KKR bought shares in A.T.U. in 2004 and had to keep pumping in cash
to keep the repair shop chain afloat; right from the start there was speculation
about taking the company public or selling it. A.T.U. bonds amounting to almost
EUR 600 million will reach maturity in 2014.
11 |
2.2.2 New players and business models

The established players have to come to terms with their new competitors.
New providers and intermediaries are crowding onto the aftersales market,
where they attempt to gain market share by using innovative business
models. A growing number of players are fighting to occupy the customer
interface and position their services or integrate other services into their
products.
More and more players are battling for the customer interface:
New downstream business models at a glance
OVER-THE-COUNTER
BUSINESS
ROUTING BY INSURANCE
COMPANIES
Insurance companies are
increasingly channeling end
customers to specific repair
shops (e.g. HUK, Carglass)
WHITE LABELING
Growing range of providers
of white-label extended and
mobility guarantees as well
as insurance (e.g. ADAC)
(Authorized) dealers and

independent repair shops (counter
business) are selling more original
spare parts to end customers
Customer
focus
NEW TECHNOLOGIES
Innovative business models based on
new technologies open up opportunities for
non-automotive players (e.g. from the
communications industry)
INTERNET
(repair shop portals)
The Internet is playing an
increasingly larger role, for
instance as a repairs broker
(e.g. werkstatt.autoscout24.de)
Source: Roland Berger
Unlike in other industries, this makes the entire aftersales market less
clear for the customer.
Routing through insurance companies
Insurance companies were the first to make a move. For quite a few years
now, they have been using alliances to channel customers into selected
repair shops, both authorized and independent. This channeling process
already works very smoothly for accident and glass repair claims. The next
logical step would be to transfer this approach to the service realm.
12 |
Study
Over-the-counter
For authorized dealers, selling spare parts over the counter to other
workshops and end customers has become a pillar of their business. Current
programs operated by several manufacturers and dealers confirm that sales
in this segment are rising. Managed properly, such programs result in a
competitive portfolio. Successful dealers already generate 30% or more of
their total sales with over-the-counter business, in keeping with the idea
of "If I can't sell the customer any more service hours, maybe I can at least
sell the original spare part."
Online portals
The Internet has long since established itself as a sales channel for
automotive services and products. At the moment, there are signs of a
breakthrough for specialized repair shop portals that offer a broad range of
services: from customer ratings and reports of experiences to fixed-price
offerings for repairs and inspections, including collection and delivery
services.
While dealers and associations still view repair shop portals with skepticism,
acceptance among customers and the growing number of repair shops
signing up with them confirm the upward trend. What's more, the portals
benefit from the fact that more and more customers want services to be
presented clearly and understandably.
Successful repair shop portals in Germany
Werkstatt.AutoScout24 brokers service orders and clearly lists repair shop

services.
Drivelog by Bosch bundles mobility offerings for drivers and repair shops.
Customers with a "digital service log" can keep track of costs and achieve
savings.
The opportunities online portals offer participating repair shops include new
customer acquisition, additional capacity utilization and a way to present
the shop's own services clearly and professionally.
13 |
As competition heats up, acquiring new customers will play a key role in
the future even if the online search focuses on regional offers. Increased
transparency for the customer is certainly a negative result for the repair
shops, as it can lead to price erosion.
New technologies
Established and new players can also use new technologies to create
innovative business models. One example could be a lucrative retrofitting
business for manufacturers, dealers and repair shops: incorporating
smartphones (and connecting them to the car's peripheral devices), carto-car and car-to-infrastructure communication (such as for innovative
navigation systems) or complete entertainment systems. The steady rise
in complexity drives business primarily to authorized repair shops and
full-line providers competent to deal with specific brands.
At the same time, new technologies open up the market and make it
possible for new players to enter the automotive aftersales business
especially companies from the IT and communications sector. Several
examples have already led to tougher competition for customers: linking
telematics and service offerings, enabling the use of apps or setting up
Internet connections in cars. The latter makes it possible to provide
tailored offerings via location-based services (geo-marketing).
White labeling
More and more white-label products have been cropping up on the aftersales
market. They include both spare parts and service offerings. In the spare
parts business, this is how providers reach price-sensitive customers with
older cars. It increases competition and broadens the range of options for
the customer on the basis of price differences.
In the service business, a rising number of new names are joining the ranks
of the well-known guaranty and insurance providers. The range of different
white-label providers of extended guarantees and mobility guarantees is
expanding day by day. New players include the likes of automotive clubs
(e.g. ADAC) and repair shop chains (e.g. A.T.U.) They not only heat up the
competition, they also cloud and complicate the market. For customers, it is
becoming harder to stay on top of this diverse range of offerings. However,
the competition results in clear cost benefits.
14 |
Study
2.2.3 New mobility concepts

New mobility concepts are gaining ground, especially in major cities, and
promise to fundamentally change the aftersales business. The ongoing shift
in society's values, for example increased environmental awareness, opens
up multiple opportunities for new kinds of mobility format, and innovative
service providers will adopt a more significant role as a result. And we're
not talking about just new products or business models, but also services
that will respond to changes in customers' usage patterns.
The best-known new mobility concept is without question carsharing, a
system based on the idea of "using instead of owning". The idea is enjoying
ever-increasing popularity, reflected in mushrooming numbers of members
and a steadily expanding vehicle fleet. In 2012, about 700,000 Europeans
were sharing some 21,000 cars. By 2020, say experts at Frost & Sullivan,
that will be 15 million people and 240,000 cars.
Fleet management is already having a major impact on the aftersales
business. With just over a million newly registered fleet cars, business
customers already account for about a third of new registrations every
year in Germany. Include rentals, one-day and OEM registrations and
the figure soars above 60%.
From OEMs to independent newcomers: A variety of providers

are now active on the carsharing market
Top players by company type [selection]
OEM
Rental
companies
p
Independent
providers
Source: Bundesverband Carsharing e.V.; University of California; Frost & Sullivan; Roland Berger
15 |
... and are finding more and more users

Carsharing users, 2006-2020 [m]
15.0
4.0
0.2
0.1
2006
0.7
0.3
2012
2020
Germany
Europe
Source: Bundesverband Carsharing e.V.; University of California; Frost & Sullivan; Roland Berger
This structural change has major implications for aftersales, as the customer
structure moves away from individual private customers toward a few
large accounts, whether they be carsharing providers or operators of fleet
and rental businesses. The steadily growing number of carsharing vehicles
and large fleets also mean that in the future, fewer and fewer private
individuals will bring their own vehicles in for service or repairs. Framework
agreements with large customers will multiply, and players should tailor
their offerings even more closely to the needs of the remaining private car
users.
2.2.4 Service must be an individual experience
Automotive groups are constantly expanding and differentiating their sales
channels for new vehicles to reach ever-shrinking target groups. Aftersales
has a lot of catching up to do here. So far, most providers have tended to
lump all customers together and not address the various groups differently
enough.
If you buy a premium car for more than EUR100,000, you are probably
going to get the same service as someone who spent EUR8,000.
Customer touch points in the aftersales business offer particularly valuable
opportunities to spot individual needs and develop a tailored service offer
to meet them, thus boosting profits.
16 |
Study
Companies have to recognize that their customers will project a positive

experience buying a new vehicle onto aftersales. The individual support that
they received when buying the car is what they will demand later on when
they need service. Companies have to meet these expectations if they wish
to keep their customers over the long term the large OEMs in particular.
The world of new vehicles is becoming more diverse ...
... but not aftersales
2.3 Result: The battle for customers has kicked into high gear
More and more players are crowding onto the aftersales market: OEMs
and authorized repair shops, OES providers and various repair shop system
formats, as well as independent repair shops.
It can be a long road from manufacturer to customer:

Distribution flow in the aftersales market
Producer
Original Equipment
Manufacturer (OEM)
Wholesaler
OEM aftermarket
organization
Retailer
OEM
authorized repair shop
Original Equipment Supplier (OES)
Fast fit
central
organization
Wholesaler distributor/importer
Independent
repair shop
Body shop
Petrol stations
stations,
supermarkets, DIY
Intermediates
Insurance, leasing and carsharing companies (selection)
END
CUSTOMER
CUSTOMER
Independent aftermarket
(IAM)
Fast fit/
auto center
17 |
Everyone competes against everyone else. All are fighting for market share
and it's a battle taking place directly at the customer interface. Authorized
repair shops and other types of repair shops in particular face a constant
struggle on the maintenance and repair market.
Developments over the past five years can be split into two phases. In the
first phase, multiple new repair shops and repair shop chains entered the
market and took market share from OEMs on a grand scale. In response, the
manufacturers created initiatives designed to claim back their piece of the
profitable aftersales market. They offered more flat-rate contracts, additional
parts lines and counter service concepts. In this way, during the second
phase they were able to halt the erosion of their market share and cement
their strong positioning.
Who will win the next round? The jury is still out. But the winner will
definitely be the player that best meets the needs of individual customer
segments with a differentiated range of products and services. Those who
are most successful in doing so will win a decisive share of the market.
Market share in the maintenance and repairs market. OEMs have

halted the erosion of their positions for the moment
Phase I
Phase II
Phase III
Repair shop chains take OEM launch initiatives

over a major share of
and win back some
the aftersales market
market share
Market share
[%]
-4.4%
+2.8%
60
Development of Phase III still unclear: Those that

best address customer needs will establish
themselves on the market
50
40
0.0%
+13 4%
+13.4%
30
20
10
0
2007
2008
2009
2010
2011
Authorized repair shop

Other repair shop
Source: DAT-Report 2013; Roland Berger
2012
DIY
2013
2014
2015
18 |
Study
2.4 Conclusion: Stand out to survive

The number of vehicles on the road is increasing slightly, but this is
due mostly to commercial demand in leasing or carsharing, not private
customers. On the profitable aftersales market, a growing number of players
with new business models are battling for ever fewer customers with higher
and higher expectations. The potential is enormous, but service concepts
at most providers remain severely underdeveloped. Practically speaking,
they do not address the individual needs of the different customers or
customer groups. Our market observations make it clear: Going forward,
differentiation is not just advisable it's crucial to survival.
To respond appropriately to today's developments in automotive aftersales,
communication with customers has to be precisely targeted. Each and every
customer should ideally receive a solution and service package tailored
exactly to his or her specific needs. As things stand today, this is well-nigh
impossible.
Segmentation as ideal solution for individual customer approaches

STATUS QUO
CLUSTERING IS OPTIMAL
> Share of private customer business

is shrinking
> Precisely identifying customers makes it

possible to split them into various
t
segments
g
t
customer
> Tailored service packages can be
developed for every segment, getting
closer to "micromarketing" and giving
the customer an individual approach/
considering his or her personal needs
> In sales, dealers target customers

individually, meaning that customers
then have high expectations of
aftersales
> A wide range of additional/new
aftersales players are crowding onto
the customer interface
Uniform customer approach
MICROMARKETING
> Micromarketing is the ideal

solution:
- Each and every end customer
is addressed individually
- Every customer receives a
package designed specifically
for him/her
Individual support
19 |
Instead, we recommend a similarly effective alternative: a clearly defined

segmentation into various customer groups. By precisely characterizing the
customers based on their values and needs structures, we can define distinct
segments. These segments each then require a tailored service package that
addresses the customer individually and takes into account his or her needs.
Taking this approach makes it possible for aftersales players to succeed on
the market over the long term.
Our market observations at a glance:
> T he aftersales business is highly profitable and is growing further despite

the crisis.
> C
onsolidation is increasing. At the same time, more and more providers
are entering the market with new technologies and trends.
> N
ew mobility concepts are reducing the importance of private customers
and boosting the role of commercial key accounts.
> T he sale of a new vehicle sets the standard for individualized customer
attention and raises customers' expectations of the service level in
aftersales.
> C
ustomers are increasingly demanding customized products that are
tailored specifically to their needs instead of one-size-fits-all solutions.
20 |
Study
3. Customer survey
The aftersales market is characterized by highly complex, fragmented
distribution channels, interchangeable service offerings and a lack of switching
costs. OEM and independent repair shops often lack a clear strategy for
approaching their various customers in an individual manner, securing longterm loyalty and differentiating themselves in an increasingly competitive
marketplace.
To develop such a strategy, these players need to understand their customers'
needs and expectations better. At the moment, very few of them rely on
valuable market and customer information. Our study provides a solid basis for
understanding customers better by first looking at the entire customer spectrum
across all types of aftersales providers. The various players can use this as a
basis for building a company-specific approach more on that later.
3.1 RB Profiler the Roland Berger approach
The RB Profiler, a tool developed by Roland Berger Strategy Consultants,
provides an accurate picture of the market and so enables companies to
segment their current and potential customers better. Its quantitative
methodology creates transparency regarding customer and brand values,
revealing which segments offer the greatest strategic and economic value.
Segmenting customers with the RB Profiler the ideal tool for a comprehensive
analysis
360 SEGMENTATION
INPUT VARIABLES
Demographics
SEGMENTS (illustration)
Cost-oriented
Minimalists
Values
>C
Comprehensive
h i customer
t
analysis
l i by
b
combining various segmentation criteria
> Prediction of future purchase behavior
by identifying the most relevant criteria
> By combining the most attractive
customer segments with different sales
channels, companies can adjust their
marketing mix and capture further
potential
Behavior in relevant
category
g y ((car purch.,
p
, mobile
phone use)
Progressive
Performers
Channel/media use
Industry affinity
Price-focused
Fun-lovers
21 |
The multidimensional analysis also looks at customers' values, sociodemographic data and industry-specific details. Firms are able to see which
customer groups they currently address and which groups their brand and
services could potentially reach if they repositioned them and made them
distinctive.
The basic idea behind the RB Profiler is that everyone has their own complex
system of values. Some people are driven by their emotions and think that
having fun is important, while others make highly rational decisions and care
about how other people see them. Looking at these factors allows us to
create different "value profiles".
The RB Profiler examines a total of 18 key values that are important in
consumers' day-to-day purchase decisions. These key values appear in the
RB Profiler Grid (see figure).
The RB Profiler describes consumers' 18 basic values and desires

Vitality
Aesthetics
Family &
Friends
TRADITIONAL HEDONISM
ALTRUISM
Tranquility
Health
Total
Cost
Smart
shopping
PROGRESSIVE HEDONISM
Society &
nature
Thrills & Fun
Status
Trendiness
MONEYISM
PROGRESSIVE PERFORMANCE
Simplicity
Protechnology
Achievement Customization
TRADITIONAL PERFORMANCE
Quality
Service
Security
They are arranged along a number of different dimensions, with similar

values appearing close to each other. The y-axis indicates attitude, from
rational (at the bottom) to emotional (at the top), while the x-axis indicates
likelihood of consumption, from minimalist (left) to maximalist (right).
22 |
Study
Primary data collection is adjusted for each project. There are no "yes/no"
questions and no right or wrong answers. Rather, consumers are asked about
their attitudes quality preferences and price sensitivity, for instance and
the findings are later condensed into specific values such as Quality or Smart
Shopping. We also record general socio-demographic data such as gender,
age, place of residence and income level. Consumers provide data about
their habits, lifestyles, attitudes, interests and needs, and also about their
relationship to the industry in question for example their brand awareness,
spending behavior and preferred products.
The resulting "consumer profiles" show whether consumers agree or disagree
with certain value-based statements. Blue areas mean that they agree
significantly more strongly with statements reflecting this value than their
reference group; red areas indicate below-average agreement.
In this way we build comprehensive profiles that not only indicate
demographic details and consumers' relationship to a particular industry,
but also precisely divide consumers up into segments on the basis of their
different values.
Sample consumer profile

>
>
>
>
>
>
25 years old
Male
Single
Mid-level income
Average education
Employed full-time
RED =
Consumer values
that the person
agrees
g
with less
than other
people/users do
BLUE =
Consumer values that the person agrees with much more so than
other people/users do
Legend: E = Emotional value; R = Rational value; = Minimal value; + = Maximal value

23 |
Analyzing value profiles for brands and consumer segments enables us

to reliably forecast the consumption behavior of individual target groups.
The RB Profiler thus creates an important basis for developing successful
brand and marketing strategies.
We have used the RB Profiler in projects and studies in a wide variety

of industries over the past ten years. Here are just three examples:
> Developing a market entry strategy for India for a German premium
automotive producer
> Developing strategy on the basis of consumer and market segmentation
for various telecommunications companies in Russia
> Realigning the broadcast portfolio and profile of a German TV broadcaster
The RB Profiler can also be used to analyze how consumer values and
behaviors develop over time, by plotting "migration paths". Profiles can
also be analyzed at an individual customer level for the purposes of
micro-marketing.
24 |
Study
3.2 Our survey of 1,500 service customers

On behalf of Roland Berger, GfK used the RB Profiler to carry out an
online survey of more than 1,500 aftersales customers in Germany. The
extensive questionnaire included several different categories of questions:
questions specific to the RB Profiler; ones requesting personal information
and demographic data; questions about people's vehicles and their personal
experience with maintenance, service and repairs; and questions relating
to consumers' future expectations with regard to services.
Breakdown of the questionnaire

5 | Comfort level with new types of media
4 | Service usage and requirements
Usage patterns of new types of media
Service usage
Use of repair shops
3 | Vehicle and driving information
Priorities regarding service/repairs
Emotional connection to the car
Usage of potential service packages
Information about the car
Maintenance and repair services, incl.

willingness to pay
2 | RB Profiler section
1 | Demographics/socio-economic
Gender
How old are you?
Male
Female
years
Do you own a car?
Yes
What German state do you

live in?
Baden-Wrttemberg
Bavaria
Berlin
No
3.3 revealed six consumer segments

The findings reveal six clearly delineated consumer segments. These
segments differ not just in their preferences with regard to services but
in their demographic features, willingness to pay, values and general
service behavior:
1. Low-involved Traditionalists
2. Service-focused Rationalists
3. High-demanding Enthusiasts
4. Status-oriented Youngsters
5. Price-focused Emotionalists
6. Cost-oriented Minimalists
25 |
The six segments capture the service behavior and service requirements of
the entire German aftersales market. They form a basis for creating valuespecific customer groups for Germany. Performing the same analysis for a
specific brand or repair shop BMW or A.T.U., say would result in an
even sharper segmentation.
Three of the six segments show a strong preference for authorized OEM
repair shops and an above-average tendency to request original parts for
maintenance and repairs:
Low-involved Traditionalists (23% of drivers) are on average

47 years old and enjoy a very high income. They are the first
owners of vehicles that are on average five years old, mainly
premium brands. They are not really very interested in cars,
but they have high expectations of professional services.
They want convenience and are prepared (and able) to
pay for excellent service.
1 Low-involved
Traditionalists
>
>
>
>
>
23%
Service-focused Rationalists (17%) are on average 50 years

old, have average income and drive used cars, some of which
are old (average age of vehicle is nine years). They tend not
to buy premium brands. They are generally not very interested
in cars but they pay great attention to maintenance and repairs.
They rate factors such as quality, friendliness of staff and
pleasant, personal support highly. They expect services to be
explained to them properly and costs to be transparent, but
they are not interested in special services or VIP treatment.
High-demanding Enthusiasts (17%) are on average 38 years

old and have a very high income. They own one or more
new vehicles, on average four years old. They are focused on
premium models. These consumers consider their cars status
symbols and themselves car experts. They place great store
by first-class service. They want the convenience and extras
that come with VIP treatment and are prepared to pay for
excellent service.
Very high income

Traditional demands
Relatively low cost focus
Drive new premium vehicles
Use authorized dealers and repair
shops
> Prefer original parts von OEM
> Look for simple aftersales offerings
and a high level of service
2 Service-focused
Rationalists
> Oldest segment
> Rational values, traditional focus on
value for money and "smart shopping"
> Use authorized dealers and repair shops
> Prefer original parts von OEM
> Want explanations for service/price and
have high overall expectations
17%
3 High-demanding
Enthusiasts
>
>
>
>
Progressive values
Relatively low cost focus
Drive new premium vehicles
Use authorized dealers and repair
shops
> Prefer original parts from OEM
> Love their vehicles
> Want top service and VIP treatment
17%
26 |
Study
At the other end of the spectrum we find three consumer segments that
tend to choose independent repair shops or repair shop chains and are
not interested in OEM parts or special services:
Status-oriented Youngsters (17% of drivers) are the youngest

segment with an average age of 28. They have very low
incomes and generally drive very old cars (average age of
vehicle is around 11 years). They do not own premium brands
and they have very limited affinity with cars. However, they see
brands and vehicles as potential status symbols: indeed, if they
had the money they would buy themselves a more impressive
vehicle. Entertainment and having fun are very important for
this segment. Because of their strong price awareness, they do
not expect particularly high-quality service. They like using
online services.
4 Status-oriented
Youngsters
>
>
>
>
>
>
Youngest segment
Emotional and progressive values
Cost-oriented
Very low income
Drive old and used vehicles
Have simple expectations of aftersales
since they know their price limits
17%
Price-focused Emotionalists (13%) are on average 35 years

old, earn an average income and drive non-premium vehicles
(average age of vehicle is eight years). They are generally not
very interested in cars and car-related services. For them,
emotional values and costs are what count the most.
5 Price-focused
Emotionalists
> Emotional values and "status"
> Cost-oriented
> Very low interest in the vehicle and
therefore no clear preferences regarding
aftersales services
13%
Cost-oriented Minimalists (13%) are on average 44 years old.

Their income is low and their non-premium-brand cars are
old (average age of vehicle is 11 years). Their interest in
their vehicles is very limited and they show very little affinity
with cars overall. Their values are minimalist with regard to
consumption: They look at the price first and are only interested
in the most basic, simple services. Their purchase decisions
are primarily driven by cost.
6 Cost-oriented
Minimalists
> Low income
> Minimalistic values, rejection of
progressive tendencies and focus on
performance
> Cost-oriented
> Drive old and used vehicles
> Car is not a priority; limited interest
in services
13%
27 |
The RB Profiler uses a series of additional descriptive variables to make

these segments even more tangible. The result is a set of clearly delineated
customer groups of practical value in helping aftersales players individually
adjust their positioning.
The characteristics of the six German customer segments at a glance

1 Low-involved
2 Service-focused
Traditionalists
Segment size
23%
Core values
Demographics
Avg. age [years]
Avg. HHI1) [EUR]
Gender
Residence
Vehicle facts
Avg. vehicle age
I (<3 years)
II (3-9 years)
III (> 9 years)
Share of used
vehicles
Workshop usage
Vehicle brand
Usage of OEM
originals [%]
Rationalists
10%
49
1) Household income
50
Medium
Women
Large city/countryside
9
34%
40%
42%
51%
Authorized
Non-premium
46
Youngsters
Maximalism,
esp.
status
38
Very high
Men
4
19%
4 Status-oriented
17%
Security
and
service
47%
44%
Authorized
Premium
Enthusiasts
17%
Traditional
values
47
Very high
Equally distributed
Countryside
3 High-demanding
8%
54
13%
Fun- and
costoriented
Cost- and
emotiondriven
Minimalism,
esp. total
cost
35
Medium
Equally distributed
Large city
8
32%
33%
Authorized
Premium
Independent
Non-premium
31
Minimalists
13%
28
Very low
Women
Large city
8%
6 Cost-oriented
Emotionalists
17%
11
48%
43%
5 Price-focused
11
25%
41%
34%
56%
60%
75%
44
Low
Women
Independent, authorized
Non-premium
33
xx Segment size
Source: Roland Berger, GfK (April 2012, n = 1501 online)
3.4 What makes each segment unique

To learn more about customers' specific desires and requirements,
we examined the six segments in terms of the following categories:
> General preferences regarding cars
> Criteria for selecting a repair shop (price, traditional needs,
convenience and support)
> Satisfaction with the repair shop
> Readiness to switch repair shops and reasons why
> Preferred service packages and contracts
Our detailed analysis allows us to draw a number of conclusions about
the different consumer segments, outlined below.
12%
36%
52%
68%
Independent
Non-premium
16
28 |
Study
General preferences regarding cars

Here the spectrum ranges from the High-demanding Enthusiasts, for
whom the car is sacred and who put great value on first-class service, to the
Cost-oriented Minimalists, who basically don't care what the car brand and
service are like, as long as it's cheap. The Low-involved Traditionalists are
relatively indifferent, as are the Service-focused Rationalists. The latter value
professional, high-quality service, but more because of their overall approach
General
preferences
regardingconnection
cars
than
because
of any particular
to cars.
Emotional connection to the car
Average1)
Low-involved
Traditionalists
Servicefocused
Rationalists
High-demanding
Enthusiasts
Status-oriented
Youngsters
Price-focused
Emotionalists
Cost-oriented
Minimalists
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
I never miss a service appointment for my

car
2.96
My car's appearance is important to me

(cleanliness, scratches, etc.)
3.05
-4
-2
36
I know the precise technical details about

my car
3.13
-6
-8
33
...
31
...
...
-16
2
-18
-34
-19
-35
-7
-3
...
-24
...
...
1) Scale: 1 ("absolutely agree") to 6 ("absolutely do not agree")

2) Deviation from the average agreement in %; a positive value indicates above-average agreement
Source: Roland Berger, GfK (03/04 2012)
Criteria for selecting a repair shop

Price
As their names imply, the Price-focused Emotionalists and Cost-oriented
Minimalists place special emphasis on low price. At the opposite end are the
Low-involved Traditionalists and High-demanding Enthusiasts, for whom
the
price of products and services is less important.
Pricing
Service priorities
Average1)
Low-involved
Traditionalists
Servicefocused
Rationalists
High-demanding
Enthusiasts
Status-oriented
Youngsters
Price-focused
Emotionalists
Cost-oriented
Minimalists
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
I am willing to forgo quality and service to

pay a lower price
3.5
-12
I always pick the cheapest product
3.8
-15
-3
3
...
...
-10
-11
6
...
1)) Scale: 1 (("absolutelyy agree")

g ) to 6 (("absolutelyy do not agree")
g )
...
20
24
15
...
26
...
29 |
Traditional needs
It's primarily the Service-focused Rationalists who set great store by top
service, namely as regards quality of the service performed, personal
support and warranty and guarantee content. By contrast, Price-focused
Emotionalists have few discernible preferences in this area. They view
their cars as a basic commodity, and repairs and maintenance are simply
aTraditional
necessary needs
evil.
Service priorities
Average1)
They explain the maintenance or repairs in
detail
1.9
They immediately give me personal attention

when I come in
2.1
They only use original spare parts
2.8
Low-involved
Traditionalists
Servicefocused
Rationalists
High-demanding
Enthusiasts
Status-oriented
Youngsters
Price-focused
Emotionalists
Cost-oriented
Minimalists
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
0
-4
2
33
10
-2
32
14
-5
20
...
...
26
...
-61
-49
-7
-1
-29
...
-38
...
...

Convenience
For High-demanding Enthusiasts and Service-focused Rationalists, fast
service is just as important as being able to easily get in touch with the
repair shop, for example by phone or Internet. The Enthusiasts also value
collection and delivery services. Like Status-oriented Youngsters, they
appreciate innovative and mobile communication for scheduling the first
appointment and for tracking order status. Price-focused Emotionalists
recognize that being unwilling to pay higher prices means forgoing certain
conveniences, such as collection and delivery service, or being able to
choose
a particular time slot.
Convenience
Service priorities
Average1)
Low-involved
Traditionalists
Servicefocused
Rationalists
High-demanding
Enthusiasts
Status-oriented
Youngsters
Price-focused
Emotionalists
Cost-oriented
Minimalists
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Maintenance/repairs are performed

quickly
1.9
Repair shop is easy to contact by cell phone

or online
1.9
Repair shop picks me up and/or drives me

home
3.0
Service appointment can be made online or

via smartphone app
3.7
-12
-1
21
15
-1
-28
I can track the status online or using my

mobile
3.7
-13
-2
23
17
-5
-27
-3
0
-5
...
32
13
37
10
...
...
-58
-4
31

-68
8
...
-3
12
-21
-24
...
...
30 |
Study
Smartphones make communication easier via mobile Internet access and

apps. The proportion of High-demanding Enthusiasts and Status-oriented
Youngsters with smartphones is particularly high. They are happy to use this
channel to exchange the necessary information with repair shops and make
the
service process
as convenient, personalized and innovative as possible.
Ownership
of smartphone
Low-involved
Traditionalists
Willingness to share data
Share1) Deviation (%)2)

I own a smartphone
52%
-9
Servicefocused
Rationalists
High-demanding
Enthusiasts
Status-oriented
Youngsters
Price-focused
Emotionalists
Cost-oriented
Minimalists
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
-25
...
49
...
...
21
...
-51
...
...

Berger, GfK (03/04 2012)
Support
The picture is not much different for actual customer support. It's the
Service-focused Rationalists and High-demanding Enthusiasts who prize
intensive and individual support whether in the form of preferential
treatment, express service or even house calls (where the work is carried
out at an agreed address). Price-focused Emotionalists and Cost-oriented
Minimalists
Support put much less value on this kind of treatment.
Service priorities
Average1)
Low-involved
Traditionalists
Servicefocused
Rationalists
High-demanding
Enthusiasts
Status-oriented
Youngsters
Price-focused
Emotionalists
Cost-oriented
Minimalists
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
I get preferential treatment when making

an appointment
2.4
-8
They make house calls

(e.g. for tire changes)
3.2
-12
Express service offered Finished in

under an hour
3.3
-9
28
14
...
10
...
18
18
-12
10
-14
19
...

...
-39
-15
...
-18
-26
...
31 |
Satisfaction with the repair shop

Once again, Service-focused Rationalists and Price-focused Emotionalists
display the largest differences here. The former are typically customers
of OEMs/authorized repair shops and are basically satisfied with their
experience. This is an indication that these players are the first to launch
initiatives toward improving their customer focus. Repair shop chains
and independent repair shops especially have some catching up to do
in this respect, as their typical target groups, such as the Price-focused
Emotionalists,
are clearly
dissatisfied.
Satisfaction with
the repair
shop
Satisfaction with the repair shop
Average1)
Low-involved
Traditionalists
Servicefocused
Rationalists
High-demanding
Enthusiasts
Status-oriented
Youngsters
Price-focused
Emotionalists
Cost-oriented
Minimalists
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Quality of the work performed
1.68
-1
17
-4
-33
Personal support
1.73
-1
19
-9
-31
Customer's assessment
1.78
-2
16
-9
-26
...
...
...
...
...
...

Readiness to switch repair shops and reasons why

Poor quality plus non-approved repairs are two key reasons customers
switch repair shops. Service-focused Rationalists and High-demanding
Enthusiasts also switch frequently because the range of services offered is
too small: Both segments wish to receive additional services. By contrast,
Price-focused Emotionalists and Cost-oriented Minimalists tend to switch
more
for reasons
of price.
Reasons
for switching
to a new repair shop
Grnde fr einen Werkstattwechsel
Average1)
Low-involved
Traditionalists
Servicefocused
Rationalists
High-demanding
Enthusiasts
Status-oriented
Youngsters
Price-focused
Emotionalists
Cost-oriented
Minimalists
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Poor quality of repairs/services
1.67
10
12
-8
The agreed-upon repairs/services were

not performed
1.88
10
-5
Too few services offered
2.62
15
10
-2
...
...
...

-47
...
11
-39
13
-27
-13
...
...
32 |
Study
Preferred service packages and contracts

Here the differences between the segments could hardly be greater. Three
customer segments typically use authorized repair shops and three favor
repair shop chains or independent repair shops. While the first group prefers
original spare parts and is willing to pay more for them, the second group
isPreferred
ready to service
accept identical
or no-name parts if it means saving money.
packages
Low-involved
Traditionalists
Preferred service packages
Share1) Deviation (%)2)

Repairs/maintenance with original parts
from the manufacturer
42%
Repairs/maintenance with generic spare

parts (no original parts)
11%
Servicefocused
Rationalists
High-demanding
Enthusiasts
Status-oriented
Youngsters
Price-focused
Emotionalists
Cost-oriented
Minimalists
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
17
-60
9
-6
...
29
-27
-21
-65
...
-62
37
...
62
...
187
...
...
1)) Scale: 1 (("absolutelyy agree")

g ) to 6 (("absolutelyy do not agree")
g )
When it comes to service contracts, the picture is not quite so clear. But
here, too, we find differences between the segments. High-demanding
Enthusiasts prefer comprehensive service and maintenance contracts
for their often newer vehicles, and like it if extra services are included.
Status-oriented Youngsters are looking for the same sort of offers. In other
segments, these contracts do not play a major role. High-demanding
Enthusiasts and Status-oriented Youngsters also frequently use online repair
shop portals, such as AutoScout24 and Drivelog. These websites broker
service contracts, provide transparency about what repair shop services are
available and use regional marketing to target these new customer groups.
Drivelog, which is run by Bosch, also offers customers a "digital service log"
to
help them
keep agreements
control of costs and see where they can save money.
Preferred
service
Preferred service agreements
Average1)
Low-involved
Traditionalists
Servicefocused
Rationalists
High-demanding
Enthusiasts
Status-oriented
Youngsters
Price-focused
Emotionalists
Cost-oriented
Minimalists
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Deviation (%)2)
Agreements that cover all maintenance but

no repairs
3.4
Agreements that cover all repairs but no

maintenance
3.7
-6
Service packages that cover all maintenance

and repairs
2.9
-5
Service packages that cover all maintenance

and repairs, plus extra services such as
collection and deliveryy service
3.3
-81
-6
19
-5
14
12
20
11
-15
-26
24
12
-13
-22
-1
-5

-2
-4
-2
-29
-19
33 |
The segments and their specific requirements and wishes could scarcely be
more different from each other. Every aftersales service provider's customer
base contains all six customer segments to some degree. Although the first
three groups can be found more often and in greater numbers at OEMs
and OEM-authorized repair shops, repair shop chains and independent
repair shops cannot simply ignore them they too have members of these
customer segments in their customer base (or would like to have them). And
authorized repair shops also count Status-oriented Youngsters, Price-focused
Emotionalists and Cost-oriented Minimalists among their customers. Going
forward, clear service differentiation and an individual approach to different
customer segments will therefore be essential for aftersales players of
all types.
3.5 Focus on customer segments two examples
To illustrate our survey results, we describe two segments in detail below.
Of course, in practice these consumer segments would be further refined
for specific brands or automakers. They can then be used by the company
in question for sales and marketing. For example, the company can meet
customer needs better, put together appropriate service packages, train
customer service call center staff and choose the right communication
channels for specific customer groups
3.5.1 High-demanding Enthusiasts
They like new cars, are proud of their vehicles and are typically OEM customers:
High-demanding Enthusiasts at a glance
3
HIGH-DEMANDING
ENTHUSIASTS
SOCIO-DEMOGRAPHICS
17%
CAR/SERVICE USAGE
Age [%]
27
25-34
35-44
45-54
Anti
values
Status
Trendiness
Protech
Simplicity
Total Cost
43
<3
3-9
55+
EMOTIONAL CONNECTION TO CAR
Pro
values
48
Male/Female:
62%/38%
Avg. household income: Very high
Avg. household size: 2.8
g ((40%))
Education:
Mainlyy universityy degree
Residence:
Evenly split between city a. countryside (70%)
>
>
>
>
>
>
>
Vehicle age [%]
20
12
18-24
38
32
Vehicle considered as status symbol

Proud of the car
Care about the brand and the look of the car
Joy of driving and special equipment is very important
Interested in technical details and trends
"Cars are my hobby"
"I know a lot about cars"
Brand distribution
> Premium: 36%
> Non-premium:
p
59%
> Economy: 5%
New vs.
used vehicle
New vehicle: 67%
Used vehicle: 33%
Repair shop loyalty [%]

Years
<1
14
2-3 (appr.)
16
3-5 (appr.)
> Strong maximalist profile

> "Status", "Trendiness" and "Protech" in focus
> Low importance on cost orientation and values like "Simplicity"
and "Society & Nature"
6-10 (appr.)
>10
Repair shop usage

> Authorized: 66%
> Express shop/chain: 8%
> Independent: 25%
> Gas station: 1%
1-2 (appr.)
PROFILER VALUES
xx Segment size
>9
24
21
12
Spare part usage

> Original OEM parts: 54%
> Other brands: 40%
> No-name parts: 4%
> Refurbished parts: 2%
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Study
A typical High-demanding Enthusiast:

Dr. Alexander Waldenfels is 38 years old and lives in Munich. He drives a BMW 5
Series that he bought new four years ago. It is very unlikely that he would ever buy
a used vehicle. In fact, he's currently considering buying a new premium model.
Alex, as he's known to his friends, is driven by "progressive" values. Performance
and hedonism are equally important to him. In terms of the RB Profiler values, he
rates Status, Technology and Trendiness highly.
Alex loves his car. He sees it as a status symbol, and all the technical extras and the
driving experience are very important to him. He thinks of himself as a "car guy"
he's always up-to-date on the latest developments in the automotive market. In
fact, he often gives his family and friends advice about cars. If his car needs service
or some work done, he prefers to go to an authorized dealer: OEM parts are a must
for him.
Alex is prepared (and financially able) to pay top rates for top service. In return,
he expects a lot from his repair shop ideally he would like them to exceed
his expectations. Convenience is very important to him, for example 24-hour
customer service, fast, reliable processes and extras such as VIP treatment. He likes
the service he receives to be personalized and is happy to provide the necessary
personal information and vehicle data online if necessary (he has his smartphone
with him at all times). For customers such as Alex, market players should provide
exclusive, innovative service packages.
What do High-demanding Enthusiasts drive? Very new premium cars, with a clear
preference for German brands
Deviation from average across all
segments [%]
Share of brands within

segment [%]
-3%
Avg. vehicle
age [years]
19%
95%
13%
69%
-24%
-14%
14%
8%
-34%
4
3
9%
7%
36%
9%
8%
4
4
4%
4%
-11%
3%
-12%
3%
HIGH-DEMANDING
ENTHUSIASTS
> Segment drives

very new premium
vehicles
> German premium
brands have a
disproportionately
large share
35 |
3.5.2 Status-oriented Youngsters
They value status, but tend to drive older used cars

Status-oriented Youngsters at a glance
4
STATUS-ORIENTED
YOUNGSTERS
SOCIO-DEMOGRAPHICS
17%
Age [%]
43
CAR/SERVICE USAGE
28
38
Vehicle age [%]
16
18-24
25-34
Male/female:
Avg. household income:
Avg. household size:
Education:
Residence:
Pro
values
Status
Thrills & Fun
Trendiness
Anti
values
Simplicity
Quality
35-44
45-54
55+
<3
Years
41%/59%
Very low
2.2
Mainly high school, 23% still students
50% live in a big city
3-9
>9
Brand distribution
> Premium: 12%
> Non-premium:
p
85%
> Economy: 3%
Repair shop loyalty [%]
> Try to look after their car themselves

> Care what the car looks like
> See car as potential status symbol
Years
<1
> Progressive hedonism as main focus e.g. <Status>, <Thrill & Fun>
and <Trendiness>
> Cost orientation as additional driver
> Comparably low importance of traditional values like <Simplicity>
and <Quality>
18
2-3 (appr.)
14
27
3-5 (appr.)
6-10 (appr.)
>10
Werkstattnutzung
> Autorisierte: 30%
> Express-Werkstatt/-Kette: 16%
> Unabhngige: 53%
> Tankstellen: 1%
13
1-2 (appr.)
PROFILER VALUES
14
9
Years
New vs.
used vehicle
New vehicle: 25%
Used vehicle: 75%
EMOTIONAL CONNECTION TO CAR
xx Segment size
11
60
32
Ersatzteilverwendung
> OEM-Originalteile: 31%
> andere Marken: 50%
> No-Name: 15%
> berholte Teile: 4%
A typical Status-oriented Youngster:

Melanie Gause is a 28-year-old who lives and studies in Berlin. She drives
a Peugeot 106 that is almost 11 years old and is unlikely to be buying a new
car in the near future. If she did buy one, it would be a used vehicle for sure
and definitely not a premium brand. With financial help from her father,
she could possibly stretch to a VW Polo.
Melanie's values are what we call "emotional". In terms of the RB Profiler
values, she rates Thrills & Fun and Trendiness as important and wants to
achieve a certain status. She wants to do something with her life, but having
fun is her priority at the moment. She doesn't have a lot of cash so most of
her purchase decisions are driven by price.
If she has a problem with her car something that has been happening
more and more often lately she goes to a small, independent repair shop
and tries to keep the price as low as possible by choosing no-name spare
parts, for example. Right now she is happy just to have a car at all.
Later she plans to drive a more impressive model, a real status symbol.
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Study
Melanie can't afford any special services from the repair shop, so her
requirements are average in this respect. The price is what matters to her.
In principle she's interested in online and smartphone offers, but rather
hesitant to give her personal or vehicle details to a repair shop online
because she doesn't really see the advantage of doing so.
For customers such as Melanie, players in the aftersales market should
provide low-price basis packages.
Mid-class brands preferred: The Status-oriented Youngsters drive older cars

and often buy French brands e.g. Peugeot and Citron
Deviation from average across all
segments [%]
Share of brands within

segment [%]
Avg. vehicle
age [years]
24%
21%
12%
-15%
43%
5%
-5%
-22%
-22%
2%
-5%
43%
Status-oriented
Youngsters
13
10%
11
10%
13
5%
5%
11
5%
12
4%
12
4%
10
3%
13
3%
> Comparably old

vehicles
> Preference for
(non-German)
volume brands
3.6 Six customer groups Present everywhere but largely ignored

As we have seen, using the RB Profiler and a sample of more than 1,500
aftersales customers, we were able to identify six relevant service types
in Germany alone. These six segments are found to some degree in the
customer base of every provider from OEMs to independent repair
shops. Yet hardly anyone recognizes them as distinct groups.
37 |
Most aftersales players have not defined clear customer profiles. They
assume that understanding the various wishes and requirements would
involve too much effort and complexity. But even differentiating between
private and commercial customers is already a step in the right direction.
Simple approaches can increase customer satisfaction: Many private
customers still choose their repair shop based primarily on the perceived
price, whereas corporate fleet operators often go for those that offer the
best technical skills and greatest convenience.
Aftersales providers will only improve customer satisfaction and loyalty
over the long term if they address the various customer groups in as
precisely targeted a way as possible. This is true for OEM-authorized
repair shops as much as for independents.
Our study reveals the six customer segments in the aftersales business.
We take an overview of the market and create an optimal basis for
developing individualized approaches. Every provider can analyze its own
customer base using a company- or brand-specific segmentation, and then
sort it into meaningful groups and figure out what it means. This in turn
provides the foundation for a targeted mix of offerings, very close to our
ideal solution of micro-marketing.
After a brief look at current practice, we will show you what action
individual aftersales players can take and how Roland Berger Strategy
Consultants can help.
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4. Current practice: Today's repair shop

We met with aftersales players at all distribution levels to discuss current
market developments and how they could differentiate their products
and services. These discussions covered new approaches that are already
underway as well as untapped potential. We talked to a wide range of
aftersales players: Premium OEMs such as BMW and Jaguar Land Rover,
volume manufacturers such as Hyundai and VW, various kinds of repair
shop concepts such as Bosch Car Service and Euromaster, and intermediary
players such as TV Nord, AutoScout24 and mobile.de.
A selection of our interviewees:
Even though most players don't segment their customers, there are still
enormous differences in performance and services offered by OEMs,
authorized repair shops and independent repair shops/repair shop chains.
They have only one thing in common: All of them need to approach
customers in a more targeted way.
Our discussions clearly confirmed one point: A tailored range of services
targeting specific customer groups will be crucial to these companies' future
survival.
4.1 Current service formats
Very few OEMs are able to retain customers whose vehicles are more than
four years old. This means that they miss out on a sizable chunk of the
high-margin repair business. These lucrative customers frequently migrate to
independent repair shops and repair shop chains. And over 60% of owners
of vehicles older than eight years no longer patronize OEM-authorized repair
shops at all.
39 |
Independent repair shops are preferred by drivers of older cars

Where repair/maintenance work is done, categorized by vehicle age in 2012 [%]
100
Do-it-yourself
80
Independent repair shops/chains
60
40
20
0
Authorized repair shops
<2 years
2-4 years
4-6 years
6-8 years
>8 years
Source: DAT-Report 2013
4.1.1 OEMs battle for customers with older vehicles

This trend is not new. To counteract it, companies need service formats
that better address the needs and desires of the various customer segments.
Lower prices are not the only reason that people are going to dealerauthorized repair shops much less often than in the past. It's also the
uniform service provided to all the different customer groups.
A few OEMs have recognized these deficits and are attempting to tailor
their services to customer profiles and age of vehicle. These efforts involve
new formats intended to cultivate long-term customer loyalty.
A few examples are detailed below.
Mercedes Benz: Pilot projects with various service formats
Mercedes Benz's goal is to make each visit to the repair shop an "individual
service experience." Initial pilots have already kicked off in England, the US and
Germany. For instance, in Reutlingen, each vehicle is scanned and the service
advisor receives all the information about the customer. Furthermore, the pilot
branch focuses on four clearly defined service formats: "Hin & Weg", "Hier &
Jetzt", "Klipp & Klar" and "Hol & Bring". This makes it possible to tailor services to
the individual needs of customers. Customers select options depending on their
preferred level of convenience or budget and, depending on the format, are given
a replacement vehicle or can wait in the business lounge.
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Study
Volkswagen: Customers with older vehicles book "economy"

Volkswagen offers a personal service program for drivers of older VW, Skoda and
Seat cars. The goal is to prevent them from going to independent repair shops.
The "economy packages" include cheap repairs for models older than five years.
Special spare parts were especially developed to expedite this. The prices for
these "economy parts" as well as for installation are lower, so customers save
up to 30% compared to standard repairs with original parts.
Renault: The second brand costs 30% less

In 1999, Renault established its second spare parts brand, called Motrio. Since
then, it has steadily expanded its product portfolio (to include tires, etc.). Motrio
was developed especially for cars older than five years. These spare parts are
roughly 30% cheaper than OEM original products and at almost the same quality.
Opel: Launching its own online service platform

As is the case with other OEMs, Opel is focusing on its own service platform.
"MyOpelService" is designed to simplify customer contact and provide customized
offers. Customers can use this platform to set up a profile with their vehicle data
and personal information. They can then receive customized service packages,
current offers and reminders for repairs and maintenance. This is an ideal way
to compensate for a lack of CRM and obtain valuable customer information.
BMW: Only the best for those driving the 7 Series

Besides segmenting by vehicle age structure, BMW has already launched
initiatives to address different customer groups, such as the "BMW Excellence
Club". In this case, only those buying a BMW 7 Series can become members.
They benefit from premium driver training, special mobility, sporting and cultural
events and exclusive service. For example, upon request, BMW offers a service
appointment guarantee within 48 hours, which is not available to drivers of
other models.
41 |
In recent years, many OEMs have launched model offensives to gain a

foothold in new niches of the vehicle market, or even to define new niches.
This differentiation represents a major challenge for these manufacturers
because now it has to carry over into aftersales, too. Where demand for
new products arises, new service requirements will also arise in parallel.
4.1.2 Independents position themselves as value champions
Over the past few years, independent repair shops and repair shop chains
have been continuously developing. They have raised their profile primarily
through aggressive expansion of their branch networks and large-scale ad
campaigns, which have helped position them as broad-coverage players
offering better value for money. In doing so, they have distanced themselves
from OEM-authorized repair shops in customer's eyes.
The chains have two major advantages: transparent fixed-price offers and the
option of working for key accounts with multi-brand fleets. For independent
shops, the trick is to offer the most important standard services consistently
across all brands.
Our customer segmentation approach is ideal for such providers because it is
not restricted to a specific vehicle type or brand but based on customers and
values. Integrated shops and chains can easily steer this approach centrally
and use it for all their branches.
It makes perfect sense for an independent repair shop or repair shop chain to
shift its focus from brands to customers and customer groups. For example,
what does an independent shop need to do to attract and retain private
customers who have older vehicles and are Price-focused Emotionalists?
Professional players such as Bosch Car Service and A.T.U. offer loyalty cards,
guarantees and flat rates that, consciously or not, support profiling of and by
customers.
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Study
4.2 Interview
"Each customer is different and would like a personalized approach"

We spoke to Walter Briem, Head of Service Germany at Audi, about service
differentiation, technical innovations in aftersales and which industries the
auto industry can learn from.
Mr. Briem, our general impression is that automotive aftersales are much
less customized for specific consumer segments than, say, new vehicle sales.
Why is that?
A personalized approach and meeting customers' individual needs is just
as important in aftersales as elsewhere. Targeted approaches create lasting
positive experiences for customers. But you are right: New vehicle sales
have developed particularly strongly in this respect in recent years.
How important is customer differentiation at Audi?
Customer differentiation in aftersales is of enormous importance to us.
Skilled, qualified service staff form the basis for an individualized customer
approach. It is also vital to maintain systematic contact with customers and
meet their needs with customized offers. The first step here is to hone your
CRM systems. However, few OEMs currently provide their dealers with
such systems for aftersales.
Which OEMs do?
Those of us in the premium segment have reached a good level here. Many
manufacturers already enjoy good proximity to their aftersales customers or
are in the process of setting up a close dialog with them. That's true for both
private customers and the large number of people driving premium company
cars.
So is customer loyalty no longer a challenge for Audi?
I wouldn't go as far as that. We have to continually develop in this respect,
winning our customers' loyalty afresh each day. More than 90% of our
customers with Segment I vehicles i.e. cars that are less than five years old
and around 80% of those with Segment II vehicles cars that are between
five and seven years old use our Audi Service Partners.
You mentioned that you have a lot of corporate accounts. Does Audi
differentiate primarily between private and business customers?
No, no. But private and business customers do have different needs,
which is reflected in our aftersales approach.
43 |
In our study of consumers in the German aftersales market, we identified

the following six groups: Low-involved Traditionalists, Service-focused
Rationalists, High-demanding Enthusiasts, Status-oriented Youngsters,
Price-focused Emotionalists, and Cost-oriented Minimalists. Do you use
the same segments?
It's not clear if we use exactly those segments. But your segmentation is
clearly based on criteria that are important for the automotive aftermarket.
In the case of a premium brand such as Audi, customers have very high
expectations when it comes to service, while price is less of a factor than
in other segments. In return, they rightly expect outstanding service at
every point of contact with the Audi brand. Another thing that I personally
think is very important is that, although segmentation is helpful for creating
efficient processes, ultimately each customer is different and would like
a personalized approach.
If you don't use this type of segmentation at present, what mechanisms
do you use to address your service customers' individual needs?
The key thing is to continually train your sales staff and increase their
sensitivity to customer needs. The moment a customer enters the repair
shop, a staff member should ask him or her something along the lines
of "What is particularly important to you today?" It's a very simple step,
but a highly important one. We make a note of our guests' priorities in
their customer profiles so that our service staff can support them in an
appropriate, personalized fashion. At the end of every visit to the repair
shop, we ask them whether we were able to meet their expectations this
time in terms of the support we offered, whether they were made to feel
like a valued customer, quality, clear processes and price. In the case of
customized support for key accounts, many of our service partners have
special customer support staff who work exclusively with such clients.
And we currently have a pilot project in progress where specially qualified
service staff support private customers who own older vehicles another
group that we plan to serve better in the future.
How do you work with independent repair shops that offer original parts?
Our Audi partners support them and have specially trained staff to sell them
original parts.
Do you take a special approach to drivers of Segment II and Segment III
vehicles specific spare parts for older vehicles, for example?
Our philosophy is to offer all clients premium products, both original parts
and services, at an appropriate price.
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Study
What is your customer approach?

Our customer approach includes round-the-clock support by our service
center. That means that if you can't use your car, we provide you with
a mobility solution immediately and at no extra cost. We don't have
differently priced services depending on your "status" no gold, silver and
bronze customers or anything like that and we have no plans to introduce
such a system.
So you don't differentiate services in the repair shop?
The technical quality provided by the repair shop and the repair service
has to always be first class, for all customers and in all customer segments.
That's why we also introduced our "Audi for Audi" program, which provides
all customers with replacement vehicles in warranty and goodwill cases if
their own car has to stay in the repair shop for more than an hour.
So where does customization come into it?
In the way we treat individual customers and their specific needs.
Can you give an example?
Usually, customers bring their vehicles to the repair shop and explain what
they want to a member of the service staff. That is the traditional dropoff approach. Some customers don't have the time to drop off the vehicle
themselves and would prefer us to come and pick up the car and bring it
back afterward. For them we are currently testing an alternative system that
uses new media, for example. Customers can communicate with the repair
shop via smartphone or tablet and supply all the details needed, even if they
are at work or on the road.
That sounds great if a little futuristic.
This type of communication is set to take off in the future. Soon, our coming
out to pick up your car will be the rule rather than the exception, part of
the basic service we offer to all customers. Communicating with customers
through all channels i.e. a multichannel approach is very important. At
Audi we are highly focused on the new types of media. We are currently
working on a number of ideas aimed particularly at the younger generation.
For example, with some of our partners you can already book repair shop
appointments online.
What are the biggest hurdles to service differentiation in your view?
There are several. First, if you want a customized customer approach
you need a holistic IT or CRM system. We're making good progress here.
Customer dialog is also very important in today's increasingly digital world.
45 |
Do you mean personal customer communication is on the way out?

No what I mean is that the nature of personal customer communication
is changing, for example because of new media.
Finally, which other industries should the auto industry look to in order to
learn about service differentiation in aftersales?
The aviation industry is definitely a leader here. Aviation was the first
industry that created incentive programs for its customers. Another model
is the hotel industry, where premium players have been very successful by
treating customers in a personalized fashion, providing them with beyondthe-ordinary levels of service and using a wide range of "appeasements"
where necessary.
Walter Briem is Head of Service Germany at Audi. Audi

is part of the Volkswagen Group and one of the three big
producers of premium vehicles in Germany, alongside
Daimler and the BMW Group. In 2012 Audi sold 1.63
million vehicles and recorded earnings of EUR 48.8 billion
(company's own figures).
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Study
5. Sustainable strategies for aftersales players

There are many different types of offers by the various repair shop formats
at the customer interface: VIP or budget offers, key drop-off or active
involvement, fast-lane or airport service, pick-up and collection or receiving
stations in city centers, all-inclusive service contracts or remanufactured
parts. Going forward, aftersales players must cover all of these options in a
better way. They have to put together meaningful combinations of service
products out of the myriad options available in order to best tap the market
potential and satisfy their customers over the long term.
At some locations, "service factories" will ensure that vehicles are processed
efficiently, cost-effectively and error-free. Mobile formats from other sectors
will also play a larger role. The data required for customized solutions is
continuously improving. In addition to vehicle data, aftersales players have
access to an increasing wealth of personal information. More and more
customers are willing to reveal information about themselves if this ensures
them individual service.
In other areas, this phenomenon is nothing new. Amazon, for instance, has
shopping suggestions for registered users based on their order history. In a
similar way, repair shops could put together individual offers. Services such
as reminders of the next scheduled service appointment or mileage-based
maintenance suggestions should become standard.
The general findings that we have presented in our study thus far form a
valuable basis for addressing customers individually. Yet their full benefit can
be realized only if market players build upon them and develop a tailored
approach. First, they need to carefully analyze their own formats, and then
their own company.
5.1 Leverage the strengths of the format
Authorized repair shops/OEMs
Manufacturers and their authorized repair shops have thus far pursued a
systematic approach for sustainably tailoring their services. Most have only
got as far as the pilot project stage. In practice, many quickly come up
against barriers in their processes or IT systems.
47 |
The biggest obstacle is a lack of support or top-down direction from the

OEM. Competitive pressure from other providers plus the customer's
experience in other industries also presents problems. Going forward,
authorized repair shops will have to position themselves more strongly
as "best in class" and "service champions" with specialized skills.
The special structure of OEMs and their authorized repair shops offers
benefits that often go untapped. The manufacturers, for example, can
develop standardized processes where they can implement their brands
throughout the entire repair shop network. However, in doing so, they
must ensure that their repair shops don't perceive this as a further
administrative burden, but rather as a competitive advantage.
Repair shops generally lack the staff necessary for developing a
differentiated service concept and will benefit from a strong OEM. This
includes appropriate systems, relevant training and above all constant
support. The OEMs, for instance, can provide standardized marketing
material, develop appropriate data-supported pricing policies or host
customer events in the shops. They can also conduct analyses and brandspecific customer segmentation so that the repair shops can focus on their
core competencies. The resulting USP offered by the dealer must be reflected
not only in the bonus but also in the dealer's local market penetration.
Independent repair shops and repair shop chains
Naturally, the brand-specific segmentation suitable for OEMs doesn't work
for independent repair shops and repair shop chains. They have to develop
and exploit competitive advantages in a different way.
The proven recipe of offering the best value for money can be further
refined into a type of "service discounter". In addition, independent repair
shops and repair shop chains should market their multi-brand competence
to commercial key accounts as a USP. These customers often manage fleets
that include a wide range of brands. If customers wanted to use OEM shops
for their various brands, they would have to manage a large number of
providers. In contrast, a single brand-independent chain can service all
their vehicles.
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Furthermore, independent repair shops can entice key accounts by offering

attractive quantity discounts that would not even be possible if the fleet
had to draw upon the services of multiple OEM-authorized repair shops.
Segmenting customers in detail and addressing them in a targeted way
requires certain processes that are often mapped in systems. Such systems
include the Dealer Management System (DMS) and those at the interface
between the retailer and the wholesale organization, namely CRM and
marketing systems.
5.2 Develop a company-specific approach
The last and most important step is a customized approach tailored for the
specific company. The segments that we investigated and detailed in Chapter
4 cover the entire customer base of all aftersales players in Germany. They
provide valuable insights into the market as a whole and provide a solid
foundation for going forward. However, our study unleashes its full potential
only if a market player analyzes its own specific customer base. Only those
players that know which segments they operate in, and to what degree,
can effectively customize their services and put together precisely targeted
offers.
49 |
6. Conclusion
The aftersales business is a lucrative market, and one that is currently in
flux. Consolidation pressure, new market players and mobility concepts
combined with rising customer expectations are making life tough for
providers. Nevertheless, there are opportunities for success.
Our analysis of the provider end has shown that the battle for customers
is heating up. The competition is fierce and unprofitable repair shops are
disappearing, while the remaining players are improving their positions
through mergers and acquisitions. Everyone is scrambling for market share,
launching myriad pilot projects and new initiatives aimed at retaining
existing customers and acquiring new ones.
Our look at the demand side has revealed that an individualized customer
approach can help providers in this process. The German aftersales market
can be split into six customer segments, all very different from one another.
At one end, we have the High-demanding Enthusiasts, who frequently own
multiple new vehicles, drive premium brands and for whom money is no
object. At the other end are the Cost-oriented Minimalists, who own a car
only out of necessity. They have no great interest in their vehicles, and are
neither able nor willing to spend a lot of cash on them.
In today's day-to-day aftersales business, both groups are treated essentially
the same. Most providers serve all customer groups with a uniform range of
products and services. Sooner or later, that won't be enough. Customers will
expect providers to address their preferences, their wishes and their values.
So far, no one has launched a suitably refined USP. First movers that offer an
individual customer experience can gain a valuable competitive edge in the
war for the customer interface.
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Study
Want an edge over your competitors?

Then act now. Customize your aftersales using our tools and expertise.
This study is the first step on the road to an effective aftersales strategy. We have developed
additional modules that help you analyze your customers and implement the findings. Our
three-stage process can help you develop a customized offering, specially tailored to your
specific customer structure.
1. Customize the questionnaire

In the first stage, we sort your existing materials on customer needs and target groups and
talk to your internal experts. Next, we go through the survey questionnaire with you in detail,
adjusting it for your company and brand. This can cover particular components of your
aftersales services, specific vehicle models and customers' use of services, for example.
The result is a customized questionnaire. The advantages of using this over a standard
questionnaire are threefold. First, including existing information about your customers
increases the level of individualization. Second, adding other aspects means that we can
better address the specific issues affecting your company. And third, by ensuring comparability
and compatibility with existing customer insights when adjusting the questionnaire, we can
significantly increase the usefulness of the results.
51 |
2. Run the survey and adjust the segmentation accordingly

The second stage is to actually carry out the survey. We set up the survey online and send
it out to a sample of around 1,000 of your customers (exact size depends on the number
of brands and models).
We then use the results of the survey to adjust our standard segmentation of customers
in line with our insights into your company and its brands. This produces an individualized,
comprehensive analysis of your customer segments.
3. Develop service and product packages

In the final stage, we use the results of the survey to develop service and product packages
tailored precisely to your situation. First, we analyze your core target group for individual
brands or models. Using customers' answers on aftersales services, we determine what
services they want and bundle them into service and product packages. We then work
closely with you to check the results and make adjustments where necessary.
With the help of solid data on the needs of your core target groups and with specially
developed service and product packages, you are now in a position to strengthen and
improve your market position through a truly customized client approach.
52 |
Study
7. Authors

Philipp Grosse Kleimann
Partner

Roland Berger Strategy Consultants, Munich

Phone: +49 89 9230-8718

E-mail: philipp.grossekleimann@rolandberger.com

Dorit Posdorf
Principal

Roland Berger Strategy Consultants, Manama

Phone: +973 17 5679-76

E-mail: dorit.posdorf@rolandberger.com

Alexander Brenner
Principal

Roland Berger Strategy Consultants, Hamburg

Phone: +49 40 37631-4318

E-mail: alexander.brenner@rolandberger.com
Swen Beyer
Senior Consultant
Phone: +49 89 9230-8979
E-mail: swen.beyer@rolandberger.com
Dr. Ralf Kiene

Senior Consultant
Roland Berger Strategy Consultants, Hamburg
Phone: +49 40 37631-4488
E-mail: ralf.kiene@rolandberger.com

Torsten Hunstock
Consultant


Phone: +49 89 9230-8030

E-mail: torsten.hunstock@rolandberger.com

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09/2013, all rights reserved
www.rolandberger.com
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Roland Berger Customizing Aftersales 20131120

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Philipp Grosse Kleimann, Dorit Posdorf, Alexander Brenner,

Swen Beyer, Dr. Ralf Kiene, Torsten Hunstock

Roland Berger Strategy Consultants

Philipp Grosse Kleimann, Dorit Posdorf, Alexander Brenner,

2. Aftersales: Massive potential going untapped

Sustainable strategies for aftersales players

Customizing aftersales Delivering the service that customers really want

Philipp Grosse Kleimann

The study in seven core statements

Customizing aftersales Delivering the service that customers really want

1. Introduction: USPs are critical for survival

Service differentiation in other industries

Telecommunications industry: Service adds an emotional charge to massproduced items

Airlines: Individual service even before take-off

Online retailers look to cross-selling

Customizing aftersales Delivering the service that customers really want

2. Aftersales: Massive potential going untapped

Steady growth: Despite weak sales volumes, the number of cars on

CAGR of cars on the road: +1.0%

Source: Datamonitor; IHS; Roland Berger

Customizing aftersales Delivering the service that customers really want

2.2.1 Stronger consolidation

Share of independent repair shops

Independent repair shops

Current consolidation cases

In mid-2012, automotive supplier Bosch acquired a manufacturer of diesel

Customizing aftersales Delivering the service that customers really want

2.2.2 New players and business models

(Authorized) dealers and

Source: Roland Berger

Successful repair shop portals in Germany

Werkstatt.AutoScout24 brokers service orders and clearly lists repair shop

Customizing aftersales Delivering the service that customers really want

2.2.3 New mobility concepts

From OEMs to independent newcomers: A variety of providers

Customizing aftersales Delivering the service that customers really want

... and are finding more and more users

Companies have to recognize that their customers will project a positive

The world of new vehicles is becoming more diverse ...

... but not aftersales

Source: Roland Berger

It can be a long road from manufacturer to customer:

Original Equipment Supplier (OES)

Insurance, leasing and carsharing companies (selection)

Source: Roland Berger

Customizing aftersales Delivering the service that customers really want

Market share in the maintenance and repairs market. OEMs have

Repair shop chains take OEM launch initiatives

Development of Phase III still unclear: Those that

Authorized repair shop

2.4 Conclusion: Stand out to survive

Segmentation as ideal solution for individual customer approaches

> Share of private customer business

> Precisely identifying customers makes it

> In sales, dealers target customers

> Micromarketing is the ideal

Customizing aftersales Delivering the service that customers really want

Instead, we recommend a similarly effective alternative: a clearly defined

Our market observations at a glance:

> T he aftersales business is highly profitable and is growing further despite

Customizing aftersales Delivering the service that customers really want

The RB Profiler describes consumers' 18 basic values and desires

Thrills & Fun

Source: Roland Berger

2. Aftersales: Massive potential going untapped

> T he aftersales business is highly profitable and is growing further despite