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Bruce Newton4 May 2015
NEWS

Ford's Aussie retail program a global pioneer

Blue Oval's local ‘customer experience’ strategy unique and being watched globally

New Ford Australia president Graeme Whickman has revealed the crucial redevelopment of the Blue Oval’s local dealer network is being closely watched throughout the corporation globally because of its pioneering strategy.

And he has confirmed Ford has a roll-out plan for ongoing programs related to ‘customer experience’, just as it has a cadence for new model launches.

“It’s like a cycle plan for us and the dealers to take consumer experience more and more into a state that I would call high-end, as opposed to just automotive,” Whickman told motoring.com.au.

Ford has rolled out a series of initiatives for its dealerships in recent months as it strives to build its private buyer base leading up to the closure of its local manufacturing facilities and the death of Falcon no later than October 2016.

Those initiatives have included including a free loan car at every scheduled service.

While Ford insists they are having a positive impact, any improvement is yet to be reflected in its VFACTS registration figures, which are languishing at 1960s levels.

“The eyes of Ford are on us,” Whickman said. “It’s kind of cool but also a bit of pressure as to how we are progressing.

“There has been a lot of professional and intellectual curiosity about how we are going,” he added.

“In Asia Pacific we are the key pilot market. We are getting a lot of help and a lot of interest.”

Whickman revealed the Australian dealer development program was unique in the Ford world – and rare among car manufacturers -- because it combines three strands: culture, process and technology. It has its origins in the USA and Canada, where he previously worked, but has been further developed for Australia.

Lexus, Audi, computer giant Apple and the National Australia Bank were among the companies benchmarked by Ford for this program. Mazda – which consistently leads the publicly available JD Power customer satisfaction index in Australia -- was not a benchmark.

“We are kind of like a global pioneer,” Whickman, 46, said. “We are pulling together the best of breed on some cultural stuff, the best of breed on some process stuff and the best of breed on some technology and putting that together in a way that’s not been done anywhere else.

“If you put those together in the right way you come out with a much better outcome for consumers. Some brands and markets have tried hard on process, some have tried hard on culture, some on technology – but not many.

“I think that’s where you start to unlock it. We work hand in hand with our regional team as well, so they will come down and help because we are literally pioneering. This is a new space.”

While loathe to go into too much detail for competitive reasons, Whickman did shed some light on each aspect of the Ford program.

“We have a cultural program going on, so we have a business coach for our management in each of our dealerships that are participating with us. That comes at a cost but it is a very good investment because it helps with their management ability and it opens their eyes -- as it does ours.

“Then there is some process, which is what do consumers expect when they walk into a dealership either to purchased or service a car. There is a lot of work there.

“And there is finally a technology overlay. So how can technology enable the cultural and procedural change in a way that doesn’t get in the way? Nobody wants to walk into a dealership and be met by an unmanned kiosk, an iPad at which they work out how to get their car serviced and they never see a person.

“What they want is efficiency within the technology — a bit of surprise and delight.”

Whickman said name recognition software that welcomed customers to dealerships and the ability to book vehicles in for service online were two examples of technology being used appropriately.

He said customer experience development was crucial in Australia because of the intense competition in the new vehicle market and the low loyalty rates that flowed from that.

“This is more what I consider a magpie market, so bright and shiny things are important to people. So you’ve got to come in with a rock-solid surprise and delight, and make sure you provide a love the socks off experience so that people don’t actually consider moving away from you.

“If someone is servicing with us their propensity to be loyal to us is 2.5 times more than someone who isn’t. That’s the statistic.

“I have a point of view that if you want to improve your brand you start from the back-end of the business and it comes through for you. At the same time as a manufacturer you have to create demand for your retailer and that is also part of the bargain.”

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