The Swedish brand hopes to improve its sales to 15,000 registered cars next year
The Volvo dealer network will end the year with a profitability of 2.5%, which is more than one percentage point above the industry average in Spain. A very positive fact that occurs in an environment of declining registrations in Spain. This good result
Jose Maria Galofre, CEO of Volvo Cars, is a result of the new policy introduced in the company four years ago. A work system based on data analysis that has resulted in the registration of 12,500 Volvo cars by 2022, representing a 1.5% share of the total Spanish market. Galofré’s forecast for next year is to significantly improve results, with sales expected to reach 15,000 cars.
The analysis of the data led Volvo Car Spain to embark on a process of centralizing management four years ago, putting the customer at the center of everything, not only in purchasing and financing, but also in after-sales service.
«We carried out an analysis to find out why customers no longer go to the official workshop after the sixth year. We assume that high satisfaction is synonymous with loyalty. What the customer wants is that the repair time is as short as possible. So we focused on reducing waiting times by changing the management of the appointment.
The next step was to change the perception of price. We created a national program where you would be rewarded based on loyalty, like the airlines do. We have set up a loyalty program that brings discounts and services, and that number is increasing over the years,” explains the CEO of Volvo Cars.
Galofré notes that during the research they noticed that the biggest discounts for customers were given to friends and those who protested the most, “so we set up a national-level Volvo loyalty program to unite them.” From there, they focused on reducing service times. This research resulted in the Volvo application in which the app itself anticipates the needs and informs the owner about the elements to check and which parts to change. From there, it is the customer who chooses which workshop in Spain to go to, what to do. From there, the application will immediately give you an appointment.
After solving the problem of after-sales service attention, the CEO of Volvo Cars points out that they have decided to take the next step in sales. They created a centralized sales system on the Volvo website where all requests come in and an appointment is assigned to be with the customer within an hour.
In a new twist, Galofré points out that they have already started managing stocks at a national level this month to avoid requests for models that may exist at one of the Spanish dealers. In the event that there were none in all of Spain, the design is applied for in Sweden. This means that delivery delays are up to 40 days, explains the manager of the Swedish brand in his annual meeting with the media. These measures have also had an impact on increasing customer loyalty, which has gone from 30% to 60%.
Of the 12,500 registered vehicles in 2022, 40% were for rent. “This formula – explains Galofré – ensures that the models are renewed every three years and we achieve a certain loyalty, because the rental renewal rate is 44% and the aim is to exceed 50%”. In Spain, the percentage of electric models sold is 3.66% and that of plug-in hybrid models is 6%. Some data indicates that in Volvo’s case it is an 18% share of pure electric and 32% plug-in hybrids, the Swedish car company’s manager said.
Source: La Verdad
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
