Mercedes-Benz changing sales approach
Mercedes-Benz Cars is moving to an agency sales model in New Zealand from January 2022 following successful trials of the approach in South Africa and Sweden.
Bosses at the German marque are keen to digitalise more of the sales and aftersales experience and are rolling out the model in a number of markets worldwide.
“In the interest of best customer experience, Mercedes-Benz will adopt an agency sales model in several markets around the world for new vehicle sales,” says a Mercedes-Benz NZ spokesman.
“After careful consideration, this will include Mercedes-Benz New Zealand from January 2022.
“Mercedes-Benz New Zealand is working closely with the Mercedes-Benz retail network to develop a plan that ensures we continue to deliver the best customer experience and address customers’ present and future expectations.”
The agency sales model was introduced in Sweden in 2019 and also operates in South Africa. It is set to be introduced to Austria in 2021 before New Zealand and Australia make a similar switch the following year.
Britta Seeger, Mercedes-Benz AG board member for marketing and sales, says moving from a franchise model to an agency model better suits the online dealership experience.
Mercedes-Benz expects 25 per cent of its global passenger car sales to be made online by 2025, up from the current rate of less than five per cent.
In an agency model the distributor retains ownership of the vehicle stock, which reduces the financial risks for dealerships. The distributor also sets the retail price of the vehicles and pays the dealership a set fee for each sold vehicle.
The programme requires Mercedes-Benz to renegotiate its dealer contracts to allow it to control the sales process.
Seeger says the aim was to increase the customer experience and make the buying and servicing process easier and quicker.
She adds that dealers will still play a vital role, with interaction between dealers and customers expected in at least 80 per cent of sales and service cases.
“I cannot imagine going forward with this agency model experience without having any contact with the dealers,” she explains. “The dealer is still the ambassador to the brand. The agency model means no change to the customer except there is a no-haggle price.
“Dealers have a new role and if you compare with five years ago, the customer was visiting the dealer up to eight times before buying a car.
“Today, around the globe, because of digital, the visits are one or two times, if at all. Obviously, we discuss what this means going forward and then we are prepared for the new way of customers buying a car.”
