As published in Toledo Business Journal - October 1, 2016
Yark BMW changing the customer experience
New facility being constructed in Toledo
A strategic initiative is driving a major change at auto manufacturer BMW. The company is determined to significantly change the customer experience involving its products and at the same time build important relationships with a targeted group of prospective premium automobile buyers.
Toledo’s Yark BMW is initiating a critical transformation as part of this strategic initiative. The business is replacing its existing operations with a brand new, ground-up facility on West Central Avenue in Sylvania Township, which the company plans to open in March. The new dealership facility will incorporate the components of BMW’s strategic initiative to significantly enhance the customer experience and build relationships with prospective buyers in the market.
Customer experience
Ian Robertson, member of the board of management at BMW AG and the head of sales and marketing for the corporation explains the strategic initiative on which the company has embarked.
“The world of retail has changed significantly – customer behavior, needs, and expectations have changed, as well as communication technology. As part of our corporate strategy … we critically reviewed our processes and customer feedback. We will now build upon our strengths and implement a comprehensive program named Future Retail. This will entail a whole range of initiatives and tools designed to enhance the customer experience and to set new standards for retail in the automotive industry and beyond.
“With Future Retail, the BMW Group has three objectives – first, to increase the number of possible contact points with customers and prospects, second, to increase the services and benefits offered in its retail channels, and third, to enhance the retail experience at all touch points.
“Therefore, customers can expect to see a number of new BMW and MINI retail formats, as well as several initiatives in the near future. These include, among others, a new online presence and social media activities, as well as a more appealing showroom appearance.
“BMW is also in the process of introducing an additional role to the dealers, namely a Product Genius. The objective here is to better support customers with in-depth product knowledge as well as enabling the customer to better utilize and configure products in accordance with their particular needs. As the Product Genius needs to be mobile, he or she will be equipped with a state-of-the-art information management System on a tablet device, allowing, for example, product configuration and in-depth explanation of features supported by visuals and films.”
The Product Genius is not a commissioned sales professional. The position is an expert in the many different products offered by BMW, plays a support role to sales personnel, and is viewed as critical to building a relationship of trust with prospective customers. Customers will be able to access Product Genius guidance both online in digital format and at selected dealerships.
In an interview with Automotive News Europe earlier in the year, Robertson further explained the new Product Genius role. “We have rebalanced the mix of salespeople and Product Geniuses and now have over 3,000 Product Geniuses operating around the world. Their role is to advise and explain, while salespeople deliver the final deal.”
In this interview, Robertson also discussed key changes in the sales process. “Given the customers’ desire to buy from stock and drive away, US dealers tend to stock 300 to 400 cars in inventory. Currently it can take several hours from decision to delivery, but we want to cut that down to 45 minutes, which means really reducing all the non-value-added processes within that: financing, pre-delivery inspection – all that has to get a lot leaner. We need to be asking whether we really need nine signatures on a financial services document any more – quite possibly not.”
Yark transformation
Yark’s new, 34,000 square foot facility will have larger showroom capacity, a larger capacity for parking on-site, and a much larger service facility. The building is being designed by Coger/Shambarger Architects, Inc., and Rudolph Libbe Inc. is the general contractor, performing site work, concrete, masonry, and carpentry. GEM Inc. is performing HVAC and plumbing.
“We’ve outgrown our existing facility due to increasing sales volume,” said general manager D.J. Yark. “On top of that, BMW has a new image program called Future Retail, and this store fits that model. It’s a lot more open, welcoming environment that’s comfortable for customers and for our team.”
Yark further shared that the new showroom would incorporate BMW’s design and significant use of digital technology. BMW uses videos to enable the customer to see different interior and exterior product features. A customer is able to select and change features, interior and exterior colors, and more to customize a car to his or her preferences. Customers will be able to “virtually” build a car and make changes and then view the result with 3D clarity on a large screen in the showroom, according to information shared by BMW.
“We will use interactive digital technology to assist and support customers coming into the new showroom as they make decisions about the purchase,” Yark stated.
Yark is also embracing the BMW Genius approach of providing product experts in the showroom who are not on commission and whose role is to assist and enhance the customer’s experience. “We already have the BMW Genius resource in our showroom to support customers and have not waited for the new showroom to be constructed,” Yark concluded.
