Following an 18-month research and investment project, BMW Group Financial Services has unveiled a new business model for its network of 147 BMW and 143 Mini retailers across the UK.
The new customer-centric approach will see changes made to the way in which retailers are incentivised and rewarded, as well as updating the terms for the brand’s finance products.
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Spencer Halil, general manager – group brands for the finance unit, said: “The world of retail is constantly evolving, with customers having better access to information, be it online or through peer channels, before they even enter a [dealer].
As a result, it is important that we tailor our business to suit our customers’ needs so that our retailer network can continue to deliver a fair and transparent service while focusing on long-term loyalty and retention.
“This is why we’re implementing a common finance package across our whole network, bringing add-on fees down to virtually nothing and introducing a performance bonus for retailers based on delivering excellent customer outcomes.
While some retailers have already moved onto the new system, the full network transition will take place on 1 January, 2015. From this point, customers will benefit from a capped rate of 10.9% and virtually no fees.
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By GlobalDataThe retailer network will enjoy a common package which creates a level playing field, a discounting structure rather than up-selling, removal of fees and the introduction of a performance bonus based on delivering the best customer results.
Halil said: “The primary objective of this transition is to meet the changing demands and expectations of our customers. We are putting them at the heart of everything we do by providing simple, transparent, fair products that meet their needs.
“We’ve done this because it is the right business decision, but it can’t go unnoticed that this approach is also in line with the aims of the Financial Conduct Authority as well. While we recognise the dealer network may experience some short-term adjustments through the transition, we fully believe that this approach will deliver genuine business growth through 2015 and beyond.”
The unit offers a range of options for financing private and corporate vehicle purchases and also sells insurance products.
