Jenny Röhrl; Niklas Stockborg , pp. 40. MAM/Sektionen för Management, 2007.
Title: What customer loyalty activities are Volkswagen and Saab using in the Swedish car industry?
Authors: Jenny Röhrl & Niklas Stockborg
Supervisor: Thomas A. Michel
Department: School of Management, Blekinge Institute of Technology
Course: Bachelor’s thesis in Business Administration, 15 ECTS
Purpose: The purpose with this study is to examine the activities that Volkswagen and Saab use to create customer loyalty in the Swedish car industry. We will also analyze possible differences between the companies and focus on the financial and emotional benefits used in the companies’ loyalty programs. In addition to this, we will also describe their use of CRM-systems and with the help of exiting theory, offer suggestions of how Volkswagen and Saab can improve their activities they use to create customer loyalty.
Method: To attain the purpose with our study we have chosen to use a qualitative method. We have carried out interviews with company representatives of Volkswagen and Saab. These respondents have information that is relevant for this study.
Result: Both Volkswagen and Saab offer their customers financial benefits through their customer clubs. Both companies offer very similar benefits and the main difference is the design of it, Saab uses a beneficial bonus system in which the customer earns points that equals into discounts while Volkswagen offer their customer discounts on specific products and services.
Both companies also offer their customers similar emotional benefits such as test drives and invitations to different events. There is however differences between the companies regarding their use of loyalty programs. Volkswagen does not use a specific loyalty program that is tailored towards their new customers while Saab does. Saab customizes their communication towards their customers according to where they are in the product life cycle. Saab`s CRM-system is more advanced and complex with the use of four base modules; selling tools, lead tools, contract tools and campaign tools. Volkswagens CRM-system only stores information of basic character such as ownership information even though the system is capable of storing data such as customers’ interest.