AutoNews comes up with an interesting report on how BMW intends to increase brand loyalty across US through a finance program. BMW will deploy at national level a program targeting current BMW retail loan customers who have equity in their vehicles, as customers for new BMWs.
The first step of BMW’s program is to identify to BMW dealers all current BMW retail loan customers whose cars have a market value higher that what is owed by the customer. The next step is to present those customers with offers to swap their old car with a new one, within the same monthly installment range, or one chosen by the dealer.
According to AutoNews who quotes Tim Sturm, BMW Group Financial Services General Manager of vehicle sale, BMW Financial retail owner loyalty is currently around 18%, and BMW intends to increase it to almost 36% until the end of 2012. A pilot program has been deployed at the beginning of the year, and apparently the 12 dealers involved in the pilot found the tool very useful, and managed to measure the results in terms of additional revenues gained because of it.
Here’s an example to show what the program means for the customer: an owner of a 2007 3 series with a monthly payment of $650 has swapped his car with a 2011 3 series equipped with a navigation system and satellite radio that his previous car didn’t have.
The customer is paying for the new car $632 a month on a 60-month contract.
The report indicates September 21 as a roll-out date for the new national program.[Source: AutoNews]