‘If you want, you can buy a new BMW or Mini digitally’

How does someone with an impressive resume in Fast Moving Consumer Goods end up in the automotive industry?

“In 2018 I made the switch from commonly used consumer goods to cars, because those two worlds are increasingly converging. You can see this in the similar marketing principles that are used in both branches and also in the distribution processes that are changing significantly. Digitization has of course been underway in the car industry for a while, but has received a serious boost due to the lockdown. Meanwhile, we can offer our customers a fully digitized purchasing experience in most markets, if they so desire.”

Based on your business card, you are responsible for the customers, brands and sales of the entire BMW Group. How do you combine that in one and the same function?

“Everything starts and ends with the customer. That is why that responsibility is at the very front of my job title. Whether it concerns BMW, Mini or Rolls-Royce, the principles used remain those of the BMW Group and are broadly uniform. The worldwide sale of our products is of course also part of this, because it is linked to marketing. But basically my job mainly relates to communication, in other words the way we treat our customers, communicate with them and present them both products and services.”

BMW Vision Circular at IAA Mobility 2021

Does the move of the IAA to BMW’s home city also fit in with this new approach?

“We have indeed worked hard for that and we are of course very happy with it. But just as important is that the IAA continues and continues to evolve. You notice that here in the classic fair section (where this interview took place; ed.) not so much as in the city, where the experience section of the IAA is located. So we literally attract the customer with public pavilions, which gives a completely different experience. You can discover our cars while driving between the two salon areas on the so-called Blue Lane. In the center, the iX and i4 will be in the spotlights together with our concept cars.”

So it seems as if the puzzle pieces of your work are starting to fall neatly into place.

“It goes without saying that we did not act overnight for this. The intention is really to be closer to the customer and to unburden them, which you also notice with the iX and i4. The online configuration tool for those cars has become much simpler and more intuitive, including home charging solutions that can be directly factored into the lease or sale price. These are seeds that we already planted in 2013 with the introduction of the i-range and from which we are now reaping the benefits. The entire ecosystem around our electrified cars has come of age, just as the electric i4 has found a place at the heart of our range. The reservations for our new EVs are running smoothly, especially for the iX.”

BMW i4

Is it true that you will also be approaching potential customers in a much more targeted way online?

“That’s right and it’s part of what we call the MarCom Engine. Our new marketing model forms the basis for a more personal approach that should immediately get the right message to the right person. So we no longer have to bombard internet customers with all kinds of different offers, but immediately with the one that suits them. That is why we have moved away from a multitude of marketing agencies in Europe and have opted for two toppers. One of them, the digital production house MediaMonks, is Dutch and helps us to play out the digital assets that the advertising agency Serviceplan develops for us. With that, we expect to maintain our top position in the premium segment in 2021 and beyond.”

Isn’t the wealthy older generation a bit left out with such a digital approach?

“Don’t underestimate the over-55s, because they are much more active online than you might think. Of course we will continue to work with our contract partners to approach everyone in an appropriate way, including those who are less active or even not active online. We are certainly not sidelining our dealers with this approach, quite the contrary. The digital aspect is just added. On the other hand, we have noticed that the lockdown has been a catalyst to get and keep everyone online, now that they have realized that it can all be done a lot easier and faster.”

Has all the foregoing translated into more online sales for the BMW brand?

“The answer to that question is yes, but with a nuance. The entire sales process, from orientation to effective signing of the order form, consists of several steps. We notice that most customers are first active online, but that at the final moment they still like to visit a showroom to see the car in real life and to speak with a person live. We also find that many customers use both channels and like to zap from one to the other, depending on the mood of the moment. But the fact is that the evolution is indeed towards online sales, just like in retail.”

Pieter Note

Will BMW also venture into far-reaching on-demand options, such as Mercedes-Benz does with the four-wheel steering on the EQS?

“With on-demand options, you have to distinguish between software extensions and pre-installed hardware components that can be activated. The EQS’ extended four-wheel steering falls under the latter and may not be the best way to start this story. Light, sound and security packages are software extensions, which are slowly becoming commonplace throughout the app and gaming industries. The threshold for such extras – whether or not temporarily in a certain season or for a holiday – is much lower. Although we certainly do not rule out more extensive forms of on-demand options on cars like the iX, albeit with a keen eye on the acceptance of such services.”

You word it very carefully, although others say it will become the new business model.

“It certainly will. We are also very ambitious in that area, as we will have 2.5 million cars on the road by the end of this year that support such on-demand options. By 2030, that branch should account for a turnover of 5 billion euros, by excluding such services at the time of sale, but also by opening them up afterwards. For now, we are especially pleased that we are making up for lost sales from 2020 and 2021 to maintain our top position in the premium segment. Now we just hope that the chip crisis does not mess up our plans too much, but we all have to get through that too.”