CRM of Mercedes-Benz Australia

This report discusses the customer relationship management (CRM) strategies and practices of Mercedes-Benz Australia. It provides an overview of the company and its background, followed by a SWOT analysis of their CRM approach. The report also explores how Mercedes-Benz builds relationships with customers through incentives, database management, personalized communication, and data analytics. The CRM model of Mercedes-Benz Australia is discussed, along with the scope and limitations of the report. Overall, this report provides insights into the CRM efforts of Mercedes-Benz Australia and their impact on customer satisfaction and loyalty.

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5/14/2019

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Contents
Introduction of the Company.....................................................................................................2
Background of the Mercedes Benz Australia.............................................................................2
Swot analysis of customer relationship management of Mercedes Benz..................................3
Strengths:................................................................................................................................3
Weakness................................................................................................................................4
Opportunities:.........................................................................................................................4
Threats:...................................................................................................................................5
Customer Relationship Management application – Mercedes Benz Australia..........................5
Mercedes Benz Australia builds relationship with the customers in the following ways..........6
1. Incentives trips and gifts.................................................................................................7
2. Mercedes Benz Australia builds a database:...................................................................7
3. Saves all the lost details..................................................................................................7
4. Making it personal...........................................................................................................7
5. Using the data analytics to understand the customers.....................................................8
Customer relationship management Model of Mercedes Benz Australia:.............................8
Scope of the report.....................................................................................................................9
Limitations of the report.............................................................................................................9
Conclusion................................................................................................................................10
REFERENCES.........................................................................................................................11

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Introduction of the Company
Mercedes- Benz Australia is a germen automobile manufacturer; the brand is a manufacturer
of luxury automobiles, coaches, buses, cars and trucks. It has its headquarters in Stuttgart,
Germany. The company was first heard in 1926 under the name of Daimler- Benz. It is
ranked 12th on the best global brands in the automobile industry. Mercedes Benz is a germen
company which was founded in 1871 and initially it had only three people Gottlieb Daimler,
Wilhelm May Bach and Karl Benz (Takei, Sugimoto and Kwon, Toyota Motor Corp,
2015). This company had strong competitors in the market but the company was still leading
the automobile industry in the world. The growth in sales increased over the years. In this
report customer relationship management is discussed, customer relationship management is
the way brands try to build and maintain relationship with the customers. Mercedes’s Benz
Australia uses numerous methods to build connection with the consumers although it faces a
lot of challenges as well but to overcome it, it has built various strategies, and this essay
discusses all the customer relationship management report of Mercedes Benz Australia and
the strengths, weakness, opportunities and threats analysis of customer relationship
management of Mercedes Benz Australia are discussed. Mercedes Benz should focus on
some of the factors in order to increase the customer relationship management.
Background of the Mercedes Benz Australia
The automobile industry includes a wide range of companies and organizations that are
convoluted in the manufacturing, development, selling, marketing and designing of the motor
vehicles and it is one of the world’s largest economic industry by revenue. The current brand
value of Mercedes Benz is around 27,445 million dollars. This company is ranked top when it
comes to customer satisfaction and loyalty (Haugh, Mourougane, and Chatal, 2010).
Mercedes respond to the market more quickly than its competitors. This brand is majorly
used by the consumers who live in the metro cities, the brand is placed in a manner that it
creates a very solid connection with the customers and it also has a very deep level of brand
engagement. Daimler sells the vehicle and the services to all the countries in the world; the
brand has production facilities in Asia, South America, Africa and Europe. (Ramchandani
and Ghias, Novitaz Inc, 2012) .

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Swot analysis of customer relationship management of Mercedes Benz
Strengths:
Customer relationship management tool have given a lot of benefits to Mercedes Benz
Australia, the first and foremost advantage is the financial advantage. Different customer
product offerings have helped Mercedes Benz Australia to attract a lot of customer segments
in the marketing and sales segments ad it has also helped the company to differentiate and
diversify its revenue system (Pai and Tu, 2011). Apart from this customer relationship
management tool has also given the company first mover advantage in the competitive
market place. This tool helps in finding and focusing on more profitable customers, because
of these tools the company is able to store the details of the customers and contact then for
the special deals which helps the company to make future relations and future profits.
This tool also helps in increasing the sales efficiency of Mercedes Benz, having a good
customer relationship management tool benefits the company to identify the needs and
demands of the customers which keeps the customer loyal to the brand, apart from this since
the customers get more connected to the company the customers get more dependent on the
company and then they do not leave the company easily. Lastly the customer relation
management tool helps Mercedes to build knowledge about the customers and the buyers; by
storing and gathering the data and then using the intelligence in order to make the
information this tool helps Mercedes to improve the information about the clients.
Weakness
Customer relationship programs have a lot of weakness as well; the first weakness is
communication delivery inconsistency a lot of Mercedes has complained a lot of times t that
the customer support that they receive from the company is inconsistent and that the service
is not delivered properly. Apart from this the other weakness is the in adequate enquiry
system, because of having a bad customer support, and the customers had to go to the dealers
with their complains.
Another weakness is the isolated data base, every dealership has their own database to
operate the information in the database that can be outdated and incorrect, inaccurate and also
can also miss the important information. The last weakness of customer relationship
management of Mercedes is the sales assistant attitude, various salesperson did not focus and

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rise that it was Important to record the information of the customers or to contact the
customers.
Opportunities:
Mercedes Benz is able to attract a lot of opportunities from side to side the assistance of
customer relationship management tool. The first management tool is customer satisfaction.
customer relationship management can benefit in knowing the wants and demands of the
customers which benefits the company to offer the products accordingly and also allows the
company to know the future needs of the customer, customer relationship management
helps Mercedes to rise the sales base as the existing customers helps in gaining the profits and
thus Mercedes should offer more to them this will help the company to increase the others
services and the encouragements.
The customer relationship management tools helps in making the relationship with the
customers better and also in improving the customer interactions. By knowing the needs of
the customers and storing their information Mercedes Benz has an opportunity to build string
relationship with the customers and it also helps the staffs and the customers to build a good
bond which helps them to interact to interact better (Verhoef, Reinartz and Krafft, 2010)
Threats:
Mercedes Benz has a lot of threats linked with its customer relationship management, due the
technology of customer relation management tool, there is constant decrease in the face to
face communication and people nowadays interact less over meeting and more over text and
social media platforms. Apart from this Customer Relation Management increases the
customer expectations, Mercedes Benz provide a lot of gifts and promotions to the customers
which increase their expectations and this thing might affect the loyalty of customers and
Mercedes might end up losing customers (Zeynep Ata, and Toker, 2012).
Customer Relationship Management application – Mercedes Benz
Australia
Customer relationship management application is a way of managing the interactions of the
companies with future and the current customers. Customer Relationship Management also
includes using the technology to mechanise, organize and synchronize the marketing, sales

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and customer service which also helps in building the relationships with the customers apart
from this it also helps in reaching the demands and needs of the customers.
Customer relationship management is one of the most important ways for any firm in order to
know the long term profit made through the long-term relationships the customers(Atkinson,
2013). Automobile industries are the industries that face a lot of unique challenges and in this
modern economy the challenges of the automobile industries are increasing on daily basis,
there is a strong struggle between the used and the new car market. The Costumers have a lot
of new and incredible amount of information available to them through the use of the
internet, social media, appraisal system and many more and constructing relationship wants
various additional efforts than before (Khodakarami and Chan, 2014).
It is the most strongest and effective way to approach and maintain relationship with the
customers. relationship are important for business as well as for personal relations and the
type of relations helps in building the success of organizations.
The Mercedes-Benz Australia is one of the world’s greatest finest and important brands. Its
innovative designs, technical perfections and have made it one of the world’s greatest
trademark in world today (Ernst, Hoyer, Krafft and Krieger, 2011 ;Heller Baird and Parasnis,
2011).
.
Mercedes Benz Australia builds relationship with the customers in the
following ways:
1. Incentives trips and gifts
This is one of the finest ways to attract customers and to get customer loyalty in order
to expand the considerate of the customers Mercedes Benz Australia has started with
this customer loyalty program that includes trips, but a lot of things are monitored
closely before these programs are started (Dias, Hynninen, Ala-Nissila, Foster and
Karttunen, 2011).
2. Mercedes Benz Australia builds a database:
that helps in storing the details of the customers and also the relations they hold with
the company this helps the company to maintain good relations with the customers as
they are able to contact the customers frequently whenever any new offers are

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launched by the company, this also helps the company to know the needs of the
customers and the company can also analyse the past purchases of a person and can
then summarize all the conversations. Customer relationship management tool help in
staying in touch with the customers no matter how long ago Mercedes must have sold
them a car they are still able to track down a customer by the use of customer
relationship management tool (Kumar, 2010).
3. Saves all the lost details
Mercedes Benz uses the customer relationship management tool to provide the car
sales person a chance to stay connected and engaged with the customers for future
deals. Various sales deals are forgotten because of this reason but this tool helps
Mercedes Benz Australia to stay connected to the people and track the right people for
the right deals (Coltman,, Devinney, and Midgley, 2011).
4. Making it personal
Mercedes Benz Australia likes to make it personal for its customers, by making use of
the customer relationship management tools (Liu, Guo, and Lee, 2011). Mercedes
Benz Australia sends personalized emails to the target audience or customers in order
to stay up to time on their birthday as well as holidays and etc. Mercedes also send a
lot of personalized reminders to the customers in order to make sure that their
customers are not missing on any email or any call.
5. Using the data analytics to understand the customers
Mercedes uses a lot of transformed ways in order to interact with the customers, when
customers buy cars or get their work done on the car they leave their details with the
company, which are then used by Mercedes’s Benz Australia for the marketing
campaigns, Mercedes use these information to send special discount, offers on
occasions and birthdays this helps the brand to keep the customers loyal to the brand
and to reach the new customers (Taylor, Roberts, Oram, Gupta, Itani, Baroudi, and
Smith SugarCRM Inc, 2015).
Customer relationship management Model of Mercedes Benz Australia:
1. Project management team is established:
Mercedes has a project management team that has managers from the operations and
marketing. The objective of this team is to identify the main customer relationship

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management process and determine all the process in the retail structure of the
company (Heller Baird and Parasnis, 2011).
2. Retail agreements:
Mercedes uses new approach of marketing structure in which the each Marketing
Agent is set out for every marketing group one for each. Each of the group is given
one concern of the database management, regional marketing and customer provision
(Lin, Chen. and Kuan-Shun Chiu, 2010)
3. Better relations with the salesperson and the customers
Instead of a salesperson owning a customer Mercedes focus on managing each
relationship very carefully and centrally with the help of customer relationship
management tool. Mercedes manages all the channels of communication in an
effective way so that the customers receive all the information through a proper
channel (Govindan, Kannan, and Noorul Haq, 2010).
4. Mercedes used cross selling and other selling opportunities in order to use the benefit
and the marketing agents described that the relations with the consumers were
deepened and extended (Rafique, 2011).
5. Mercedes beliefs in doing everything as per the needs of the customers which makes
it different from the other brands and the practice of customer relationship
management tools have encouraged the company to develop the customer experience
and make closer relationships with the customers; this helps the customers in demand
to stay loyal to the brand (Chu, 2011).
Scope of the report
 To learn the relationship level with the customers.
 To analyse customer relationship management effectiveness on purchaser approval.
 To learn the customer relationship management influence on customer retaining in
industry of vehicle
 To discover the numerous customer relationship management activities that can be
initiated or conducted by various companies.
Limitations of the report
 Mercedes Benz Australia needs to give importance to various other variables that can
increase the loyalty among the customer’s

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 The organization should collect more information in instruction to build good
connection with the consumers
 There is a tough competition among the automobile industry and it is significant to
study the future wants and demands of the customers in demand to build good
relationships with the customers.
Conclusion
From the above report it can be concluded that Mercedes has a good customer relation
management strategies, Mercedes Benz Australia uses numerous ways to achieve the
connection with the customers who are: incentives trips and gifts, Mercedes Benz Australia
builds a database, Saves all the lost details, Making it personal and using the data analytics to
understand the customers. All of these things help the company to attract more customers as
they are able to save the details of the customers in the database and then contact them for the
new deals. Apart from this the company also contact the customers on their birthdays and
special occasions as it helps in giving the customers a personal feeling and this way the
customers stay loyal to the brand. The customer relationship management tool has some
threats to the organization as well one of the major threat is that it has reduced the face to
face interactions with the brands and the customers and brand only connect through phone
calls, emails and social media apps. Mercedes Benz Australia manages its communication
channel in an effective way, it pays high focus on its communication with the customers and
that is what makes its customer relationship management different from other brands.

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Dias, C.L., Hynninen, T., Ala-Nissila, T., Foster, A.S. and Karttunen, M. (2011).
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