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Creating a Loyalty Program in Automotive Aftersales on the Example of Parts Trading at Mercedes-Benz AG

  • Building and further strengthening customer relationships is of vital significance for organizations per diem, as maintaining an existing customer base is proven to be less costly than acquiring new customers. Therefore, customer loyalty programs serve as the ideal foundation to enhance customer-centric businesses in the long-run and reward continuous engaging customer behavior. The B2B automotive aftermarket industry with respect to loyalty programs is a general under-researched area. Thus, this study aims to close the gap. The objective of this research study was to create a suitable loyalty program for the automotive aftermarket on the example of Parts Trading at Mercedes-Benz AG. In order to achieve that, literature concerning individual factors that compose a loyalty program were reviewed as well as twelve qualitative expert interviews in the German market conducted. The experts provide specific, deep-rooted practical knowledge in the automotive aftersales field and assist in gathering valuable information in terms of desired aspects, challenges and experiences regarding loyalty programs. The results were assigned to six categories which were further used to provide recommended action for a loyalty program in Parts Trading and the general automotive aftermarket. The results of this study display that an automotive aftermarket loyalty program is associated with a great deal of effort, as various challenges have to be overcome. These include the issue of data management, specialized rewards that provide high-perceived value that need to be offered in an easy-to-understand scheme, the signif-icant topic of support and accessibility from the company that needs to be ensured before implementing a loyalty program and lastly, the subject of profitability for the organization. Consequently, it is suggested to derive further international studies where quantitative research with a greater sample size is conducted to review whether the results are in alignment along with a long-term study in which the impact on customer buying behavior and profitability of the program with the same experts is evaluated. However, these findings serve as the ideal starting point for Parts Trading with a lot of possibilities to further develop the loyalty program.

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Author:Büsra Toprak
Advisor:Michael Lederer
Document Type:Bachelor Thesis
Year of Completion:2023
Granting Institution:Hochschule Furtwangen
Release Date:2023/03/02
Tag:Automotive Aftersales; Customer Loyalty Program; Customer Retention
Page Number:125
Degree Program:IBW - Internationale Betriebswirtschaft
Functional area:Marketing
Licence (German):License LogoUrheberrechtlich geschützt