Welcome to the Fleet Service Centre.

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1 Your Fleet knows where it s going. Volkswagen Fleet Service. For internal use only. Nobody knows your Volkswagen better than we do.

2 Welcome to the Fleet Service Centre. Fleet Customers have long been a crucial target group in the international Motor Industry in terms of both sales and service. The fleet sector is a growing segment in the after sales market, and the proportion of fleet vehicles is constantly rising. The importance of customer retention is also growing as the market is becoming increasingly transparent. Customer satisfaction is the key to long-term success, especially in terms of support for Fleet Customers. Volkswagen has reacted to these market developments by developing a special after sales concept: the Volkswagen Fleet Service. This involves a comprehensive strategy for achieving market penetration and ensuring the competitiveness of Volkswagen Dealerships worldwide. This brochure is designed to introduce you to the Volkswagen Fleet Service and also provide you with all the information you will require to be a successful authorised Fleet Service Centre (FSC). 1. What is a Fleet Service Centre? Fleet Service Definitions Who are our Fleet Customers? FSC value proposition: benefits 9. to the Dealer and Customer FSC Building Blocks Supporting the Service Advisor through FSC FSC Practical Implementation through the SCP Track and measure 5. FSC Business Model in the South African Market 2 Volkswagen Fleet Service

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4 1. What is a Fleet Service Centre? The FSC is a platform for Volkswagen dealerships to intensify and professionalise their After Sales Fleet business. Uniform standards and criteria in all Fleet Service Centres ensure that Fleet Customers get the best quality of service. This programme is a concept that enables the Volkswagen Dealer Network and Volkswagen SA to optimise the Fleet Customers After Sales Value Proposition and Revenue Contribution by means of: A structured and professional approach to standardise business processes that provide uniform Fleet Customer and Dealer staff interaction. A transparent and documented approach to the Fleet Customer value propositions as offered by Volkswagen Service and the FSC Dealership/Group. An accurate measure of the Fleet Customers contribution to the Volkswagen Dealership and Volkswagen SA After Sales Business. Transparency pertaining to Fleet Customer specific levers that drive customer satisfaction. An essential success factor for the implementation of the FSC is the measurability of the contribution made by Fleet Business to After Sales. An efficient control of the Dealer and the Fleet Customers can only be realised, if the KPIs of the After Sales Fleet Business are identified and analysed. Conclusive KPIs, uniform understanding and guaranteed transparency constitute the basis for well-founded decisions. If you can t measure it, you can t manage it. 4 Volkswagen Fleet Service

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6 2. Fleet Service Definitions. FSC FLEET SERVICE CENTRE SCP SERVICE CORE PROCESS SLA SERVICE LEVEL AGREEMENT CIC CUSTOMER INTERACTION CENTRE PMC PRODUCT MANAGEMENT CAMPAIGNS VWSA VOLKSWAGEN SOUTH AFRICA VAP VOLKSWAGEN AUTOMOTION PLANS CI CORPORATE IDENTITY APS APPOINTMENT SCHEDULING SYSTEM 6 Volkswagen Fleet Service

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8 3. Who are our Fleet Customers? Fleet Customers are a special target group with special requirements. Experience has shown that Fleet Customers like to have customised and prioritised communication and treatment with priorities set as follow: A. Guaranteed mobility: The Fleet Customer expects their fleet to operate smoothly with minimum downtime. Their business can only run when the fleet is running. B. Save time and ensure efficiency: Every member of staff from the Service Assistants to the Service Managers must work efficiently in keeping with defined processes. If it is necessary for the vehicle to remain in the workshop for longer than expected, a suitable replacement vehicle must be arranged without the customer having to request it. C. Offer VIP convenience: Customer satisfaction is always the number one priority. This applies especially to support for a Fleet Customer who likes to be relieved of administrative work and treated in a courteous manner. If the customer is upset, the service partner instantly loses several vehicles, while capacity and revenues drop immediately. Volkswagen South Africa defines three types of business customers for whom this programme was developed: 1. Rental Rental companies are companies that rent vehicles for short periods of time, generally ranging from a few hours to a few weeks Major rental companies in South Africa: AVIS Budget Rent a Car 8 Volkswagen Fleet Service

9 First Car Rental Dollar Thrifty Car Rental Imperial Car Rental Hertz Rent a Car Bidvest Car Rental 2. Corporate A Corporate Customer is defined as any business/individual that buys a vehicle (or vehicles) for business use, registered to the business. 3. Government The Government Sector/Market in South Africa is divided into three tiers as follows: 3.1 National level: Comprises of ± 31 National Departments that are usually led by the President of the country and at a departmental level by Ministers. 3.2 Provincial level: There are 9 provinces in South Africa; currently each province is led by the Premier, with 12 provincial departments being led by the Member of Executive Councils leading of 12 Provincial departments. 3.3 Municipal level There are about 278 Municipalities in South Africa scattered throughout the 9 provinces and are divided into: Metropolitan Municipalities District Municipalities Local Municipalities Volkswagen Fleet Service 9

10 4. FSC Value proposition: benefits to the Dealer and Customer. Benefits to the Dealer: Improved customer satisfaction and After Sales revenue stream Competitive advantage Transparent Fleet Business processes and contribution Fleet specific dealer After Sales staff training Well documented processes to facilitate change of staff with ease Uniform, auditable Fleet Customer Value Proposition Accurate measure of Fleet contribution Increased After Sales Fleet Customer loyalty and retention Use of market opportunities and new customer acquisition/establishing Increased sales and optimised workshop load The FSC Dealership will be able to offer the Fleet Customer the following: Standardised and personalised Fleet Customer approach across FSC Dealers Exclusive treatment for Fleet Customers Unique Fleet Business requirements addressed Incentives through the development of a parts loyalty bonus package for Fleet Customers Guaranteed mobility and optimised fleet usage Effective customised advice Service with VIP comfort 10 Volkswagen Fleet Service

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12 5. FSC Business Model in the South African Market. NSO / IMPORTER PARTICIPATION AGREEMENT ROUTING CARS SERVICE LEVEL AGREEMENT CUSTOMER PROMISES DISCOUNT GP Target: Incentivise Fleet Customers to service their vehicles at VW Dealers. Description: Triangular relation between Importer, Dealer and Fleet Customer. Premises: Dealers commit themselves to implement the FSC requirements as outlined by VWSA. Participating Dealers are auditable after a period of 12 months to renew membership. 12 Volkswagen Fleet Service

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14 6. FSC Building Blocks. Elements in support of the Fleet Service Centre Building Blocks: EXCLUSIVE TREATMENT Learn more about your market Next Level Loyalty DEDICATED FLEET STAFF Key Contacts for Fleet Customers Customised packages and offers TARGETED MARKETING Fleet in the fast lane SPECIAL CONDITIONS SUPERIOR TO THE COMPETITION Volkswagen Standard/Extended AutoMotion Plans Fleet mobility COMPREHENSIVE MOBILITY PACKAGES Advanced Promotion 14 Volkswagen Fleet Service

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16 6.1 Overall Element Objective: Analysing the Fleet After Sales Market to know more about your customers, their needs and contribution to the Dealer After Sales Business. Approach: Through Market analysis, identify key Fleet Customers and Key Fleet Vehicle models per channel. Identify and develop standard Fleet Levers KPI reports to help measure Fleet contribution to the Dealership. Key Dealer Requirements: Enhance and maintain relationship with Fleet Customers through regular interactions Segmentation of current dealer customer base Know and address priority customers needs Know Key Fleet decision makers in the market Awareness of Key Stakeholders unique needs and differences Market related data on potential customers Standard KPI Reporting Measure monthly Fleet Throughputs Measure and manage Fleet VINS Serviced Fleet CSI measure 16 Volkswagen Fleet Service

17 6.2 Next Level Loyalty. Overall Element Objective: Increase Fleet Customer satisfaction by offering a documented, transparent and measurable service. Approach: Based on the FSC building blocks, to support FSC elements and the Fleet Customer needs, structure a Service Level Agreement (SLA) between the Customer and FSC Dealership/Group. SLA must be transparent, agreed to by all parties and measurable with KPI reporting as and when required. SLA parameters may vary pending Fleet Customer type and/or requirements. Key Dealer Requirements: Develop a Service Level Agreement (SLA) to meet customer requirements SLA to be based on transparency and trust SLA should be with key Fleet Customers only SLA should be approved by VWSA Regular meetings with Key Customers to enhance the relationship and revise the SLA as and when required Volkswagen Fleet Service 17

18 6.3 Key Contacts for the Fleet Customer. Overall Element Objective: Offer Fleet Customers a single point of contact in the dealership. Approach: Utilisation of dedicated Fleet contact people at the Dealership level to ensure professional and prompt Fleet Customer care. Clear identification of Dealership Fleet staff. Key Dealer Requirements: FSC trained Service Advisor dedicated to Fleet Customers Service Advisor can be shared with retail depending on the intensity of Fleet Business within the dealership: FSC trained Service Manager Dedicated contact number at the dealership for Fleet Customers Dedicated Fleet hotline number available 24 hours a day through VWSA CIC department Fleet Service Advisor to work hand-in-hand with Fleet Sales Executive and dealer marketing personnel 18 Volkswagen Fleet Service

19 6.4 Customised packages and offers. Overall Element Objective: Increase revenue through competitive parts & labour package pricing while positively addressing Fleet vehicle cost of ownership. Approach: Dealership to offer Fleet Customer specific service and or repair packages. (Packages = part/s + labour component). Dealership agrees to pass-on the retail benefit of Product Management Campaigns (PMCs) as structured by VWSA along with the agreed Fleet Customer specific labour rate. Key Dealer Requirements: Offer Fleet Customers Service packages, including parts and labour for minor services and/or repairs Offer Fleet Customers Service packages, including parts and labour for major services and/or repairs Dealership conducts free wear and tear checks Offer Fleet Customers a discounted labour rate Offer Fleet Customers discounted parts prices Volkswagen Fleet Service 19

20 6.5 Overall Element Objective: Offer Fleet Customers a quick and reliable service: Express service. Approach: Exclusive treatment which provides speedy processing of requests, overnight and or weekend services and repairs, a dedicated fleet reception counter and a Fleet Customer waiting lounge with Fleet dedicated reading material. Key Dealer Requirements: Offer Fleet Customers Preferential lead times Extended operating hours dedicated for Fleet Customers Prioritised processing of Fleet Customer requests Clearly visible Fleet Service counter and personnel/resources Wi-Fi and power connection in Fleet Customer waiting area Customised Service parts stocking Measure and manage specified turnaround times Service Advisor branding 20 Volkswagen Fleet Service

21 6.6 Overall Element Objective: Sell and promote Volkswagen standard and extended Warranty, Service and Maintenance plans specific to Fleet Customer needs/vehicle usage. Approach: Sell and promote Volkswagen Plans that are customised to the individual Fleet Customer s needs. Key Dealer Requirements: Offer, sell and actively promote all VWSA VAP plans and extensions. Volkswagen Fleet Service 21

22 6.7 Overall Element Objective: Reduce downtime and revenue loss for the Fleet Customer by offering flexible mobility packages. Approach: Reduce/eliminate Fleet Customer vehicles being off-road. Provide mobility solutions for planned workshop events. Key Dealer Requirements: Offer Fleet Customers at least one of the following mobility solutions: Courtesy vehicle for planned workshop events Rental vehicle for planned workshop events Exclusive pick up and return of customers vehicles Exclusive pick up and return of the Fleet Customers 22 Volkswagen Fleet Service

23 6.8 Dealership Offering Utilising transparent and personalised communication to increase customer loyalty and satisfaction. Approach: Implement a 360⁰ approach to Fleet Customer Marketing Communications. CRITICAL however to ensure/build personal, one-on-one Customer/Dealer relations. Dealership Offering: Dealership to comply with VWSA set standards in terms of FSC Corporate Identity Branding. FSC Dealer flag Dedicated Service Advisor branding Dedicated Service Advisor counter branding Courtesy vehicle branding (optional) Dedicated parking for Fleet Customers Distribution of customised Fleet After Sales communication and marketing material Integration of Fleet Service Centre on dealer website Dealership to actively support the execution of VWSA fleet specific planned events The FSC dealership will allow VWSA to market parts promotions directly to the Fleet Customer Volkswagen Fleet Service 23

24 7. This section gives the Service Advisor important information pertaining to the requirements that a Dealership should meet in order to be able to achieve the objectives of the Fleet Service Centre. 7.1 Standard KPI reporting The Dealership should analyse its Fleet After Sales Business and be able to provide information relating to the percentage of the Fleet Business compared to the total After Sales Business on a monthly basis VWSA will provide the Dealership with guidelines and processes on how to measure and manage the Fleet Customer Satisfaction Index 24 Volkswagen Fleet Service

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26 7.2 Dealer Audit Sheet A dealer audit sheet will be completed by the Dealer Principle, the Service Manager, The Regional After Sales Manager and Fleet Programmes Facilitator to check and make sure that the dealership meets all the criteria outlined to qualify as an FSC Dealership. Addendum to the Franchise Agreement: The Dealership is required to sign an Addendum to the Franchise Agreement which outlines the basic requirements a Volkswagen Dealership in South Africa must adhere to in order to be authorised as a Fleet Service Centre. Service Level Agreement Volkswagen South Africa will provide the qualified FSC dealership with a draft master SLA that defines the offerings that the dealer needs to offer Fleet Customers. This SLA can be adopted to meet the requirements of the customer as long as the two parties agree The SLA should be Provided to Fleet Customers that have a dedicated Key Account Manager as provided by Volkswagen South Africa A copy of the signed SLA should be sent to Volkswagen South Africa (naido12@vwsa.co.za) Where there is an existing Service Level Agreement between the dealer and the Fleet Customer and it actually offers more convenient service compared to the service detailed below; the Service Level Agreement prevails 26 Volkswagen Fleet Service

27 7.3 Key Contacts for Fleet Customers. Dedicated Service Advisor The Dealership must have a dedicated Service Advisor for the Fleet Customers This Service Advisor can be shared with retail but his/her main focus and priority should be Fleet Customers Fleet Specific Training Volkswagen South Africa will provide Fleet specific training for the dedicated Fleet Service Advisor and the Service Manager Dedicated Contact Number The FSC dealership should provide Fleet Customers with the contact number of the dedicated person FSC dealership shall provide the Fleet Customer with an exclusive contact number that is available during FSC dealership operating hours. This number should be available to other staff members in case the FSC dedicated person is not available Dedicated Fleet Hotline Volkswagen South Africa, through the CIC department, will make available a dedicated Fleet hotline. Please see a high level call flow diagram on page 28. Volkswagen Fleet Service 27

28 FLEET CUSTOMER CALLS WELCOME MESSAGE Welcome to Volkwagen Group South Africa Fleet contact centre MENU SELECTION 1 MENU SELECTION 2 For Audi, press 1 For VW, press 2 For VW Commercial Vehicles press 3 For Roadside Assistance, press 1 For general Enquiries, press 2 For Customer Care, press 3 ROADSIDE ASSISTANCE GENERAL ENQUIRIES CUSTOMER CARE 24/7/365 MON - FRI 08H00-17H00 MON - FRI 08H00-17H00 28 Volkswagen Fleet Service

29 7.4 Customised packages and offers. Discounted labour rate for Fleet Customers The FSC dealership will provide the Fleet Customer with a discounted labour rate relative to its retail labour rates. Discounted parts prices for Fleet Customers The FSC dealership will provide the Fleet Customer with discounted Genuine Parts pricing relative to the parts retail pricing. 7.5 Fleet in the fast lane. Extended Express Service for Fleet Customers The FSC dealership must offer the Fleet Customer express service by appointment allowing a maximum of 90 minutes for a scheduled minor service. This enables the Fleet Customer the opportunity to wait for his or her vehicle. Continued on next page. Volkswagen Fleet Service 29

30 Fleet in the fast lane. Fast processing of Fleet Customer requests Fleet Customer call back if required should happen within 15 minutes of the customer calling the FSC dealership. Call back meaning that when a customer calls the dealership and the dedicated Fleet Staff Member is unable to assist the Fleet Customer at that point in time Service booking lead time, maximum of 48 hours Fleet Customer to be notified immediately with regards to completion or delays on work being done on the vehicle The workshop loading tool should allow for preference to be given to Fleet Customers vehicles Fleet Service Centre Identification External FSC dealership branding as per VWSA FSC CI requirements Dedicated fleet Service Advisor branding with a name badge that has the FSC logo Dedicated FSC reception counter branding Dedicated Fleet Customer parking marked with FSC logo Branded Fleet Customer courtesy vehicle (where customer does not feel comfortable driving a branded vehicle another one can be provided; or the branded vehicle can be used for the transportation of customers rather than lending it out to customers) Recording of special requests throughout the SCP FSC dealership responsible person to record Fleet Customer special requirements, requests and comments on ElsaPro throughout the SCP. Wi-Fi and power connection in waiting area FSC dealership shall offer Fleet Customers Wi-Fi or and a power connection while their vehicle is in the workshop to enable customer to continue their business responsibilities. 30 Volkswagen Fleet Service

31 7.6 Offer, sell and actively promote all VWSA VAP plans and extensions through the VWSA warranty department Dealership to for assistance with creating a customised solution for the Fleet Customer 7.7 Courtesy vehicle for planned workshop events The FSC dealership shall provide the Fleet Customer with a courtesy vehicle for planned workshop events depending on the SLA between the FSC Dealership and the Fleet Customer. This courtesy vehicle will be in the same or better category than with the customer s vehicle that is in workshop; except for vehicles with specific mounted equipment. Rental vehicle for planned workshop events The FSC Dealership shall provide the Fleet Customer with a rental vehicle that is in the same or better category of the Fleet Customer s vehicle that is in the workshop; this shall happen through the utilisation of a third party vehicle Rental Company at a cost to the Fleet Customer as determined in the SLA. This is not applicable to vehicles with specific mounted equipment. Volkswagen Fleet Service 31

32 Exclusive pick up and return of customers vehicles The FSC Dealership will provide the Fleet Customer with a service to pick up Fleet Customer vehicles from an agreed venue and bring them in for a planned servicing event and return them back to the agreed place. The radius applicable to this vehicle pick up service will be as determined in the SLA between the FSC dealership and that particular Fleet Customer. Exclusive pick up and return of your customers The FSC Dealership will provide a service to the Fleet Customer whereby the dealership offers to pick up Fleet Customers for planned workshop events within a predetermined radius. 32 Volkswagen Active Selling Fleet Service

33 7.8 The FSC Dealership will distribute customised Fleet After Sales communication material as and when required by Volkswagen South Africa. Integration of Fleet Service Centre on Dealer website The Dealership should contact the Dealer/Group marketing department for assistance in updating the Dealer website Information to include on the Dealer website regarding FSC Dealership to comply with VWSA marketing and communication set standards Dealership to actively support the execution of VWSA Fleet specific planned events The FSC Dealership will allow VWSA to market parts promotions directly to the Fleet Customer All Fleet Customer invoices to be accompanied by VWSA dedicated marketing material Volkswagen Fleet Service 33

34 8. FSC Practical Implementation through the SCP. Provided below is a practical step-by-step guide of implementing the Fleet Service Centre concept within your dealership. Under this section you will be given guidance in terms of what actual output you will need to produce in order to successfully implement the Fleet Service Centre in your dealership. 8.1 Scheduling Fleet Customer Appointments. Customer and vehicle identification If necessary, ask whether the vehicle is used privately or commercially, pass on to Fleet Dedicated Service Advisor. Query of all necessary data during appointment arrangement Regular customer: Check name, address and telephone number of owner/decision-maker Check who receives the invoice and in what form Conditions (courtesy car, hourly billing rates, discounts etc.) Record vehicle data (mileage, damage, customer statements etc.) Check recall campaigns, workshop and service campaigns Request customer to bring in applicable documents 34 Volkswagen Fleet Service

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36 Scheduling Fleet Customer Appointments. Offer of dialogue reception Actively offer joint determination of repair requirement to customer with indication of time frame Marketing offers Actively inform the customer, in accordance with the contract, about current, suitable marketing campaigns New customer: (same as regular customer except for:) Record customer data and clarify decision-making authorisation Ask about courtesy car Ensuring driver mobility according to the SLA specifications (e.g. pick-up/drop-off service for Fleet Customer vehicles etc.) Providing courtesy car according to special vehicle equipment (taxis, driving school etc.) Active price information Actively tell the customer, in accordance with the contract, the expected price range and record in Appointment Scheduling System (APS). 36 Active Selling

37 8.2 Order clarification with decision-maker Basic: Approval value limits and history check Service types: Standard services (services according to manufacturer specifications) Additional services (services according to Customer wishes) Obligatory services (Dealership obligation) Excluded services (not part of contract) Conditions: Hourly billing rates, parts, fixed prices Service limitations: According to need coefficients, mileage tolerance limits Value limit per service process or sum per vehicle Time limits before expiry of leasing contract Volkswagen Fleet Service 37

38 8.3 Receipt of vehicle documents Check the repair and servicing contract (rules) with new Customers Need-based reception (dialogue reception at the vehicle) If wished, determine repair requirement with customer Mention of Dealership offers Actively inform the customer, in accordance with the contract, about Dealership offers. Alternative hand-over of courtesy car Order clarification with decision-maker (rules) Check order scope with contract (rules, value limits, service intervals, excluded services etc.) Contact the decision-maker regarding all order items Record the answer and receipt of approval from decision-maker 38 Volkswagen Fleet Service

39 8.4 Vehicle in the workshop In the case of order extension, there is a renewed check of the rules for existing contract arrangements Contact the decision-maker regarding all order items if there is no automatic repair approval Record the answer and receipt of approval from decision-maker 8.5 Quality control Invoice preparation Volkswagen Fleet Service 39

40 8.6 Return of vehicle/invoicing. Courtesy vehicle return Explain invoice Offer to explain invoice Payment Hand-over/send the invoice documents to the customer Electronic sending of invoice 8.7 Only if requested by customer: creation of a quality report by fleet Service Advisor according to individual needs 40 Volkswagen Fleet Service

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42 9. Dealers will be expected to monthly measure and track the success of the programme by measuring the KPIs as defined in the element Know Your Market. 42 Volkswagen Fleet Service

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44 Volkswagen After Sales would like to wish you all the best in introducing and making the Fleet Service Centre a success within your dealership. We encourage you to get your dedicated staff geared up with knowledge and skills for a successful implementation of the Fleet Service Centre in your service workshop and to truly make servicing an exclusive and prioritised experience for your Fleet Customers. Improved Service Quality and Customer Satisfaction are key to conducting a successful After Sales Business within your Dealership. A programme such as the Fleet Service Centre enables you to optimise the Fleet Customers After Sales Value Proposition and Revenue. Please feel free to contact Zelda Thanyani on: thanyan@vwsa.co.za should you have any queries or feedback regarding this brochure. Together yours in After Sales. Kaylene Naidoo After Sales Marketing Manager This information was effective as of December 2015 and is subject to change without notice. Visit us at vw.co.za Volkswagen South Africa 44 Volkswagen Fleet Service

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