KN: Katarzyna Nawrocka, „On loyalty schemes by night”. Loyalty schemes are typically associated with market segments where purchases are made several times a week. However, some sectors face the challenge of retaining customers who only make a purchase once every few years. Dominiko, we’re going to be talking about loyalty programmes, so I’d like to start by asking you what loyalty programmes Mazda runs.
DAS: We currently run two loyalty schemes for our customers. One is linked to vehicle replacement – that is, the purchase of another Mazda – and is called „More and more”; at the same time, we also run the „Mazda Ambassador” programme. However, these are programmes that we are constantly working to develop. I can also say that we will soon be making some changes to the concept behind these programmes and replacing them with new solutions.
KN: So we can’t reveal any details just yet?
DAS: All I can say is that this will be a programme brought together under one umbrella, integrating all our loyalty initiatives in one place, and it will also be based to some extent on different principles – not just focusing on the period when a customer is ready to buy their next car, but will also be more spread out over time, recognising the value of their relationship with us over the long term. That’s all I can say for now. I think that before long we’ll actually be able to tell all our customers about it.
KN: So let’s talk about how to build brand loyalty among customers who only make a purchase once every few years.
DAS: This is a path you have to follow right from the start, and you need to look after that customer quite consistently throughout their entire relationship with the brand. When it comes to buying a car, that first key moment is, of course, the purchase itself – it’s what I’d call a big boom, because from the customer’s perspective it’s also a major purchase. However, the car then goes on to share a fairly long life with its owner, and throughout that entire lifecycle, various situations and moments arise in which the customer expects care, information and support from the brand. And moving on, as it were, to what’s most important – being treated in a special way. And that’s what we at Mazda have been striving to do consistently for many years now. We’re aware that all these moments and touchpoints ultimately shape the final relationship and influence how the customer perceives the brand, and whether, at the end of the day, they actually decide to buy from us again. So this is simply groundwork. Work carried out all the time, at every moment, and not just at certain times.
KN: That seems much harder than retaining a customer who shops every day, every other day or several times a week.
DAS: I mean, I’d say it’s just different. With higher transaction volumes and more frequent interactions. Of course, there are far more opportunities to meet customers, yes. However, I’d also say that sometimes this engagement is more transactional, because I’m often coming in with a specific need. Particularly in retail sectors where these purchases happen, let’s say, even several times a week. There, there’s perhaps a bit less emotion; it’s more of a ‘here and now’ need. On the other hand, when it comes to building a long-term relationship – particularly where, as we’ve just mentioned, buying a car is, in a way, like buying a service – the relationship with the customer lasts much longer than just today or tomorrow. Consequently, whilst it may be a bit more difficult, once we’ve established access to that customer and know who they are – and that’s the foundation on which we work – we also know what language to use and when to speak to them, and we know how to meet their needs. And it really is a very interesting job, yes. Because we have to anticipate certain situations to some extent, we have to look ahead, and analyse the data we have so that, when the customer actually needs that interaction, we can respond to it appropriately. So, from my perspective, it’s more interesting and different, but not necessarily more difficult.
KN: I’d also like to ask you about the differences in building customer loyalty between the Polish and European markets.
DAS: I think these differences are becoming increasingly blurred; that is to say, a few years ago – not to mention ten or so years ago – the differences were enormous. This was also down to the fact that, in many respects, the European market was always ahead of us, ahead of the Polish market. Later on, technology came into the picture, and we had a lot of catching up to do in that area too. However, at the moment I would say that these differences are very slight. When it comes to consumer behaviour, Poles are very similar in their habits to people living in Western Europe, or in Europe in general, or even in the US, or much further afield. We all have access to technology; we all use mobile phones and apps, and in that respect we’re no different. The programmes are very similar these days. The difference I see here – the biggest difference – lies in the level of participant engagement. And it seems to me that European programmes and the European market have realised much more quickly that it is precisely through this engagement and by building a relationship based on experiences that loyalty can be fostered. Here, for quite a long time, it was still based on transactional, one-off interactions. It seems to me that this is changing, as they say. But still, looking at some programmes, they’re just quick win-win situations, rather than necessarily an attempt to engage the customer so that they start to live the life of the brand themselves. It seems to me that this is still an area where local programmes – and I’m not, of course, talking about programmes that are copied wholesale from European markets, such as Payback, which, after all, got off to a great start in Germany. It only reached Poland later. It’s actually the same programme, but I think such local, single-brand programmes still have a bit of work to do in this regard.
KN: And is it true that even the most carefully planned marketing campaigns can be overshadowed by, for example, end-of-year sales?
DAS: I’d say it really depends on how much work the brands have put in beforehand to build that loyalty. And, of course, there is a group of customers who are always price-sensitive. And in the case of this particular market – car purchases, to be precise – it’s quite a significant expense. It’s not a matter of buying a chocolate bar; it’s actually often a family expense, and the decision carries a lot of weight. That said, a certain group of customers will always look at the price. But if brands have done the groundwork beforehand by winning the customer over on all other fronts, giving them a sense of security – starting, of course, with the quality of the product they offer. Because if we’re using something that breaks down and constantly disappoints us, then whatever happens, we’re unlikely to be able to make up for it later. That said, I do think it’s difficult; it’s a challenge. We’ll never win over certain groups of customers, because they’ll always look at the price. But I always approach it this way: let’s not focus on those customers, right? Let’s focus on those for whom these experiences matter, and let’s work on them – yes. On our relationship with them. And here I believe that, when the time comes to make a decision, certain experiences built up with the brand will take precedence – yes. And that’s also the aim of our work with our clients – so that, after a while, they’ll remember all the things that were important to them along the way.
KN: And what are the most decisive factors when choosing which make of car to buy in Poland?
DAS: Let me put it this way: there are, of course, many such factors. And the brand’s image itself is very important, as is what resonates with the customer – which brands appeal to them more, and which don’t. These are also choices based on certain emotions and perceptions. Well, first and foremost, there are questions such as whether it should be a premium car, a mass-market car, or whether there’s some other need. However, here, above all, it still seems to me that quality and reliability are key. When it comes to cars, this is the key determining factor, yes. It’s a purchase for years to come, so the quality of the car – ensuring we don’t encounter any technical problems with it later on – is very important to all customers. Another issue is after-sales service – that is, all the experiences the customer encounters after the purchase that relate to their car. Starting with regular servicing, and covering all situations where the customer might have a problem – because that does happen too. So the way in which the brand resolves all these issues – be they problems or enquiries – and how it looks after the customer, whether during a service or in the event of a warranty claim, is of immense importance later on when deciding whether or not to buy from that brand again. Another key aspect is the overall communication that the brand – not just the brand as an importer, but also the dealers – maintains with the customer throughout the duration of that relationship. And this is precisely where the element of creating those moments of surprise, those „wow” moments, comes into play – moments that are also very important to us. For Mazda, it is very important that the customer – the individual, our customer – is at the very centre of attention. Their connection with the car should be such that it feels intuitive. It’s a sense of unity, yes. This stems from the philosophy the brand has adopted here, and this customer-centric approach is very important. So, when it comes to communication too, we strive to ensure it is personalised. And I think that only this kind of communication makes sense these days. It must be communication based on need, on approaching the customer from the perspective of what they want, yes. It has to be spot on. Fortunately, there are more and more tools available for this, and you simply need to use them skilfully. I think that at the moment, amidst this flood of information, if a customer receives a message at the wrong time, in the wrong place or that is inappropriate, it also affects their relationships and their experiences. And it may ultimately tip the balance when it comes to their decision, yes. So I think communication is also very important.
KN: And could we discuss the differences between loyalty schemes aimed at individual customers and those aimed at, say, corporate customers?
DAS: In the case of the programmes we run here, but also based on my personal experience, I must admit that in most cases I have always worked with individual clients. I have also worked with business clients, but specifically those whose behaviour is very similar to that of a consumer. In other words, these are small businesses or sole traders, where the purchase of a car or a service is, in reality, for the benefit of the consumer – it directly benefits that individual. Consequently, whether it’s a business or an individual client, there’s no difference. We address their needs in the same way as we would an individual. When dealing with a more corporate client, however, the matter is much more complex. This is because, in such cases, we are primarily dealing with the owner, but we also have the end-user. This raises issues – very simple issues, for instance, relating to the use, or the possibility of using, the personal data of these individual people – because, from a business operations perspective, we do indeed hold data, but that of the business owner. And from the perspective of reaching the user, we should have that user’s data, because perhaps their decision will be significant. However, it seems to me that in most cases this should be directed at the decision-maker – that is, the person within a large corporation or company who makes such final decisions. And yet it seems to me that, first and foremost, it’s about that relationship aspect, because this is more about managing relationships with a major client and involves many elements – to put it bluntly – related to the offer. That is, related to price, because these are often decisions made on a larger scale for an entire group.
KN: So what role do importers and dealers play in building brand loyalty?
DAS: First and foremost, there must be very close cooperation. And wherever there is a disconnect – even if it’s just that the values represented by a particular importer or dealer differ from one another – there will always be a certain dissonance, because whatever the importer comes up with, the dealer won’t really be able to implement it. There are, of course, certain distinctive aspects. For the importer, first and foremost, it’s the product, yes. After all, it is the importer and the manufacturer who decide what the product looks like, what its quality is, and how the brand builds its image in a broader sense. But there are also certain processes and, so to speak, a system of values that they implement, which must be consistent and properly communicated to the dealer. The dealer, on the other hand, is the face of the company for the customer, yes. They’re the person, the adviser, who then talks to the customer and has to convince them to buy the product. So the quality of that relationship and a certain consistency with the brand’s philosophy are extremely important in order to achieve that synergy effect. Also, all the processes related to customer service – from simple matters such as the appearance of the showroom, the standard of service provided there, the level of service and the quality on offer – are of immense importance to the customer. And finally, I’ll just say that what really holds it all together is, above all, this cooperation based on the relationship between the brand and the dealer. And this is also something we’re proud of – that our relationships with our dealers are so strong. We’ve been operating on this partnership basis for many years. We strive to ensure that this remains the case, so that our dealers truly act as ambassadors for our brand.
KN: I’d like to ask your opinion, because it’s commonly said that we choose our first car based on price, and our second based on servicing and after-sales support. What’s your view on this?
DAS: I would very much agree with that, because that’s precisely what characterises the industry and our business: the fact that all these experiences and impressions aren’t necessarily formed at the moment of purchase, but later on, yes. Over the course of those few years of using the car. And using a car involves various moments when there must also be contact with the brand and the service centre. We’re not even talking about situations where something goes wrong, but rather those situations where such contact is necessary due to the need for a periodic service. These are all moments that shape the customer’s experience – moments of truth that make the customer realise whether it was a good choice or not quite such a good choice. And the way we look after the customer at these moments is what their decision will later depend on. Of course, there aren’t really any direct studies here that demonstrate this correlation in such a way. However, we’ve also carried out our own research – surveys amongst our customers – where we’ve tried to understand what matters most to them in terms of quality, and that is precisely this reliability. It’s all about solving their problems and the standard of service provided during all these service visits. This has a very strong influence on their decisions, and this is also something I’ll come back to in a moment: these are the factors that can ultimately outweigh price or the discount that another brand might offer, yes. Because not every customer is willing to take a risk, yes. It’s also worth putting it this way: of course, there are those who like to switch things up a bit – ‘well, I’ll see what it’s like elsewhere’. But we also have many customers who aren’t prepared to take that risk. If they’re happy where they are and have been treated very well. And if the car works perfectly for them, and the dealer is always there to help, then they won’t go looking for a better deal elsewhere, right. So we understand that, and I think it’s very important.
KN: And finally, I’d like to have a quick chat with you about the differences in how we approach and interact with a customer who comes to us looking to buy a family car, compared to a customer who comes to us, for example, looking for a convertible to use at the weekends.
DAS: First and foremost, we need to start from the premise that every customer who comes to us is different, and their needs may vary completely. You’ve given two examples here, but there are probably many more like them. What’s most important is that the adviser and the person dealing with the customer are guided to identify that need first. In the case of a completely new customer – because we’re starting from scratch, so to speak – so it’s also important to ask about the customer’s needs: whether they want a large car or a smaller one, or one that offers a sense of security, or a smaller, more economical model, yes. I think sales advisers should always carry out this sort of consultation – not just within our brand, but in others as well. There’s always a strong focus on identifying needs. If it’s one of our existing customers, it’s perhaps a little easier, as we have a bit of a history with them. But then again, having that history doesn’t mean it’s a done deal – it won’t just happen by itself. We also need to work with dealers and sales advisers to ensure they use this information skilfully. And they’ve built up a bit of a history based on that, because here we’re entering the world of a customer who’s been with us for a number of years. That’s also very important, as is the differentiation you’re talking about – certainly in customer communication, which we, for example, as an importer, build up through various campaigns. Again – we have to rely to some extent on what we know about the customer. This communication must be tailored to them. And in a way, we’re able to pick up on this difference. We know what sort of cars our customers drive; we know – or can deduce – whether it’s a family car or a car for a single person. And that’s also where we start this story. It doesn’t always work out that way, because we also have to bear in mind that the customer is evolving in their own life. Their needs change, as it were.
KN: He might want to switch from this convertible to a family car in a while’s time.
DAS: Exactly. So it’s also about being flexible in how we view what the client needs, and above all, being focused on listening to them. And not to impose a particular vision on them – one that suits us – but rather to listen more and come up with a solution based on that. Another quite distinctive group of customers are those who are expanding their portfolio a bit, because we don’t necessarily have to say it’s just one car for the family. We’re also seeing more and more customers who have several cars in their household fleet, and this is something of a growing trend in Poland. We’re seeing it – we’re noticing that customers come to us who, of course, still drive their Mazda and want to keep it, but feel the need to buy another car. I’m not sure exactly why – perhaps for their wife, or for their teenage son. That’s part of it, but again, it’s also important to recognise these needs and discuss them with customers.
KN: Thank you very much for our conversation today. What I took away from it is that building brand loyalty with a customer who shops only once every few years isn’t any more difficult – it’s just different. Simply different.
DAS: Exactly.
KN: Thank you very much, and I hope to see you again.
DAS: Thank you, and see you soon.
KN: And we invite you to tune in to the next episode.
