Quote:
Originally Posted by hinckley
Quote:
Originally Posted by Ibiza
Agreed that companies need to make a profit, but ED needs to be viewed as a marketing expense.
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Why is that? |
ED = brand loyalty = life time customer
No need for Conquest incentive money when the customer is not flipping over Lexus, MB or Audi, and stays loyal to the brand.
https://www.jdpower.com/business/pre...-loyalty-study
"Automotive manufacturers have traditionally struggled with customer retention. Research by Bochmann Consulting estimated that commitment to repurchase falls from 90 percent directly after a purchase to 70 percent when the time comes to replace a vehicle. In scenarios when no financial relationship with the auto manufacturer exists, less than half of owners repurchase within the same brand. In effect, automotive companies lose out on up to 40 percent of intended repurchases during the period of vehicle ownership. The incentive and desire to improve this figure should be strong within the industry; NADA estimates a new customer acquisition cost of $617 per new vehicle sold."
https://www.informatica.com/content/...paper_2631.pdf
I'm sure the Conquest incentive expense is less that the BMW NA ED operational costs.
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2022 G83 PCD & 2024 G05 S68 PCD
Retired:2021 F95 ZCP PCD,2018 F85 PCD,2018 F83 ZCP- ED/PCD, 2015 X5 50i PCD, 2015 435 vert ED, 2011 X3 PCD, 2011 335is vert ED/PCD, 2007 X3is PCD, 2007 335i vert PCD, 2004 328i vert PCD