Mike Lyden
Beatrice Lopez
Mktg 324
July 24, 2002

Volvo Incentive Program for Superior Dealer Service

Table of Contents 

              I.      Introduction

 

           II.      Overview of VISTA Program

A.     Incentive Program

B.     Training Program

C.     Customer Service Program

 

         III.      Evaluation of the VISTA Program

A.     Strengths 

B.     Weaknesses

 

        IV.      Recommendations

A.     Publicizing to current owners

1.      Perspective

2.      Posters

3.      Mailings

B.     Publicizing to prospective owners

1.      Magazines

2.      Billboards

 

           V.      Current Status

A.     Seventy-fifth Anniversary

B.     Revered Status

 

 Volvo: Incentive Program for Superior Dealer Service

 

Company Overview

 

Volvo was started in 1927.  It is, today, one of the world’s largest producers of trucks, buses and construction equipment.  Volvo focuses on core values - quality, safety, and environmental care and service operations.  The Volvo International Service Technical Association (VISTA) is a program instituted by Volvo to ensure quality customer service.

 

Program Objectives

 

The objectives of the VISTA program are; to develop and maintain a high level of competence and proficiency among Volvo after-sales personnel; to train personnel in the use of new Volvo information technology and methods which support daily processes; to motivate and focus attention on Volvo after-sales personnel and the important role they play in the business; and to reinforce the knowledge of the importance of customer satisfaction.

 

Program Description

 

VISTA is Volvo's major international after-sales training competition.  The main idea behind VISTA is to reward competency.  VISTA acts as an incentive for the participants to further develop their individual skills and to be more productive in their daily work.  VISTA tests the participants' mastery of their profession and stimulates the learning of new material.  There is a VISTA competition every year.

 

Many people within the Volvo organization have the firm belief that VISTA will help to raise the value of the mechanics, which in turn will benefit the entire after-sales organization.  It is, after all, the mechanics’ work and proficiency that determine how long the customer has to wait for a repair to be completed.  The mechanic is a direct way to reduce downtime and cost for both the customer and the company.

 

The VISTA program is an investment in skills and knowledge that pays off by decreasing repeat repairs, which makes way for a higher level of customer satisfaction.

  

Evaluation of VISTA Program

 

VISTA is an incentive program that encourages service support for its cars via a worldwide competition for service technicians.  The VISTA III is the North American program which has been noted as the most successful by Volvo.  Technicians in the United States and Canada compete in a year-long sequence of tests that distinguish the master technicians.  It is concentrated on improving technical proficiency, encouraging technicians to fix a problem properly the first time at a reasonable price. 

 

The VISTA program’s main strength is encouraging competition in the service quality field.  As the contestants progress through the contest phases they are eligible for higher certification and honors.

 

Top qualifiers, after certification, will have the benefit of knowing that they are the most respected in their field.  They will become extremely valued assets to their dealerships, providing a very high quality customer service at a reasonable price. 

 

Strengths

 

The VISTA program encourages a healthy competition among dealers and mechanics in the service quality field.

 

After certification, top qualifiers become extremely valued assets to their dealerships, providing quality customer service.

 

A high percentage of dealers and technicians are involved in the program.  This helps to establish and ensure a worldwide standard.

 

Allows technicians to be more involved with Volvo and to update their skills, as well as remind them that they are part of a bigger picture.

 

Performance in the competition is advertised, which serves as promotion for both Volvo and the VISTA program.

 

Weaknesses

 

The only weakness we could see is the apparent lack of promotion for the program and the quality service that it would provide to its current owners and prospective owners.

 

Recommendations

 

Publicize that the program does indeed exist, and explain what it is and what it does.  These promotions should be targeted at both current and prospective customers as it benefits both.

 

No hassle, high quality service in the maintenance department of a dealership could be a rather large selling point for any vehicle.  A campaign aimed at prospective customers should emphasize that, even though Volvos rarely need it, maintenance is still a necessity and should be taken care of at an authorized and certified location.

 

Additionally, targeting current owners of Volvos would accentuate that Volvo-specific mechanics will know the best and most efficient way of maintaining their vehicles.

 

To reach these target markets, the following methods can be utilized: at dealerships, posters, as well as any newsletters or mailings they may have, can be used to show that they are VISTA certified.  Also, Volvo’s in-house magazine, Perspective can be used to distribute information about the program and its contestants.  Mechanics can also make use of posters stating that they are certified.

 

Billboards and magazine spots can be employed to target owners and buyers.  Billboards on high-traffic roadways can be geared toward commuters.  Magazine ads can be placed in Car magazines like Car&Driver, Automobile, and MotorTrend, and of particular interest would be getting a spot in Consumer Reports.

 

Current Status

 

For 75 years, Volvo has been committed to excellence. As they mark their 75th anniversary this year, J.D. Power and Associates has announced them as the top-ranked European carmaker in quality and service.

 

Volvo's 2002 models made the Top 5 in both the Initial Quality Study and Customer Service Index, ahead of Mercedes, BMW and Audi.

 

Being the top-ranked European automaker in service is no easy feat.  This is especially true when considering what brands Volvo competes with.  It seems to me that the VISTA program is succeeding in providing exceptional service to Volvo customers.