Strengthen customer relationships
Many customers want long-term cooperation around total solutions to execute their work as efficiently as possible with maximum profitability and reliability.
When customers choose a supplier of vehicles or machinery, the offering of supplementary services combined with excellent products is a crucial factor.
Customer surveys show that the Volvo Group's companies get high ratings in terms of service and spare parts availability in most markets. As important as getting the customers' vehicles and machines back in operation quickly, is the way customers are treated. This does not apply to just a specific workshop, instead customers must be able to count on receiving the same, first-class service wherever they are.
The Volvo Group offers such services as financing and insurance, various forms of service agreements, accessories and spare parts. The Volvo Group’s increasingly broad range of these services and aftermarket products is of ever-increasing importance to the Group's competitiveness.
Develop and increase interface with customers
The majority of Volvo Group’s customers are companies within the transportation or construction industries. The reliability and productivity of the products are important and in many cases crucial to the customers' success and profitability. A competent and professional dealer and service network, which makes sure that customers' vehicles and machines can be used to the maximum and are free from unwanted stoppages, is of vital importance for the Volvo Group and assists in strengthening the Group's various brands.
The goal is that Volvo Group companies shall be regarded as number one in customer satisfaction, in terms of both products and services. The Volvo Group shall also be number one when the dealers’ customers assess customer satisfaction.
Growing aftermarket business
In addition to vehicles and machines, the Volvo Group’s offering includes various types of financing solutions, insurance, rental services, spare parts, preventive maintenance, service agreements, assistance services and IT services. The range and flexibility of the offering means that the solutions can be customized for each customer.
Since a large part of the offering within the aftermarket business is requested as long as products are being used, they contribute to balancing the fluctuations in the business cycle for the Group. By strengthening the aftermarket offering, profitability and revenue sustainability can improve for the Group throughout the business cycle.
The strategy to increase sales of services and aftermarket products is an important element in the Volvo Group’s effort to achieve targets for profitability and growth, both in mature markets and in the Group’s new markets. During 2012, the services and aftermarket products business (soft products) represented approximately 27% of net sales in the Industrial Operations compared to 26% in 2011. The extended product offering such as used vehicles and machines, trailers and superstructures and special vehicles were previously defined as soft products. As of January 1, 2012 these are instead defined as hard products.
Read more in the Volvo Sustainability Report 2012.