The Challenge

Renault’s revenues are up 13.1% year-on-year to €51 billion. This is as a result of a Global “Drive the Change” initiative launched 5 years previously. Read on to learn how this was achieved.

With 38 production sites and over 13,300 sales outlets operating in 118 countries, Renault is one of the world’s leading automotive companies offering a broad range of innovative, safe and increasingly eco-friendly vehicles.

In 2013, Renault recognised that its business was being challenged by a number of key drivers, not least the need to:

• Recognise changing customer experience expectations
• Appeal to a younger and increasingly digital customer
• Respond to its competitors raising their game

This presented Renault with 2 options. They could either consolidate their traditional European market in the hope that this would be sufficient to stave off competition. Or they could execute a Global vison for customer experience excellence.
With an experienced and capable leadership team and a rich history as an innovator, Renault decided to:

• Transform their customer experience
• Grow their business Globally
• Deliver superior returns for their shareholders

We’ll now explain how we helped Renault to take on this challenge.

 

Our Approach

CGA has been retained since 2013 to help Renault fundamentally reconsider how they perceive, communicate and behave towards their customers as a Global business. Our brief was to design a global customer experience blueprint to support Renault’s customer experience and how it is delivered across its 118 Global markets.

The blueprint we proposed responds comprehensively to Renault’s need to:

• Keep pace with rising customer service expectations
• Create a seamless experience from digital exploration to the physical showroom
• Deliver one consistent brand experience for all customers
• Respond to competitors starting to raise their game
• Improve customer experience to drive improved commercial performance

We achieved this by rethinking Renault’s global customer experience as one of the key drivers of Renault’s ‘Drive the Change’ Plan. This is now known as Renault C@RE 2.0.

the blueprint was approved, we were asked to advise on:
• The business-case for global implementation in the context of all key competitors   and their customer experience
• Systemic measurement of 7 new customer moments of truth using our unique Customer Heartbeat methodology
• Employee KPIs to reflect the 7 customer moments of truth
• The staged roll-out program in the first 12 priority markets
• Transfer of knowledge to the in-house team and continued support for a staged roll-out program to the remaining local markets
C@RE 2.0 is now live in 42 markets and continues to roll-out to more markets every year. Renault has proven itself to be a true market leader with the vision to reclaim its leadership place as an innovator in the automotive industry. As a result, the commercial rewards have naturally followed.

After consistently good interim reports since the inception of the ‘Drive the Change’ program in 2013, Renault Group’s CEO confirmed record performance to investors in February, 2017.

Achieving €3bn in cost-efficiencies since 2013 has given the leadership team the appetite to invest in C@RE 2.0 to drive competitive advantage and superior financial results:

Top-line commercial results
• €3bn in cost-efficiencies since 2013
• Revenues up 13.1% YoY to €51 billion in 2016
• 11 countries selling over 100,000 vehicles per year in 2016
• Operating margin up 38.2% YoY to €3.3 billion in 2016
• Profit margin up 1.2% YoY to 6.4% in 2016

“We achieved our targets for the ‘Drive the Change’ plan launched in 2013, both in terms of growth and profits one full year ahead of plan. This achievement is as a result of the hard work of the Group team.”
Carlos Ghosn, Chairman & CEO, February 2017 

The Results

51
€51 billion in revenue for 2016, up by 13.1% YoY
11
11 countries selling over 100,000 vehicles per year in 2016
38.2
Operating margin up 38.2% YoY to €3.3 billion in 2016

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