Splendid Swiss Isolation – Day31

Splendid Swiss Isolation – Day31

0700 ?Cause you’re a sky…“  This is going to be an interesting day, different as we have two video events on a larger scale. But first let’s chase some oranges, make coffee, get it going.

0830 Worldwide Corona update. Routine, but the thoughts and energy about potential announcements concerning possible openings in the restrictions that might eventually concern the automotive selling business as well and could hypothetically spark action to a tentative restart… You got the idea, there are still a lot of “ifs”

1000 An online conference I subscribed to about “benchmarking Corona action in Retail”. Some interesting insight. One discussion concentrates on the question, whether the Corona crisis will drive online sales and dry out the physical retail. Interesting enough, a prominent online warehouse present in the conference proves that “no”. Certain articles (electronics, hygiene) soar, but classic online items (fashion, shoes) slump. Change in basket, not change in attitude. But the most interesting one I read parallel on the NYT: If digital and direct selling is supposed to be the future of automotive retail, how come the sales numbers are crashing, now that only digital is possible? Even in China, the country slowly stepping out of the restrictions and certainly with one of the strongest digital cultures? Ok, that is quite a short cut. But there is some truth in it. Certainly, our systems do not yet allow for a full-fledged online sale. Of course, the product is a little more complicated than many other commodities like, say, toothpaste. So the process is more complex and the transition – if happening – will take longer time. And yes, the customer – maybe – has other things on his mind than buying a brand-new car, right now. On the other hand, the value of individual mobility is currently increasing. Social Distancing is easier in your own car than in a train. We do see a multiplication of contacts and demands for commercial offers online, compared to pre-Corona levels. But not the purchase. Why? Well, the question turns around our willingness to order a 40K plus item online. Without having seen it, touched it, talked about it. Would you? Not sure I would. I would certainly perfectionize my information gathering, configuring, price researching and so on before making the deal. But then, I would go somewhere where I could actually understand the product. And with models changing roughly every third or fourth year, you can’t go and say “well, let’s just order the same, but new, maybe a different color”. Packages change, specs change, innovations are introduced all the time and in a much larger scale than your regular razor blade or washing machine. So the famous “1klick-buy” with a car? Hmmm. And already being at a dealer, getting the service I want, being offered the deal I want, being able to hassle and wheel and deal directly, would I prefer going back and signing the thing online, maybe with a chatbot or a callcenter. Yes for a book. Yes for a microwave. A car? Hmmm again. You have understood by now, I do believe in the premium and value of service and customer experience. I strongly believe that we have to offer a broad online experience, and this includes online purchase and home delivery. Fast. But I believe in our dealers. I believe in direct contact. And I believe in the fact that the car is delivered once, but serviced multiple times. And that is where trust comes into play. A trust that directly triggers one of the largest spendings you will make in a three to four year span, next to your apartment/house, the African safari and for some – sorry – a divorce. Or a wedding, that can become pretty hefty as well but normally you consider this an investment, not a cash-out. So trust, which is established right from the beginning, from the first moment you look into the eye of the sales person you have chosen to be your negotiation partner. This translates into trust into the dealership and the service staff. And this is where we have to make the difference. Looking at our satisfaction scores, this is where we actually make the difference at Mercedes. Because even the online purchase will have to be serviced, physically. Can’t do online. So where do you go? To somebody you trust. Thus here we are again, at the dealer. Conclusion: I believe this outstanding personalized customer experience will – in the end – be the most important singular argument to choose a brand, choose a product, and choose a dealer. And yes, of course we have to develop our online capabilities, they are part of the experience game, an important one. But not important enough to replace the showroom.

1155 The conference is still running, later than planned. Theoretically I am hungry now. In fact, not only theoretically. Problem is that I can’t leave my office as we have a three hour online Management Meeting @Daimler. I had told that to a disappointed family in the morning and I so hope that they will have planned to bring me something. A slice of bread, some cheese something. In my starving despair, I send a whatsapp in our family chat.

1156 That whatsapp wasn’t necessary, I should have known. The door opens, seconds later my youngest appears with a tray: grilled chicken, polenta, olive oil, fresh broccoli, lots of love. She whispers, carefully eyeing the computer camera to stay out of the background picture “I’ll get you the dessert afterwards, my sister prepared pinapple and banana ice cream”. I love you. Not only for the food, not at all for the food or such earthly matters in general, but today a lot.

1200 Top Management Call with the entire Daimler Board and upper management. Can’t write, it’ confidential, but I guess you knew this was coming J One thought, however: The energy to restart is building at great level. The willingness to make it happen unites as in a way I have rarely seen in this company. The pride and fever to work for one of the greatest brands in the world push us to really, really want to get going. And yes, I do believe, Daimler has a truly outstanding asset: its people. It is always easy to say “we’re in a people business, blabla, the people make our difference, blabla”, the kind of thing every manager has learned to repeat when standing in front of a crowd of, well, people. But this is genuine. During the presentation, one citation by Warren Buffet is used: “It is only when the tide goes low, that you’ll see who was swimming naked”. It was used in a different context, but match it with Sun Tzu “One fundamental principal of the art of war is to understand well before the war who you choose to go to war with”. And although “war” is not a word I would want to use in this context, looking and listening to this crowd gathered digitally, I feel proud. And ready. Corona, here we come.

1600 Short call with my office. Good mood, great preparation, short items, all clear. This becomes routine and I wonder why in physical terms this took always a lot longer before the crisis. I do however miss the team. Video is nicer than phone. I would never have thought to say this, but I really start to miss office...

1630 After all this mental program today, I need some physical balance. On the bike, off we go.

1830 Two, three calls

2000 Finish line and Dinner. We have chosen easy tonight, bread and cheese, salad and talk. School has started again, with a switch into University preparation. Two blocks of macroeconomic fundamentals (yey, I still do understand half of what my children are saying), some language lesson. Only my eldest is a little disappointed, there appears no possible prep in law. We’ll find that elsewhere.

2100 Movie time.

2300 Good night.