Volvo 2009 Annual Report Download - page 21

Strengthen the relationships with existing •
customers and attract new customer
segments.
Growing aftermarket business
The Volvo Group’s offering includes various
types of nancing solutions, insurance, rental
services, used vehicles, spare parts, preventive
maintenance, service agreements, assistance
services and IT services. The range and flexi-
bility of the offering means that the solutions
can be customized for each customer.
Since a large part of the accessories, spare
parts and services in the aftermarket business
is requested as long as products are being
used, they contribute to balancing the fluctu-
ations in the economy. By strengthening the
aftermarket offering, protability and revenue
sustainability can improve for the Group
throughout the entire economic cycle.
Develop and increase interface with
customers
The majority of Volvo Group’s customers are
companies within the transportation and con-
struction industries. The reliability and produc-
tivity of the products are vital and highly crucial
to the customers’ success and protability.
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 must also be number
one when the dealers’ customers assess cus-
tomer satisfaction. A competent and profes-
sional dealer and service network is vital to the
Volvo Group and contributes to strengthening
the Group’s various brands.
Vital element of growth strategy
The strategy to increase sales of services and
aftermarket products is an important element
in the Volvo Group’s effort to achieve targets
for protability and growth, both in mature
markets and in the Group’s new markets. Dur-
ing 2009, the services and aftermarket prod-
ucts business represented approximately 40%
of the Group’s total sales.
Service – recipe for
success in Norway
Twenty years ago, Caterpillar dominated the market for
wheel loaders in Norway. Today, the situation is totally
different. Volvo has a market share of more than 70%.
“We have focused consciously on service. It pays off,”
says Jon Vislie at Volvo Maskin Service.
Customer focus
Jon Vislie greets us at his ofce just outside Oslo.
“I have been working with soft products and focusing on
the customer for 25 years. This is something we simply
take for granted,” he says and explains why he wanted the
word “service” in the company name. “There is an English
expression ‘at your service’ and it sums up our attitude.”
Volvo Maskin Service is a wholly-owned subsidiary of
Volvo Construction Equipment and sells construction
equipment all over Norway. However, the work does not
end when a machine is sold. It is then that their real
involvement begins.
“It’s our job to live with our customers and their busi-
ness. When they buy a machine, they have to be able to
rely on us to provide the service they need,” says Jon Vislie.
He shows us around the facility. Among the Volvo
machines in for service, there is the odd Caterpillar. When
asked why he helps competitors’ customers, he laughs.
“Who does the customer remember when it’s time to
invest in a machine? He naturally remembers the excellent
service and professional reception he was given here.”
In the yard, there are a number of service vehicles.
“If a machine breaks down, the customer risks large-
scale delays. Instead of bringing the machine to the work-
shop, we go to the machine. These vehicles are equipped
to handle virtually everything,” he says, opening the rear
door. The interior is almost a complete workshop.
Long-term relationships
Roy Holth runs Gunnar Holth Grusforretning. He owns 70
machines, half from Volvo and half from Caterpillar. As he
sees it, availability and service have to function.
“Service is the rst thing I look at when I am buying a
new machine. It goes without saying that quality and price
are important, but, if a machines breaks down, it costs me
about NOK 5,000 an hour!”
We drive to a neighbouring stone-crushing plant. Roy
Holth wants to discuss a new proposal relating to a road
construction project in southern Norway and he wants
Jon Vislie’s advice on the machinery to use.
“Jon acts as a partner who helps and supports me
when I am about to take on a new assignment. The per-
sonal contact is important to me. I still want regular meet-
ings, even if we are experiencing a downturn. Jon is good
at this. Other companies try to make savings by cutting
down on customer visits. I think they will lose out in the
long run,” says Roy Holth.
Back at the ofce, Jon Vislie explains that he tries to
set up meetings with customers and potential customers
as often as he can.
“If I have a customer with different brands in his fleet
and he is unsure about what he is going to buy, I set up a
meeting with one of my loyal Volvo customers. I can then
sit back and let them talk,” says Jon with a smile.
Professional solutions and services
Dynafleet/Optifleet/UD Telematics
ITS4mobility
CareTrack
Fuel Management
Training
Safety and security solutions
Port solutions
Transactional Relationship
Product related products and services
Spare parts
Workshop
Remanufacturing
Used vehicles and machines
Operational services
Managing operations
Workshop integration
Aero Services
Outsourcing services
Maintenance and financial services
Service contracts
Financing
Rental
Insurance
Breakdown service
Building the service and aftermarket products business
Our way forward
Customer process orientedProduct oriented
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