Agency Sales Model

Across industries, consumers have become accustomed to customer-centric business models and convenient purchasing processes.

In the automotive industry, there is an increasing demand for an upgraded, convenient online offline sales journey that matches buying expectations and service standards in other industries. The traditional three-tiered sales model, however, does not fully accommodate such consumers demands.

It is time to be bold!

This point of view clearly points out that moving to an B2C agency sales model is not an option but an obligation from the perspective of both customer-centricity and financial profitability of up to 4% revenue increase in the long-term. Even more, taking short- and long-term effects into account, transitioning to agency sales can pay off financially after 4-5 years.

Therefore, it is now time to act for OEMs and to select a market as well as product to start the transformation journey. The new sales model is embracing the new “phygital” world by connecting physical and digital experiences for consumers. This will create a competitive advantage upon which future success will depend.

“For me, agency sales is the most powerful model for the future. For the time being, it requires an enormous investment from all parties, but it strengthens all stakeholders in the long term – and that can only be done in close cooperation.”

Managing Director, automotive dealer council of an OEM, Germany