BMW Group Financial Services (BMW FS) is to change the way its retailers are incentivised and rewarded at all 147 BMW and 143 Mini retailers across the country.
Incentivisation has been under the spot light of the Financial Conduct Authority (FCA), however according to Spencer Halil, group brand general manager for BMW FS, this was only part of the reason for the update: "We’ve done this because it is the right business decision, but it can’t go unnoticed that this approach is also in line with the aims of the Financial Conduct Authority as well."
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Under the new system, the BMW retailer network will use a discounting structure rather than an up-selling one, the removal of fees and the introduction of a performance bonus based on delivering the best customer results.
While some retailers have moved onto the new system, BMW said the full network transition will take place 1st January 2015.
Halil said: "While we recognise the dealer network may experience some short-term adjustments through the transition, we fully believe that this approach will deliver genuine business growth through 2015 and beyond."
He said: ""The primary objective of this transition is to meet the changing demands and expectations of our customers. We are putting them at the heart of everything we do by providing simple, transparent, fair products that meet their needs."
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