“So the way we’re positioning the business to be more profitable through the right channels fits with that.”

This adjustment could help  to improve dealer views on how realistic VW’s standards are compared with the return, as NFDA survey results show a rating of 2.6 out of 5.

Out of the current 208 dealers in the VW network, 16 have completed the changes, 45 will be completed before the end of the year and the entire network will be up to date by the end of 2014.

Part of the new CI strategy is to move to bigger facilities with a 10-car showroom as part of the investment criteria.

Hazelwood said: “We have a model range which is now well over 20 cars and to display it properly you really need space for at least 10 cars.

“Many of our retailers are building larger facilities.”

Plummer believes customers are more likely to travel further if they know they’re going to a larger site that is more likely to have the models they’re interested in.

 

The digital showroom

Alongside the CI upgrade, dealers have also embarked on a ‘digital revolution’, which went live in summer 2012.

Each dealership has 10 iPads for staff and customers, which  contain  apps for car configurators, how-to videos and explanation videos for topics such as PCP deals. Salespeople can also access their dealership’s used car stock lists.

Plummer believes this makes the assimilation of information easier for the customer, as well as enabling them to view virtual examples of products and specifications that may not otherwise be available for immediate viewing in the showroom.

Hazelwood believes the concept allows customers to buy on their terms and gives them the flexibility and time to browse, look at options and understand finance propositions. VW says its research shows customers using iPads are more likely to use finance, will take more options and are scoring higher levels of customer satisfaction. It was unwilling to share exact figures on the improvements.

Plummer said: “The customer journey will start on the internet and on the VW website, so we have tried to link that journey from the internet and into the showrooms through the iPad.”

VW’s digital showroom concept recently won two awards at the Marketing on Mobile Awards (MOMAs) in June for user experience/usability and for mobile/tablet B2C app.

Hazelwood said he sees people and technology working together, rather than all car sales moving online.

Plummer said: “The key thing we try to focus on is getting our teams to deliver a warmer customer experience.

“You’re still using a screen, but it’s much more personal and the barrier of the desk is removed.”

Communication

VW holds a monthly half-hour update, which dealers can log in to online. Out of that time, 15 minutes is given over to updates on business issues and the rest of the time is used to allow dealers to post anonymous questions, which Hazelwood then responds to.

Hazelwood said: “It can be interesting. The questions come in and I generally act as a chairman as the questions come in on an iPad and the management team here discusses and responds.

“We’re very much in contact with the network.”