Mercedes-Benz Financial Ranks Highest in J.D. Power Study for Third Year

For the third year in a row, Mercedes-Benz Financial Services ranked highest in the  J.D. Power 2017 U.S. Dealer Financing Satisfaction Study in the categories of retail credit-luxury captive (a combined category for retail lease and prime retail) and floorplan.

Earning a total score of 986, on a 1,000-point scale, Mercedes-Benz Financial Services maintained the top position in the floorplan segment for the seventh consecutive year, with 100% of dealers indicating that they definitely — or probably — will not switch to another floorplan provider. In the retail credit-luxury captive segment, the company received a score of 972 and was ranked highest in each of the four components that comprise this category, including provider offerings; application/approval process; relationship; and lease return.

Geoff Robinson, vice president of MBFS, spoke with Auto Finance News about what sets the captive apart and how dealer relationships have changed in the last three years. Following are edited excerpts from the interview:

Auto Finance News: Considering Mercedes-Benz Financial Services snagged the top ranking spot in J.D. Power’s retail credit-luxury captives and floorplan categories, what does MBFS offer to dealers that other companies do not?

Geoff Robinson: At MBFS we focus on long-term partnership with our dealers, who we also view as our customers, and do our best to design an experience that makes us their finance partner of choice throughout all economic cycles. Because we think of our relationships in terms of decades, not quarters or years, that makes a difference in how we operate.

As with all successful partnerships, open, two-way communication is essential, which is why we remain dedicated to continually seeking and drawing upon dealer feedback to help direct the solutions we aim to deliver. We ask questions, we listen, we take action then we ask more questions.

AFN: Where is MBFS’s biggest strength in dealer relationships?

GR: While our sales force is always available to discuss dealers concerns, operational efficiencies, and new ideas, annually those representatives offer dealer-specific strategic consulting based on successes and missed opportunities identified in our system data. [System data includes sales leads generated, contract quality, and brand loyalty statistics.] Dealers utilize those yearly meetings to discuss their business goals and offer ideas on how Mercedes-Benz Financial Services can improve and drive greater success.

AFN: How has MBFS’s relationship with dealers changed over the past three years? Have there been any specific focuses on further improving relationships?

GR: MBFS is intent on improving and — as a result — the products, services, and experiences available to our customers continue to evolve. Recent innovations include digital solutions that make it easy for our dealers and customers to connect and do business with us. In 2016, to optimize service levels and in accordance with dealer feedback, we evaluated our sales team configuration and developed the Sales Force Effectiveness initiative, realigning all sales personnel to create a single point of contact for each dealer. Since January of 2017, our dealers have experienced the optimized service and support this new structure aspires to offer. Each sales contact provides assistance as it relates to wholesale financing, retail financing for passenger cars and commercial vans, and protection products. A major advantage of this new structure is that it reduces the number of dealers each representative supports, which enables them to spend more time addressing dealership needs.

In addition to a sales territory realignment, we also developed a comprehensive field sales training program to support the sales representatives who provide that critical link from the company to each Mercedes-Benz dealership. We view both the realignment and training as an investment in our people and an essential, proactive step to maintain a strong dealer partnership.

Each dealership has its own idea of OK, good, and great; we work hard to understand each individual business and support them in a way that appeals to each specific dealer. While J.D. Power survey results are an important part of that understanding, we foster conversation via many channels, including our regional forums, regular calls with the F&I dealer board, monthly sales meetings, etc. We only succeed when our dealers succeed, and we count on them to help us understand what offers them the most value.