Is Care by Volo helping to lower the average age of a Volvo buyer?
We are roughly six to eight years younger than the average at Volvo.
Does that mean the early 40s?
I would say it’s closer to 45. I see a lot of the growth opportunities as we reach out to even younger customers.
Is the business profitable?
We don’t share numbers in terms of profitability, but this would not be one of Volvo’s core pillars [to more than double global online sales to 50 percent by 2025] if we thought we couldn’t make money. That is absolutely clear. And this is not something that is bleeding money today.
Does Care by Volvo look at nontraditional metrics to rate its success?
Yes. I come from the e-commerce world and I have been building up tech companies for a while. In this sector you are primarily looking at the customer’s lifetime value. That is different from what I have seen in the automotive industry. Another core pillar for us is how many visits a person makes to the retailer before making a purchase. In Germany, for example, roughly 40 percent of customers visit the retailers before making a purchase. That means 60 percent go fully online.
Does that number concern dealers?
We do not want the retailers to be excluded from the buying journey, but it’s important to understand how we can improve and build the service to make sure it is as good as possible.
One of the numbers that Volve talks about is having 5 million direct customer relationships by 2025. What role will Care by Volvo play in that?
We want to build the direct relationships together with our retailers so we can do as much as possible to keep loyal customers and retain them over time. That is absolutely core to our subscription model.
What is Care by Volvo’s retention rate?
We don’t share that. What I can say is that the [retention] data looks solid. Although we have a flexible model where the customer actually can switch to another car and can easily jump out or in, that is not something we want to encourage. At the…