How Maruti Suzuki turned its ‘premium’ segment aspirations from failure to success with Nexa

Separate Nexa service centres have opened up now while there are other facilities too being provided to customers that have helped bring in numbers

By:Updated: July 29, 2019 1:42:40 PM

Maruti Suzuki took a very bold step in 2015 when they got in to setting up premium dealerships in India. Many scoffed at the idea as well as said that MSIL will not have its Midas touch with this venture. Look who is laughing all the way to the bank now. There are more than 363 Nexa outlets all across India now and MSIL says that by year end, the number will increase to 400 plus. Furthermore, Nexa has launched its first Mobile Terminal in June 2019 at Haryana and Punjab. There was also a similar initiative in Odisha. MSIL claims that both the terminals together have covered 10 cities in 45 days and have garnered more than 1000+ visits.

MSIL also says that more than half of its Nexa customers are first time car buyers and below the age of 35. These buyers constitute more than 70 per cent of the total sales, a whopping number indeed. So how did Maruti achieve this kind of success with an all-new premium outlet? We did some snooping around to unravel the mystery.

The set-up

Maruti ensured that the Nexa dealerships weren’t premium just for namesake. Every dealer had to ensure that his outlet was located at a prime location, had a vast display area and had ample parking space. The stockyard too should have a better appeal to it than the regular (Arena) ones. The Nexa executives are provided i-Pads and generally given thorough training from Maruti higher-ups. They are also trained in customer service and soft skills. When a customer enters the showroom, he is welcomed at the reception desk, a sales advisor is allotted to him and at the same time, refreshments too are served to the customers. Moreover, the customer is informed of a definite wait time if all the executives are busy.

The customers are walked through the buying process by the assigned executive. He also makes sure that the customer understands every single detail about the product. This same executive also handles the delivery process thereby ensuring a uniformity as well as bond with the customer.

Special service

All Nexa cars including the Ciaz, Ignis, Baleno and S-Cross come with three free services. If the customer wants, Nexa service centres provide free pick-up and drop too. If a customer schedules a service through the Nexa app, his vehicle number is added to the system. When he approaches the service centre gate, the scanner checks the RFID tag and opens the barrier.

The turnaround time for a regular vehicle service is much quicker.  MSIL has also made sure that service centres for Arena and Nexa cars are totally different, though the former’s cars can also be serviced at Nexa. It has been almost two years since separate Nexa service centres have been started, each with 35,000sqft area. Each Nexa service bay has got two trained technicians working on them. Moreover, these workshops have all the requisite automated tools to minimise downtime. It is being said that the turnaround time is less than 1.3 hrs for a scheduled regular service. What’s more the customer can relax in the service lounge, avail refreshments and watch his vehicle getting serviced either on his phone/tablet or the i-Pad provided by the reception. Real-time vehicle service updates too are provided.

If a customer’s vehicle has had a breakdown, if he/she calls the Nexa hotline number, free towing service is provided. Nexa service centres also provide a brake check as well as battery testing zone. These workshops are pollution-free and also reuse 80 per cent of the water.

Isn’t there a Nexa card provided?

The Nexa card is similar to your ATM plastic paper. One earns points when they buy spare parts or other things. These points can be redeemed for service costs and more. Moreover, Nexa lounges at airports too will allow a customer to use their facilities if the specific number is quoted. Customers are also invited for lifestyle events for which MSIL is a sponsor.

More often than not, given these premium facilities that are provided to customers, even an Alto customer wants to upgrade to an Ignis or Baleno. The downside is that currently, there arent too many cars in the Nexa fold while associated service centres too are on the lower spectrum.




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