Indirect utilities for Volvo from customer benefits

VolvoNet certainly makes a positive contribution for the potential Volvo customer who uses the Internet for information gathering. As consumers use the site they take advantage of and enjoy the value added of VolvoNet.
Fortunately for Volvo there is a great deal to learn from the VolvoNet visitors. We have previously discussed how Volvo exposes its brand and communicates a uniform image through VolvoNet. We also discussed how they capture market intelligence data from VolvoNet visitors.

The main indirect utilities are, however, derived from an increased customer satisfaction. We have in this section shown that VolvoNet brings a value added to its customers. If VolvoNet can live up to or even exceed customer expectations, this will have a positive effect on customer retention and also attract new customers. The more the customers appreciate VolvoNet the more loyal they become to it and the company. Thus, the better Volvo and its dealers can convey the benefits of using the Internet and VolvoNet the more loyal they can make their customers. As is commonly known in marketing, it always costs more to attract new customers than to retain current
customers. With a loyal customer, Volvo can look forward to a relationship that will result in repeated purchases of Volvo products including insurance, cars, spare parts, accessories etc., and thus an increase in ACV.

We recommend Volvo, while estimating the value from customer benefits, not to consider those of the customer benefits with VolvoNet that actually are general benefits with the Internet, nor those that are provided by the competitors, e.g. reading unbiased magazine articles on test runs of different car models. The reason for this is that although the customers might appreciate them, get more satisfied, and give Volvo credit for them, we understand that most of the Internet users in Sweden today, who are interested in car brokering services over the Internet, are experienced users who regard those benefits as standard services. Though, as a web service provider, it is still important to consider these benefits as the customers take them for granted and will be disappointed if they
are not being provided.