4. Modern Retail

Modern Retail

We’re proud to introduce Audi Modern Retail.
Modern Retail seeks to make Audi customer-centric by giving customers what they need, when and how they need it. Our core values are clear; we must provide personal and positive customer experiences that build trust, save time, and generate incremental profit for you as dealers*.

Retail Today: Modern Retail mirrors the changing retail landscape.
We provide Audi dealers with a set of strategies and processes to increase dealer profitability* and customer satisfaction*.

Flexible and Responsive: Meeting the needs of each and every dealership.
The Audi Omni-Channel Modern Retail experience meets customers’ expectations for a digitally-enabled seamless retail experience. We equip dealers with the right processes and digital tools – along with curated, flexible, scalable solutions to empower Audi Brand Specialists.

Curated Design: Space planning and furniture configurations.
The AoA Furniture program supports Modern Retail by creating an interior environment designed to engage customers and dealers in end-to-end sales, service, and re-purchase interactions. Curated space planning and furniture configurations help increase sales*.

P/H/D

The three main components of the Modern Retail program are known as P/H/D.

Physical Environment

How does a dealership’s interior space change the dealer and customer experience?

Human Interaction

How do dealer personnel adjust processes when customers engage online or in store, to make sure they receive a personalized and positive experience?

Digital Technology

How do we provide a modern, digital experience and seamlessly transition between the digital and physical environment?

Physical Environment
Modern Retail is here today. The scalability of the Audi Modern Retail program allows dealers to be flexible when choosing how to implement for profitability*. The interior spaces of Audi dealerships directly influence the dealer personnel and customer experience.

Human Interaction
The process reflected in the Audi Modern Retail program ensures a personal and positive experience. Relational selling enables a customer to have a comfortable, transparent, purchase experience. Purpose-driven sales points cater to both dealer personnel and customers by eliminating the barrier of a desk and screen between customer and salesperson.

Digital Technology
The Audi Omni-Channel Modern Retail experience allows customers to begin the purchase or service process online, and seamlessly transition to a digitially-enabled in-store experience. Sales points are supported digitally, promoting a transparent customer-driven buying experience from beginning to end.

“The thing that surprised us the most was the dramatic increase in front end gross profit and a dramatic increase in back end gross profit. My philosophy has always been that I want to be three years ahead not three years behind and this was a great opportunity for us to do that.”

—Greg Sexton, GM, Audi Ontario

1.0 Benefits

1.1 Dealers and Customers Benefit with Modern Retail

Modern Retail benefits both dealers and customers through increased profit* opportunities and improved customer engagement.

Flexibility and Support

The AoA Furniture program is scalable, and specific to each retail location. Audi Modern Retail gives dealers flexibility while staying true to the brand.

Transparency and Profit*

Profitability dynamics for dealers change when customers experience a transparent and engaging sales and service process. A simplified and efficient path gives customers the desired insight they need to make an informed purchase, saves time, and mirrors what customers want resulting in greater dealer profitability*.

Customer-Centric Experience

Omni-Channel and co-viewing experiences allow customers to self-direct throughout the sales process. Modern Retail matches the sales and service process to customers’ expectation of digitally-driven experiences in retail today.

“To see the success stories of the pilot dealerships and to speak with the general managers and hear about the failures and then successes is both motivational and a clear pathway that this can actually work. We have to start listening more and more and mirroring the experience to what clients are expecting in the rest of their digital world.”

—Larry Sevrin, GM Audi Rockville

Dealers

Modern Retail positively impacts every profit center of an Audi dealership*.
The dealer environment supports sales and service process, giving dealer personnel options and tools throughout.
Dealer processes and preferences are reflected in design and furniture implementation.
Digital tools and streamlined process maximize dealer personnel’s time with customer.
Focus customer attention through sales process via next-level sales approach and space planning.

Customers

Modern Retail empowers your staff to focus on customer needs.
Customers appreciate simplicity and are willing to pay more for it.
Move customers seamlessly throughout flexible space.
Provide transparency throughout the customer experience, digitally and in person.
Save customers time during the decision-making and purchase process.

“Great experience with the salesperson and streamlined process with all the paperwork.”

“This is my second purchase at Audi. The financing process is now more personable and efficient.”

“...I love my new car and the entire process was smooth and way faster than I expected.”

2.0 Physical Environment:
The ‘P’ in P/H/D

2.1 The physical environment of an Audi dealership supports Modern Retail and the Omni-Channel Buying Experience.

The dealership interior and furniture groupings reinforce a customer-centric buying experience at every step — by inviting customers into spaces designed for maximum flexibility, comfort, and transparency.

2.1.1 Audi Omni-Channel Buying Experience

1

Online Research and Deal Structure

2

Check In

3

Needs Assessment

4

F&I Products
Credit Application
Terms

5

Finalize Purchase

6

Service Introduction

7

Takes Delivery

Audi Brand Specialists are the primary point of contact. The physical environment engages and aligns with the Audi Omni-Channel Buying Experience.

Flexible sales points enhance
the experience by providing customers with options and ease. Seamless, uninterrupted interaction between dealer personnel and customers throughout sales process builds trust. The customers sense of control and equal footing enables the sales process and increases profitability*.

Modern Retail allows dealerships to create spaces that work best for dealer personnel. The right balance of transactional and relational sales points allow customers to choose levels of privacy, comfort, and space — and seamlessly connect to the Omni-Channel Modern Retail experience.

“The new sales process was so easy and there was no pressure at all. Everything was displayed nice and big on the TV for us to see. Zach was awesome to work with and felt more like a guide than a sales person. I will definitely be back!”

— Vicky, Audi Lakeland Customer

2.2 Relationship Sales Enabled by Design

The right furniture configuration for every customer and sales need

Purpose-driven design provides sales points that can support showing, discussing, and negotiating. Flexibility in the physical environment and sales points responds to customer needs and supports dealers. This variety of sales points allow dealer personnel to pivot depending on customer demographic, comfort-level, and preference.

2.2.1 Sales Points

(1/5) Sales Point: Living Room

Description: A relational sales point that pairs a modular sofa and dynamic (swivel) chair(s) with a freestanding TV display to create an informal space for easy-to-share information and digital media.

Purpose/Consideration: Appropriate for larger customer groups such as a family with children.

(2/5) Sales Point: Dynamic Lounge

Description: An informal relational sales point that includes three or four dynamic lounge chairs around a coffee table. TV display element is optional.

Consideration: This allows for a personal side-by-side relational sales method in a lounge setting. Appropriate for individuals or couples who appreciate an informal setting.

(3/5) Sales Point: Table (Round or Rectilinear)

Description: A semi-formal sales point that utilizes a round or rectilinear table with chairs. TV display element is optional. This allows for a side-by-side relational sales method around a worktop surface.

Consideration: Consider this sales point as an option for individuals or couples, less agile customers, or customers who desire a more traditional sales interaction.

(4/5) Sales Point: Alcove

Description: High, upholstered sofa back provides sheltered and private spaces within larger open spaces. This relational sales point is comprised of two facing sofa elements with optional TV display.

Consideration: Perfect for providing small private meeting places without the fixed infrastracture of walls. Appropriate for negotiating customer’s personal financial details.

(5/5) Sales Point: Communication Bar

Description: An informal sales point consisting of a bar-height table and bar stools. TV display element is optional.

Consideration: Appropriate for the sales floor or nearby the customer café, this sales point offers an informal meeting space that allow for side-by-side relational sales method.

2.2.2 Other Furniture Points

The right furniture configuration for every customer and sales need. Flexibility in the physical environment and sales points responds to customer needs and supports dealers. The below are not sales points, but are included to show dealers an overview of the range of available furniture configurations.

Furniture Point: Customer Waiting

Customer Waiting Lounge

Furniture Point: Customer Waiting

Customer Cafe

Furniture Point: Customer Waiting

Play Area

Furniture Point: Sales Reception

Reception Desk

Furniture Point: Sales Reception

Reception Podium

Furniture Point: Service Reception

Counter Workstation

Furniture Point: Service Reception

Desk Workstation

Furniture Point: Service Reception

Podium Workstation

Furniture Point: Retail & Boutique

“As a real estate developer and architect, I believe Audi has produced one of the best designs for a dealership facility that I’ve seen. The open office landscape and the transparent partition design makes for a completely comfortable customer experience. After experiencing your facility no longer will I tolerate other dealerships with those dark back offices where the finance manager resides and I feel like I’m trapped and they won’t unlock the door until I give them more money than I expected.”

—Ken, Audi Jacksonville Customer

3.0 Next Steps

Our business is rapidly evolving and future business success depends on all of us moving forward together. Our approach to the physical retail strategy allows for increased flexibility, dynamic showrooms, and more revenue generating square feet.

Get Started with Modern Retail
We are partnering with dealers to implement Modern Retail Experience stores now. Talk to our Area Team to begin your Modern Retail journey!

Contact
modernretail@audi.com

*Increase in sales and profitability based on Audi pilot dealer findings between November 2018 and August 2019. Dealer profitability is driven by many variables, including but not limited to effective and consistent dealer implementation. Your results may vary and are not guaranteed.

Architecture Guidelines / Furniture

Furniture

Introduction

The Audi experience is a customer-centric experience, designed to be welcoming to guests and flexible for dealers. A series of furniture groupings have been designed to provide a consistent brand experience for all Audi facilities while adding comfort and flexibility to the dealership environment.

Modern Retail Landscape

As the landscape of retail changes rapidly, Audi dealerships must adapt to stay at the forefront of the market. To position Audi as an industry leader, this guide integrates strategies for Modern Retail with a wide range of furniture options to create welcoming and adaptable interiors.

The Audi experience is more than just the experience of the vehicle; it is the experience of the process. Understanding how clients and potential clients engage in the sales process is key to a successful furniture design strategy.

The Relationship Sales strategy puts emphasis on the customer experience, providing sales points that allow ABS to offer customers comfortable environments for sales interactions ranging from casual to formal. For more information, see Modern Retail [ LINK ].

A Modern Retail approach to the Audi environment embodies the PHD (physical, human, and digital) through use of contemporary furniture, Relationship Sales strategies, and digital tools to provide a cohesive brand identity with consistent recognition across all dealerships.

Customer Experience

How one navigates and experiences the physical retail environment directly impacts their brand perception.

Atmosphere

The atmosphere of an Audi dealership should be high end and premium. This is created by a combination of strategies including lighting, finishes, wall graphics, and furniture.
– See Lighting Guidelines
– See Finish Guidelines
– See Wall Graphic Guidelines

1.0 Furniture Strategy

1.1 Sales Points

A sales point is a furniture grouping that is a customizable point of consultation or point of sale. It is a space for an individualized sales experience with a sales associate — unlike waiting lounges or customer cafe tables, a sales point is intended to be used by a sales associate with a single party. Dealers should choose sales points based on the experience they want to offer, considering both the character and the experiential factors of each sales point.

1.1.1 Character

There are two types of sales points: Relational and Transactional.

Relational (Informal)

A relational sales point prioritizes the customer’s experience and comfort. These sales points tend to be more informal and offer more variety of furniture types. The sales associate is easily able to share information and digital media with a customer through side-by-side seating arrangements.

Transactional (Formal)

The traditional approach to sales is from across a desk. This method of selling vehicles sets up a formal relationship between the sales associate on one side of a desk and the customer(s) on the other.

1.1.2 Experiential Factors

There are three main experiential factors to take into account for a successful sales floor layout. The appropriate combination of sales points will make customers feel more at ease during a transaction.

Purpose

Each sales point is determined by one goal: Sales. This main objective can be pursued through different strategies, which often involve negotiating, showing, and discussing. Some furniture groupings are more suited than others for these particular purposes. All furniture groupings can accommodate digital sales with optional TV. Consider how different sales points can assist an a sales associate in securing a sale.

Size

Customers arrive in various numbers and may require different amounts of seating. Some sales points easily accommodate individual customers or couples, while others are more appropriate for families or larger groups.

Quality

Not all customers want the same sales experience, therefore it is advantageous to provide some variety of sales point environments in your sales area. Consider a mix of casual and formal sales points. The Audi-approved selection of sales point furniture groupings can achieve varying degrees of privacy. Consider age, level of formality, degrees of privacy, and degrees of transparency.

1.2 Sales Area

The sales area is the open floor space composed of points of sale (sales points) and customer waiting areas. The furniture selection and layout can affect the customer’s perception of the dealership and the brand; therefore, a sales strategy should first be chosen when designing the dealership sales area.

Audi-compliant furniture is required in the sales area and any other customer-facing space (i.e. spaces that are accessible or visible to customers). These guidelines do not apply to back-of-house spaces and staff-only areas. In such areas, any functional high quality furniture is acceptable.

1.2.1 Sales Strategy

There are two types of sales area strategies: Non-Dedicated and Dedicated.

Non-Dedicated

This is a customer-focused strategy.
This strategy uses flexible sales points in the sales area, where each sales point can be used by any sales associate.
A non-dedicated sales strategy allows ABS to select appropriate and comfortable sales point settings to meet their customer’s preferences and demographic.
Dealer should provide a back-of-house Sales Workspace for sales associates and their personal items.
Due to the shared nature of sales points, a non-dedicated Sales Area will often need fewer overall sales points on the sales floor.

Dedicated

This is an associate-focused strategy.
This strategy provides a dedicated desk for each sales associate on the sales floor.
Every customer is taken to an associate’s personal desk to continue transactions.
Flexible, non-dedicated, sales points may be added above-and-beyond the minimum required dedicated ABS points.

A combination of relational and transactional sales points work within both Non-Dedicated and Dedicated sales floor strategies:

Dedicated Strategy with ABS sales desks that are transactional and digital sales points that are relational.

Non-Dedicated Strategy with a mixture of formal and informal digital sales points.

Dedicated Strategy with ABS sales desks that are transactional and alcove sales points that are relational.

1.2.2 Relationship to Vehicle Display

The sales area should be considered in relation to the vehicle display. Proximity between these spaces is important. There are three possible relationships between the sales area and vehicles on display.

Distinct
The showroom and customer sales area are distinct spaces, but in close proximity. Specific interior finishes such as contrasting floor tile, and ceiling heights are used to differentiate the two spaces.

Distinct Guidelines
The distinct showroom is designated by a dark grey (anthracite) floor tile. Sales points are located in the sales area, designated by a wood-grain floor tile. Use area rugs under non-desk sales points.

Semi-Distinct
The showroom and sales area generally remain distinct spaces, but sales points are allowed to migrate onto the showroom floor. This creates a stronger relationship between the customer and the product (i.e. vehicle).

This can be a design strategy or a future growth strategy.

Semi-Distinct Guidelines
Only non-desk sales points may be located on the showroom floor.

All sales points on the showroom floor must be on an area rug.

Mixed
The showroom and sales area are merged and become one-in- the-same. Vehicle display, sales points, and customer waiting areas are interspersed. This creates a stronger relationship between the customer and the product (i.e. vehicle).

The vehicle presentation area is no longer reserved exclusively for vehicles but combines activities to improve customer experience, increase buying incentive, and provide a more tangible brand expression.

This strategy would utilize a single
floor tile throughout.

Mixed Guidelines
A single, continuous floor tile is to be used. Non-desk sales points should be placed on an area rug.

1.2.3 Customer Waiting & Cafe

Customer waiting areas, which include lounges and cafe seating, are intended for multiple parties to relax while waiting on service or on an associate. Individual seats paired with a TV are excellent for this type of furniture grouping. Accessories, such as coffee tables, occasional tables, pillows, and lighting fixtures help to make these enjoyable places for a customer to wait.

See Furniture Group: Customer Waiting (CW)

1.3 After Sales

After Sales supports Audi owners after a vehicle purchase with maintenance, service repairs, and genuine Audi parts and accessories. It is the most frequented area for first point of contact. Therefore this area is a large opportunity for a dealership to build customer loyalty. After Sales should not be an afterthought — it should provide an equivalent customer experience to the showroom and sales areas.

1.3.1 Service Reception

The main After Sales area is referred to as service reception. It includes the service drive and service writers area. The service writers are the first point of contact for customers arriving via the drive — they are typically located just inside of the glass wall of the drive and are adjacent to the sales area.

Three Types of Service Writer Points

1/3
Stand-Up Desk
These workstations include a stool for the service associate, while customers approach and stand at a bar-height surface.

See Furniture Group:
After Sales (AFS)

Three Types of Service Writer Points

2/3
Sit-Down Desk
These service writer workstations include a chair for the customer. They should be oriented so that the service associate is facing the entrance and the drive.

They typically require the most space of the service writer workstation options.

See Furniture Group:
After Sales (AFS)

Three Types of Service Writer Points

3/3
Greeter Podium
A greeter podium(s) may be used in addition to, or in lieu of, service writers desks and may be located inside or out on the Service Drive.

Instead of requiring a customer to approach the service writer at a desk, this furniture strategy encourages the service writers to greet customers as they pull into the drive.

See Furniture Group:
After Sales (AFS)

Service Manager's Office
The service manager’s office should be located nearby the service writers with visibility of the drive, and if possible, of the workshop.

As a customer-facing office, the service manager’s office is fully glazed, yet enclosed for more private discussions.

See Furniture Group:
Desk

Service Lounge
By creating a convenient, comfortable and premium environment for customers, After Sales areas become a place to capture new sales. This is an optional furniture grouping.

Consider adding wall graphics, and providing a small, intimate lounge area just off of service reception for one-on-one conversations with a service associate.

See Furniture Group:
Customer Waiting (CW)

1.3.2 Boutique

The Audi boutique area offers opportunities to build brand loyalty by providing a “store within a store”. It includes the retail parts counter and merchandise display for genuine Audi parts and Audi lifestyle collections.