182 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Sustainability Statement Customer orientation Characteristics of consumers and end-users ESRS S4 relates to a company’s consumers and end-users. The BMW Group defines these stakeholders as all those who choose its products and services. In the materiality assessment, all con- sumers and end-users were considered on an equal footing, in line with this definition. No differentiation was made between specific groups of people. At the BMW Group, consumers and end-users comprise, among others, customers purchasing new and used vehicles of all brands, products from the Financial Services segment or digital services such as ConnectedDrive. The Company makes a dis- tinction between customers purchasing new vehicles for private or business use (corporate sales, B2B). Private customers pur- chase a vehicle for their own personal use in their own name and for their own account through purchase, financing or leasing. By contrast, business customers purchase, finance or lease vehicles on behalf of and for the account of their businesses. As a global company, the BMW Group bears a social responsi- bility across the entire value chain. This also includes ensuring that fair working conditions and human rights are upheld in the sales organisation. ↗ Social Responsibility The BMW Group always focuses on the customer The BMW Group’s consistent focus on the customer is the basis for its endeavour to create the best customer experience for the mobility of tomorrow. The BMW Group is entering the next era of individual mobility with its NEUE KLASSE in 2025. The NEUE KLASSE is an expression of the Company’s transformation within the strategic areas of focus: electromobility, digitalisation and circularity. With the Customer, Brands and Sales (CBS) system adopted in 2021, the BMW Group is making customer experience the focus of its marketing and sales activities. Key elements here include the seamless linking of digital and physical contact points, as well as addressing customers directly with a clear focus on their needs through the consistent development of processes, sys- tems and structures ↗ Access to information. Within the Company, the CBS Strategy, Sales Management, Digitalisation department is responsible for implementing the sales strategy. The relevant departments are responsible for implementing the measures. Analysing market trends and brand perception To identify customer perceptions and needs in relation to the Company, brands and products and design, specialist depart- ments focus on monitoring and analysing market trends and the changing dynamics of environmental conditions. The corporate strategy unit is ultimately responsible for market research. In addition, surveys are regularly conducted among new car buy- ers with regard to the product portfolio of the BMW Group’s brands. The perception of the individual brands BMW, MINI, BMW Motorrad and Rolls-Royce among buyers and potential buyers of premium and luxury vehicles is surveyed and analysed in detail on a regular basis. The gained customer insights are in- tegrated in brand and marketing strategies. These play a key role in how we address our target groups, design our advertising and our communications. In addition, these findings are taken into account in specific strategies for sales, product design and com- munication. All of this plays a major role in ensuring that the BMW Group is closely aligned with customer needs. Further- more, feedback from the general public and experts is incorpo- rated into the process. Ensuring customer satisfaction Customer satisfaction and enthusiasm are at the core of the cus- tomer relationship and form the basis for the long-term economic success of the BMW Group and, consequently, the profitability of the Company. The Corporate Quality department continually collects and anal- yses data to ensure a high level of customer satisfaction. Surveys that collect feedback on product, sales and after-sales service provide in-depth insights into the customer experience. Feed- back on the BMW, MINI and BMW Motorrad brands and the ser- vices provided is systematically collected after a purchase as part of customer satisfaction surveys. Customers can submit their re- sponses over a period of several weeks via a variety of touch- points in sales and service processes. In addition, customers are also asked about how they are using their vehicle and how satisfied they are with it in the first few months after taking deliv- ery of a new vehicle. The results of the surveys contribute directly to further improving processes. Together with the relevant departments, a catalogue of measures is drawn up based on a detailed analysis of feed- back from customers. This may include the following points: — Training for employees in direct contact with customers, both within the company and the sales organisation — Review and optimisation of processes and responsibilities To measure its success, the Company refers to a specific indica- tor in its core markets each year. The survey includes feedback from customers who interacted with BMW Group sales and ser- vice operations during the period of the survey. The insights gained are used to optimise processes and the product, sales and service experience for customers. Definition and implementation of sales targets at the BMW Group Strategic sales targets are defined as part of the overall Com- pany-wide strategy process. This provides for the permanent and long-term monitoring of the variables and the management of the measures geared towards achieving our ambitious goals. In this context, the Board of Management decides each year on the continuation of existing targets and the adoption of new ones, or any necessary adjustments. Once approved by the Su- pervisory Board, the results are integrated into the corporate tar- get system. These targets are converted into specific require- ments for the individual departments. This ensures that the im- plementation of the targets is closely monitored and that success in achieving them can be measured specifically. ↗ Performance Indicators and Performance Management