Arriva Bus and Coach has added further to its senior team by appointing Natalie Kelly as Head of Sales. One of her primary tasks is to inject a renewed vigour into sales at a business that is on the up again
Things are changing at Arriva Bus and Coach (ABC). To complement the arrival of Managing Director Ed Potter and Commercial Director Andy Cullen earlier in 2017, the dealership in September welcomed Natalie Kelly to the key position of Head of Sales.
Natalie is a newcomer to the coach industry, but not to sales. A multi-year career in powered access equipment saw her hold many roles, and that experience will allow ABC to brush up on a few things that, by its own admission, may have become stale.
“ABC has always sold coaches, but there is a lot more behind the scenes that customers perhaps haven’t seen as well as they should have,” she says.
“My team will promote our strengths as a business, and the package as a whole that we can offer to buyers. Doing so will benefit us, and it will benefit customers.”
ABC has a strong backer in Arriva, and ultimately in Deutsche Bahn. For its coach operator customers, the industry is changing rapidly. But Natalie adds that there is nothing for them to worry about where ABC is concerned – because the changes there are all for the better.
Lots in common
ABC’s management team began a review of the business earlier this year and the ensuing revolution is still underway. It has one aim: To put ABC on the same page as its customers and recognise what they are demanding, and deliver on both.
As alluded to by Andy and Ed earlier in 2017, one of the key planks to this is a strengthened aftersales offering, which in time will include a new workshop in London.
The sales process is also changing, used stock is being revalued, and other developments will follow, so Natalie’s appointment is just one element of the business’ transformation, albeit an important one.
Where there won’t be any change is in relationships with customers. Natalie’s brief is to manage the sales team, and the familiar faces that operators have come to trust are still there. The Temsa and Van Hool coach ranges remain in the shop window, too.
Away from that, what is happening at ABC has been driven by the industry. To illustrate, some operators are still uncertain about their direction when ultra low emission zones (ULEZs) start to appear, while others still hold reservations about Euro 6.
“The industry as a whole has become a lot more professional over the past decade. Current developments are a challenge, but they are also an opportunity if we step back and look at what we already have,” says Head of Product Steve Fletcher.
“Some incredibly experienced and knowledgeable people work for ABC. In the current climate there is an opportunity to put their strengths to work helping customers, but that’s ongoing and we won’t get everything in place overnight.”
Aftersales product expansion is a priority. ABC now offers vehicle maintenance packages with varying levels of ‘mix and match’ coverage, and to go hand-in-hand with that, its field service capability is growing.
Southern expansion
Of ABC’s mobile technicians, two are based in the south of England. To complement them, it is currently working to establish service premises within the M25.
It’s the backing of its parent organisations that are allowing ABC to invest a London workshop. More mobile technicians are being recruited, but only when the right people for the role are found.
Key to the expansion of aftersales, and similar growth in parts supply, is bringing support arms together with the sales and rental functions and ensuring that all are on the same page. A large, open-plan office to facilitate that was under preparation when routeone visited in September.
“We believe that now more than ever, offering the whole package is vital. Operators don’t just want to buy a coach, and ABC is no longer simply about selling,” says Natalie.
The dealership is pragmatic about Brexit-related currently fluctuations and their effects on prices, and it believes that its customers are too.
By working to add value through a stronger aftersales product, it aims to keep the whole package – acquisition, operation and, if applicable, disposal – as attractive and cost-effective as possible. Among Natalie’s jobs is ensuring that buyers know of the options available to them.
“I have a line into aftersales, a line into rental, a line into parts. Things aren’t segregated. We are working together, and my team will be selling the whole group of products,” she says.
“But we are not leading the customer. Customers are leading us and leading how things change. That’s an important message; we work with buyers, and when they tell us what they want, we will do our utmost to deliver it.”
Product line-up stable
ABC stresses that despite changes in the business, it remains 100% committed to both Temsa and Van Hool.
The Belgian manufacturer’s UK line-up will soon grow with the 13.2m, two-axle EX16M, and ABC remains in negotiations with Temsa to bring the super-high Maraton here, but how stock orders are structured may be revised.
“We’re working closely with Van Hool on how we manage the exchange rate, but the EX16M is coming. It has Van Hool quality but at a more cost-effective price, and when it is combined with our aftersales packages, it will appeal to customers,” says Natalie.
The EX16M complements the high-floor EX15H and EX16H. All will be held in stock and they will also be available for rental, but it’s likely that the TX range will no longer be ordered speculatively. The EX will hold that role, and the TX will be built to order.
Work is also taking place to deal with what had become a large fleet of second-hand coaches. The revaluing process is well underway, and the number on site is coming down. The long-term aspiration is that dwell time will reduce, and various initiatives are aiding that already.
“We’ve opened every cupboard and looked behind every door. The decision with the used stock is one of many that we have made. It was a tough call, but because the business has strong backing, we were able to make that choice and follow through with it,” says Steve.
Euro 6 retrofit
One initiative with used stock may be to offer retrofit options to bring older coaches up to Euro 6 standards. While some vehicles may not warrant the expenditure, newer stock will in some cases justify it. That will further broadens the product offering.
It will sit comfortably alongside rental as an option for operators who need Euro 6, but who may be reluctant to buy new outright.
The rental side of ABC’s business is set to remain strong, and it will continue to account for around 50% of new coaches supplied.
Rental is also a cost-effective way into Euro 6, and with a more cohesive sales force, field representatives will be offering those deals.
“One of our strengths is that we don’t have to focus on one particular discipline. We have the mechanisms in place that allow us to support the customer in a way that suits them,” says Natalie.
“The growth plan that Andy and Ed have put in place is demanding, but what we give to our customers is confidence. The coach industry is changing, and we have the strength to ride that out,” says Steve.
“In Natalie, we have brought in a fresh outlook. She will allow the sales process to become more modern, and reflect the choices that operators now both need and expect.
“We are looking for growth, not just in sales, but for the business as a whole. That will come by working closely with our customers and giving them what they want.”
