Harvard Business Review LogoJori BoltonHohenbruck Motoren, a German luxury automaker, launched a car subscription service in 2021 called Hohenbruck Access. The monthly fee is higher than that of a typical lease, but a subscription isJon Weber, senior vice president of customer strategy for Hohenbruck Motoren North America, was driving to work in his HX7, the luxury carmaker’s SUV model. Cutting through a residential neighborhood to avoid highway traffic, he eased to a stop at a traffic light, glancing at the time on the dashboard.
Case Study: Is Our Subscription Program Really Working?
Hohenbruck Motoren, a German luxury automaker, launched a car subscription service in 2021 called Hohenbruck Access. The monthly fee is higher than that of a typical lease, but a subscription is easier to start and stop and includes insurance, maintenance, and other services. The more expensive subscription also lets customers switch Hohenbruck models at will. Access has attracted younger customers and expanded the brand’s reach, but the program’s strategic purpose is becoming harder to define. Dealers see the multicar option as a powerful sales tool that gives customers time to discover what they want; Hohenbruck’s technology partner argues that only single-car subscriptions can deliver sustainable margins; and senior leadership worries that the program could weaken the brand’s aura of exclusivity. Jon Weber, senior vice president of customer strategy, must decide what form the subscription program should take moving forward—or whether to scale it back before it reshapes the company in ways Hohenbruck may not want.
84 words~1 min read
