What are today’s automotive CX imperatives?

What are today’s automotive CX imperatives?

9th February 2023 · Arvato · Blog, News

Authored by David Morton, Sales and Solutions Director, ArvatoConnect

As industry experts highlight in our new report, automotive brands can no longer simply pin revenue and reputation to a good piece of machinery that delivers when customers turn the key.

The future is forging long-term relationships with drivers through an ecosystem of ‘sticky’ services – ones they are happy to purchase to improve their mobility experience and keep buying however they choose to travel.

Customer experience will play a critical role in building and maintaining these lasting relationships.

So, how do brands do it and what will they need to prioritise?

The retention and value challenges

Today, customers want flexibility in how they drive.

PwC forecasts that as much as a third of all kilometres travelled by 2030 will involve some form of ‘shared’ mobility model1 – through a car club or a vehicle subscription, for example. Meanwhile, more and more drivers are turning to leasing, rather than outright ownership.

This is creating a retention risk. As we explored in our recent article on the future of shared mobility models, if drivers can drive anything, why would they choose to stay with one provider?

At the same time, automotive brands are becoming increasingly alive to the opportunities to develop new services for smarter, more connected cars.

For example, General Motors has launched subscription packages for connected vehicle services. For a monthly fee, its customers can purchase features from remote vehicle access, to checking fuel and tyre pressure from their phones. Audi, Toyota and Porsche are some of the many others to offer similar propositions.

There are two hurdles here. Vehicle data sharing is still relatively new. Brands have an uphill battle to win customers’ trust when it comes to using their data.

And then they need to demonstrate value. Why would a customer either consent to sharing their personal or vehicle data – or keep purchasing a service – if it delivers anything other than an improvement to their driving experience in return?

Customer first

Good CX will help brands navigate all these issues.

Through positive customer experience, they can deepen relationships and drive loyalty – keeping customers choosing their products and services, regardless of whether they are taking out a short-term rental, a lease or buying a car outright.

Similarly, in the battle to build new revenue streams through connected services, great customer experience will make these services more valuable in customers’ minds. It’s no good a system flagging when a driver has a mechanical fault if the customer can’t then get help with questions about fixing it. CX will itself be a feature of connected services worth paying for.

To deliver the quality of experience that will make a positive difference, brands need to have some fundamental elements in place.

They must be able offer a consistent service that is truly omnichannel – providing customers with the option to engage on social media, WhatsApp or webchat, as well as through phone or email.

This isn’t just a nice-to-have; it will be central to long-lasting customer relationships. Research shows that 60% of drivers would switch brand if they couldn’t contact the service provider on their channel of choice.

Brands must be able to meet customer preferences for self-addressing problems, queries or questions, and getting support through agents.

More than two fifths (44%) of drivers want to be able to resolve issues without speaking to a human team member – but 82% want the option to get someone’s help, when they need it. Technology, such as artificial intelligence, can help deliver effective self-serve solutions, while also helping staff manage queries quickly.

And then there’s the all-important issue of personalisation. More than two fifths (42%) of drivers would change brand if they didn’t receive a service that was tailored to them. Just under a third (30%) would pay a premium to get it.

To achieve this, brands must build and maintain an up-to-date, 360-degree view of their customer – something that can be supported with the help of automated tools.

Life in the fast lane

Getting these factors right won’t just help drive loyalty. They will support brands’ efforts to build, launch and grow new revenue streams in the connected mobility ecosystem, too.

At Arvato, we work with some of the world’s leading automotive businesses to help them design and deliver CX solutions that deliver the premium experience customers expect, across the customer journey.

To learn more about how our experts can help you put your competition in the rearview mirror, contact us today by emailing: CRMSE@arvatoconnect.co.uk.

ENDS

Sources:

1. https://www.pwc.com/sk/en/current-press-releases/by-2030-transport-sector-will-require-138-million-fewer-cars.html

2. Survey of 1,000 UK drivers, conducted in November 2022 by 3Gem on behalf of Arvato



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