Direct sales, direct challenges
Marketing direct to customers offers a host of benefits but presents a range of challenges that legacy OEMs could struggle to overcome.
(Time to read: 3 mins)
The grass is always greener on the other side and, based on the perceived success of several new automotive brands, the D2C sales model is starting to look very attractive to legacy OEMs. And while there are several major potential benefits, such as enhanced customer relationships, streamlined processes and cost efficiencies, there are potentially as many challenges to overcome first, in order to adopt a direct sales model that really delivers.
Established OEMs will need to overhaul existing infrastructure including sales and distribution and develop the necessary digital capabilities that enable online marketing and the ability to engage with existing and potential customers in their channels of choice. Just as important in any successful transition will be a concerted effort to change the existing organizational culture so that the move to direct sales delivers against objectives.
Even if a sizable cohort of consumers claim they would be happy to buy a car online, the majority of all existing car owners passed along the traditional path to purchase when selecting a new vehicle. Those consumers would need onboarding and re-education as part of any direct sales CX approach. And in this regard, thanks to an existing customer connection, legacy brands will find it easier as they would not have to do this while simultaneously building brand awareness and cultivating trust in their products.
New OEMs have to raise awareness, make sizable investments in customer acquisition strategies and, in the case of vehicles with an electrified powertrain, tailor a digital CX that addresses consumer concerns about potential limitations of battery electric vehicles (BEVs) compared with traditional ICE vehicles. And what’s more, they need to do all those things without a network of physical dealers or showrooms to support them in gaining trust or flattening the customer’s learning curve.
Case study
Charging direct into the luxury EV market
Challenge
The client, a new luxury EV brand, needed support to launch its vehicles within the Iberian market and to develop the right approach to customer experience that would reflect both its own brand positioning and the target market’s needs and expectations. Consumers at the highest end of any market expect individual service. However, the only way to understand what these expectations are or what the potential pain points might be is to reverse engineer the process.
While the traditional luxury car market is well established, the equivalent EV market was not. What’s more, the client was not only a new brand in a new segment but was attempting to market to consumers directly rather than relying on a dealership network.
Solution
After initial conversations with the client, Foundever agreed that the strategy for the Iberian market (Spain and Portugal) would be end-to-end and omnichannel with the same agents responsible for creating a buzz and awareness for the brand, generating and qualifying leads, and then taking responsibility for the resulting customer relationships as those individuals pass through the sales funnel.
To achieve these objectives, Foundever implemented social media campaigns, promoted virtual and physical events, and used various digital marketing strategies to generate outbound leads while managing inbound communications to convert potential customers into EV owners. The typical automotive purchase journey takes 12 weeks with physical dealerships, but in a sector with minimal physical interaction, it can extend to 6-12 months.
Operating from a multilingual hub in Portugal, the team provide end-to-end support — i.e., customer service, technical support, back-office operations, and sales and post-sales support services — in four languages: Spanish, Catalan, Portuguese and English.
This support is delivered through inbound and outbound calls, chat, email, and social media channels and follows a six-step customer journey:
1. Interest
2. Test drive
3. Sales follow-up
4. Order
5. Handover
6. Technical and customer support
Team performance is benchmarked against the client’s global KPIs including agreed service levels, call abandonment rate, customer satisfaction and, because of the social media aspect of the activities undertaken, brand sentiment and buzz.
Result
Along with a service level of 95%, within the first 12 months Foundever achieved and maintained a CSAT rating of 86% — the highest for any territory. The team’s social media work resulted in a 50% positive and 40% neutral customer sentiment and ‘brand buzz.’ But, crucially, through a combination of +1,000 calls, 2,000 chat sessions, 5,000 emails and 4,900 social media interactions, Foundever delivered €14 million in managed sales for the brand.
in managed sales
service level
CSAT
Channels
phone, chat, email, social media
Markets
Spain, Portugal
From homogenization to specialization
Approaches to sales, support and services must reflect regional customer needs
Driving change: The best practice guide to CX in the automotive industry
