Put the customer in the driving seat

Purchasing a new car is a major financial decision. For many consumers it is second only to buying a home. And, if something is sold at a high cost, it comes with equally high expectations. But historically, with one or two notable exceptions in the highest echelons of the luxury car market, the automotive customer experience has failed to meet those expectations. Rather than underpin and accentuate the ownership experience, the automotive CX can feel fragmented and disjointed, particularly in the post-purchase phase. Some lack of cohesion is understandable. Not all touchpoints on (or beyond) the initial path to purchase are within a carmaker’s immediate control, while the traditional dealership model, and the region-to-region regulations surrounding their operation and relationship to OEMs, can mean that rather than serving as seamless brand extensions, they become silos.

Still, if the industry were insulated from the wider business world, this wouldn’t be a problem. But it isn’t and, as a result, its existing CX issues are a problem and one that’s being compounded on three fronts.

Carmakers may well benchmark their CX against that of competitors, but their customers don’t. Consumers gauge every new customer experience against the best CX they have ever enjoyed, irrespective of the industry, product or service. That’s a high bar and it’s constantly moving higher.

At the same time, new automotive brands are arriving on the scene. Unhindered by legacy commitments, they are finding success (where regulations allow) through D2C sales with total control and consistency at every touchpoint.

The third compounding factor is the growing competition from businesses offering personal mobility products and services. These businesses stand out by delivering seamless digital experiences that immediately meet and exceed customer expectations. There is a ceiling to absolute growth and market penetration for these types of services beyond urban areas. Nevertheless, their simplicity, ease of use and digital integration are making it easier to win customers who, until recently, would have been traditional car owners.

Each of these factors is serving to highlight and magnify enduring weaknesses in the traditional automotive CX and in doing so will make it harder for established OEMs to hold on to existing customers or attract new drivers.

And while remaining competitive is important, there is an even more pressing reason for taking action — insights.