Customer Experience CX in Automotive Industry

Companies and organizations that are involved in designing, developing, manufacturing, marketing, and selling motor vehicles are re-modelling their techniques to serve the needs of the customer through customer experience strategies. This change is imperative although the automotive industry is one of the world's largest industries by revenue and also the industry with the highest spending on research & development.

The automotive industry has been continually digitizing and working on trends. However, at the moment that does not seem to do enough. Customers need to be provided with more than just the product that they purchase. The industry has now turned to create a stable and connected relationship with its customers by providing extra services such as charging electric vehicles or providing premium features such as automatic headlight dimming. Contemplating all potential customer interactions and revenue streams for opportunities to serve the customer beyond the original purchase when developing a commerce strategy is now how every automotive industry leader is working.

Below are some important changes in the automotive industry over the last decade.

Impact of the Pandemic:

There is also a demand for eco-friendly cars. In fact, according to The Economic Times, the global announcement shows that the majority of automakers are firmly planning to move to electric vehicles. In fact, as soon as 2025, around one-third of all vehicle manufacturers will abandon internal combustion engines in favor of going electric, with that figure rising to 40% by 2040. An electric vehicle would have seemed far-fetched just a few decades ago, but green vehicles like Teslas have started the trend of automakers focusing their efforts on developing extremely efficient and electric vehicles. This trend is therefore expected to continue for many years to come, as most consumers value environmental friendliness and some policymakers have introduced progressive sustainability goals so that car manufacturers respond.

The 21st century saw an incredible growth on the digital front in the automotive industry with autonomous vehicles being a star attraction for many. Cars that are fully digitally connected to the customer and provide a larger-than-life experience are also in demand now. Beyond that, the post-pandemic scenario in the automotive industry has also given us a clear insight into customers who are willing to make purchases online without any contact or test drives even.

What stands united in both these aspects? Customer Experience. Customers want brands to be digital, emotional, and service providers; which is why an industry which was predominantly focusing on adding new features to models has entirely scrapped that idea to create models that are environmentally friendly – the new norm.

It is not uncommon for customers to go through video review platforms such as YouTube before making a purchase; even in cases of a car. Hence the requirement for companies to add digital and multimedia features such as car photo galleries, movies (which can also simulate a test drive), and immersive or augmented reality experiences such as 360° virtual tours. Companies now are incorporating such features into their websites to satisfy the customer’s needs and demands.

Buyers have set higher automotive industry standards through research, comparisons and making informed, intelligent choices with every purchase. Brands that are able to analyze and work towards what their customer wants will make the cut into the future while the others get lost in traditional practices.

In other automotive industry news, the digitalization process of the industry is affecting not just how customers interact with their vehicles, but also the purchasing process and how the sales network is organised. As a result, the industry's major players must be prepared to reassess their funnel, adopting new methods, tools, and marketing approaches, beginning with an investment in e-commerce.

According to Boston Consulting Group (BCG) research, the global automotive e-commerce market and automotive industry growth rate will be:

  • In Europe: vehicle sales will ascend from 1% to 6-8 per cent of total purchases by 2025, reaching 25-40 per cent by 2035.
  • In the United States: automotive e-commerce will account for 5-7 per cent of total sales in 2025 and 21-33 per cent in 2035.
  • In China: the most digitally-oriented marketplace will contain 8-10 per cent of online purchases in 2025 and 32-43 per cent in 2035.

Data-driven services and the corresponding customer experience will be the next battlegrounds for the automotive industry. OEMs should consider changing the entire dynamic with their dealers in order to win and retain customers.

Customer Experience CX in Automotive Industry

The Challenges faced by automotive industries:

Customer Experience CX in Automotive Industry

How can Customer Experience Strategies in Automotive Industry help brands?

Sonata GBW helps companies focus on their customer experience management (CMX) and customer experience transformation through surveys, metrics, analytics and auditing by using the CXM framework to combine physical measurements with digital Platformation™ capabilities.  We are dedicated to finding the right customer experience strategy that can lead to a competitive advantage.

Sonata GBW is a global technology company specialising in customer experience CX measurement, platform-based digital transformation, supporting businesses to become connected, open, intelligent and scalable. A global coverage of 105+ markets with over 27 years of experience as a market leader through extensive measurement capabilities, powerful and intuitive reporting and analytics platforms gives us the leverage to improve customer experience. It has presence across USA, Canada, EMEA and APAC regions. If you would like to know more about how we can help you, please fill out the business enquiry form below.