customer management in used car business
TRANSCRIPT
Customer Management in Used Car BusinessLeveraging Customer Engagement by seamless Processes
Thomas Dmoch
# 1 New technology creates new customers.
# 2 Customers force vehicle business to go digital.
# 3 Today’s UC business is not sustainable.
3
Customer Management organizes exchange relations.
New technology
creates new
customers
5
The traditional dealership is dead.
6
Customers trust online reviews more than car dealers.
2003 2004 2005 2006 2007 2008
60%
Trust in „a person like me“
30%
“Russian soldiers are not
present in Ukraine.
“
“I had no sexual relation
with that women.
““This is a quality car.
““The Vodafone compensation
was totally appropriate.
“
Recognize how
customers force
vehicle business
to go digital.
8
The internet turns the sales funnel to an interactive one.
In former days
purchase
various brands
fewer
choice
Today: interactive
consider
compare
replace
usepurchase
9
Consumers interact in the internet in various ways.
event
input
appeal
comment
upload
Today: interactive
consider
compare
replace
usepurchase
10
The internet is the first entry point for
purchase research.
Online interaction strongly influences purchase decision.
Today: interactive
consider
compare
replace
use
One out of threebuyers gets inspiration for
additional brands online.
24%of buyers consider
online reviews to
be most helpful in
deciding where to
make their
purchase.
Every customer used the internet for information
at least once before purchasing an used car.
1.8dealerships visited
before purchase,
compared with
3.6 in 2008.
75% of used car buyers share their
purchase experience online.
purchase
73%of customers consulted
online reviews
of dealer-
ships.
11
Dealers can’t influence purchase decision any more.
Play Bowling:
A clear shot!
In former days
purchase
choice
various brands
fewer
Play Pinball:
Keep the ball in the game!
Today: interactiveToday: interactive
consider
compare
replace
usepurchase
12
Service of Online Portals exceeds Brick-and-Mortar.
Online portal Brick-and-mortar
Contact
Consider
Vehicle presentation
Need analysis
Comparison offer
Human interaction
Financing
Insurance
Test drive
Contract
Warranty
Interaction with other
customers
Customer service
Loyalty program
Customer
satisfaction
Purchase
Use
Measures
Provide online brochure
Warranty reminderReplace
Configurator
Video chat
Detailed pricing information
Schedule test drive
Offer for financing
Online insurance contract
Offer for service contracts
Loyalty program
Facebook account
Certified quality
Compare
Opinion on test drive
13
Dealers could win customers picking up their digital habits.
1 Interactive touch screens to view car information
2 3D virtual vehicle configurator
3 Virtual test drive stations
4 Availability of digital information in showrooms
5 Send information to the iPhone
6 Digital shopping assistant helping with questions
14
But to be perfect the service has to cross boundaries.
- 14 -
Measu
res
• Joint activities of OEM, captive
bank and retailers
• Higher margins for demo cars
and one-day-registrations
• Attack the segment of 3-to-6
year old cars
• Appreciate residual value as
part of the brand value
• Exclusive distribution of the
manufacturer’s leasing returns
• Linking of existing instruments
• Raise residual value
• Qualify dealers in operational
processes
• Transparency
• Inventory management
• Price comparisons
• Marketing controlling
• Transversal and national
coordination
operative strategic
Acknowledge
that today’s
vehicle business
is not
sustainable.
16
Alternatives to dealer for vehicle purchase.
Directly from manufacturer
(e.g. call center, Website)
Independent online vendors
(e.g. Amazon)
Retail store
(e.g. Metro, Sears)
Car rental company
Auction service
I would only buy from a car
dealership
42%
21%
18%
17%
17%
21%
17
Sta
nd
ard
iza
tio
nC
us
tom
er
Ma
na
ge
me
nt
Mu
ltic
ha
nn
el
Ma
na
ge
me
nt
Customers expectations are formed by other branches.
Customer data sharing
Intra-system reward trading
Status acknowledgement
Transparent stock
Brand Experience
Customer interaction
Success factorsBest in classAutomotive
industry
18
Sta
nd
ard
iza
tio
n 1
Three levers to improve used car business.
Cu
sto
me
r
Ma
na
ge
me
nt
Mu
ltic
ha
nn
el
Ma
na
ge
me
nt
Requirements Target picture
2• Prospecting
• Customer care
• Up-selling
• Sales funnel management
3
• Seamless customer
experience
• Across all touch points
• Strong brand
• Workflow management
• Homogenous processes
• Data transparency
• One frontend at POS
Levers
19
One layer bridges all OEM business areas and retail.
Dealer Service Call Center Online
Point of sale
One common layer
(Unified sales platform)
New Car Used carFinancial Services
AftersalesCorporate
Sales
Business areas
OE
MR
eta
il
20
Retail CRM contains entire customer contact history.
DMS
OE
M
Wholesale CRM
Digital Car-Net OnlineCall CenterKUBA
Central touch points
…
Synchronized customer follow up
Unified Service Platform
Retail CRM
Reta
il
21
Look ahead.
1. Improve customer experience above all touchpoints.
2. Rationalize customer management by seamless processes.
3.Create service bundles with captive bank, retail and
aftersales.
4. Create transparency of inventory and pricing.
