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The Future of the Automotive Dealership

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The PResentation that comes with the Whitepaper Future of the Dealership

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The Future of the Automotive Dealership

  1. 1. 19/11/2019 1. The Future of the Automotive Dealership An introduction to the highly opinionated white paper FUTURELAB
  2. 2. TODAY’S AGENDA: 6 disruptive forces. 5 saving graces. 10 survival scenarios 3 short term fixes FUTURELAB
  3. 3. Alain ThysStefan Kolle @FLB_StefanKolle www.futurelab.net Stefan Kolle, Founder of Futurelab Welcome
  4. 4. Industry solutions A structured approach for automotive firms to embed the customer perspective in every aspect of their business, from customer journey development to POS training. Automotive An approach for financial retailers, insurers and asset managers to capture the attention of mass-affluent & high-net- worth customers. (Mass-affluent) Finance A structured approach for telecommunication firms to embed the customer perspective in every aspect of their business. Telecommunications One of the strongest customer strategy teams in EMEA World-class credentials To make the world a more customer-friendly place (for fun & profit) Our Purpose Why we exist We help you make customer experience happen. Profitably. Our Promise What we deliver Strategic Programmes Tactical interventions • Increase customer value • Manage multi-channel journey • Improve employee effectiveness • Improve commercial impact • Align departments, processes and systems around the customer. • Develop a customer mind-set • Transform the organisation • Challenge the industry Our Activities What we do Strategy Experience Customer VoiceCulture Enablers Design Develop customer programmes based on current and future needs. Implement Translate ideas into processes, KPI’s, trainings, that ensure implementation. Accelerate Enthuse all stakeholders so they (pro-)actively contribute. Sustain Ensure continued momentum and innovation across the business.
  5. 5. 18.000 7.400 4.500 2000 2015 2020 prediction Number of car dealerships Germany Is this the end of the Automotive Dealer? Reality Check Source: Institut für Automobilwirtschaft (IFA) FUTURELAB 75% of key industry players think that only half of the UK automotive dealerships will survive by the mid-2020s. Source: KPMG Global Automotive Executive Survey 2018 USA 2016 USA 2018 Number of dealerships 18,058 16,794 Avg. dealer profit (% gross) 6.2% 1.7% Luxury dealer profit (% gross) 2.3% -0.6% Source: National Automobile Dealers Association, USA
  6. 6. 19/11/2019 6. Digifatality The car sales journey has turned into a cross-channel process where there is little space for a dealer
  7. 7. >50% WAS: of modern day car buyers start their buying process online NOW: 5+ visits <2 visits Customer switch up to 4 times from off-to online channels and back Sources: Bain & Company: The Future of Car Sales is Omnichannel; Capgemini: Cars Online Trend Study; McKinsey & Co : Innovating automotive retail.
  8. 8. FUTURELAB WAS: ‘I perceive my dealership as an advisor; someone who would understand what I really need and help me choose what’s best for me’ NOW: ‘Do not try to trick me, I do not trust you. I know what I want because I did my research. Just give me a discount and don’t waste my time.’ >60% decide on brand, model and price BEFORE visiting a dealership” Sources: Bain & Company: The Future of Car Sales is Omnichannel; Capgemini: Cars Online Trend Study; McKinsey & Co : Innovating automotive retail.
  9. 9. 2.4 average number of visits per dealer globally; in some geographies it is only 1. FUTURELAB Sales person The car itself Internet Friends / family Other WAS: Internet is the most important information source until 2 weeks before the purchase NOW: 72% of all car buyers would consider to complete the purchase online. Answered “Yes” to: Would you consider buying a new car online? 60% 77% 77% 72% USA Germany China Total Online car sales are perceived to deliver lower prices and be faster. Sources: Roosen/Mobile.de, 2013: Customer Journey im Autokaufprozess; ; Capgemini: Cars Online Trend Study; McKinsey & Co : Innovating automotive retail.
  10. 10. Image source: William Murphy, https://flic.kr/p/JtsDTd 10. Mobilikill Society is changing, and the need to own a car is dropping – and so do sales
  11. 11. Source: World Bank, United Nations, Business Insider, INRIX Global Traffic Scorecard 11 Urbanisation Traffic Cost Our pain Why do we need mobility services? 55% of the world population of the world in 2018 is urban hours a year loses in traffic an average driver in Paris $1,400 per year a USA commuter wastes on petrol in in traffic 237
  12. 12. 19/11/2019 12 The customer is ready to ditch car ownership Reality check Sources: E&Y, Future of automotive retail; McKinsey, How shared mobility will change the automotive industry
  13. 13. 19/11/2019 13 Mobility becomes a big game Reality check $54 bln Was the shared-mobility market in China, USA, and Europe in 2016 – $ 500Bln in 2025 Sources: BMW Group; Lufthansa Innovation Hub; McKinsey, How shared mobility will change the automotive industry, Grandview Research
  14. 14. 16 estimated average number of privately owned cars which can replaced by a shared vehicle (DE) FUTURELAB THOUGHT: 49% of car buyers would consider a no-ownership solution. PRACTICE: >40% of car sharing platform users decide not to buy a car (Case study, Bremen) Answered “Agree” or “Strongly Agree” with: “I would rather buy a flexible mobility model (e.g., car share, pay-per-use) online than a traditional vehicle ownership model.” 31% 45% 72% 49% USA Germany China Total Sources: Analysis of the impacts of car sharing in Bremen, Germany, 2018, McKinsey, How shared mobility will change the automotive industry.
  15. 15. Image source: https://www.ft.com/content/b994895e-83a6-11e9-b592-5fe435b57a3b 15. Millenicide Younger generations do not feel the need to buy a car anymore – and they don’t like doing it at a dealership
  16. 16. 60% Do not prioritise buying a car….ever FUTURELAB Not getting a licence: The youngest generation is not even bothering to learn to drive Sharing to save: Millennials entered the workstream in the great recession, cant afford cars https://www.goldmansachs.com/insights/archive/millennials/.
  17. 17. 57% Percentage of millennials that would like to avoid dealing with a car sales person while buying a car FUTURELAB Trust: Salesperson at the dealership is the least trusted person – they just don’t believe you anymore Efficiency: Amazon has shaped expectations – Millennials demand a very efficient sales process Sources: Deloitte, 2014: Global Automotive Consumer Study: Exploring consumers’ mobility choices and transportation decisions .
  18. 18. 92% Do not trust the salesperson – especially women are very unhappy with the process FUTURELAB The buying process doesn’t work for Millennials : Only 1% indicated they like the current process Losing the sale: Poor experience, not the right vehicle, no deal. Source: Cox Automotive 2018, Customer Journey / Future of Digital Automotive Retail. CDK Global .
  19. 19. 19/11/2019 21 Sources: Deloitte, The Future of the Automotive Value Chain Dealers face high pressure to close the deal A sales person must understand psychology, technology, and financials. What Dealers say: • For sales people they [importers] only look at sales targets. We get training on how to close a customer and make the sale – that’s the priority • We get customer experience standards but not the resources for it • My people are trained to sell and repair cars, not to do small talk • We only get 15 minutes with the customer
  20. 20. Image Source: https://www.carmagazine.co.uk/electric/electric-charging-stations-uk-find-nearest-ev-charging-point-best-journey-planner-for-electric-cars/ 22. Cold as ICE Dealers are stuck on selling Internal Combustion Engines (ICE), not EVs
  21. 21. >50% of automotive executives believe battery electric vehicles to be the #1 key trend ICEs are (slowly) heading for extinction Sources: KPMG, Global Automotive Executive Survey 2017, BloombergNEF Battery Price Survey Answers to “Is diesel dead?”
  22. 22. 60% estimated drop in revenues from the spare parts business due to growth of the EV market Electric vehicles are cheaper to maintain Sources: UBS Evidence Lab Electric Car Teardown
  23. 23. Sources: Fast Company; 2016 Sierra Club mystery shopping of 300 dealers in the USA But can the dealers rise to the challenge? Mystery shopping shows that dealerships are not very keen on electric vehicles
  24. 24. 19/11/2019 26. Autonomously Dispatched Self-driving vehicles are changing the industry – and after-sales
  25. 25. Source: Bain 80% of customers would use assistive features Safety assuring technology is the top scoring feature
  26. 26. 68% of executives already feel that the traditional purchasing criteria will not determine the purchase of a car anymore. Autonomous world: a totally different sales landscape Sources: KPMG, Global Automotive Car Survey
  27. 27. 95% estimated drop in accidents caused by human error (by 2050) due to AVs and other advanced driver- assistance systems Sources: KPMG, Will this be the end of car dealerships as we know them?
  28. 28. 19/11/2019 30. Internal Money Bleeding Profitability of dealerships is under great pressure
  29. 29. 19/11/2019 31 Source: KPMG Dealers are facing internal troubles By 2040, the current business model will not be sustainable Average dealership operating profits plunged from 8.9% in 2015 to 1.7% in the first half of 2018, while gross profits over the same period fell from 3.3% to 2.4%. Automakers… face price competition and squeeze the margins of their dealer networks. And third-party digital channels are increasing pricing transparency and enabling consumers to make product comparisons easier, thus limiting the ability of dealers to capture margin. McKinsey & Co
  30. 30. Sources: Deloitte, The Future of the Automotive Value Chain Which is not going to be solved by OEMs OEMs must invest into R&D, digital / connectivity, mobility, eco, image Forces disrupting the Automotive Value Chain:
  31. 31. Sources: McKinsey As a result… Dealership organizations continue to face operational challenges that include high turnover rates and consolidation pressures.
  32. 32. 18.000 7.400 4.500 2000 2015 2020 prediction Number of car dealerships Germany And ultimately… Reality Check Source: Institut für Automobilwirtschaft (IFA) FUTURELAB 75% of key industry players think that only half of the UK automotive dealerships will survive by the mid-2020s. Source: KPMG Global Automotive Executive Survey 2018 USA 2016 USA 2018 Number of dealerships 18,058 16,794 Avg. dealer profit (% gross) 6.2% 1.7% Luxury dealer profit (% gross) 2.3% -0.6% Source: National Automobile Dealers Association, USA
  33. 33. 6% Standard discount given at our client’s dealerships – and the percentage that the customers know FUTURELAB VAG Dealer, Lodz Customers come from Warsaw: Great experience, trusted and reliable Source: Cox Automotive 2018, Customer Journey / Future of Digital Automotive Retail. CDK Global . 0% Discount 4% Margin
  34. 34. Is there anybody out there?
  35. 35. 19/11/2019 38. 5 Saving Graces Experience elements which will not likely be disrupted in the near future Test-Drive Used Cars Non Urban Service SpecialHuman Touch …plus great Customer Experience
  36. 36. 19/11/2019 39. 10 Survival Scenarios With some real life examples FUTURELAB
  37. 37. 19/11/2019 40. 1. The Experience Centre A solution for a company with a strong capacity of training on the soft skills or an automotive brand with an emotional component The purpose of this place is to tell the history of the brand, demonstrate the features of the latest models, and unobtrusively explain the benefits. Well trained personnel will listen to what the customer says, understand their needs, and if the customer is interested, help design their dream car and calculate the financial options. If the customer does express a wish to buy the model, the results of the configuration will be seamlessly converted into an offer with a click of a button. Paperwork done, the customer receives a precise date and location of the pick-up – or chooses a delivery to home option.
  38. 38. 19/11/2019 41 Volkswagen Home Warsaw is a new philosophy of presenting VW cars. In the 200m2 location in the centre of the Polish capital the brand created an inviting, sleek space area which combines a homely atmosphere with solutions inspired by the Volkswagen style. Using this new method and building a smaller showroom allowed to enhance the individual approach to clients. In this home-like space the customers can customise their dreamed car. The showroom displays only a few latest models, but the guests can create their dream model using a big screen and the help from an attentive host.. Example: Volkswagen Home
  39. 39. Take the Brand to the higher level New York. 'The Sound of Porsche' is place to experience the brand character and history. The interior of the lounge is divided up into four different areas, including stations where visitors can watch clips curated around themes like design and racing. Another station inside the lounge includes a 911 Carrera 4S Coupe display, where people can interact with the car by choosing a projection to be displayed on it. Beyond this, there's also a station where visitors can draw dream Porsche for a trip to the Porsche Museum in Germany. Brussels. The Loft by Lexus brings the visitors of the lounge subtle luxury and sleek Japanese design inspired by the traditions of omotenashi (the art of hospitality). This ancient Japanese philosophy of treating every visitor as a valued guest in one’s own home is one of the core values of Lexus. The Loft is therefore designed to help the visitors relax and feel at home while they are waiting for their flight. A delicate selection of Japanese goods and Lexus merchandise helps to bridge waiting times.
  40. 40. 19/11/2019 43. 2. The Digital Showroom A solution for an innovative hi-tech brand or an OEM who have successfully undergone digital transformation (or are well underway). Accessible, open 24/7, AI-empowered Digital Garage can answer any customer questions on the spot. This dealer is like a cinema theatre owner, equipped with seats, and a few powerful computers. They will be able to download the latest model demos and broadcast them to multiple customers. The potential customer will have a possibility to see, drive, and almost touch any car, modifying colour, configuration, or interior. The package from the importer will also include a set of scenes for test-drives so that customers can take a new model to a Paris street or a Paris-Dakar road – in virtual reality.
  41. 41. 19/11/2019 44 London, Piccadilly. 3 display Audi models are accompanied by the 4 large touch-screens and a display wall. Visitors can configure any current Audi and have access to the full range of options. At any stage they can fling their Audi-in-development onto the display wall to see a near life-sized view of their configuration. Once it's there, they can manipulate it, change the viewing angle and so on, using the touch display. Both exterior and interior views are on offer. Example: Audi Digital Showroom; DS Virtual Experience Autosalon 2018, Paris, Brussels. Visitors of Citroen DS booth can try DS VIRTUAL VISION which allows the person in the headset to configure and display the model of their dreams in 3D, and see it almost in the real world.
  42. 42. Maserati partners with Alibaba to create smart stores In March 2018, luxury automaker Maserati partnered with Alibaba, becoming the first auto brand to incorporate its smart store technology. Maserati converted two of its outposts in China into smart dealerships that gather data on and combine customers’ online and offline experiences. Maserati also developed a racing game for Mobile Taobao, with in-game features that encourage players to visit their local showrooms. In-store, smart receptionists use artificial intelligence and facial recognition to identify customers who walk in from their in-game avatars and provide them with personalized service.
  43. 43. 19/11/2019 46. 3. The Test Drive Centre A solution for importers or dealer networks with a substantial fleet, or experience brands with a strong lifestyle element This tailor-made, highly personalised experience will allow people to test drive their potential buys in the conditions that are closest to the actual usage. For this purpose, some locations will feature a dirt road, and others will be set as pop-ups in shopping malls. A potential buyer can arrange a 30-minute spin around the block or request a prolonged test drive for the weekend. The agent will order the right model for your visit, with a configuration very close to your wishes. You may also be able to drive several models in short succession (to get a feeling of which one suits you better).
  44. 44. Ford Gives Fans an Interactive Adventure in San Francisco With a backdrop of the gorgeous city of San Francisco, Ford allowed fans to drive in style, and visit some of the cities most iconic locations. By creating an immersive test drive experience, lovers of the brand were able to try out some of Ford’s newest models and interact with their latest technologies. Pairing each vehicle with a specific location allowed all those who participated to fully experience the city, as well as interact with some beautiful cars. The new Ford F-150 took you to Alcatraz, while the Ford Edge brought you up to the hilly streets under Coit Tower. Participants also got to try out the new Sync 3 technology, and everyone was amazed at the advancements Ford has made when it comes to safety, and the overall driving experience. No matter what your favorite vehicle is, being able to test drive some amazing cars in the beautiful city of San Francisco was an immersive marketing experience like no other. As always, Ford continues to surprise their customers with the latest in technology, style and comfort.
  45. 45. 19/11/2019 48 BMW Test Drive Center in Incheon BMW has invested ca $75.5 million building the ultimate test drive centre in Incheon, near Seoul, South Korea. Customers can stretch the legs of BMW's range of performance cars and motorcycles on a 2.6-kilometer (1.6-mile) closed circuit racetrack, or put an SUV through its paces on an off road area. The 240,000-square meter (almost 60 acre) site will also house a service centre, bars and restaurants, training academy, historical exhibits, kids' area – and of course, a giant BMW and MINI showroom.
  46. 46. 19/11/2019 49. 4. The Mobility Provider A solution for a network with locations placed around or in the vicinity of the centre of big cities, or parking and rental networks A smart dealership located just outside the city can create a multi-level parking garage for those who want to drop their car off and continue the commute by public transport (the bus stop is just outside the building). Next to the parking, a rack full of city-owned or rental bicycles, scooters, and other means of personal transportation wait for those who prefer to get into town while having a workout at the same time. The dealer asks for subscription or rental money but also gets paid for services such as cleaning, charging, minor repairs, and even food and drinks.
  47. 47. 19/11/2019 50 Cars, Bikes, Scooters – you pick This Mobility-as-a-Service (MaaS) company which focuses on sustainable micro-transit has been named one of the USA’s fastest-growing private companies. In an industry that’s getting increasingly crowded, theirs is the only platform to offer four shared transit options, combining dockless e-bike share, 100%-electric rideshare vehicles, electric scooters and newly-launched electric trikes. GOTCHA started in 2009 as a way to offer free, safe and eco-friendly transportation on college campuses using a fleet of electric vehicles that the founder Sean Flood developed with co-founder Drew Sfugaras. GOTCHA is an acronym for “green-operated-transit carrying humanity around.” Like a hybrid between a golf cart and an electric car, the GOTCHA Ride is a street-legal vehicle that can transport up to six passengers. Since they don’t go any faster than 35 mph, they’re ideal for short distances. Recently Gotcha was recognized as one of the fastest- growing private companies.
  48. 48. 19/11/2019 51. 5. The Subscription Dealership A solution for a network with a substantial fleet at their disposal or a mobility-oriented brand with a broad model range. This business offers their fleet to the customers based on a subscription. The subscriber pays a fixed fee which guarantees them a set number of days of car usage per month, quarter or a year, with a specification for weekdays or weekends. The twist is flexibility about the model. Need a smaller car for a couple of days, or a bigger one for a family holiday? Something to drive through the rough terrain or a sedan for a business day? This dealership offers it all. Subscribers can choose when they need the special car: 5 days of convertible in summer or 15 in spring, so the dealer will use their fleet efficiently.
  49. 49. 19/11/2019 52 Subscription model tests in process Nearly all key car makers are testing the subscription model at this moment. BMW introduced its Access by BMW subscription service in April 2019. Mercedes-Benz is testing its multitiered Mercedes-Benz Collection subscription service. Audi launched its service, Audi Select in late September 2018. Ford's used-car subscription service, known as Canvas, already operates in San Francisco and Los Angeles. Other testers are Lincoln, Porsche, Volvo, Lexus, and Cadillac. Start-up companies and dealership groups in the car subscription business include the following: Fair, Flexdrive, Clutch Technologies, and others, specialising both in mass market and luxury cars.
  50. 50. 19/11/2019 53. 6. The Buy-and-Drive A solution for a mid-range brand with a focus on convenience or a network with strong digital support from importer / OEM The waiting times for certain models can reach a year. But the world is moving towards faster sales. Here is a dealer that can help you g et a car faster. Watching trends and using predictive analytics will allow them to pre-order models which are likely to be popular and have them on stock at any time. Walk in, point at the one you like, and you will get it, together with the paperwork – literally on the spot. While some legal arrangements will have to be done towards creating a shop according to this scenario, this is a no-discount (more likely, a mark-up) sales scenario which can save a dealership or two.
  51. 51. 19/11/2019 54 Car supermarket Since its foundation in 1949, Cardoen car supermarket has become an established name. Now a fully online car shop, the company offers new and young used cars at a competitive rates. At any time, the car supermarket offers ca 1000 new cars from 25 brands (and many more second hand). It is open 7 days a week. Customers can brows online (stock is updated every hour) and compare models and prices. If a customer wants to make changes to interior or tires, the company obliges. The legal paperwork and payment processes are streamlined for the quickest delivery,
  52. 52. 19/11/2019 55. 7. The Relaxed Service Centre A solution for an urban brand with a comfort / personal freedom component or a high-end dealer network Dropping a car off for service should be as convenient as getting a haircut. It should neither involve stress nor take too much time. This is where this model comes into play. Drop your car off for the service in the basement of a shopping mall, a hypermarket, or in a parking garage in the city centre. Take a replacement car (scooter, bike) if you want to continue your journey, or relax and have a walk, a shop, and a bite while waiting for your car to be serviced. And if you want to have a look at the newest models, just one level up there is a showroom with 3D features.
  53. 53. 19/11/2019 56 The Spa at the Mercedes Dealership The Mercedes-Benz Burlington Dealership in Ontario, Canada, is revolutionizing the car shopping experience. The first dealership in the world to offer an on-site salon and spa, Mercedes-Benz Burlington offers customers free manicures and hair styling while they wait for their car to be serviced in their high-tech luxury car spa. The Mercedes-Benz Burlington location, in addition to boasting a spa, also features a golf simulator and a full-service cafe, with employees trained as baristas.
  54. 54. 19/11/2019 57 Lunch, haircut or massage while you wait It's easy to mistake the amenities at Big Two Toyota in Chandler, Ariz., for those at a high-end resort and spa. Cafe 1250 serves triple-chocolate brownies, chef salads and roast beef sandwiches - made fresh daily - near where new Camrys and Tundras glisten under showroom lights. Not far away is a 700-square-foot pirate ship play area, arcade and video game room for children. The dealership also owns and staffs a barbershop and nail and massage salons a short walk from its on-site service centre. A 15-minute chair massage while customers' tires are rotated costs $15. A French manicure costs $20. The showroom also includes a business centre with telephones, free Wi-Fi and a shuttle to a nearby shopping centre. The amenities have been offered since Big Two opened in Chandler in 2007, and are meant to make customers feel more comfortable in a usually high-stress environment. Big Two consistently ranks among the top three Toyota dealerships in its five-state region in monthly service volume.
  55. 55. 19/11/2019 58 From Dealership to Rock and Roll Bar
  56. 56. 19/11/2019 59. 8. The Off Road Dealer A solution for specialising in vehicles for off-road driving; or a rural or non-urban retailer It is unlikely that in the short run cars will be able to drive through rough terrain autonomously. Mountains or country roads are not likely to accommodate it any time soon either. Therefore, for decades still to come, the market for heavy duty, working vehicles which can carry a load and withstand harsh road conditions will be untouched by the trends in the automotive sector. Focusing on the rural area market enables dealerships to go all out on the theme: the tough test-drives, the most specialised expertise, and tailored after-care: the off-road dealership controls the market like an SUV controls the terrain.
  57. 57. 19/11/2019 60 AUTOHAUS KÖLSCH specialise in Land Rover cars. They are professionals in the field of construction and conversion, retrofitting, maintenance and equipment. Customers from Germany, Austria, Switzerland, and other European countries arrive here for their vehicle. The dealer concentrates on maximising the pleasure of driving and the best possible experience, whether off-road or on the road. But this is not just about the car: the dealer embraces the totality of the off-the-road life and provides tips, advice, and goods necessary for those who prefer a challenging lifestyle. Full Scale Off Road
  58. 58. 19/11/2019 61. 9. The Niche Garage A solution for a niche brand that is already working with a particular subculture or customer segment. Personalisation and catering to niche consumer groups is the future of all retail. The Niche Garage is a type of dealership that will target specific groups of population with particular needs or wants, interest-based or otherwise. The variations can be multiple: from serving a subculture to catering to the needs of the disabled. The only common feature here would be an owner who has a vision and can execute on it. Some examples include: • Luxury vehicles • Women-only • E-cars only, etc.
  59. 59. Car as a luxury art object STERLING, Va. — At many dealerships, customers taking delivery of a vehicle would be fortunate to walk away with a handshake and keys to the car. But ultraluxury vehicles call for extraordinary experiences. At Sterling Motorcars, about 35 miles outside Washington, D.C., that mindset is central to the company's white-glove delivery program. A key piece of the customer experience is delivery, and Sterling Motorcars makes it a full production, much like the unveiling of a work of art or a ribbon-cutting ceremony. Staged in the showroom, the car is draped in black with a bow on front and the lights turned on. A salesperson wearing white gloves slowly pulls back the cover to reveal the car. The client receives a champagne toast and, in some cases, flowers. The dealership is also extremely transparent: not only you can take a virtual tour of the location, but you can pick the sales person based on their personal style and the latest customer reviews.
  60. 60. Women only SheCar™ is a woman-owned and operated online car dealership created to help women and men trust – even love – their car- buying experience. The company offers full transparency. No sales pitch – just open access to the information about a car’s value and condition. The SheCar online portal gives access to a vehicle’s estimated price based on its wholesale market value. There is no obligation to buy. Women are buying more and more cars. Their share of new car licenses in Germany rose from 32 to 39 percent in the last four years. And the dealership Senorita Maria in Hennigsdorf near Berlin wants to profit from this trend. It aims to use women to appeal to women. Senorita Maria is Germany's first car dealership that employs only women. The founder Maria Erkner and her colleagues all used to work in mechanics' shops. And at this dealership female customers are taken seriously.
  61. 61. 19/11/2019 64 Electric only With EV developing fast, there are many private and business buyers that are looking for support in understanding what is the right solution for them. Switching to an electric vehicle means also looking into charging infrastructure (possibly including solar power installation), adapting to a different driving style and particular tax- and subsidy regulations. Companies like Stroohm in Belgium provide full service to companies making the switch. Offering to install infrastructure – and even make the charging points accessible to the public and thereby revenue generating! Other companies focus on the maintenance and repair of EVs only – which of course then also allows for a role in the second hand market.
  62. 62. 19/11/2019 65. 10. The Super Serviceman A solution for a dealer network or a single garage with the existing capacity to employ and train highly skilled mechanics and IT Once again, service should be smooth and effortless. Requesting the car data in advance and assigning exact timeslots will allow the Super Serviceman garage to work like a Formula-1 pit-stop. The car is brought in while the mechanics are ready with the necessary spare parts at their disposal. No lines (maybe just for the coffee machine). By receiving car data beforehand, technicians will know precisely what they are up to, so they can make precise estimations and work as efficiently as possible.
  63. 63. 19/11/2019 66 Dealer knows which customer comes in When a Nissan vehicle pulls into the service area of Fenton Nissan of Rockwall in Texas, one of five 72-inch screens lights up to greet the owner by name. The message is generated by radio-frequency identification technology, or RFID. At the same time that the customer is welcomed, the RFID system sends a message to dealership computers and iPads, and alerts to the salesperson who sold the vehicle. The system helps the dealership to know how long it will take to perform specific jobs. A service writer is also notified that a customer has arrived and is responsible for greeting the owner with an iPad to review scheduled work. If the customer wants to wait, they will be updated: which bay is servicing the vehicle, when the vehicle goes to the car wash and when it is ready. The RFID system costs about $60,000, including the software and monitors, and likely will be installed at all 19 stores owned by the Fenton Motors Group. Fenton has nine Nissan stores and 10 others that sell Buick, Cadillac, Chevrolet and GMC; Ford and Lincoln; Chrysler, Dodge, Jeep and Ram; Honda; Hyundai; Mitsubishi; and Mazda.
  64. 64. Some good news Customers are ready for the new formats! FUTURELAB
  65. 65. Keep in mind A great CX is essential for ALL scenarios FUTURELAB
  66. 66. FUTURELAB Quick Fixes How can Futurelab help increase sales in the short term
  67. 67. FUTURELAB Lost dealership sales. Why?Dealerships lose sales opportunities because of misalignment. A visit to a dealership becomes a sales opportunity that must not be missed. But substantial sales are lost due to a mismatch between the sales and buyer personalities. When your salesperson just isn’t the right person to talk to the buyer, you lose the deal. How many sales are you losing in each dealership: 1 car a month? 1 car a week? Can you stop that loss? Yes, you can! We have developed an innovative approach to rapidly match the car buyer with the right sales person in the dealership: • A car geek should talk to an inspiring expert • An emotional buyer listens to a caring friend • A practical businessman meets a sensible partner Futurelab’s Car Buyer Persona Matching will allow the dealership to instantly identify who is in front of them – and let the best person on the floor take the lead.
  68. 68. FUTURELAB Stop that loss now: 1 Which of these seems more like you? Following your heart Thinking it through DIY car service Having it serviced Sticking to rules Breaking rules Hate tech Love tech Family guy Lone wolf 2 Define the Persona:Ask simple questions *: + + = + + = 2 Match the salesperson!** to to * The exact questions will depend on what Personae are found during the Discovery step. We can identify the Persona by asking just a few (3 max) really easy personal questions. **If there is only one salesperson in the showroom, the benefit lies in fast identification of the sales persona reducing miscommunication The questions can be presented in a form of a visual game or a “personality test” which can be deployed via multiple channels, e.g. as a lead to the test-drive conditions on a website. In-store the receptionist or greeter can approach a walk-in with a tablet to let the customer choose in 5 seconds, upon which they can bring the right sales person (or inform the only available sales about the persona for them to act upon). Alternatively, by combining insights from the totem system, we can identify Persona by their in-showroom behaviour We also test the sales person for their persona characteristics to match them correctly.
  69. 69. FUTURELAB Introducing Customer Experience 4D Scan: Automotive.
  70. 70. FUTURELAB Introducing Customer Experience 4D Scan: Automotive.
  71. 71. FUTURELAB Introducing Customer Experience 4D Scan: Automotive. 1. We run a retail check exercise: visit your locations with a check-list, designed to see whether they are future-proof and ready to face the new customer realities 2. We interview key stakeholders in your organization (management, importer, and even OEM if necessary) in order to discover how they see the dealer network in the future, particularly when it comes to new trends. 3. We talk to your staff to understand their perception of CX standards. We ask their opinions consumer desires. It will help to see if there are any skill gaps between what they should and can do, and if they are able to go beyond what is needed today. 4. We run a survey of your customer base to see the experience from their eyes: what is good, what can be improved, what elements are crucial for them.
  72. 72. FUTURELAB 3. Motivate dealer leadership and staff. HQs wants results, but dealers are hesitant. How do you make sure that people are willing, skilled and able to give your customers a better experience? And how can the Dealer Principal become the CX leader? With the help of our Dealer Staff and Leadership Engagement programmes you will be able to finally get CX done. 4. Prove to dealers that CX = money. To most dealership staff, CX sounds like a lot of “fluffy stuff”. But good dealers know that great CX means higher margins and quicker growth. Our down to earth but robust Business case for CX in dealership will demonstrate to the non-believers the financial value of delivering excellence, and turn the “our people only ask for discounts” chant into “we sell more cars!”. 6. Get the right KPI and template toolbox. Motivated and engaged staff needs a clear understanding of what the next best action is. Operationalizing the CX strategy so that everyone knows what they should do and what’s in it for them is crucial. From Dealership Academy to CX KPIs, templates and automation, we know how to make it real, specific and concrete. 5. Create the right CX processes Sometimes lack of action roots in having too much on your plate. We will help you get focused, and begin doing practical, pragmatic things that will bring both short-term results as well as long-term change. Start with Closing the loop on unsatisfied customers or creating Advocacy Moments to achieve positive WoM – those will kick off action to get the first tangible results. 2. Get the right insight from data. Let’s face it: as far as customer is concerned, IACS doesn’t cut it – the results are hardly actionable. You need real insight, presented with a clear path to increase consideration, conversion, loyalty – and drive up sales. From implementing a simple NPS® program for individual brands to a full scale AutoIndex benchmarking, we know the drill. 1. Prioritise investment into CX. When there is so much to do, what should you focus your attention on? You need a clear understanding of your organisation’s readiness for action, the weak points to focus on, the quick wins, and your roadmap for profitable action. Our Automotive Customer Experience Scan helps you tick all of those boxes… quick. Other services: Net Promoter, Net Promoter Score, Net Promoter System, and NPS are trademark of Satmetrix Inc., Bain and Co., and Fred Reichheld. Get the people on board. Start the CX engine running.Focus the dealers’ CX action:
  73. 73. 19/11/2019 76. Questions? Please fire away
  74. 74. Want this presentation? sko@futurelab.net Please get in touch

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