The document discusses how customer experience and loyalty will be the new competitive battleground for companies by 2016. It notes that 89% of companies plan to compete based on customer experience. While companies heavily invest in R&D, customer experience has become the key differentiator. Data shows that customers who are completely satisfied are 52% likely to repurchase from the same dealer, compared to only 8% for very dissatisfied customers. The document advocates moving customers to higher satisfaction levels to increase sales and profits. It suggests the future of customer experience will be text-driven, location-based, and use in-car technology for real-time engagement. Companies may need to rethink traditional customer feedback models and regulations to meet evolving customer expectations.

1. Loyalty and Customer Experience:
the new battleground and some
future challenges

2. Its all about product…right?

4. 4
89%
of companies plan to compete
primarily on the basis of the
customer experience by 2016
Source: Gartner

5. Despite continual heavy R&D investment…
Why is Customer Experience the
differentiator?

6. Great customer experience…
does it really make a difference?

7. When the going gets tough – a lesson
from history
0
2
4
6
8
10
12
14
16
91 to 100 81 to 90 71 to 80 61 to 70 51 to 60 41 to 50 31 to 40 21 to 30 11 to 20 0 to 10
%dealersgoingoutofbusiness2008
Satisfaction percentiles
Dealers going out of business in the recession by sat levels
sales Service
Bottom 10% 3X more likely
to go out of business than
top 10% in sales;1.5x in
aftersales

8. Impact of satisfaction on repurchase
Dealer
satisfaction
level
Satisfaction
by level
Completely
satisfied
47%
Very satisfied 23%
Fairly satisfied 16%
Dissatisfied 7%
Very
dissatisfied
6%
100%

9. Impact of satisfaction on repurchase
Dealer
satisfaction
level
Satisfaction
by level
Vehicles sold
Completely
satisfied
47% 343
Very satisfied 23% 169
Fairly satisfied 16% 119
Dissatisfied 7% 49
Very
dissatisfied
6% 45
100% 726

10. Impact of satisfaction on repurchase
Dealer
satisfaction
level
Satisfaction
by level
Vehicles sold % customers
who bought
next car at
same dealer
Completely
satisfied
47% 343 52%
Very satisfied 23% 169 41%
Fairly satisfied 16% 119 25%
Dissatisfied 7% 49 4%
Very
dissatisfied
6% 45 8%
100% 726

11. Impact of satisfaction on repurchase
Dealer
satisfaction
level
Satisfaction
by level
Vehicles sold % customers
who bought
next car at
same dealer
Cars sold
based on
loyalty
projections
Completely
satisfied
47% 343 52% 179
Very satisfied 23% 169 41% 69
Fairly satisfied 16% 119 25% 30
Dissatisfied 7% 49 4% 2
Very
dissatisfied
6% 45 8% 4
100% 726 283

12. What happens if we move customers
up one level on dealer satisfaction?
Dealer
satisfaction
level
Satisfaction
by level
Completely
satisfied
47%
Very
satisfied
23%
Fairly
satisfied
16%
Dissatisfied 7%
Very
dissatisfied
6%
100%

13. What happens if we move customers
up one level on dealer satisfaction?
Dealer
satisfaction
level
Satisfaction
by level
Satisfaction
by level
Completely
satisfied
47% 71%
Very
satisfied
23% 16%
Fairly
satisfied
16% 7%
Dissatisfied 7% 6%
Very
dissatisfied
6% 0%
100% 100%

14. What happens if we move customers
up one level on dealer satisfaction?
Dealer
satisfaction
level
Satisfaction
by level
Satisfaction
by level
Vehicles
sold
Completely
satisfied
47% 71% 343
Very
satisfied
23% 16% 169
Fairly
satisfied
16% 7% 119
Dissatisfied 7% 6% 49
Very
dissatisfied
6% 0% 45
100% 100% 726

15. What happens if we move customers
up one level on dealer satisfaction?
Dealer
satisfaction
level
Satisfaction
by level
Satisfaction
by level
Vehicles
sold
% customers
who bought
next car at
same dealer
Completely
satisfied
47% 71% 343 52%
Very
satisfied
23% 16% 169 41%
Fairly
satisfied
16% 7% 119 25%
Dissatisfied 7% 6% 49 4%
Very
dissatisfied
6% 0% 45 8%
100% 100% 726

16. What happens if we move customers
up one level on dealer satisfaction?
Dealer
satisfaction
level
Satisfaction
by level
Satisfaction
by level
Vehicles
sold
% customers
who bought
next car at
same dealer
Cars sold
based on
loyalty
projections
Completely
satisfied
47% 71% 343 52% 266
Very
satisfied
23% 16% 169 41% 49
Fairly
satisfied
16% 7% 119 25% 12
Dissatisfied 7% 6% 49 4% 2
Very
dissatisfied
6% 0% 45 8% 0
100% 100% 726 329

17. Additional units sold * profit per unit = sales uplift
+
Additional units sold * service profit per unit = service uplift
Last time we ran this study in 2012, this amounted to
$106,315 additional profit per dealer per year
Doing the maths

18. 1050
1100
1150
1200
1250
1300
1350
0
10
20
30
40
50
60
70
80
90
100
Bottom 20% Top 20%
Impact of NPS on GP per
vehicle - sales
NPS GP
European data point the same way
0
200
400
600
800
1000
1200
0
10
20
30
40
50
60
70
80
90
Bottom 20% Top 20%
Impact of NPS on GP per
vehicle - service
NPS GP

19. What does the
future look
like?

20. A disconnect in what we do today?
Customer wants this We tend to do this

21. So if customer experience is the next
battleground what might it look like?
Customer CX Manager/Provider
On my terms
In my voice
Relationship, not surveys
What’s in it for me?
Omni channel
Text Driven
4 questions not 44
Breaking the MRS taboo’s?

22. • Of course CATI, SMS, mobile, tablet, PC, even postal
• Outbound and inbound
• Social media integrated
But also…
• Location triggered interaction when leaving the
dealership?
• Using the in car technology and your intimate knowledge
of the customer
Omni channel

23. 23
As OEMs you have (the potential) to know
• Driving characteristics
• Where driven
• How driven
• Regular routes taken
• Used at weekends?
• Used for vacations?
• etc
The opportunities for Big Data and individualised customer
engagement are enormous

24. 24
Opportunity to use in car technology
Real-time customer engagement

25. • Increasingly it is all
about MY story
• Text analytics is
already becoming a
key driver for
understanding both
survey and social data
• Machine coding
accuracy now
approaching human
coding
Text driven

26. 4 questions not 44

27. 4 questions not 44
Make the survey shorter!

28. • Don’t ask things you (should) already know
• Don’t ask about your internal processes –
use mystery shopping or internal audits for
that
• Don’t try to cover everything in one go
• Do ask relationship questions – emotions are
at least 3x better determinant of loyalty
• Do put open questions front and centre
4 questions not 44

29. Nearly 80% of Customers Will Provide Personal
Information to a “Trusted Brand”
Many of us will trade…
Source: SDL Data and Privacy Study 2014

30. What if this is what the customer wants?

31. • A non-research purpose is when data is collected for reasons
other than to enhance understanding in a robust way
• Generally non-research exercises have one or more of the
following characteristics:
– If the data is collected on an identifiable basis, direct action
will, or may, be taken.
– The exercise promotes the aims or ideals of a client or
organisation
– The exercise promotes the products or services of a client
or organisation.
• Source: MRS Regulations for Using Research Techniques for Non-Research
Purposes, 2010
Breaking the MRS taboo’s?

32. • A 2-way relationship with the Brand where research,
CRM and “something for something” brings them a
genuinely enhanced experience?
• Where we operate with ethical and governance in place,
but without the firm delineation of research and “other”
What if that is exactly what customers
want?

33. In Summary

34. 34
Loyalty and CX are changing
CX is the next battleground
CX does drive business outcomes including loyalty
The world of customer feedback and expectations has
changed more in the last 3 years than previous 30
The changing consumer wants something we are
potentially standing in the way of
Perhaps its time to rethink and reinvent how we as an
industry engage with this changing customer world?

35. Time for drinks!