Business & security 48 www.aftermarketonline.net JUNE 2024 Making quality connections David Cumberbatch, associate partner for customer experience at MHP Consulting UK, on empowering dealerships to deliver customer experience differentiation and the importance of data transparency and collaboration The automotive go to market model remains in a state of flux. Customers are bewildered, while longstanding dealership franchises face an uncertain future. Yet in a market still striving to deliver a truly customer centric lifetime experience, dealerships will continue to play a key role in improving customer lifetime value. With the quality of customer experience fast becoming core to brand differentiation, the pressure is on to create and share high quality customer data and embrace a truly collaborative OEM-dealer relationship. Customer confidence in the car market is falling, especially in EVs. With price cutting in a bid to boost sales and second-hand values plummeting, consumers are just not buying into the eco-messaging. Yet the issue is far more nuanced than customer perception. Questions have to be asked about the quality of information available to support these sales. Confusion and inconsistency Consumers are offered confusing and inconsistent online tools to compare different vehicles. In some instances, Dealers are compelled to use one system to price EVs and another for legacy engine vehicles. There is no overlap in customer information or effective way to manage a customer transitioning from one vehicle type to another. This lack of data and simplicity is further undermining the level of EV sales —and, as a result, affecting the overall perception of the automotive market. For the extensive dealership network facing declining servicing and repair revenue, due to the lower maintenance requirements of EVs, this lack of consumer confidence is adding further concerns about the future. Yet dealerships continue to play a vital role in winning and retaining customers for OEMs. The quality of engagement they can provide will be key to rebuilding consumer confidence and core to the end-to-end customer lifetime experience that underpins loyalty and retention. However, this can only be achieved if the current friction between OEMs and dealerships is addressed. Lack of insight The customer should be at the heart of an efficient, effective end-to-end experience. However, the lack of a 360° customer view continues to compromise attempts to create a robust, relevant buying journey. Information is siloed, both within OEMs and dealership franchise networks. In many instances, there is no effective link between sales records and service records, no integration with finance systems and no way to understand how prospects are interacting with a brand, both on and offline, before making a buying decision. Not only are OEMs still wrestling with inconsistent internal customer data, but they lack insight into the dealer’s activity. Dealer groups are running their own dealer management systems for stock, inventory and accounts, but often rely on multiple lead management systems provided by each brand. The result is a mismatch of information, an inability to understand new buying behaviours, and a lack of trusted data to support personalised communication. OEMs are pushing hard to build a stronger direct customer connection. Collecting online prospect information, however, is just a fraction of the insight required. OEMs and dealerships need to work together to understand how best to deliver a customer experience that extends from initial online research through test drive, purchase (with or without part exchange and finance), servicing and maintenance. Customer lifetime data Whether the OEM shifts to agency or remains with a traditional franchise approach, dealers remain a core component of the customer relationship. From providing the physical introduction to the vehicle, to managing problems such as recalls and delivering regular servicing, it is the way the dealer interacts with the customer that will reinforce the brand image — or not. End-to-end, two-way data sharing is the foundation of effective engagement. Business
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