Transforming automotive sales landscape to deliver an omni channel customer experience

Diverse consumers yet common expectations — a seamless brand experience throughout their life cycle

Evolving customer expectations and the advent of new mobility solutions have transformed the manner in which customers interact with OEMs. The trend toward on-demand mobility has placed customers’ loyalty at risk. Therefore, it is critical to provide customers with a personalized and consistent brand experience that blends digital and physical channels throughout their life cycle. In order to meet the needs of a wide spectrum of customers, OEMs need to redesign their business models to serve the needs of two extreme customer groups — the traditional classic buyer and the dynamic mobility user. Thus, there is an urgent need to embark on a holistic transformation journey to provide a best-in-class omni-channel customer experience.

Diverse customer profiles and their demands for mobility are disrupting the automotive value chain

Traditional classic buyer

Dynamic mobility user

A wide spectrum of users

• Buys and leases cars

• Visits dealers and uses digital channels occasionally

• Buys mobility on demand

• Uses physical and digital channels seamlessly

organizations believe that an increasing emphasis on customer experience is driving business growth strategies.

executives said following an omni-channel strategy strengthens consumer loyalty.

70% 90%Source: The perfect landing: an engaging customer experience, EY, 2015; Reengineering the supply chain for the omni-channel of tomorrow, EY, 2015. Best-in-class

omni-channel customer

experience

Exemplary initiatives required through the transformation journey*

We believe that the following five facets of the organization will need to transform significantly to enable the organization to provide an exceptional customer experience.

* This is not a complete list of initiatives. To know more, please contact one of our automotive and transportation professionals.

Network mix design

Valuation and business modeling

New roles within sales network

Open innovation and value strategy

Start-up collaboration and prototyping

Portfolio and scenario management

Design customer strategy and journey reinvention

Build mobility product and service portfolio

Adapt sales channels and design new formats

Develop integrated digital infrastructure road map

Ensure customer-centric talent management

Branding and customer strategy: enabling OEMs to provide a consistent and engaging brand experience across all channels during the customer journey

Products and services: designing the future product and service portfolio that uniquely positions the brand’s value proposition in the overall mobility ecosystem

Distribution model: realigning the existing retail network to become agile and relevant during the customer journey

IT and digital infrastructure: integrating the global IT infrastructure and harnessing analytical capabilities to capitalize on the consumer’s digital life style.

Talent: adapting talent management structures and workforce operations to build trusted relationships and increase focus on customer centricity

Key facets of the organization that will require transformation

Key competencies

2 | Transforming automotive sales landscape to deliver an omni channel customer experience

EY has defined eight competency sets that OEMs need to implement for a best-in-class omni-channel customer experience

Transforming each facet of the organization will require OEMs to undertake multiple initiatives. Each of these initiatives requires a diverse set of competencies and a vision for collaboration. The required competency portfolio comprises skills across various functions ranging from strategy planning and IT transformation to financial services and compliance with reg ulatory issues. A decisive success factor will be the collaboration with stakeholders both within and outside the company and even other industries. Moreover, a clear change management strategy led by OEMs is key to enable dealers and NSCs to steer new initiatives more effectively and position the organization in the evolving mobility ecosystem.

Customer experience

redesign and measurement Integrated

financial services

and mobility

organization

Digi

tal a

nd IT

tr

ansf

orm

atio

nTalent

managem

ent

(attract, develop

and retain)Innovation and

product launch

management

Supply chain

and risk

management

Transactions, tax, legal and regulatory

management

Key competency

setsSc

enar

io d

esig

n,

busi

ness

mod

elin

g an

d st

rate

gy

deve

lopm

ent

Illustrative competencies

Exemplary initiatives required through the transformation journey*

We believe that the following five facets of the organization will need to transform significantly to enable the organization to provide an exceptional customer experience.

* This is not a complete list of initiatives. To know more, please contact one of our automotive and transportation professionals.

Network mix design

Valuation and business modeling

New roles within sales network

Open innovation and value strategy

Start-up collaboration and prototyping

Portfolio and scenario management

Design customer strategy and journey reinvention

Build mobility product and service portfolio

Adapt sales channels and design new formats

Develop integrated digital infrastructure road map

Ensure customer-centric talent management

Branding and customer strategy: enabling OEMs to provide a consistent and engaging brand experience across all channels during the customer journey

Products and services: designing the future product and service portfolio that uniquely positions the brand’s value proposition in the overall mobility ecosystem

Distribution model: realigning the existing retail network to become agile and relevant during the customer journey

IT and digital infrastructure: integrating the global IT infrastructure and harnessing analytical capabilities to capitalize on the consumer’s digital life style.

Talent: adapting talent management structures and workforce operations to build trusted relationships and increase focus on customer centricity

Key facets of the organization that will require transformation

Key competencies

of car manufacturers believe that engaging customer experience across multiple touch points is supportive to their value proposition; only 8% are well-prepared.

executives are supportive of using digital to manage trust and complexity. But just 12% of them are well-prepared to do so.

84% 88%

According to EY’s Changing Lanes 2016-17 C-suite survey:

3Transforming automotive sales landscape to deliver an omni channel customer experience |

EY | Assurance | Tax | Transactions | AdvisoryAbout EY

EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

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© 2016 EYGM Limited. All Rights Reserved.

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This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice.

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Want more?Contact one of our global automotive and transportation professionals

Randall J. MillerGlobal Automotive and Transportation Leader +1 313 628 8642 randall.miller@ey.com

Christian ZametGlobal Automotive Retail Leader +49 6196 996 13176 christian.zamet@de.ey.com

Hanno LorenzlPartner and US Automotive Retail Leader +1 312 560 1644 hanno.lorenzl@ey.com

Anil ValsanGlobal Automotive and Transportation Lead Analyst +44 20 7951 6879 avalsan@uk.ey.com

Regan GrantGlobal Automotive and Transportation Marketing Leader +1 313 628 8974 regan.grant@ey.com

Through our globally expansive network of 13,000 professionals with deep industry and technical experience. We explore the challenges and opportunities of the industry’s paradigm shift and develop fresh ideas about the future. Working closely with diverse organizations, we help accelerate the evolution of the future mobility ecosystem, and bring a strong point of view on the emerging issues across automotive and transportation.

Read our series of thought leadership reports focused on the challenges and opportunities in the automotive industry.

Future of automotive retail: shifting from transactional to customer-centric

Remodeling for mobility: will new mobility mean the end of ‘old’ automotive

How much human do we need in a car: the evolution of artificial intelligence and acceptance of autonomous vehicles

AcknowledgementsSpecial thanks to Martin Rauh, Gaurav Batra and Rajan Dhawan for analysis and compilation of this study.

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