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Future of Customer Experience Digital Marketing Inside the Dealership

The Future of Customer Experience: Digital Marketing Inside the Dealership

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Future of Customer Experience

Digital Marketing Inside the Dealership

[The auto industry] needs to keep up with — or even set — the pace in redefining

excellence in retail, and be favorably compared across industries ... The benchmark is

actually being established by the integrated shopping experience on Amazon: the

seamlessness, the efficiency, the ease, the fun.

— Jeremy Anwyl, Vice Chairman, Edmunds

“Reimagining the Car Shopping Experience”

FUTURE OF CUSTOMER EXPERIENCE

• Innovations in retail

• What is a great shopping experience?

• The evolving dealership experience

• Digital marketing inside the dealership – the opportunity

INTERACTIVE DIGITAL EXPERIENCES

Innovations in Retail

UGG/Deckers Brands

• Four large RFID-enabled touchscreens

• UGG By You puts customer in charge

of the design process

• Bling It On allows customer to

embellish boots with Swarovski crystals

“We are merging the best of digital and physical

shopping experiences...”

— Dave Powers, president of omnichannel Deckers Brands

NEIMAN MARCUS

Memory Mirror

• Captures images and video of

everything shoppers try on

• Compare outfits side by side

• 360-degree view

“All our newest initiatives—MyNM, Snap.Find.Shop, the

Memory Mirrors, the Touch Tables—are geared toward

making the customer experience the very best it can

be.”

— Ginger Reeder, Neiman Marcus

NEIMAN MARCUS

Touch Table

• Browse and filter Neiman Marcus’

in-store and online inventory

• Showcase “coming soon” products

• 32” Ultra High-Definition 4K

touchscreen

"Whether it's a product in another store

location or from our online inventory, our goal

is to provide customers with omnichannel

access to the best merchandise in the world.”

—Wanda Gierhart, CMO

DL1961 Premium

Denim/Nordstrom

“Digital Denim Doctor”

• 360-degree imagery

• Detailed denim “blueprint”

• “Prescription” for the perfect fit

“We wanted to really simplify the customer

experience.”

— Sarah Ahmed, Creative Director

Ford F-150

“The Truth About Trucks”

• Interactive touchscreen and

3-D interactive display

• Features and capabilities, in depth

• Comparison with competitors’ full-size

pickup trucks

• Build with available options

“The kiosks will allow a customer to drive

the experience ... learn about what you are

interested in.”

— Eric Peterson, F-150 Marketing Manager

Audi City

• Consumers choose model, color, engine and other specs

• Completed car is displayed on floor-to-ceiling “Powerwalls.”

• Customer can interact with their creation — spin it around, peer inside, open doors & more.

“Audi has set itself the task of bringing together the benefits of the real and the digital worlds, to fully integrate them and create a perfect brand experience.”

— Horst Hanschur, Business Development, Audi

APPLE’S MARKET CAP TOOK OFF AFTER YEARS

OF HOVERING AT $8B

Data source: Y Charts

WHAT HAVE WE LEARNED FROM THE APPLE

STORE?

• Make investments that will connect customers with your products

• Create an enticing retail environment

• Let customers test products hands-on, light/no supervision

• Hire good people, train employees well, make experts available

• Look beyond the transaction

• No pressure

• No upsell

• Don’t get complacent

WHAT DID WE REALLY LEARN FROM

THE APPLE STORE?

Create a great experience

“... Bringing together the benefits of the real and the digital worlds, to fully integrate

them and create a perfect brand experience.”

“The kiosks will allow a customer to drive the

experience ... learn about what you are

interested in.”

"The goal is to create an inviting and engaging retail experience ...”

“We are merging the best of digital and

physical shopping experiences...”

All our newest initiatives are geared toward

making the customer experience

the very best it can be.”

OVERALL, THE EXAMPLES WE LOOKED AT ARE

HELPFUL AND EMPOWERING

Meaningful interaction Example

Help me choose the right product for me NM Memory Mirror – 360° view

DL1961/Nordstrom – 360° imagery, questionnaire

Help me find the one I’m looking for NM interactive table – Online inventory, new products

Help me understand the available choices or a specific

product

DL1961/Nordstrom – RFID tags

Ford 150 – Aluminum body, fuel efficiency

Help me compare products I’m considering Ford 150 – Comparison against other trucks

NM Memory Mirror – Side-by side comparison

Let me build exactly what I want UGG – customize with color, patterns, crystals

Audi City – Configure car

Ford 150 –

Let me see and feel what it would be like to own the

product

Audi City Powerwalls – Spin, look inside, open doors

UGG – RFID-driven videos and style tips

IS CAR BUYING A GREAT EXPERIENCE?

Source Data Points

McKinsey 2013 Retail Innovation Consumer

Survey

• 1 in 4 customers is unsatisfied with dealer experience

• Buyers expect dealer visit to yield information not easily found online

Cars Online 2014 • 57% of US respondents said they were satisfied with the overall buying process

• 76% would consider an alternate test drive location

MTV Millennial Study 2014 • Good news: they don’t hate cars

• 8/10 believe process should take less time

• 87% say process should be more transparent

JD Power U.S. Sales Satisfaction Index • Overall satisfaction with the sales experience among new-vehicle buyers and

rejecters in 2014 is 686 /1000

• Overcoming customers' feelings of intimidation with regard to the latest

technology is an important part of vehicle sales; product specialists help

... but it should be

It should be like when you go to an ice cream store.

Everybody is happy at the ice cream store.

They are laughing, smiling and joking.

When you buy a car, it should be the same.

— Mike AccavittiVice President, Automobile Marketing, American Honda Motor Company

THE EVOLVING DEALERSHIP

EXPERIENCE

PEOPLE SHOP FOR CARS ONLINE, BUT THEY

BUY CARS IN DEALERSHIPS

• Online touch points have reshaped how people gather information

• Dealers are still the most important touch point in the decision phase

• Car dealerships will remain a crucial touch point, even as many bricks-and-mortar retailers fade away

• physical experience

• expert advice

• personal aspect of the sales process

Information

PhaseDecision

Phase

Source : McKinsey, “Innovating Automotive Retail,” 2014

Customers Maneuver Through

Multiple Touch Points

GOOGLE “OMNICHANNEL,” AND YOU WILL SEE

HUNDREDS OF PICTURES LIKE THISIt looks a little different in the automotive sector

YOU HAVE TO FIT INTO THEIR BUYING PROCESSOEMs and dealers need to work together to make the customer’s experience as seamless as possible

WE’VE TOUCHED ON SOME OF THE CHANGES IN

BUYER BEHAVIOR

Virtually 100% start online

• OEM & Dealer websites

• Independent websites

(e.g. Edmunds, KBB)

• Search engines/articles

Evaluation resources

• Online forums

• Social networks

• Configurators

• Pricing

63% use phone in

dealership – usually third

party sites

Fewer dealer visits

• 1 in 6 skip test drive

• 40% visit one dealer

• Average 1.2 dealers

Auto manufacturers and

dealers have invested heavily

in websites and internet

advertising

• Huge increase in internet

advertising

• Manufacturers have created owner

websites

• Dealers use digital media — email

lists, social networks, e-newsletters

— to offer rebates, loyalty

programs, contests and incentives

2009

$5.4b

2012

$7.2b

2010

$5.9b

2011

$6.4b

2013

$7.6b

Source : NADA State of the Industry reports, 2010-2014.

Franchised dealer advertising spending.

... but the dealership experience

hasn’t changed much

HOW WILL AUTO DEALERSHIPS CHANGE?

THERE ARE SO MANY POSSIBILITIES FOR

HOW DEALERSHIPS WILL CHANGE

• Digital experiences come in all shapes and sizes—but some are affordable for individual

franchises

• Projects span functions, including content, design, marketing and technology will have to

work as a team

• In the retail environment especially, staff and training are critical success

• And of course it’s all powered by the technology

• Most projects require a commitment to keep the content fresh and accurate

In-store digital experiences will be part of the picture

ONE APPROACH: WHAT DO CUSTOMERS

EXPECT TO SEE IN THE SHOWROOM?

Interactive touch screens to view car information with pictures and videos

3D virtual vehicle configuration

Virtual test drive stations

Cars in showroom have digital information available for display on mobile device

Tablet for me to use in the showroom to get detailed information

Ability to transfer data (configuration, price offers) to your mobile device

Source: Cap Gemini Cars Online 2014

INTERACTIVE KIOSKS CAN BE USEFUL

THROUGHOUT DEALERSHIPS

• Available in all the right sizes

• Captivate with large monitors

• Educate with mobile devices

• Collaborate with PC-sized screens

• Consistent – continuity between OEM and dealer websites and the dealership

• Easy to use – touchscreen, familiar gestures

• Engaging – high-performance video, interactive applications

• Connected – internet, mobile devices, cloud

• Informative – training, news, education, detailed product information

The following slides show ViewPoint kiosks at work in different parts of the dealership

Interactive Kiosks Throughout the Dealership

Innovations in Retail

SHOWROOM

PRODUCT & INVENTORY

Interactive Kiosks Throughout the Dealership

PRODUCT & INVENTORY

Interactive Kiosks Throughout the Dealership

PRODUCT & INVENTORY

Interactive Kiosks Throughout the Dealership

PRODUCT & INVENTORY

Interactive Kiosks Throughout the Dealership

PRODUCT & INVENTORY

Interactive Kiosks Throughout the Dealership

DELIVERY

Interactive Kiosks Throughout the Dealership

SERVICE

Interactive Kiosks Throughout the Dealership

SERVICE

Interactive Kiosks Throughout the Dealership

UPGRADE

Interactive Kiosks Throughout the Dealership

OFFSITE

Interactive Kiosks Throughout the Dealership and Beyond

FUTURE OF CUSTOMER EXPERIENCE - RECAP

• Looked at examples of innovative digital experience that are being rolled out across retail

• Examined how those examples improve customer experience

• Considered changes in the way people buy cars & associated challenges

• Short introduction to ViewPoint Interactive Marketing Kiosks & examples of how they are

used in dealerships

Contact Information:

Anne Horn

[email protected]

617.997.9367