The mobility industry has never been the same again ever since the connected car emerged in the 1980s. The connected car comes with technologies that enable the driver to know more about its vehicle and achieve great maintenance and feedback.
Importantly, this car presents car dealers and original equipment manufacturers (OEMs) with an avenue to collect customer views and offer tailored services. If you are in car-selling or making out of vehicles, the pool of data available through connected car services can increase your competitiveness in aftersales services.
Trends Shaking the Aftersales Market
A most noticeable trend is the increasing influence or even takeover of the market by the independent aftermarket (IAM). Car manufacturers and dealers are finding it hard to compete with this segment for the aftersales market. A recent research study from Bearing Point revealed that 35% of drivers would prefer to work with the independent aftermarket.
However, dealers and the OEMs can thank technology for the capability to communicate with drivers remotely using a connected car ecosystem (mobile app). Planning for maintenance or repairs is as easy as ABC today. It is also possible to do repairs remotely using software solutions.
It is exciting how car manufacturers can remain in touch with their customers using connected modern technology related to the connected car. The Human-Machine Interface (the link between the driver and the car) is one such technology.
These and other trends suggest a need for transformation in the way OEM and dealers perform their aftersales activities. Indeed, there is a need for a review of the whole customer journey given the opportunity in connected car services.
Mobility platforms such as Drivus, developed by Net4Things, is such a great example of how this data can benefit dealers and other businesses. This technology allows to open up new communication channels with the drivers and make technical review suggestions, proactively offer workshops when the vehicle may need it, while multiplying the benefit with an excellent after-sales service.
A Few Obstacles
Car manufacturers have invested significantly in aftersales services in the last decade, leading to improved service levels and client satisfaction. The aftersales business has expanded, with many automakers venturing into services like tire replacement.
But as you plan to invest in connected car services, you need to consider various concerns emanating from the competition, improved car quality among others. Now that connected cars are taking root, remote services are likely to be common. Automakers and dealers will predictably lose a large proportion of their aftersales revenue.
The declining customer retention rate for automakers also needs attention. Clients with older cars particularly need to be approached differently, considering that they seem to prefer the more affordable rates offered by independent service providers.
Here it is where many finance or insurance companies are taking one step forward into offering connected car services as an additional service that can be used with older cars or cars that are not connected by default. This opens the door to new revenue streams for these kinds of businesses while offering excellent aftersales services.
Tailored Aftersales Offerings
A dwindling customer base, revolutionary technologies, and intense competition are shaping strategies for many retail businesses. The most effective fix has usually been the use of big data to offer tailored services to customers.
Instead of relying on a one-size-fits-all fix amidst evolved competitors, it is time for the automakers to offer custom car services. It is time to remove all the inconveniences of having dealerships too far from population centers and having inconvenient working hours.
Connected car services based on a customized approach could be a timely impetus for your aftersales services. Here we state some of their main benefits for each player:
|Proactive information about car maintenance||Predict repairs, technical reviews and Vehicle Inspection Test||Better understanding of driver’s needs|
|Technical service appointment suggestions||Proactively make appointments with partners||Improving customer loyalty and satisfaction|
|Customized recommendations according to driver’s profile||Technical service planning based on real-time car data||Build better solutions or car depending on customers preferences|
|Benefits for using the connected car ecosystem||Suggesting high-value services for driver’s||Suggesting technical service depending on the vehicle and drivers customs.|
Big Opportunity in Connected Car Services
For competitive advantage, you want to use the extensive amount of data accessible through the connected car. Customarily, automakers haven’t been able to utilize customer data optimally. Limited access to limited digital points of interaction has contributed to this state of affairs. Once a company has made a sale, customer engagement has been restricted to standard services.
Connected cars are great for aftersales services because auto companies now have a wide range of information regarding favorite locations, car conditions, driving patterns, and so forth.
With this kind of data, your car brand can develop innovative customer offerings that not only improve user experience but also boost product loyalty. Above all, connected car data of this nature provides insight into specific driver needs. As a car dealer or maker, the information will help you to react with value-added offers and services. That’s the direction the car services market is heading. McKinsey foresaw this when they predicted that monetizing car data could generate $750 billion before this decade ends.
Are you ready to capitalize on the opportunity presented by connected car services? The market is still opening out, so you can get ahead of the competition with the right moves.
You need to apply modern customer relationship management (CRM) platforms that allow you to manage customer data with an integrated view. No matter which aftercare segment you are in, the system will allow you to view customer information at the click of a button. This kind of insight will help your company deliver tailored aftersales services to your customer.
If you are interested in creating a connected car services ecosystem, we would be excited to discuss further. Please get in touch.