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ey-transforming-automotive-sales-landscape

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

• Buys and leases cars

• Visits dealers and

uses digital channels

occasionally

A wide

spectrum

of users

Dynamic

mobility user

• Buys mobility on

demand

• Uses physical and

digital channels

seamlessly

organizations believe

that an increasing

emphasis on

customer experience

is driving business

growth strategies.

70% 90%

executives said

following an

omni-channel

strategy

strengthens

consumer loyalty.

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

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.

Branding and customer strategy: enabling OEMs to provide a consistent

and engaging brand experience across all channels during the customer journey

Key facets

of the

organization

that will require

transformation

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

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.

According to EY’s Changing Lanes

2016-17 C-suite survey:

Scenario design,

business modeling

and strategy

Talent

management

(attract, develop

and retain)

development

Innovation and

product launch

management

Customer

experience

redesign and

measurement

Key

competency

sets

Integrated

financial services

and mobility

organization

Digital and IT

transformation

84% 88%

Transactions,

tax, legal and

regulatory

management

Supply chain

and risk

management

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.

Illustrative

competencies

Exemplary initiatives required through the

transformation journey*

Key competencies

Design customer strategy and journey reinvention

Open innovation and value strategy

Build mobility product and service portfolio

Start-up collaboration and prototyping

Portfolio and scenario management

Adapt sales channels and design new formats

Network mix design

Develop integrated digital infrastructure road map

Valuation and business modeling

New roles within sales network

Ensure customer-centric talent management

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

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

3


Want more?

Contact one of our global automotive and

transportation professionals

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.

Randall J. Miller

Global Automotive and Transportation

Leader

+1 313 628 8642

randall.miller@ey.com

Christian Zamet

Global Automotive Retail Leader

+49 6196 996 13176

christian.zamet@de.ey.com

Hanno Lorenzl

Partner and US Automotive Retail Leader

+1 312 560 1644

hanno.lorenzl@ey.com

Anil Valsan

Global Automotive and Transportation

Lead Analyst

+44 20 7951 6879

avalsan@uk.ey.com

Future of automotive retail:

shifting from transactional to

customer-centric

Click here

Remodeling for

mobility: will new

mobility mean the end

of ‘old’ automotive

Click here

How much human do we

need in a car: the evolution

of artificial intelligence

and acceptance of

autonomous vehicles

Click here

Regan Grant

Global Automotive and Transportation

Marketing Leader

+1 313 628 8974

regan.grant@ey.com

Acknowledgements

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

EY | Assurance | Tax | Transactions | Advisory

About EY

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In line with EY’s commitment to minimize its impact on the

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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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