AUTOMOTIVE SALES: A BUMPY ROAD TO RECOVERY - SMART MOBILITY CONNECT Charting the mobility ecosystem of the future - Capgemini
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AUTOMOTIVE SALE S:
A BUMPY ROAD
TO RECOVERY
SMART MOBILITY CONNECT
Charting the mobility ecosystem of the future
AUTOMOTIVE SALES: A BUMPY ROAD TO RECOVERY
CONTENTS
GLOBAL MARKET RESE ARCH FINDINGS 3
CHALLENGES AND BEST PR ACTICES 8
THE CAPGEMINI INVENT
AUTOMOTIVE SALES RECOVERY FR AMEWORK 10
I M P L E M E N TAT I O N A P P R OAC H
TO RECOVER SALES 12
2GLOBAL MARKET
RESEARCH FINDINGS
The COVID-19 crisis poses an unprecedented projections by the German Council
of Economic Experts (see figure 1).
challenge for the automotive industry and the Even in the best-case scenario, a strong
global economy deviation from pre-crisis forecasts
is to be expected for at least a year.
However, this would require the quick
With sales dropping, production are rethinking their consumption and recovery of global supply chains, good
ground to a halt, and stock markets at investment decisions, as well as their product availability, and fast recovery
a six-year low – the COVID-19 crisis has future mobility behavior. According of vehicle demand. More pessimistic
left almost no fragment of the global to Capgemini Invent research, 54% researchers and industry experts
economy untouched. As a key pillar are planning to postpone their planned predict a much deeper crisis, with
of the economy, this applies explicitly car purchase in 2020. This has placed a slow three-to-five-year recovery
to the automotive industry, which has a heavy financial burden not only on phase. A scenario which frightens
been facing challenges on both the OEMs, but on the entire industry, automotive managers, employees
supply and demand sides recently. including dealers, many of whom and shareholders alike. Our research
Supply chains – many of which are are struggling for survival due to suggests a less dramatic, milder trend
strongly connected to China, which closed showrooms. Despite help from case, with a recovery phase until the
was hit first by COVID-19 – have been OEMs and governmental measures, end of 2021. Several facts and recent
interrupted and delayed, resulting the COVID-19 crisis is causing severe developments support this prediction,
in costly production stops. About liquidity challenges and leading to the including the rebound of the Chinese
100 automotive production facilities first insolvencies among dealers. market, the currently well-functioning
globally were closed as of April 20201. restart of the industry's supply chain,
But even more dramatic is the plunge With regards to automotive sales, we and purchase incentives planned
in demand: in Europe car sales dropped have calculated three possible recovery by European governments, such as
by over 55% in March 2020 year over scenarios for the European automotive bonuses for the purchases of electric
year2. Due to COVID-19, customers market based on general economic vehicles.
110%
European new car registrations
100%
90%
80%
70%
Relative to pre-crisis
volume Q4 2019 W / o COVID-19 pandemic
60% Best case
Trend case
50%
Worst case
40%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021
figure 1 | Capgemini Invent scenarios for automotive market recovery in Europe
The scenarios in the graph indicate the the COVID-19 development in China automotive sales recovery, we
recovery for the European automotive is about two months ahead of Europe, conducted in-depth research covering
market. We expect a similar but also because local demand is the customer as well as OEM and
development for the North American picking up faster than expected. dealer perspectives. The results of
market with a delay of 4-6 weeks. First this research, as well as measures to
recovery signals from China indicate an To develop targeted and quickly counter the crisis, will be outlined on
even faster recovery. Not only because effective measures to support the following pages.
1
Springer, 2020
2
ACEA, 2020
3AUTOMOTIVE SALES: A BUMPY ROAD TO RECOVERY
Customers postpone purchase decisions due to financial uncertainty as well
as regulatory hurdles caused by the COVID-19 crisis
Investigating the most effective levers to recover automotive sales, we start at the customers’ perspective. We surveyed over
4,000 customers with car purchase intentions in 5 markets; Germany, US, UK, China and India.
4,000 + Research focus
respondents from 5 markets
Current vehicle usage and mobility preferences
Consumption and investment behavior
n = 802 n = 803 n = 808 n = 804 n = 802 Potential of OEM and dealer measures to drive sales
Readiness and expectations towards online
37% 63% sales channels and contactless customer experience
female respondents male respondents Customer communication preferences
figure 2 | Capgemini Invent Global Sales Recovery study facts
In our survey we focused on car Special offers Research Institute study, which had a
purchase and mobility behavior Customers are not entirely opposed strong focus on mobility behavior, this
and mobility behavior, complementing to making a car purchase. If offered is especially true for customers below
the existing global survey by the additional incentives, self-expressed the age of 35 who were previously
Capgemini Research Institute1 focused willingness to buy a car increases very fond of shared mobility solutions.
on general shifts in mobility behavior strongly: 62% of customers 42% of those customers interested
as a result of COVID-19. interviewed could be convinced by in owning a car could be convinced to
an attractive discount, while another make a purchase if they were offered
51% would expect additional products more flexible payment options,
“54% of consumers and services as an incentive. However,
it is not just monetary reasons that
potentially easing their financial
insecurities.
are postponing their are mentioned. 32% of customers
Digital sales
in our survey would accelerate their
planned car purchase” car purchase for a stock model. This Finally, the distribution network in
certainly is an interesting insight for the automotive industry is currently
As expected, a majority (54%) of OEMs and dealers currently sitting disrupted, for instance by the closure
respondents stated that they are on a large stock of vehicles. of showrooms. This can lend new
currently postponing a planned car emphasis to existing initiatives
purchase due to COVID-19. The most Flexible contracts regarding digital sales. From a customer
frequent reason given for this, was Given that financial insecurities are perspective, this would certainly be
financial uncertainty. On a more currently the most frequent reason desirable: 56% of the participants
positive note, however, the survey for postponing a car purchase, OEMs consider a contactless experience to
suggests that customers’ reluctance and dealers can help customers in their be very important. Accordingly, 78%
can be counteracted with three purchase decisions by expanding the of the respondents claim to be more
different measures: range of flexible payment and mobility likely to purchase cars online than
solutions. Besides the willingness to before the COVID-19 crisis.
switch to more flexible usage such
as subscription or long-term rental, a
rising general preference for privately
owned vehicles (that are perceived to be
more secure and hygienic) seems to be
a preliminary result of the COVID-19
crisis. According to the Capgemini
1
Capgemini Research Institute
4Special offers Flexible Contracts Digital Sales
By launching targeted measures now, OEMs now have the chance to convert Online sales are a key enabler to reopen
OEMs could convince 46% of hesitating customers through the flexibility of their sales channels and convert customers.
customers in the next 3 months. product portfolio.
of hesitating customers claim state they want to postpone say that they are now more likely
62% that an attractive discount 54% their purchase due to financial 78% to buy cars online than before
could persuade them to buy uncertainty the pandemic
would accelerate their buying would now prefer a car with consider a contactless experience
32% decision for a quickly-available car 42% more flexible payment options 56% to be very important
51%
claim they would accelerate their
purchase decision if additional
32% demand that an online sales
process needs to be end-to-end
products and services were offered
figure 3 | Capgemini Invent Global Sales Recovery Study research findings
These survey results are generally Conversely, discussions around
supported by sentiments on social the possibilities to buy cars online
media globally. In our social listening spiked after global lockdowns were
analysis, we found lively discussions implemented (see figure 4). Especially
around whether to use public or in the US, many customers share their
private transport in times of COVID- end-to-end online sales experiences
19. Mentions of using cabs or services with companies such as Carvana
like Uber have notably decreased or Tesla.
since the start of the global pandemic.
Index of tweets related Significant increase in updates and
to buying cars online posts on how to buy cars online
120
100
80
60
40
20
0
9
0
20
0
0
20
20
20
0
20
20
20
20
0
20
20
0
.1
.2
.2
.2
.2
.2
.2
.
2.
9.
.
1.
8.
.
.
5.
.
29
19
29
19
5
23
15
26
16
12
22
12
3.
2.
1.
4.
3.
2.
.
1.
4.
3.
1.
2.
4.
3.
1.
2.
3.
12
PRE-COVID-19 COVID-19
figure 4 | Social media activity on online car purchases1
1
Capgemini Automotive Research Institute social listening analysis
5AUTOMOTIVE SALES: A BUMPY ROAD TO RECOVERY
Market specifics The elimination of additional physical
touchpoints during the sales process
Our survey has shown a likely decline
of car sharing and public transport
Even though these three trends is also valued by British customers. and an increase in the demand for
hold true for each of the surveyed The essential step in the process personal mobility, especially in China
markets and can be interpreted as is the vehicle delivery for a test drive, and India. Even though car ownership
globally relevant, it is important to which is an important part of a is on the rise again due to health and
also highlight market specific results contactless sales process for 56% safety reasons, vehicle purchases are
in order to tailor initiatives and of the respondents. In a similar more likely to be deferred for the next
recommendations to the respective vein, we can expect to see a strong 3-12 months. By launching targeted
country for a maximized impact. substitution in means of transport measures, OEMs could convince most
in the UK after the crisis. 38% of our hesitating customers in the short and
Answers from German respondents respondents claim to be willing to use medium term to purchase a car. But
indicate an urgent demand for a new their own car more than before and the expectations are high. Hesitating
car as a secure personal means of almost 50% will decrease their use and new customers are expecting
transportation: Even though Germany of public transport. OEMs and dealers to provide them
is traditionally a strong build-to-order with new offers. These offers should
market, 43% of customers intending Because of their strong digital mindset, include flexible contracts and usage
to buy a car in the near future would Chinese customers have been very models as well as an extended scope
currently also accept a stock vehicle. open to using online channels during of additional products & services.
However, customers that were initially the COVID-19 pandemic. Almost 50% Regarding the customers’ financial
deterred from their planned car would currently and soon prefer to concerns, attractive discounts and
purchases by the COVID-19 crisis, are buy a car via the digital channels of the state purchase incentives can be of
very likely to come back later. Almost dealer or the OEM. Concerns on health great help. Contactless sales will play
75% of our respondents claimed to be and safety even go one step further: a major role in the future. The “new
willing to buy a car in the next 6 months, 7% of customers who previously had normal” buying behavior is digital,
if incentivized in the right way. no purchase intention whatsoever, where e-commerce, contactless test
are now willing to buy a car to protect drives, vehicle delivery and services are
In the US market, the protective themselves from a COVID-19 infection. favored by customers. Moreover, the
nature of a private car is very much changing mobility behavior offers the
appreciated as well. 95% of US Moving on to India, we see a similar OEMs and Captives an opportunity to
respondents now want to own picture. As a result of COVID-19, 73% reach a new target group. There is a
or exclusively use a private car as a of our Indian respondents want to considerable amount of people purely
result of COVID-19. This will be bad reduce their use of public transport. using public transportation and sharing
news for car sharing providers: 36% The obvious alternative for many services that now consider purchasing
of customers want to reduce their customers is owning a private car. a car, but in a different ownership
usage of shared mobility. When 99% of respondents stated an model than the traditional one.
purchasing a car, 46% prefer specific openness towards being convinced
activities (e.g. signing of contract) into making a purchase by measures
to still be made offline, while 42% and incentives. Hard numbers apart,
of our respondents currently prefer Indian customers are also generally
an all-online sales process. happy to stay in touch. Social Media is
very popular with our respondents for
receiving updates on COVID-19 (29%)
as well as marketing campaigns (27%).
6Special offers Flexible Contracts Digital Sales
By launching targeted measures now, OEMs now have the chance to convert Online sales are a key enabler to reopen
OEMs are able to convince hesitating customers through the flexibility of their sales channels and convert customers.
but also new customer groups. product portfolio.
Germany
of hesitating customers claim state they want to postpone consider a contactless vehicle
59% that an attractive discount 40% their purchase due to financial 51% delivery for a test drive to be
could persuade them to buy uncertainty important
say that they are now more likely
43%
would accelerate their buying
decision for a quickly available car 56%
prefer a car with more
flexible payment options
60% to buy cars online than before
the pandemic
want to use vehicles flexibly
49%
expect an extended scope of
additional products & services
22%* instead of owning them after 25%
demand that an online sales
process needs to be end-to-end
the pandemic
US
of hesitating customers claim state they want to postpone consider a contactless vehicle
69% that an attractive discount 38% their purchase due to financial 75% delivery for a test drive to be
could persuade them to buy uncertainty important
say that they are now more likely
73%
would accelerate their buying
decision for a quickly-available car 40%
prefer a car with more
flexible payment options
68% to buy cars online than before
the pandemic
claim they would accelerate their
47% purchase decision if additional 42% want an all-online sales process
products and services were offered
UK
of hesitating customers claim state they want to postpone consider a contactless vehicle
70% that an attractive discount 34% their purchase due to financial 44% delivery for a test drive to be
could persuade them to buy uncertainty important
say that they are now more likely
35%
would accelerate their buying
decision for a quickly-available car 41%
prefer a car with more
flexible payment options
62% to buy cars online than before
the pandemic
expect an extended scope of would buy their future car online
43% additional products & services 32% from the OEM or dealership
China
of hesitating customers claim state they want to postpone would accelerate their purchase
61% that an attractive discount 39% their purchase due to financial 62% decision, if there were contactless
could persuade them to buy uncertainty vehicle purchase options
accelerate their purchase say that they are now more likely
47%
would accelerate their buying
decision for a quickly-available car
62% decision when offered more 79% to buy cars online than before
flexible payment options the pandemic
can be generally convinced to buy
41%
expect an extended scope of
additional products & services
39% a car with more flexible payment 49%
would buy their future car online
from the OEM or dealership
and usage options
India
of hesitating customers accelerate state they want to postpone
99% their purchase if provided with 39% their purchase due to financial 50%
consider a contactless sales
process to be very important
attractive sales incentives uncertainty
say that they are now more likely
60%
would accelerate their buying
decision for a quickly-available car 41%
prefer a car with more
flexible payment options
73% to buy cars online than before
the pandemic
claim that an extended scope
69% of additional products & services 44% would buy their future car online
from the OEM or dealership
might convince them to buy
figure 5 | Capgemini Invent Global Sales Recovery market-specific research insights
*
Single-choice question, primarily focused on time after COVID-19. General willingness for subscription use much higher, see Capgemini Invent Subscription Blog
7AUTOMOTIVE SALES: A BUMPY ROAD TO RECOVERY
CHALLENGES
AND BEST PRACTICES
The decline in car COVID-19 impact on business Current support of OEMs
The impact of COVID-19 has been A large proportion of dealers lacks
sales is especially massive for dealers. In line with the support from OEMs. While there has
threatening customer insights above, new car sales been strong communication with a
have dropped to almost zero during few dealers regarding measures to be
to automotive the last weeks, resulting in a 25% drop taken, most dealers are dissatisfied
dealerships of passenger car registrations for the with the timing and extent of
first quarter of 2020, and a dramatic proposed measures. Regarding the
Dealers are directly affected by the decrease of over 55% for the month communication of future scenarios,
customer behavior outlined above. of March in the EU1. The average dealers expect more information
With customers unwilling to visit them shutdown duration of 26 working about mid-term and long-term
for a conversation or test drive, or their days for production sites in the EU plans and developments. If support
showrooms being closed altogether accounts for a production loss of initiatives do exist, they primarily focus
due to health and safety regulations, over two million motor vehicles up to on financial support, leading to the
their traditional business has been April 202. Additionally, the aftersales perception of a non-comprehensive
completely disrupted by COVID-19. service business has lost a larger and slow sales recovery support.
To get a clearer picture of the current percentage of its revenues. Overall,
situation and the most urgent pain this means that dealer revenues have Dealer recovery initiatives
points at automotive dealerships, we significantly decreased overnight,
Dealers have already taken
conducted over 30 focus interviews while costs have largely remained the
measures to boost sales. The focus
with dealers throughout Europe. The same. For dealerships with an already
is on improving digital sales channels
results all relate to the following four low level of financial stability before
as the importance of the set up and
main steps on the way to long-term the crisis, this now means significant
expansion for the customer was quickly
recovery from the crisis. liquidity challenges. As one of the
recognized: “A push in digital is the only
dealers interviewed put it: “This will be
way out” was one of the first things
the survival of the fittest.” This struggle
one dealer told us in interviews.
might be eased by government aid in
some countries. However, such aid may
come too late for some dealers and
might not be enough in the long term
for others. Looking forward, dealers
face great uncertainty regarding future
development of the markets.
1
ACEA, 2020
2
ACEA, 2020
8“A push in digital Best practices
is the only way out.” from China
Dealer interview A wide range of measures has already been identified in the Chinese
market to recover sales and stimulate vehicle demand. It’s not just the
Besides sales continuation via OEMs and dealers who are responding to COVID-19 with innovative
telephone and Skype, dealers are ideas and digital solutions – third parties and platform providers are also
also making greater use of previously reacting quickly to the crisis and helping to overcome the above-mentioned
underexploited communication challenges. In particular, the creation of virtual offers, the enablement of
channels such as social media a contactless customer experience, and new types of lead management can
(especially Facebook and Instagram). be observed (see figure 6).
Thus, they use a variety of channels to
inform their customers, among others,
about availability, offers (e.g. wheel
replacement), and supply shortages.
The increased use of third-party Online Contactless
platforms serves as another crucial Experience Sales
sales channel for reducing car stock.
Currently, many dealers face the
challenge of an unequal knowledge of GEELY AUTO TESLA
digital tools among their employees. Provision of fully contactless solution Zero contact test drive and vehicle
While developing digital sales channels on online basis home delivery
and tools to increase profitability, Cars delivered disinfected and Appointment creation online (Weibo)
dealers must take steps to train sales fully fueled for test driving including or via phone
staff in digitalization. pick-up service from home for free In-car video instructions during
Car service pickups also included test drive
Long-term perspective
The future of dealers can be seen in
the adage “We need to rethink our
old beliefs.” To survive, they must
rapidly accelerate the digitalization Online Dealer
of the entire sales process. It will be Experience Enablement
essential for them to be more open to
direct / agency sales with fair margin MERCEDES-BENZ VW (FAW)
models. Finally, they must approach
Enhancing online presence with 3-day webinar for 50,000 salespeople
new business models (e.g. mobility, live-shows from selected dealerships from dealerships in China by partnering
subscription) without prejudice rather and 360° vehicle views with Taobao University
than simply ignore them.
Collaboration with dealers to build Trained on digital tools & contactless
virtual reality showroom customer experience
figure 6 | Exemplary sales recovery initiatives in China
9AUTOMOTIVE SALES: A BUMPY ROAD TO RECOVERY
THE CAPGEMINI INVENT
AUTOMOTIVE SALES
RECOVERY FRAMEWORK
Taking the right steps The framework provides an internal
focus and a customer focus. The
towards recovery internal focus includes initiatives
concerning completely internal
Based on our extensive analysis of processes and organization topics
the current situation of OEMs, dealers of the OEM and its dealer network.
and customers, we have developed the The customer focus relates to
Capgemini Invent Automotive Sales initiatives / actions of the OEM and
Recovery Framework (see figure 7). dealer that have a direct customer
With this, we are addressing key impact, such as the integration
challenges for OEMs and dealers of online and offline channels or
to help our clients revive their sales the portfolio expansion with new
performance. Our framework has offers (e.g. car subscription models).
a clear focus on top-line growth Based on the research, we identified
to recover sales volume and gain eight dimensions divided into the
market share. Using the framework, above-mentioned focuses. These
we can easily derive initiatives for dimensions represent areas that must
customer-oriented sales and marketing be addressed in order to recover
organizations of OEMs (Captives sales. Each one includes several
included), National Sales Companies recommended actions. In order to
(NSCs), and dealers. These initiatives address diverse development stages
can be successfully implemented of the crisis, the initiatives account
in the short to medium term. In line for different time horizons and
with the framework, we developed an goals. Our initiatives are covered
Automotive Sales Recovery Toolbox in the Capgemini Automotive Sales
that provides a variety of actionable Recovery Toolbox. The framework as
initiatives along the structure. well as Toolbox are targeted to the
distribution levels of OEMs, markets
represented by NSCs, and dealers.
10figure 7 | Capgemini Invent
Automotive Sales Recovery Framework
AUTOMOTIVE
SALES
RECOVERY
The eight dimensions Dealer network stabilization is
clearly needed to support dealerships
Sales funnel reactivation includes
the adjustment of the OEMs’ and
of sales recovery on their path back to a sustainable, Captives’ communication strategy.
healthy business. To reach this goal, It mainly focuses on the (re-)activation
We have identified the following eight dealers can be consulted and qualified of customers and leads. Potential
dimensions as being critical for the for specific measures, such as a financial initiatives are live-streaming events
protection and recovery of automotive support program or the consolidated and video messages as well as adapting
sales during the COVID-19 crisis: management of specific dealer groups. the marketing mix and media spending
to communicate with the customers
Comeback organization deals with Targeted offers should be considered in the best possible way.
the (temporary) adaption of the a major instrument to attract and
internal organization to ensure focused convince customers. This includes Contactless customer experience
crisis management. Best practice special and temporary purchase represents the accelerated extension
sharing of markets and / or dealers, incentives, such as package bundles of digital sales and virtual customer
a central support unit for NSCs and and temporary discounts and bonuses care. Considering the customer’s
dealers (including shared services) (on cars and aftersales). Captive players possible security concerns, OEMs,
or, alternatively, dedicated sales and can also have a big impact on this Captives and dealers can interact with
marketing taskforces are helpful dimension, with temporary financing them in a contactless way via third-
and efficient methods to establish a or leasing promotions or special party platforms and provide sales
successful comeback organization. conditions. consultation via augmented reality
goggles (e.g. Vypii, a real-time video
Recovery analytics are essential to Flexible mobility enablement means consulting tool).
enable funnel transparency and to pushing flexible contracts and financial
effectively steer the sales funnel with products to lower high customer Sales process adaptation covers
data analytics and KPI dashboards. uncertainty. Potential initiatives the creation of new solutions and
In times of uncertainty, control and include creating new, more flexible workarounds for a hassle-free
transparency are needed to manage leasing / financing contracts or car sales process. Contactless vehicle
the situation in a way that is as subscription models that are tailored handover for sales and aftersales as
focused as possible. A crisis control to (new) customer mobility needs. well as digital payment and signature
tower or a sales recovery dashboard processes enable customers to
with real-time data are examples of complete a car purchase without
supportive tools. having to meet the dealer face
to face.
11AUTOMOTIVE SALES: A BUMPY ROAD TO RECOVERY
I M P L E M E N TAT I O N
APPROACH TO
RECOVER SALES
Even in times of crisis 1. INITIATE 2. IDENTIFY 3. IMPLEMENT
a structured approach
Set up internal Quick assessment
Adaptation of existing
is key to a successful operating model to of current status tools / processes for
recovery coordinate recovery
in sales, aftersales &
regarding new customer
requirements
quick time-to-market
marketing organization Utilize ready-to-use
So, how can the measures from the – Offerings / products technologies / assets
Automotive Sales Recovery Framework Determine clear – Customer journey and integrate in digital
be implemented in the most efficient responsibilities on – S
ales and aftersales customer journey
and sustainable way to cope with HQ and market level process
Scale initiatives
the current crisis? A structured Coordinate Identify and prioritize for long-term
transformation approach supports interdisciplinary applicable recovery implementation
the framework implementation. recovery taskforce initiatives
When planning the implementation,
we recommend three-steps that focus
Capgemini Task Force Offering Capgemini Sales Recovery Toolbox Capgemini Customer Engine
on governance, adaptations, and + Recovery Analytics Cockpit + Digital Ecosystem Audit Offering (Smart Mobility Connect)
scalability (see figure 8).
figure 8 | Capgemini Sales Recovery transformation approach
The three-step implementation approach ensures
a comprehensive transformation
Initiate Identify Implement
Comprehensive and efficient After establishing an interdisciplinary Once the situation has been clearly
planning should constitute the first recovery taskforce, an assessment assessed and recovery initiatives
step. We recommend setting up and of the status quo and the most identified and prioritized, it is time to
coordinating an interdisciplinary pressing challenges and possible successfully implement them. During
recovery taskforce to steer and solutions is needed to prioritize this phase, it is key to address post-
manage a clear recovery plan for recovery initiatives. The objective crisis customer requirements that will
the sales, marketing and aftersales for all initiatives must be to protect represent the “new normal” and the
organization. The creation of current sales levels and avoid further expected standard. In order to reach
an internal operating model to damage with quick and decisive action. this goal, existing tools and processes
manage recovery and define clear There should be a special focus on will have to be adapted. Moreover,
responsibilities at corporate and the analysis of the current portfolio, ready-to-use-assets and technologies
market level are part of the recovery the customer journey, and the sales / will need to be utilized, and new
plan and should be focused on during aftersales process. The above- processes, systems, and products /
this stage. mentioned toolbox and framework services developed and introduced
can be used as a guide for this stage. to the market. A fast time to market
is one success factor to concentrate
on during this phase. Due to the
high degree of digitization along the
customer journey, we recommend
an emphasis on digital offers and
initiatives. All in all, it will be key to
scale the initiatives for a long-term
implementation and to secure a
competitive position.
12Checklist for OEMs: Targeted offers Sales process adaptation
Provide targeted offers for sales Provide solution approaches for a
what to do now? and aftersales services now – contactless execution of each step in
Having discussed the three-step especially for customers who still the sales process to dealers – from
implementation approach for crisis need to use a car during the crisis test drive to contract signature and
recovery, it is now time for action. Offer more flexible and customer- payment
Below, you will find a checklist friendly financing options during Ensure that (new) car registration
with the most urgent measures to the crisis – no down payment, low is possible in cooperation with local
address. We strongly encourage interest rates authorities – possibly via a more
you to start working on these topics digital process
for your company by planning out Flexible mobility enablement
their implementation and setting up Extend short- and mid-term rental Dealer network stabilization
taskforces to work on these measures. business via dealers and Captives – Quickly develop (online) training
flexible mobility options are needed and coaching programs for dealers
during the crisis regarding all current challenges –
Offer more flexible leasing contracts from safeguarding liquidity to using
in terms of duration and payment digital tools
conditions – the right offers can win Develop an approach to provide
customers even in difficult times financial rescue packages for
troubled dealers if necessary –
Sales funnel reactivation often in collaboration with local
AUTOMOTIVE
SALES
Set up an end-to-end digital sales governments
RECOVERY
process – for now and for the future
Recovery analytics
Keep in touch with your customers,
and be as personal as possible – Set up a crisis control tower to
digital touchpoints do not replace consolidate all relevant information
a personal connection and updates – information and quick
reaction are key in times of crisis
Contactless customer experience Develop or improve a comprehensive
Set up a convincing e-commerce sales funnel steering and monitoring –
solution that can capture all closely monitor crisis impact and
necessary steps normally conducted recovery
in the showroom – from inspiration
to consultation and test drive Comeback organization
appointments Enable dealers and markets to share
Build up a presence on existing best practices – set up a digital
third-party online sales platforms – collaboration platform
use well-established sales channels Set up a dedicated sales recovery
for short-term impact taskforce to plan and guide the path
to recovery – successful recovery
requires guidance
13AUTOMOTIVE SALES: A BUMPY ROAD TO RECOVERY
Getting ready Players within the automotive industry
CO N TAC T S
must find a healthy balance between
for recovery protecting current sales in the short
term, and adjusting their offers and
Sales growing strongly, production ways of working to the “new normal”
running on full capacity, and stock for a long-term competitive market
markets on a clear upwards trend – position:
nobody can be sure when this bumpy
road will end and if the vision state 1. Recover and re-establish the core
will become reality once again. One business of operative sales to
thing is certain though: no action is drive profitability and to secure
not an option. Decisive and fast moves distribution assets in the short term.
will ensure the healthy survival of
automotive companies and lay the 2. Implement new measures and
foundation for an impressive path to optimize the portfolio to satisfy
the “new normal”. The “new normal” post-crisis customer demands
will certainly be characterized by an (e.g. social distancing commerce)
increase in online sales leading to a to shape the automotive industry’s
seamless omnichannel experience. “new normal” in the medium term.
Moreover, the demand for individual
mobility will make vehicle ownership
3. Integrate new business and
more attractive on the one hand,
operating models and change
and, on the other, put car sharing and
long overdue structures to excel
public transport under severe pressure.
in the “new normal” standards in
Hygiene and health will become one
the long term.
strong motivator to buy and will have
to be assimilated by the automotive
The measures outlined in our study
industry and beyond.
are designed to help you achieve these
goals. We are more than happy to
discuss our insights and recommended
actions with you in more detail. Feel
free to reach out to us anytime.
14Thank you
Please contact us for more information.
Sebastian Tschödrich Marc Matthies Anne Junge
Vice President Director Senior Manager
Automotive Customer Engagement Automotive Customer Engagement Automotive Customer Engagement
sebastian.tschoedrich@capgemini.com marc.matthies@capgemini.com anne.junge@capgemini.com
Contributing Authors
Charlotte Hufnagel Manuel Müller-Ost David Rissmann
charlotte.hufnagel@capgemini.com manuel.mueller-ost@capgemini.com david.rissmann@capgemini.com
Katharina Schuback Charlotte Schindler Maximilian Werner
katharina.schuback@capgemini.com charlotte.schindler@capgemini.com maximilian.werner@capgemini.com
Automotive Research Center
Capgemini India
Global Team
UK USA
Arry Balachandran Michael Darr
arry.balachandran@capgemini.com michael.darr@capgemini.com
China India
Wei Song Ashish Sharma
wei.a.song@capgemini.com ashish.c.sharma@capgemini.com
Automotive Sales – a bumpy road to recovery is part of Capgemini’s Smart Mobility Connect offering. It empowers OEMs to
create the mobility ecosystem of the future designed with people at heart. We bring the mobility ecosystem of the future to life
through a host of products and services within three core pillars: Connected Customer, Connected Services and Products as well
as Connected Ecosystem.
The technological framework that helps us deliver on our approach, the Customer Engine, connects these pillars and integrates
intelligence into different stages of the journey.
Find out more: www.capgemini.com/invent/smart-mobility-connect
15AUTOMOTIVE SALES: A BUMPY ROAD TO RECOVERY About Capgemini Invent As the digital innovation, consulting and transformation brand of the Capgemini Group, Capgemini Invent helps CxOs envision and build what’s next for their organizations. Located in more than 30 offices and 22 creative studios around the world, its 6,000+ strong team combines strategy, technology, data science and creative design with deep industry expertise and insights, to develop new digital solutions and business models of the future. Capgemini Invent is an integral part of Capgemini, a global leader in consulting, technology services and digital transformation. The Group is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year+ heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. Today, it is a multicultural company of 270,000 team members in almost 50 countries. With Altran, the Group reported 2019 combined revenues of €17billion.. People matter, results count. Visit us at www.capgemini.com/invent The information contained in this document is proprietary. ©2020 Capgemini Invent. All rights reserved.
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