Untapped Potential in Automotive Aftersales - How to inspire customers with enthusiasm with digital touchpoints - NTT DATA
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AUTOMOTIVE AFTERSALES | STUDY 2021 Untapped Potential in Automotive Aftersales How to inspire customers with enthusiasm with digital touchpoints
AUTOMOTIVE AFTERSALES | STUDY 2021 FOREWORD WEBSITE Touchpoint with widespread distribution he car dealership business model is undergo- CREATING A NEW CUSTOMER 12 T 30 ing a fundamental change, Mercedes, for EXPERIENCE example plans to sell by 2025, 25 percent of It is not just a matter however, of replacing the existing its new cars in Europe together with its distri- analogue structures with digitalised offers, it is necessary bution partners, via the internet. In contrast to other in- to expand them. It is important to relate to the customers dustries, however, this conversion to online selling is as they stand at any particular moment, this, for example, 22 taking place much less dynamically. The majority of could work in the form of customised offers. The goal CONNECTED customers generally (still) prefer a personal contact where should therefore be to achieve a seamless transition be- CAR purchase and service are concerned, simultaneously the tween online and offline customer experience. Customers Premium theme, use of digital channels by users is on the rise as online are willing to switch when it becomes more individual, 38 best dealt with offers and the opportunities for customer interaction faster and more convenient for them. together with the car increase. Customers, retailers and OEMs are currently manufacturers involved in a learning process. ANALYSIS OF FOUR TOUCHPOINTS APP The industry at present is essentially concentrating on the All manufacturers are REPOSITION NOW four digital touchpoints of website, app, Connected Car already offering apps for Any kind of disruption in selective distribution causes and social media so coming closer to the customer than their vehicles SOCIAL MEDIA difficulties to the new-car business and consequently in ever before. The comprehensive study presented by NTT Channel for image Aftersales. Until now no such an attempt has been able DATA and AUTOHAUS closely examines the players: cultivation and more CONTENTS to harm the present business model allowing time to now OEMs, dealers and customers by analysing the current reposition accordingly. Car dealers are simultaneously state of digital communication within the individual facets losing revenue in the lucrative service business and like- of the customer journey. Deficits are uncovered and rec- wise the OEMs in the lucrative parts business. The mar- ommendations for action are given, thus making future kets are no longer growing, the quality of the vehicles and communication in Aftersales business more digital and safety through driver assistance systems are increasing- more efficient. ly improving, e-mobility will probably halve service reve- nues, and in addition the new mobility offers ensure that 1 6 the existing fleet is used more extensively. FOREWORD ���������������������������������������������������������������������������������������������� 2 ANALYSIS OF THE FOUR TOUCHPOINTS ��������������������������������������������������������� 12 2 ALTERNATIVES TO PERSONAL CONTACT IN DEMAND - WITH STRATEGY 6.1 WEBSITE: HIGH FREQUENCY, GREAT POTENTIAL 14 It is of advantage that the customer communication with STATUS QUO 14 the car dealerships has been given a new boost due to MANAGEMENT SUMMARY �������������������������������������������� 4 POTENTIAL FOR AFTERSALES 18 experiences gained during lockdown. When personal RECOMMENDATIONS FOR ACTION 21 contact is no longer possible alternatives are needed. 3 Image: NTT DATA Having become aware of this, the industry has undertak- Kristina Neff 6.2 APP: CREATE ADDED VALUE 22 en appropriate measures, at the moment however, neither Managing Consultant STATUS QUO 24 a strategic nor a sustainable approach is being pursued. Customer Journey POTENTIAL FOR AFTERSALES 27 Those responsible at the OEMs and in the car dealerships NTT DATA Deutschland STUDY DESIGN ����������������������������������������������������������������������������������� 7 RECOMMENDATIONS FOR ACTION 29 are convinced of an increase in customers' needs for more online information, and for the possibility to acquire ser- 4 6.3 CONNECTED CAR: THE “PREMIUM” THEME 30 vices digitally. STATUS QUO 32 POTENTIAL FOR AFTERSALES 35 STRUCTURE AND APPROACH RECOMMENDATIONS FOR ACTION 37 OF THE ANALYSIS ����������������������������������������������������������������������� 8 6.4 SOCIAL MEDIA: 5 A TOOL FOR IMAGE CULTIVATION 38 Image: AUTOHAUS STATUS QUO 40 POTENTIAL FOR AFTERSALES 44 Ralph M. Meunzel Editor-in-Chief AUTOHAUS USAGE OF THE FOUR TOUCHPOINTS RECOMMENDATIONS FOR ACTION 46 Springer Fachmedien München GmbH IN COMPARISON �������������������������������������������������������������������� 10 Imprint 47
MANAGEMENT SUMMARY AUTOMOTIVE AFTERSALES | STUDY 2021 2 with the infotainment system in their own vehicle. High-resolution displays, intelligent voice control and touchscreens are tools with which customers can be in- troduced to the touchpoint and once the use of the Con- nected Car touchpoint becomes easy, clear and reliable, their acceptance will increase. If those conditions men- tioned can be fulfilled, it is expected that half of the cus- tomers would book a service appointment via the info- tainment system. Manufacturers have high hopes of Connected Car for obtaining information via the infotain- ment system and in the near future, the booking and or- dering of digital services should be possible. Here enor- mous potential lies untapped. Soon it should also be possible to book appointments for customised service Image: Stock Adobe Production Perig requirements - a function that is in strong demand by customers. This recommendation for action must be addressed at manufacturers and should state that the MANAGEMENT SUMMARY user's appetite be stimulated by the easy use of the info- tainment. 4. SOCIAL MEDIA: A TOOL FOR IMAGE CULTIVATION The dealers can maintain a social media presence with a manageable effort¬ and besides local offers this touchpoint can be easily used to present special Aftersales services with vide- ales is leading the way: The entire process, already generate ten percent of their Aftersales revenue 3. CONNECTED CAR: os or customer experience reports. When, S from obtaining information to finalising a via their websites, however, the precise amount of the THE "PREMIUM" THEME however, presenting the entire portfolio retail- purchase, can be carried out online. The study success in generating sales is actually known to few of The Connected Car touchpoint is basical- ers should switch to alternative touchpoints. soberly shows that Aftersales is still a long them. Here dealers should begin, and be prepared to in- ly of high significance and value found Facebook Marketplace shows how important it way off from this status, it does however, reveal how vest. Knowledge about the use and effectiveness of the primarily in premium class vehicles. The is to consistently follow new developments in the approaches can be initiated. individual opportunities a website can infotainment systems offer similar tech- market. By using this channel, the dealers can offer parts offer is an essential prerequisite for the nical capabilities as apps, however, the po- and accessories inexpensively and appropriate to target FOUR TOUCHPOINTS - successful use of the touchpoint. tential that infotainment systems hold is a groups. Similar developments can be soon expected from THE MOST IMPORTANT STUDY long way from being fully exploited. Customers ebay motors and Amazon. RESULTS AT A GLANCE 2. APP: CREATE ADDED VALUE! have already expressed ideas of their requirements from The constant change in social media landscapes de- Similar to the touchpoint website, the such a touchpoint and above all they demand user-friend- mands permanent attentiveness, but this is precisely 1.WEBSITE: HIGH FREQUENCY, touchpoint app also enjoys a high level ly systems. They also attach much importance - as with where a great opportunity is available to the automotive GREAT POTENTIAL of acceptance amongst customers. the other touchpoints - to the correct presentation of industry. The challenge lies in the early recognition of the The website provides a large Apps are used as a matter of course in overall costs. The great potential of Connected Car lies in innovations presented by social media, utilising them amount of space for the presenta- many areas of life and are generally well its unique features because with no other touchpoint the successfully for oneself, thus becoming a pioneer in tion of offers and allows the exten- recognised. Much customer data that is already customer is more directly and exclusively reached than winning new customers. sive communication of information. available to dealers can be used for an app in Aftersales. Customers already know and use this Telematic-enabled vehicles together with an appropriate digital channel, therefore this touchpoint app can open up opportunities for presenting customised deserves continued heightened attention and should offers and service booking suggestions. For this purpose, THE PERMANENT TASK OF DIGITALISATION definitely be developed further by the dealers. The dealers’ there is a necessity to define binding price information website should ideally present Aftersales services on their and create links with specific data of the customer and What applies to digitalisation as such, also applies to it is important to create an equally agreeable atmos- homepage, including the corresponding price information vehicle e.g. the personal calendar, and mileage of the the digital touchpoints in Aftersales. Work on digital phere from initiating the process to the follow-up for the various standard services and a short guide vehicle. This can generate the currently missing added touchpoints is an ongoing and permanent task that procedures. "Digital natives” are used to having their through the whole business process. It is equally impor- value for customers, which probably is one of the main involves a lot of attention to detail. digitally transmitted requests processed immediately. tant that binding booking confirmation can be carried out reasons for its sporadic usage. Working on this touchpoint The main task for the dealers involves setting up a The present study takes stock of the situation. The in a customer-friendly way. Dealers who have already is a complex but rewarding task as it requires much co- complete digital process in Aftersales which creates four digital touchpoints - website, app, Connected Car established their own customer accounts including the operation between dealers and manufacturers to combine a positive customer experience; starting from obtain- and social media - have been analysed for their poten- storage of customer and vehicle data, are well positioned all data and functions into a single app. However, 80 per ing information, through to transparent, binding price tial for Aftersales business and recommendations for to present customised offers. A responsive design web- cent of company car drivers and 60 per cent of private details, online appointment scheduling, and finally to action have been identified and presented. It enables site with user-friendly representation of the dealer on PC, customers are waiting for apps that offer them added real-time tracking of the workshop process, whereby every car dealership to deduce its own targets. tablet and smartphone should now be standard. Dealers value in Aftersales.
MANAGEMENT SUMMARY STUDY DESIGN AUTOMOTIVE AFTERSALES | STUDY 2021 3 OUR CONCLUSION: FIVE KEY of digital channels is an important strategic measure for RECOMMENDATIONS FOR ACTION the further development of digitalisation. OFFER REAL ADDED VALUE ACCELERATE SYSTEM INTEGRATION Customers request digital business initiation in Aftersales. The full potential of digitalisation in Aftersales can only To achieve this, each touchpoint needs more content and be boosted when the necessary internal adjustments of better functionality. Tangible added value is the only pos- the dealers’ IT systems are adopted. Digitalisation must sible means to create the necessary acceptance and in- lead to streamlining processes including cost savings. creased use amongst customers. If real added value is Only then it will catch on with the dealers. For this purpose, offered, dealers and OEMs can inspire their customers a better integration of all the systems is necessary, so with enthusiasm thus making the unpleasant necessity avoiding breaks in information flow and double entries. of Aftersales more agreeable for them. 60 percent of the dealerships see system integration as an important strategic measure to expand their digital CREATE A CLEAR TOUCHPOINT STRATEGY business volume, specifically, to offer the customers a Each touchpoint has its own potential and when creating digital customer journey in Aftersales. This not only in- the individual digital touchpoints, further elaboration of cludes system integration between the dealers and man- these potentials is of paramount importance. A clear ufacturers but also the integration within the different touchpoint strategy must therefore be achieved, making systems existing at the dealers. The dealers require here Image: Stock Adobe metamorworks their use efficient for dealers and OEMs. Digital touch- supporting tools that reduce the administrative effort, points are the cornerstones of interaction both offline and online - not only in sales. It is necessary to monitor the making it as low as possible. STUDY DESIGN change in digital offers to be able to swiftly adapt the IMPROVE COOPERATION BETWEEN DEALERS touchpoint strategy to the changing customer expecta- AND OEMS tions. There should be urgent rethinking in the cooperation be- tween dealers and manufacturers so that they are suc- ENSURE RETHINKING IN THE DEALERSHIPS cessfully positioned for the future. 60 percent of the Process harmonisation within dealerships is urgently dealers would like to have more support from the manu- needed so that the potential e.g. of online appointment facturers in order to digitally market Aftersales services scheduling, can be maximally exploited, and the respective online. The touchpoints app and Connected Car cannot be touchpoint most efficiently used. Standard services such controlled by the dealers alone as they are dependent on he study "Unused Potential in Automotive The institute responsible for interviewing was “puls Markt- T as wheel changes should be booked online in the future, the support of the manufacturers. When designing these Aftersales" is based on a survey of private and forschung GmbH”, Nuremberg. this having the advantage of reducing the number of two touchpoints the consolidation of dealer and manufac- company car drivers. 270 of private car dri- The results of AUTOHAUS panel interviews were also in- telephone calls and allowing the service assistant to pool turer data is of great value whilst the issue of data protec- vers and 270 of company car drivers were cluded in the study. The panel interviews were carried out the processing of appointments. Furthermore, it leads to tion and data sovereignty also plays a major role. interviewed online between 18 and 29 June 2020. The during two consecutive months, whereby during the in- a reduction of the employees’ workload, they save time A fully comprehensive Aftersales experience offered to average duration of an interview was approximately seven terviews each participant was asked a maximum of eight and can make those appointments for services which are the customers will have to entail "data sharing" between minutes. closed questions. The questionnaires were prepared joint- not of a standard nature directly with the customers, and manufacturer and dealer. How this is to be created and The survey method was an online interview using expe- ly by NTT DATA and AUTOHAUS. can properly qualify them. A change in thinking of the what the possible future cooperation models might look rienced panel partners. ■ employees is necessary so that they themselves use the like is a topic that is urgently waiting to be solved. All touchpoints and actively point out the digital touchpoints players involved, dealer associations, dealers and manu- to the customers. The majority of dealers have therefore, facturers are under obligation. already identified that employee training in IT and the use ■ SURVEY STRUCTURE EXPERT INTERVIEWS Sample n=540 interviews with drivers of Three Aftersales experts present their assessment of the Private cars (n=270) and situation as shown in the study: Company cars (n=270) Online by experienced panel partners ■ Bas Viveen, Director Customer Care & Aftersales Survey method Opel/Vauxhall Europe Survey 18 to 29 June 2020 ■ Lars Eßmann, Head of Service Germany Volkswagen period Pkw Approx. 7 minutes on average ■ Simon Saretzki, Head of Service Mercedes-Benz Cars Image: Stock Adobe Blue Planet Studio Interview Sales Germany duration Institute puls Marktforschung GmbH, responsible Nuremberg The interviews were quoted in accordance with KBA data on market shares for new registrations in 2019.
ANALYSIS AUTOMOTIVE AFTERSALES | STUDY 2021 Four Touchpoints in Focus FOUR TOUCHPOINTS IN FOCUS Four digital Aftersales touchpoints were analysed: used via the infotainment system in the car were Websites hold the first position - manufacturer and examined. In terms of social media, the focus was dealer websites alike. Also analysed were the apps on the four platforms: Facebook, Twitter, Instagram Purchase decision 1 2 3 4 from manufacturers or dealers. By the touchpoint Connected Car, services and performance that can be and YouTube. 4 process Obtaining information Price information Appointment booking Parts and accessories QUESTIONS ARISING ALONG THE PURCHASE DECISION PROCESS The present study focuses on the purchase de- DECISION cision process and examines the question of how In the decision-making phase, customers select a # far this process is already mapped digitally in Aftersales. provider based on the information obtained, and de- cide on an appropriate service or product. Transparent Social price information at this stage plays a decisive role in Media REQUIREMENT the decision-making process. App In the initial phase, there is a requirement – e.g. an up- coming service, wheel change, tyre purchase, or repair. PURCHASE Connected Car Either the customer’s attention to the upcoming service Ideally, after the choice of provider has been made requirement is alerted through a notification from the leading directly to the purchase of a product or to a Website vehicle, or he/she acts on his/her own initiative. workshop service, an appointment booking should be made online. In future, it should also be possible to INTEREST book and pay for services at a binding price rate. The following phase is that of interest. Customers start STRUCTURE AND actively searching for information. What services are offered, where and how? What do they cost? What PROCEDURE OF THE ANALYSIS competitive offers are available? SURVEY OF PROVIDERS AND USERS does not only limit itself to describing the status quo but 3. APPOINTMENT BOOKING 4. PURCHASE OF DIGITAL SERVICES, PARTS AND The aim of the study is to uncover deficits in Aftersales, also points out possible potentials in Aftersales for the At each touchpoint, the relevant question is whether a ACCESSORIES to identify optimisation opportunities and to provide spe- touchpoints examined. service appointment booking can be made here, and if a Finally, it is established whether customers can order cific recommendations for action for the successful ap- direct booking, i.e. with real-time confirmation is possible. parts and accessories, and can buy or add digital servic- plication of digital touchpoints. The initiation of business IMPACT OF THE RESPECTIVE Also included are the questions of whether requests for es. It also establishes how user-friendly and binding the for customers should be as agreeable and simple as TOUCHPOINT individual additional services such as replacement mobil- purchase is, and whether secure and fast payment is possible and offered 24/7, digitally anytime, anywhere. To determine how strongly each touchpoint supports the ity are met, and/or if there is the possibility to book addi- possible. ■ The study focuses on what already is being offered digi- digital purchase decision process (see box above) in Af- tional services or products. tally to customers; what information do customers cur- tersales, the touchpoints were analysed in terms of their rently receive via the digital touchpoint and how easily can applicability in the following four topic areas: they book or purchase Aftersales services online? In ad- dition to the present user behaviour, preferences and re- 1. OBTAINING INFORMATION quests for the future use of touchpoints were surveyed. “Obtaining information" concerns how easy it is to find Af- Furthermore, dealers were questioned about their present tersales information in the respective touchpoint. The study offers, and their respective future strategies for digital also poses questions as to user-friendliness with regard to touchpoints. Interviews with industry experts comple- finding and subsequent processing of information. mented the findings. 2. BINDING PRICE INFORMATION Image: Stock Adobe H_Ko ACTUAL STATUS PLUS ANALYSIS OF Of central importance is the question of whether prices POTENTIAL for services will be shown at all, also whether binding Firstly, the actual status is evaluated i.e. how well the prices are quoted and/or whether the prices are custom- purchase decision process is already mapped in After- ised to customers' requirements. sales by the respective touchpoints. The study, however,
USE OF THE TOUCHPOINTS AUTOMOTIVE AFTERSALES | STUDY 2021 5 USAGE OF THE FOUR TOUCHPOINTS Image: Stock Adobe ©nnudoo IN COMPARISON he study shows a clear ranking concerning where online workshop appointments are offered, the T the question of which channels dealers al- order of the first three places is identical. In terms of ready use to communicate Aftersales ser- the channels actually used for service appointments, vices. When it comes to the question of the telephone is clearly in the lead. ■ which channels are used to quote binding prices, and PREFERRED CHANNELS CHANNELS WITH PRICE INFORMATION CHANNELS OFFERED FOR ONLINE BOOKING CHANNELS USED FOR SERVICE APPOINTMENTS Service appointment arrangement Which digital channels do you already use to offer Aftersales Through which channels do you offer price information Through which channels do you offer the possibility of How do you typically arrange service appointments services (workshop services, parts & accessories)? for workshop services? booking workshop appointments online? with your / a workshop / car dealership? Own website 85% Own website 65% Own website 83% 76% By telephone 83% Manufacturer's website 66% Manufacturer's website 41% Manufacturer's website 52% In person 22% 12% Social media 54% Social media 23% Social media 25% Differs, depends on 11% the repair situation 7% E-mail newsletter 44% Connected Car services 13% Connected Car services 15% Online, via the 11% workshop website 8% Connected Car services 15% Own app 6% Own app 10% 6% By email 7% Manufacturer's app 9% Manufacturer's app 4% Manufacturer's app 9% Online, via a % Own app 9% Multiple answers possible workshop app 3% Online appointment scheduling presents a similar picture. This func- Basis: Only dealerships that offer binding price information for workshop services tion is offered by most dealers (83 percent) via their own website. Walk-in, go directly to 25 percent of the dealers advertise it via social media. Very few offer the workshop without 2% No digital channel 6% 2% the possibility to make an appointment digitally via Connected Car an appointment Websites are also in the lead when it comes to binding price informa- functions and apps. Multiple answers possible tion, followed by social media and the Connected Car. So far, hardly Private cars Company cars Basis: Only businesses that offer binding price information for workshop services any binding price information has been provided via the apps. Basis: Private cars=270, Company cars=270 | Data displayed as % Dealers have indicated that they offer Aftersales services mainly via The potential for online appointments is high, given that almost the website, followed by social media and the email newsletter. Only 80 percent of the customers state that they still make their appoint- 15 percent use Connected Car services and 9 percent offer Aftersales ments in the traditional way - by telephone. services via apps.
6 WEBSITE APP CONNECTED CAR SOCIAL MEDIA AUTOMOTIVE AFTERSALES | STUDY 2021 ANALYSIS OF THE FOUR TOUCHPOINTS 6.1 // WEBSITE STATUS QUO The website - a touchpoint that deserves a lot of attention. The touchpoint has high number of users and offers a large amount of space for presenting information con- cerning Aftersales. POTENTIAL FOR AFTERSALES Dealers already generate ten percent of their Aftersales revenue via the website. Given a good visual presentation of the services available, Aftersales themes can maintain a prominent position on the website. RECOMMENDATIONS FOR ACTION The strengths of the website should be exploited in a targeted manner. Dealers should place Aftersales services on the homepage and indicate binding prices for standard services. Creating user-friendly booking is also of paramount importance. Image: Stock Adobe onephoto
WEBSITE APP CONNECTED CAR SOCIAL MEDIA AUTOMOTIVE AFTERSALES | STUDY 2021 6.1WEBSITE: HIGH FREQUENCY, GREAT POTENTIAL T he website is the oldest and most frequented digital touchpoint for Aftersales customers, manufacturer websites are visited by 66 percent, and dealer websites by 58 percent of customers. „ The automotive business is no longer imaginable without the Image: Volkswagen both by the manufacturer and by the dealer; website touchpoint. Almost all customers get their information online, not only in the automotive business. It is therefore enor- mously important to get this touchpoint right, i.e. to meet the customers' information requirements and provide them with the MANUFACTURER WEBSITES Hersteller-Websites werden vonARE MORE FREQUENTLY Kund*innen VISITED häufiger besucht BY CUSTOMERS THAN CAR DEALER WEBSITES als Autohaus-Websites. simplest and most convenient service possible. Statement by Lars Eßmann, Head of Service Germany Volkswagen Passenger Cars Manufacturer 9Private car 65 % Company car 67 % Autohaus- Private car 60 % Company car 56 % website Website: OBTAINING INFORMATION cases, customers can access customised service offers Aftersales information is offered by dealers via their own via the login area. website (85 percent) and via the manufacturer's website Customers use the manufacturer's website for informa- (66 percent). tion on new cars, services and current manufacturer However, Aftersales services are not usually present on promotions. The dealer website is accessed for informa- the homepage and the information content varies greatly tion on the company itself, including opening hours, STATUS QUO between different dealers and manufacturers. In some contact details and contact persons. COMPARISON OF THE USE OF MANUFACTURER AND DEALER WEBSITES a. Manufacturer's website: Information about new cars b. Dealer website: Information about service, opening hours Obtaining Binding price Appointment Purchase of digital Most frequently information on new cars is looked for and contact persons information information booking services, parts & Q 13.0: Which of the following information do you usually look for when visiting Opening hours, services (private cars) and accessories your manufacturer's website? contact details (company cars) are looked for most often. Q15.0: Which of the following information do you usually look for when visiting 2 2 the website of your (last visited) workshop? 1 3 Information about 48% 42% 54% Looking up opening hours 39% specific new cars Website Actual status Actual status Actual status Actual status Information about services 32% 39% Information about services Aftersales content available, ¼ of the dealers without 63 Percent of dealers offer Online shops available at 23% 23% but expandable binding price information appointment booking online many dealers but of differing Aftersales rarely represented on the website ¼ of customers have already qualities Information about current 31% Contact details 32% on the homepage When price information is made an appointment online Parts & accessories promotions of the manufacturer 28% and contact persons 42% available, then mainly only for available for order but Access to customised service standard services or without fitting and/or cost 29% 23% offers via the login area Information about the brand Information about new cars maintenance appointments information 18% 24% Information about 17% Online booking 22% specific used cars 12% of a service appointment 22% Dealer search (address, contact 13% Information about used cars 13% details, contact person) 18% 13% Ranking by private cars Private cars Company cars Ranking by private cars Private cars Company cars WHAT IS THE DEGREE OF DIGITALISATION? Basis: Website visits from "rarely" to "frequently" Basis: Website visits from "rarely" to "frequently" Private 2 56 Private 4 55 The actual status of the degree of digitalisation in the digitalisation for obtaining information, binding price in- Company 4 62 Company 3 52 website touchpoint for Aftersales usage is presented in formation, appointment booking of Aftersales services, four main topic groups as follows: What is the level of and the purchase of digital services, parts and accessories? Basis: Private cars=177, Company cars=179 | Data displayed as % Basis: Private cars=163, Company cars=150 | Data displayed as %
WEBSITE APP CONNECTED CAR SOCIAL MEDIA AUTOMOTIVE AFTERSALES | STUDY 2021 PRICE INFORMATION ONLINE For which workshop services do you offer EASONS FOR REFUSING TO PROVIDE R PRICE INFORMATION What In your view speaks against binding price information? „ Image: Mercedes-Benz binding price information online? Our goal is to provide our customers with maximum individu- For standard services Risk of cost responsibility 56% al and personal guidance and to offer them a consistent and for complex repairs (e.g. main service/MOT 39% innovative world of experience. For this purpose, in sales we & emissions test) Too high website combine personal contact with digital elements in our advice, For maintenance appoint- ments (service, oil change, maintenance when 46% sales and service roles. In car dealerships this means that the 34% presenting offers wheel change, etc.) Too high administrative conversational atmosphere between advisors and customers For simple repair work effort in settlement 40% benefits from dialogue-supporting media. Customers can, for (glass, brake disc 27% process example, obtain workshop services, by using our service app exchange, etc.) We do not offer any price Infrastructure of the systems 'Mercedes me', to conveniently arrange service appointments does not allow for 27% information for workshop 29% automated price information online or, for example, also book a replacement vehicle in services online Lack of tools to make such advance for their continuing mobility. We do not offer any information available to the 22% price information online 16% customer Statement by Simon Saretzki, as a rule Head of Service Mercedes-Benz Cars Sales Germany Customers are Multiple answers possible not interested 3% There is nothing against binding price information 9% For company customers, regarding transparency the BOOKING VIA THE WEBSITE following emerges: two-thirds are well satisfied with the Multiple answers possible Booking via the website is quick, uncomplicated and better situation, whilst one-fifth classify transparency as being than other alternatives, especially for company car drivers. a pain point. The touchpoint website in terms of us- er-friendly presentation of Aftersales services and price Reasons for booking a workshop appointment information indicates the need for optimisation - especial- directly via the workshop website BINDING PRICE INFORMATION Origins of the heterogeneous picture of binding pricing ly because here the competitors are so much better: Q 21.0: Why did you book a workshop appointment online via the website of your (last visited) workshop? The study shows that a large backlog is recognisable in lies in the fact that the car industry finds it difficult to deal Bosch, for example, communicates clear price offers and terms of binding price information on websites. Almost a with price quotations due to a lack of any pricing strategy, A.T.U is also well structured in this area. Basically, in those Basis: Private Company Website visits from "rarely" to "frequently" third of dealers do not quote prices for workshop services also the dealers shy away from the risk of price quotations websites which are highly frequented by customers there Booked online: Yes online and of these, 16 percent state that they do not quote for more complex repairs. In addition, data maintenance is an acute need for improvement. 24% 22% prices online as a matter of principle. 67 percent provide required to display correct pricing and the accompanying price information via their own website and 41 percent of administrative efforts involved in the settlement process APPOINTMENT BOOKING OF AFTERSALES SERVICES 59% dealers via the manufacturer's website. If price informa- are all much too high. Although binding price information Appointment bookings online are generally possible. At Quick 56% tion is advertised, then in most cases only for seasonal plays a key role, only rarely do the dealers have the infra- two thirds of the dealers, customers could book an ap- promotions and for standard services (39 percent) and structure and tools to make automated price information pointment online and it must be emphasised that already Simple, uncomplicated usage 43% maintenance work (34 percent). For simple repairs, cus- available to customers. Two thirds of private car drivers 80 percent of the larger dealers (with over 500 new cars) 45% tomers can obtain binding price information in 27 percent have already looked for binding price information on offer their customers this possibility. Looking at the allo- Better than other alternatives 20% of the cases and then frequently a “from” price is quoted workshop services on the website. They were particular- cation among the different manufacturers, the German (telephone, walk-in, etc.) 45% for the work plus material costs. ly pleased when the information was clearly presented premium-manufacturer is in first place, with 84 percent, Just to try it out, normally and quick and easy to find. but also over 60 percent of the dealers of the German I book my appointments 24% high-volume manufacturer, and the big import brands differently 17% have this option in their portfolios. Did not want to go to the 11% When using the online appointment scheduling, private workshop in person because 11% WORKSHOP SERVICES EASILY FOUND of COVID-19 car drivers (24 percent) and company car drivers (22 per- cent) are almost level. Speed (57 percent) and easy usage Basis: Private cars=39, Company cars=33 | Data displayed as % For private car drivers, workshop services which were easy to find was an excitement factor (44 percent) are reasons given for booking online. Excitement factors when looking for prices on the workshop website However, the telephone remains for 79 percent of the in- Q 17.0: What did you particularly like? Basis: Website visits from "rarely" to "frequently" Search for prices: Yes terviewed persons as being their communication method Private Company of choice. the product can be bought, additional fitting bookings or making an appointment for fitting directly is not possible, 60% 37% 23% PURCHASE OF DIGITAL SERVICES, and there is no pricing for fittings indicated. Clear presentation of the services offered 63% PARTS AND ACCESSORIES Considerable room for improvement on the websites would The dealer survey showed that 36 percent of dealers offer be the online purchase of digital services such as addition- 55% parts and accessories to customers digitally, the preferred al bookings e.g. for a navigation update or the activation of The respective workshop service was easy to find 17% touchpoint here is the dealer's own website (74 percent), a better radio. These services are seldomly represented on 36% followed by the manufacturer's website (46 percent). Sales the present websites. The booking can only be made via Display of the overall costs of the services. 46% are usually made via online shops. Here too, the spectrum the manufacturer's website at the moment and there is no Ranking by private cars Private cars Company cars covers shops with a manageable product range to pro- possibility via the dealer website. For this reason, custom- Basis: Private cars = 60, Company cars = 34 / Data displayed as % fessional shops with a large product range which also ers make very little use of the option to add digital services: include payment and financing options. However, although only six percent of private car drivers and three percent of company car drivers make use of this option.
WEBSITE APP CONNECTED CAR SOCIAL MEDIA AUTOMOTIVE AFTERSALES | STUDY 2021 POTENTIAL FOR AFTERSALES % Obtaining information 2 Binding price information Appointment booking Purchase of digital services, parts & accessories 2 2 71 of private car owners consider binding price information important. 1 3 3 4 4 Website To accommodate the customer demand for binding price In the current pandemic situation and taking into account Potential Potential Potential Potential information in the future, it is important to remove the the behaviour of competitors, contactless processing of Put focus on prominent Independent player offering Extension of Aftersales Services displayed obstacles and concerns amongst the dealers, so can the the service is becoming even more important. The cus- and clear presentation full pricing in Aftersales services for appointment transparently and payment (e.g. A.T.U) bookings, e.g. mobility options simplified demand for price information be respected and further tomer behaviour in the private sphere is changing and Stronger promotion of Aftersales services and 71 % of customers request Exploit the advantages of Short term, a low potential visits to the website generated. It is important that clear online processes are becoming more and more estab- elimination of deficits binding price information a digital touchpoint because 60% of customers and comprehensible price presentation eliminates any lished as standard. (customer-oriented) so far were not interested potential concerns customers may have. Price transpar- Online appointment schedulings also hold further poten- Dealers/OEMs shy away in buying via website from binding price ency and price correctness have top priority here. tial for the dealers, for example, a dealer could enthuse information, especially for complex repairs Online appointment schedulings offer great potential - as his customers by suggesting they make appointments long as they are easy and user-friendly. Some customers online during the wheel changing period thus preventing find the required procedure too complicated and drop out the necessity of having to ring several times or get put on of the process prematurely. It is highly unlikely that anyone hold, simultaneously so reducing the workload of the has their vehicle registration document at hand when service assistants and the call centre. The processing and When obtaining information, customers switch between This is reflected by the requests made by private car driv- booking online and with it the need to enter the required confirmation of appointments is thus streamlined and the the manufacturer's and the dealer's websites. Which ers. In addition to a good visual presentation of the servic- VIN. The vehicle registration number should be sufficient time saved can be used for telephoning advice on more website they visit depends on what kind of information es and the indication of binding prices, they want the to make an appointment at the customer’s preferred complex repairs and their corresponding appointments. they are looking for and whether they are private or com- workshop services they are looking for to be found easily. dealer, and for new customers, the additional information pany customers. Information on services is used from This means that attention must be given to simple menu of the car model should suffice. Further information can both websites. It is of importance that the information on navigation and prominent presentation of Aftersales ser- be requested from the customer if necessary when the services is clearly presented and quickly available on all vices on the homepage. Binding price information is espe- appointment is confirmed. websites. cially important to owners of private cars (71 percent). In addition when making an appointment online, the cus- BOOKING VIA THE WEBSITE tomer's demand for binding price information should be Booking via the website is fast, uncomplicated and better than met. The price indication prevents anything standing in other alternatives, especially for company car drivers. the way of both booking an appointment online and pur- Reasons against booking a workshop appointment directly chasing Aftersales services online. via the workshop website Q 22.0: Why have you not made workshop appointments online via the website of your (last visited) workshop so far? Basis: Website visits from "rarely" to "frequently" Private Company EASE OF FINDING WORKSHOP SERVICES Booked online: No For private car drivers, the ease with which workshop services 76% 78% can be found is a factor of excitement Pain points when searching for prices on the workshop website I book my appointment 48% Q 18.0: What did you like least? differently 42% Basis: Website visits from "rarely" to "frequently" Private Company Not interested 20% Search for prices: Yes 16% 37% 23% 15% Not available 17% Online Booking Potential Workshop service / 34% Does not give a specific reason 11% prices not available 29% 11% Concerns that the overall costs 22% 7% shown are not correct 14% Too complicated 10% Stock Adobe Andrey Popov Unclear presentation 10% 5% of the services offered 22% Don't know of the option 11% Private cars Company cars Private cars Company cars Basis: Private cars=60, Company cars=34 | Data displayed as % Basis: Private cars=120, Company cars=116 | Data displayed as %
WEBSITE APP CONNECTED CAR SOCIAL MEDIA AUTOMOTIVE AFTERSALES | STUDY 2021 Image: Opel Vauxhall Europe „The aim is to make life of customers as simple as possible RECOMMENDATIONS FOR ACTION when in contact with the dealer and manufacturer. What we ➜ Targeted use of the website strength. ➜ Building up an online pricing strategy. are presently implementing is the possibility for the customer A high level of acceptance, a large When it comes to binding price information on the to book his/her appointment at any dealer of the PSA Group amount of space for information and clear menu website, it is noticeable that many car dealerships online, i.e. on the internet or using an app, this is a fact! At navigation are the strengths of the website. So far, lack pricing strategy. Price information is considered Opel, the booking of appointments currently exists in the form these unique selling propositions have been mainly a taboo subject and is avoided as much as possible. of an inquiry to the dealership. In future, the customer will be used for sales. Here, the Aftersales sector must be In addition there is also a lack of training in price able to book specific services directly with the dealer. This can more prominently positioned and better presented argumentation. Dealers are well advised to create then be registered in detail, including feedback on how long in order to inspire customers with enthusiasm. A price transparency in the digital touchpoints, even the service will take and what it will cost. For example, in a cur- responsive website that enables pleasing presenta- when this requires a certain amount of initial effort rent pilot project in France, the dealer states the price for the tion on PCs and on all other devices should be because two-thirds of the customers want binding requested service. However, this varies from region to region. standard for dealers. price information - which they increasingly receive Furthermore, it is important that the dealers’ website elsewhere. Bas Viveen, allows quick guidance through the business initia- Director Customer Care & Aftersales Opel Vauxhall Europe tion process and a user-friendly option for a binding ➜ Make customers aware of the online offers booking. In order that customised offers may be in aftersales. made, a private customer account in which the Customers state that the option of booking appoint- So far, two thirds of customers are not interested in pur- Market research has shown that many customers are not customer and vehicle data are already stored should ments online is not available at their dealer (16 per- chasing parts and accessories online or do not want to yet fully aware of what specifically the dealer sites offer. be considered. cent) or that they are not aware of this option purchase them online. 12 percent of private car drivers However, the online purchase of accessories and the (8 percent), therefore, it is important that the dealers and 11 percent of company car drivers state that there is booking of digital services will certainly gain in importance ➜ Dealers can develop the website independently. point out the possibility of online booking to their no online purchase option at their dealer. In practice, in the future once this is easily possible and the price at- Every dealer already has his own website. This al- customers, and place this service clearly and visibly however, many dealers do have parts shops or do offer tractive enough. Also of importance are the information lows independent, easy and quick adaption and the on their website and in other publications. For those the option of purchasing parts online and in particular, on availability and/or delivery dates. Dealers would do well presentation of the dealership and its Aftersales customers who have, for no particular reason, not those dealers specialising in specific services such as to consider the following recommendations for action, if tuning or car wrapping have already had very successful they want themselves positioned correctly. ■ services on the internet in an attractive light. If not yet booked online (11 percent) this could possibly online sales. This market sector is also booming at ‘ebay yet available, investing in a conversion to responsive sway them positively. motors’ or ‘autoteile24’. design is advisable so that the displayed content appears professionally on all devices. ONLINE PURCHASE OF PARTS & ACCESSORIES Workshop website: 60% have no interest in buying parts and accessories online. Reasons against buying parts or accessories online directly from the workshop website Basis: Website visits from 'rarely' to 'frequently' Online purchase: No Q 25.0: Why have you not yet purchased parts and accessories via the website of your (last visited) workshop? Private Company 31% 90% 95% I do not buy parts online 24% No interest 29% 31% 12% My dealer does not offer this 11% I do not buy parts online from my dealer 10% but through other channels 7% Image: Stock Adobe Markus Glombitzka 9% Too complicated 6% 7% Available elsewhere at a better price 8% 5% No information on availability and/or delivery dates 3% Ranking by private cars Private cars Company cars Basis: Private cars=146, Company cars=143 | Data displayed as %
6 WEBSITE APP CONNECTED CAR SOCIAL MEDIA AUTOMOTIVE AFTERSALES | STUDY 2021 ANALYSIS OF THE FOUR TOUCHPOINTS 6.2 // APP STATUS QUO All manufacturers already offer apps, and according to the manufacturers the number of users is high. About one in three compa- ny car drivers uses the app offered for their vehicle, in the private sector it is just under a quarter. POTENTIAL FOR AFTERSALES The willingness of customers to use an app for Aftersales purposes in the future is high. Almost 80 percent of company car drivers and 60 percent of private car drivers have affirmed this. RECOMMENDATIONS FOR ACTION Image: Stock Adobe ©PRODUCTION PERIG - Perig MORISSE The car industry can here utilise the momen- tum of the broad acceptance of apps, to offer Aftersales services. The task is to enthuse users with real added value. For all data and offers to comprehensively come together in a single app, close cooperation with the manufacturers is necessary.
WEBSITE APP CONNECTED CAR SOCIAL MEDIA AUTOMOTIVE AFTERSALES | STUDY 2021 6.2 APP: “ABOUT ONE IN THREE COMPANY CAR DRIVERS USES APPS THAT ARE OFFERED WITH THE CAR - FOR PRIVATE CAR DRIVERS, THAT IS ONLY 23%.” CREATE ADDED VALUE! Frequency of use of apps offered for the car Q 26.0: How regularly do you use the apps on your smartphone which are offered for your car (e.g. myAudi, Mercedes-me etc.)? 23% } A communication tool used by millions of a reason to sit back and celebrate success? No, be- Private cars 3 5 15 76 customers: the app. The app enjoys wide- cause the NTT DATA study reveals a clear deficit in the spread usage in most areas of life, and the digital touchpoint app. number of users of vehicle apps goes into the millions - 32% } Company cars 3 8 21 66 Very often Frequently Rarely Never n/a Basis: Private cars=270, Company cars=270 | Data displayed as % STATUS QUO Telematic-enabled vehicles facilitate data exchange with services but also vehicle-specific information. As with the Obtaining Binding price Appointment Purchase of digital the app. By this process the smartphone indicates to the websites, the app presents a “dual” offer - both manufac- information information booking services, parts & user of the manufacturer's app not only general Aftersales turers and dealers work with these tools. accessories 2 1 1 0 App Actual status Actual status Actual status Actual status All apps offer general service Binding price information is Appointment booking via app Parts and accessories are data and occasionally also only sporadically available is only occasionally possible rarely offered via the app WHAT IS THE DEGREE OF DIGITALISATION? individual vehicle information and mostly within the Taking over the service Digital services can to some (telematics) framework of limited offers, e.g. wheel change requirements for appointment extent already be purchased The actual status of the degree of digitalisation in the result that app is rarely used or not at all. Rapidly growing range of app booking is mostly not possible offers, makes orientation touchpoint app for Aftersales use is presented with regard Moreover, the manufacturers have several apps each difficult for users to the four main topics of obtaining information, binding covering different topics, so forcing customers to switch price information, appointment booking of Aftersales between the different apps and which can be hardly services and the purchase of digital services, parts and classed as user-friendly. accessories as follows: Notably those manufacturers who cannot establish a connection to the vehicle do, however, offer explanations OBTAINING INFORMATION of various operative functions, or provide useful tips and The intensity of information obtained depends on the information in the form of videos. online connection within the vehicle. If this is available, Business customers when asked about which Aftersales some of the manufacturer apps show the exact service functions they use the apps for, answered that they tend- requirements and often also offer the possibility of direct ed to use the driving-related functions, for example the contact with a dealer. communication of destinations to the navigation system Manufacturer and dealer apps differ significantly, espe- or the remote control of the auxiliary heating/air condi- All vehicle manufacturers now offer their customers ve- is on a comparable scale: "Over five million customers are cially when taking into consideration the information tioning, whilst those private customers asked said they hicle specific apps (for iOS and Android). The number of already using our ‘me-services’ app" says Simon Saretzki, content of vehicles with telematic functions. In the man- tended to use vehicle-related functions, for example ar- users is high: at Volkswagen, for example, around 40 Head of Service Mercedes Benz Cars Sales Germany. In ufacturer app, customers can find information about the ranging service appointments, roadside assistance or percent of customers use the OEM's apps. Lars Eßmann, fact however, only 8 percent of private customers do use vehicle, for example about upcoming services, data on dealer locations. Head of Service Germany Volkswagen Passenger Cars, the app offered for their vehicle frequently to very frequent- battery performance, tyre pressure or average fuel con- Mercedes-Benz AG presents a positive example of infor- emphasises: "The rise in the growing number of app users ly. Three quarters of private car drivers and two thirds of sumption; information, however, about the dealership is mation exchange between customers and the brand, i.e. is proportional to the services available”. Opel also has company car drivers state that they have never used the rarely included. In the dealer app, customers receive more via the Mercedes me apps. Here, customers already re- millionfold app usage and Bas Viveen, Director Customer app. When asked why, 77 percent of the customers who general data about the vehicle but much more information ceive reminders of their next maintenance via the app and Care & Aftersales Opel/Vauxhall Europe, reports about five do not use the app cite that the lack of added value is the about the dealership itself. So far, no app covers the entire in addition are offered an appropriate individual mainte- million registered customers at ‘MyOpel’. Mercedes-Benz main reason. range of information, so that customers are sometimes nance service. forced to switch between the different apps. This has the
WEBSITE APP CONNECTED CAR SOCIAL MEDIA AUTOMOTIVE AFTERSALES | STUDY 2021 POTENTIAL FOR AFTERSALES BINDING PRICE INFORMATION Service offers with binding price information for the spare WHAT CUSTOMERS WANT FROM AN APP parts and the working hours are rare amongst all dealers Added value that apps (should) fulfil: company customers = and manufacturers. One of the main reasons is that main- driving-related vs. private customers = vehicle-related taining this data is very time-consuming as long as no Use of functions of apps offered for the car automated pricing for standard services is possible. The Q 27.0: Which functions from the app do you use regularly? dealers state that price information is scare both in the Communicating destinations 42% dealer and the manufacturer app. Obtaining Binding price Appointment Purchase of digital to navigation system 54% information information booking services, parts & That is surprising as customer and the vehicle data are accessories usually already stored. In future, a better integration of 19% 2 2 Looking for a dealer systems should meet the customers’ demand for price 8% 2 1 1 transparency. Offers in the apps are disadvantageous 17% 0 when customers have to leave the app and continue the Roadside assistance 4% 4 4 purchase or booking process via another touchpoint or App channel. 14% Potential Potential Potential Potential Online service appointment 7% Accepted touchpoint in other Potential to indicate binding Strongly in demand by Great potential for: areas prices in connection with customers as this can offer Remote control of auxiliary 13% • Accessories Sales/Rental vehicle-related standard more convenience and 31% Development of Aftersales heating/air conditioning services by services usability • Purchase of digital services and upgrades in manufacturers/dealers in Support of the Dealers and manufacturers vehicle configurations Ranking by private cars Private cars Company cars planning, to include further manufacturers is necessary are already planning further mobility services for implementation activities Basis: Use of app from “rarely“ to „frequently” Private 5 15 Company 8 21 Basis: Private cars=59, Company cars=85 | Data displayed as % REASONS FOR DISMISSIVE ATTITUDE Customers when asked whether they would like to use an are not aware of them. When it comes to booking appoint- app for Aftersales purposes in the future, 60 percent of ments via the app, company car drivers (43 percent) are Using appointment booking is (apparently) too time-consuming - private car drivers and almost 80 percent of company car more likely to book service appointments than private car moreover, one-fifth of company car drivers are unaware of drivers answer in the affirmative. For most customers drivers (34 percent). The greatest advantage that the such a function. usage potential lies mainly in obtaining information (the customers expect is that of user-friendliness, i.e. for ex- Reasons against booking service appointments via an app APPOINTMENT BOOKING OF AFTERSALES SERVICES state of the vehicle, repair status or push messages, e.g. ample, the possibility of quicker and uncomplicated book- Q 31.0: Why would you not book your service appointments online via an app? When it comes to offers for booking service appointments concerning control symbols), and direct appointment ing of a service appointment via an app. Preferably all Too much data to be entered 20% via the app, the dealer and manufacturer apps are almost booking with data transfer. customer and vehicle data should already be stored in the by oneself 13% level, the dealers stating that this is possible in ten percent Customised offers from their preferred dealer, as a rule are app, enabling the booking to be made directly when the of the apps. less in demand - but quite probably because customers service is due. Ideally it should best function as follows: Usage is too complicated 17% However, currently few apps offer the option of online 14% appointment scheduling with the dealer when a service 15% requirement is also to be included. INTEREST IS THERE WILLINGNESS TO USE I don't know this function 21% From the customers' point of view too much data must be entered, usage is awkward, functions are unfamiliar, Almost 80% of company car drivers have at least a latent Almost half of company car drivers would be likely to make Price transparency is missing 14% lack of price transparency and no automatic data transfer interest in a service app. service appointments via an app - among private car drivers, 10% probably a third would be willing to do so. from the vehicle are all obstacles to booking appointments Functions requested The data is not automatically 10% via the app. Q 32.0: What functions in the future would you like to see in a service app Likelihood of making a service appointment via an app on your smartphone? taken over from the vehicle 6% At Mercedes-Benz AG, in addition to making a service Q 29.0: How likely are you to use the option to make a service appointment 36% of the private car appointment, it is also possible to book replacement See the repair progress 33% directly via an app using your smartphone? This function is not possible 7% drivers and mobility online via the ‘Mercedes me’ app. Nevertheless, status of the vehicle 38% in my app 5% 38% of when it is at the dealer company car the telephone is still the preferred method for customers 34% } drivers do not to make appointments. Only three percent of private car General vehicle status (e.g. 29% I don't have a smartphone 4% state any wear and tear summary) 45% (openly stated) 1% specific drivers and two percent of company car drivers have al- Private cars 9 25 20 39 reason. ready used the app to make an appointment which is due, Direct appointment booking 28% Telephone call is faster / easier 4% on the one hand to the lack of the option and on the other, with data being transferred 37% (openly stated) 2% from the vehicle to the fact that customers do not yet know of this function. 43% } Push message about control 24% No interest / need / advantage 2% symbols with explanation 29% (openly stated) 3% PURCHASE OF DIGITAL SERVICES, PARTS AND ACCESSORIES Company cars 8 35 16 34 Receive customised offers 16% Lack of personal contact 1% At present, only a few manufacturers offer the possibility from the preferred dealer 10% (openly stated) 3% to buy parts and accessories via an app, similarly only in Very likely Likely Unlikely Ranking by private cars Private cars Company cars few cases can digital services be booked directly. If it is Ranking by private cars Private cars Company cars Very unlikely n/a Basis: Private cars=270, Company cars=270 | Data displayed as % possible to purchase digital services via an app, then Basis: Private cars=270, Company cars=270 | Data displayed as % Basis: Private cars=270, Company cars=270 | Data displayed as %. generally, a redirection to another touchpoint follows.
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