What do customers and car buyers experience today, and how can OEMs turn sustainability into a competitive advantage? - SMART MOBILITY CONNECT ...

Page created by Kenneth Quinn
 
CONTINUE READING
What do customers and car buyers experience today, and how can OEMs turn sustainability into a competitive advantage? - SMART MOBILITY CONNECT ...
S U S TA I N A B L E
MOBILITY
What do customers and car buyers experience today, and
how can OEMs turn sustainability into a competitive advantage?

                                       SMART MOBILITY CONNECT
                                   Charting the mobility ecosystem of the future
What do customers and car buyers experience today, and how can OEMs turn sustainability into a competitive advantage? - SMART MOBILITY CONNECT ...
S U S TA I N A B L E M O B I L I T Y

CONTENTS

                                       INTRODUCTION:
                                       A N E W P E R S P EC T I V E O N A V I TA L TO P I C                 4

                                       S U S TA I N A B I L I T Y A S T R A N S F O R M AT I O N
                                       DRIVER FOR THE AUTOMOTIVE INDUSTRY                                   4

                                       S U S TA I N A B I L I T Y –
                                       A FA M I L I A R TO P I C TA K I N G O N N E W I M P O R TA N C E    5

                                       S TUDY APPROACH:
                                       T H E S U S TA I N A B I L I T Y E X P E R I E N C E I N D E X       6

                                       THE CUSTOMER JOURNEY FROM AWARENESS
                                       TO S U S TA I N A B L E C A R U S AG E                               8

                                       S U S TA I N A B I L I T Y E X P E R I E N C E I S S TA R T I N G
                                       TO BECOME AN E XCITEMENT FAC TOR                                    12

                                       C A P G E M I N I I N V E N T R ECO M M E N DAT I O N S             13

2
What do customers and car buyers experience today, and how can OEMs turn sustainability into a competitive advantage? - SMART MOBILITY CONNECT ...
EXECUTIVE SUMMARY

Electric mobility and digitalized sales                           Recent quantitative and qualitative           experienced by customers. To succeed,
models are lowering the entry barrier                             research by Capgemini Invent reveals          companies must embrace sustainability
faced by new competitors in the                                   what customers really experience              from the top down, starting with the
automotive industry, while investors                              along their journey towards owning            Board. Sustainability has to become
are increasing the pressure on                                    and using an electric vehicle (EV).           part of the corporate culture before
companies to embrace sustainability                               While there is some evidence                  it can be sold to customers.
as a core value. As a result, most                                of enthusiasm for sustainability,
traditional automakers have shifted                               considerable variation emerges
over the past decade from a “wait                                 between brands and between
and see” strategy to realizing that                               phases of the journey, as shown
they need to be proactive about                                   in the figure below.
sustainability.

                                   10.0
                                    9.0
                                    8.0      7.8
                                                                                      7.3                         7.5                    7.4
                                    7.0
 Sustainability Experience Index

                                    6.0                     5.6                                                   5.8
                                             5.0
                                    5.0
                                                            4.1                       4.2
                                    4.0                                                                                                  3.9

                                    3.0
                                    2.0
                                    1.0
                                    0.0
                                          Awareness   Search & Inform            Compare & Test            Select & Purchase          Get & Use

                                                                               Minimum      Maximum

Despite the fact that this requirement                            This variation suggests that there
coincides with other essential                                    is plenty of improvement potential,
transformation challenges, traditional                            while examples of excellent practice
manufacturers have made considerable                              point to specific improvement
progress in developing and launching                              opportunities. We recommend
more sustainable products.                                        adopting a Sustainability Experience
                                                                  Management approach, which makes it
However, succeeding with these                                    possible to prioritize improvements in
products depends not just on the                                  line with the customer’s perspective.
excellence of the products but also
on the level of enthusiasm that they                              To date, automotive companies have
generate among customers – and this                               been preoccupied with making their
enthusiasm is determined as much by                               products more sustainable, but it is
the process of buying and using a car                             equally important to optimize the way
as by the qualities of the product and                            cars – and the journey of choosing,
the credibility of the automaker.                                 purchasing, and using them – will be

                                                                                                                                                    3
What do customers and car buyers experience today, and how can OEMs turn sustainability into a competitive advantage? - SMART MOBILITY CONNECT ...
S U S TA I N A B L E M O B I L I T Y

INTRODUCTION: A NEW PERSPECTIVE
O N A V I TA L TO P I C

Sustainability is clearly a hot topic      We therefore decided to investigate        sustainability, and pinpoint where
for the automotive industry, and           what consumers really experience           there is scope for improvement.
one that has attracted considerable        when they decide to buy a car, from
research. Even so, in our work with        initial awareness to the point when        In this report, you can read more about
large automotive OEMs (Original            they have bought and are using the         the background to our research and
Equipment Manufacturer), we                vehicle. We were particularly interested   about our method. We present our
have become aware of an aspect             in the perspective of consumers who        results and recommend ways OEMs
that is not so well understood:            already have a high level of interest      can use the findings to start giving
the consumer’s perspective on              in sustainability, and whether the         customers the consistent sustainability
automotive sustainability.                 journey tapped into and increased their    experience that they really want.
                                           enthusiasm; an aspect that we refer to
Consumer interest and willingness to       as the “excitement factor.”                Please contact us if you would like to
pay for sustainable products such as                                                  discuss any aspect of the research,
food or clothing have been constantly      While we were able to draw extensively     or other aspects of automotive
on the rise in recent years.1,2 The same   on our client work for this study, we      sustainability.
seems to be true of eco-friendly cars,     also carried out original research,
with EV sales soaring in 2020. But it      both quantitative and qualitative,
is not so clear whether this trend is      during winter 2020. Our findings were
driven by customer enthusiasm about        compared and analyzed to discover
sustainability, or is instead due to       how far the industry has succeeded
substantial government incentives.         in enthusing customers about

S U S TA I N A B I L I T Y A S T R A N S F O R M AT I O N
DRIVER FOR THE AUTOMOTIVE INDUSTRY

Traditional car manufacturers              At the same time, financial investors      into adequate funding for upcoming
are under pressure from multiple           are increasingly making necessary          transformation challenges and long-
directions. Numerous countries and         funding conditional on sustainability      term success, one key stakeholder has
cities are planning to ban sales of        being a core element of a company’s        to feel enthusiastic, and that is the
conventional combustion engine             strategy, business model, and              customer.
vehicles, or exclude them from urban       operations. This results in stagnating
areas, as early as 2025.3 Existing         valuations for incumbents, while new       Customer sustainability experience
players are having to make huge            brands such as Tesla and Nio seem          will be a key determinant of this
investments in transforming to address     to rise exponentially.                     enthusiasm. That’s why in this study
the latest industry trends, such as                                                   we investigate what customers value,
the increased “softwarization” of          The fact that traditional car              what they are experiencing today, and
the vehicle, the creation of a unified     manufacturers are launching EVs –          what issues car manufacturers should
operating architecture, and the further    and planning to offer an increasing        address to provide a competitive
development and improvement of             range of them – is a great achievement,    sustainability experience for their
electric vehicles (EVs); new competitors   especially during the pandemic.            customers.
are at an advantage because they have      However, if these companies are
no legacy burden.                          to translate new product business

1
    bit.ly/statista_com
2
    bit.ly/the_conversation_com
3
    bit.ly/the_climatecenter_pdf

4
What do customers and car buyers experience today, and how can OEMs turn sustainability into a competitive advantage? - SMART MOBILITY CONNECT ...
S U S TA I N A B I L I T Y – A FA M I L I A R TO P I C
TA K I N G O N N E W I M P O R TA N C E

Sustainability, or meeting present                           For the automotive industry, the             But what is the current state of the
needs without compromising those of                          main sustainability challenges over the      automotive industry when it comes
future generations, has been a growing                       past decades have been safety, fuel          to implementing those sustainability
focus since the 1960s, when it became                        economy, and emissions. It seems that        ambitions? Capgemini’s report reveals
obvious that economic development                            most automakers have been following          two main issues. Firstly, deployment
was causing environmental damage.                            a “wait and see” strategy, which implies     of sustainability is still far from
In 2015, this concern was formalized                         being aware of applicable regulations        complete. Over the next five years,
when the UN defined its 17 Sustainable                       and adapting products and processes          the industry needs to invest an
Development Goals (SDGs)4,5 covering                         accordingly – but only as much and as        estimated $50 billion to meet
the five principles of people, planet,                       early as necessary.                          automakers’ sustainability targets,
prosperity, peace, and partnership                                                                        over and above their ongoing and
and intended to be achieved by 2030.                         New players such as Tesla or Polestar        planned investment in EVs,
                                                             have successfully started businesses         autonomous vehicles, and digital
In a business context, the topic of                          with sustainability as a core brand value,   mobility services. Secondly, it shows
sustainability has been on the agenda                        underpinned by a product portfolio           that customer-related topics such as
of leading companies for more than                           consisting entirely of battery electric      activities related to sales, marketing,
25 years. Reporting on sustainability                        vehicles (BEVs), and combined with a         and aftersales (ranked 10th) are not
has become standard practice for                             proprietary charging infrastructure          among companies’ top five priorities.
more than 90% of Fortune Global                              (Tesla).
250 companies today.                                                                                      In the following sections, we
                                                             Most traditional car manufacturers           examine how far the actual customer
Given an increase of public interest                         have also started to address these           experience with sustainable individual
plus rising pressure from investors,                         challenges. The majority of these            mobility meets customers’ preferences
lawmakers, and regulators, sustain-                          companies have not only included             and expectations, and where brands
ability has been taking on a new                             sustainability in their corporate            differ in their actions, communications,
importance in the business context                           strategies but also initiated an internal    and consultation skills, as well as in
over the past few years. An increasing                       dialogue as to how sustainability            the product and service experiences
number of companies such as Adidas                           should shape the overall company             they offer. We then explain how car
and Ikea are putting sustainability                          strategy. The increasing importance          manufacturers should address their
at the core of their brands with the                         of sustainability in the automotive          customers to provide a competitive
intention of creating new paths to                           industry is underlined by recent             sustainability experience.
innovation, customer loyalty, and                            Capgemini research, described in
long-term growth.6,7                                         our 2020 report, The automotive
                                                             industry in the era of sustainability.8
                                                             This research found that 62% of
                                                             automotive organizations claim to
                                                             have developed a comprehensive
                                                             sustainability strategy with well-
                                                             defined goals and targets.

4
 	“ Transforming our world: the 2030 Agenda for
   Sustainable Development”, Resolution adopted
   by the General Assembly on 25 September 2015
   bit.ly/Transforming_our_world
5
   sdgs.un.org/goals
6
   bit.ly/Adidas_General_Approach
7
   bit.ly/IKEA_Sustainability
8
 	“The Automotive Industry in the Era of Sustainability”,
   Capgemini Research Institute, 2020
   http://bit.ly/The_Automotive_Industry

                                                                                                                                                    5
What do customers and car buyers experience today, and how can OEMs turn sustainability into a competitive advantage? - SMART MOBILITY CONNECT ...
S U S TA I N A B L E M O B I L I T Y

STUDY APPROACH:
T H E S U S TA I N A B I L I T Y E X P E R I E N C E I N D E X

Our research was twofold. First, we
set out to understand from car owners
how important sustainability is for
them when buying a new car, what they
expect during the process, and what
role digital tools and services can play
in supporting them. To achieve this,
we conducted a quantitative study,             1. Awareness                                           2. Search & Inform
an online survey of more than 1,500
current or former owners of cars from          Sustainability Experience Index
Audi, BMW, Mercedes, Tesla, or VW in
Germany, the UK, and the US.               5          ustainability ambition,
                                                     S                                                   Eco-friendliness & diversification
                                           4         achievements, and transparency                      of vehicle portfolio*, 2020
The second part of the study aimed         3         (0–5 pts.)                                          (0–5 pts.)
to gain an understanding of how            2
each step of the customer journey is       1
experienced by those customers for
whom sustainability is important. Here     5         Sales of low-emission vehicles*,                    ools/support to find the right
                                                                                                         T
the research was qualitative: The data     4          2019 (0–5 pts.)                                    products & services for customers’
was gathered through comparative           3                                                             individual needs (0–5 pts.)
research on information published          2
by automotive OEMs and a mystery           1     * Germany (KBA), Lifecycle Assessment method (GHG-LCA)
shopping campaign conducted at
20 dealerships in Germany during           Figure 1 | Scoring criteria for Capgemini Invent Sustainability Experience Index per phase
August 2020, covering all five brands
mentioned above.

In order to compare the results not only   Along the journey, interaction takes                     In awarding scores for each brand
between the different brands but also      place via a variety of channels and                      and phase, our experts considered
between the five customer journey          touch points: website, social media,                     questions such as:
phases, we defined a “Sustainability       personal contact, phone, email, chat,
Experience Index (SEI)", which was used    and others.                                              •	Does the brand offer and promote
to rate customer experience at each                                                                    a broad portfolio of sustainable
phase of the customer journey on a         An SEI has been awarded for each                            products and does it communicate
scale of 0 to 10 points. Please see the    of the five customer journey phases.                        in an individually helpful and
panel below for more details of the        To determine the SEI, two quantifiable                      transparent manner across all
SEI calculation.                           criteria were defined for each phase to                     relevant channels?
                                           approximate important determinants
Calculating the Capgemini                  of a positive customer experience.                       •	Are there comprehensive
                                                                                                       combinations of products and
Invent Sustainability
                                           Each of the criteria generates a score                      services that meet customers’
Experience Index (SEI)                     between 0 and 5 – i.e. 10 points per                        individual needs? How easy is it to
                                           phase is the maximum. This method                           experience these solutions in order
The customer journey summarizes
                                           makes it possible to identify pitfalls                      to select the best combination?
customers’ experiences with a brand
                                           and common challenges and derive
across all relevant interaction points,
                                           best practices.                                          •	How seamlessly can customers
from the first interaction to usage
                                                                                                       switch from a traditional combustion
and ideally re-purchase. The journey
                                                                                                       engine vehicle to the world of
as defined for the purposes of our
                                                                                                       electric mobility? What support and
study contains the five phases shown
                                                                                                       incentives are offered?
in Figure 1: Awareness, Search & Inform,
Compare & Test, Select & Purchase,
and Get & Use. (The Repurchase phase
was not considered separately here as
it largely duplicates earlier phases for
the purposes of this study.)

6
What do customers and car buyers experience today, and how can OEMs turn sustainability into a competitive advantage? - SMART MOBILITY CONNECT ...
3. Compare & Test                        4. Select & Purchase                       5. Get & Use

       vailability & quality of relevant
      A                                         Completeness of offering                   upport with transition
                                                                                           S
      product and services information          (esp. EV) (0–5 pts.)                       to EV ownership (0–5 pts.)
      (0–5 pts.)

       ase of test-driving vehicles,
      E                                         Simplicity of configuration, order         everaging digital technology to
                                                                                           L
      charging services, mobile apps            process, and purchase process              support and incentivize the driver
      & services (0–5 pts.)                     (0–5 pts.)                                 for low-emission usage (0–5 pts.)

                                                                                                      Customer journey phases

In the Awareness phase, we                  for the brand with the lowest-emission     process, and purchase process.
analyze the sustainability ambition,        product portfolio and up to 5 points       The brand that offers the most
the transparency of sustainability          for the brand that offers the lowest-      comprehensive portfolio of physical
goal achievements, and sales of             emission vehicles in all nine vehicle      and digital product, services, and
low-emission vehicles for each car          classes.                                   infrastructure access receives up to
manufacturer. A car manufacturer                                                       5 points. The brand with the lowest
can receive a maximum of 5                  In the Compare & Test phase, we            barriers to selecting, configuring, and
points for having a comprehensive           examine the availability and quality       purchasing all relevant products and
corporate sustainability program            of relevant product and service            services, can receive a further 5 points.
and communicating it to all                 information, as well as how easy it is
relevant stakeholders. In addition,         to test vehicles, charging services, and   Finally, in the Get & Use phase, we
car manufacturers receive the               mobile apps and services. A brand that     analyze the support offered to the
maximum number of points for the            offers comprehensive tools and correct     customer when preparing for EV
lowest greenhouse gas equivalent            information to find the best products      ownership (e.g. wallbox installation,
emissions of vehicles sold in 2019          for the customers’ individual needs can    government benefits). Also, we assess
(average per vehicle, calculated using      score up to 5 points. In addition, up to   how the OEM leverages digital
the Greenhouse Gas – Life Cycle             5 points are awarded if the customer       technology to support and incentivize
Assessment or GHG-LCA method9).             can easily experience and test low-        the driver for low-emission usage.
                                            emission products and digital services.    We assign up to 5 points to brands
In the Search & Inform phase, we                                                       that offer comprehensive support
analyze the eco-friendliness of the         In the Select & Purchase phase, we         to prepare for ownership/usage of
vehicle portfolio using the GHG-            investigate the completeness of the        sustainable products and services,
LCA method. We also evaluate the            offering (e.g. charging infrastructure     and up to 5 points for brands that
diversification of low-emission vehicles    coverage, charging tariffs, integration    best leverage digital technologies to
across vehicle classes (EU standard         with home energy system) and               support sustainable ownership/usage.
classes A-J). We assign up to 5 points      simplicity of configuration, order

	bit.ly/adac_de
9

                                                                                                                                7
What do customers and car buyers experience today, and how can OEMs turn sustainability into a competitive advantage? - SMART MOBILITY CONNECT ...
S U S TA I N A B L E M O B I L I T Y

THE CUSTOMER JOURNEY
FROM AWARENESS TO
S U S TA I N A B L E C A R U S AG E

Awareness: Get the customer’s                                                                     consider Tesla to be the leading brand
attention with clear, consistent
communication on sustainability
                                                                                         34%      when it comes to sustainability while
                                                                                                  other OEMs rank significantly behind

In the awareness phase, the customer                                                              33%            31%             38%
is becoming increasingly interested                                 Brand
in sustainable products and services,
                                                                    loyalty
and, even more importantly, in the
attractiveness and credibility of the                                                             would change to a different brand due
brand with respect to sustainability.
The levels of enthusiasm and trust built
                                                                                         34%      to product sustainability or sustainability-
                                                                                                  related company activities
at this point motivate the customer
to gather more information in the                                                                 37%            35%             31%
following phases.
                                                     Figure 2 | Survey results on brand loyalty

The online survey results confirm that
sustainability has become a decisive
factor in the purchase of a new vehicle.
Sixty-nine percent of participants state
                                                     its Mission:Zero, while Mercedes               Search & Inform: Provide
                                                     plans to reach 50% electrification             the customer with relevant
that product sustainability is important
                                                     of the fleet by 2030. BMW is working
for their purchase decision (average
                                                     towards a 34% reduction per vehicle            information
across Germany, the UK, and the US),
                                                     of water and energy use and of waste           Having engaged with one or more
with the highest proportion, 73%,
                                                     generation by 2030.10                          brands in the awareness phase, in the
found in the US.
                                                                                                    Search & Inform phase the customer
                                                     While the German OEMs’ sustainability          looks for more specific information and
Thirty-four percent of participants
                                                     goals and action plans are comprehensive,      guidance about sustainable offerings.
would go so far as to change from
                                                     and are transparently stated in their          Brand promises from the first phase
their preferred brand to a different
                                                     official reports, their communications         may be examined in more detail at
brand due to product sustainability
                                                     across online channels (websites               this stage of the journey to find out
or sustainability-related company
                                                     and social media) are not always               how they are reflected in the eco-
activities, with the highest proportion
                                                     consistent in terms of sustainable             friendliness and diversification of
in Germany (37%) and the lowest
                                                     brand positioning. Especially for              the vehicle portfolio.
in the US (31%). When asked which
                                                     premium brands that still differentiate
is the leading brand with respect
                                                     themselves by vehicle size and engine          The other important question to
to sustainability, 34% on average
                                                     power, bringing the two sets of                be answered during this phase is
name Tesla, while other OEMs rank
                                                     messages together seems to remain              which sustainable solution best fits
significantly behind.
                                                     a challenge.                                   the customer’s personal needs and
Our research shows that almost all                                                                  behavior. With the variety of new
                                                     As a result, it is Tesla that achieves         options, this is not an easy decision to
OEMs have committed to goals such
                                                     the highest SEI score of 7.8 for this          make. Even though electric cars have
as carbon neutral manufacturing by
                                                     phase, reflecting its brand positioning,       been on our streets for a few years
2050 at the latest, reduction of CO2
                                                     emphasis on sustainability, and the            now, technology develops quickly, and
emissions across the entire vehicle
                                                     fact that its fleet, as sold in 2019,          consumers have many choices to make.
fleet, or improved consumption
                                                     had the lowest lifecycle greenhouse            Questions they might ask include: “Is an
and reuse of resources. Audi, for
                                                     gas emissions. The other four OEMs             electric car the right option, or would
instance, has set the goal of CO2 -
                                                     considered are close together, all             a plug-in hybrid electric vehicle (PHEV)
neutral production by 2025 within
                                                     scoring between 5.0 and 6.0 points.            or a low-emission combustion engine

 	bit.ly/Audi_Nachhaltigkeitsbericht_2019,
10

   bit.ly/Daimler_Nachhaltigkeitsbericht_2019
   bit.ly/_BMW_Sustainable_Value_Report_2019
   bit.ly/BMW_Sustainable_Solutions_CO2_Reductions
   bit.ly/BMW_Nachhaltigkeit_Ressourcenschonung

8
What do customers and car buyers experience today, and how can OEMs turn sustainability into a competitive advantage? - SMART MOBILITY CONNECT ...
vehicle be the better fit for my habits
and needs?” “What compromises do              66%               would like more guidance when looking for information regarding
                                                                sustainability and their individual needs
I have to make?” and “Which vehicle
characteristics are most important                                                              69%           66%            63%
 for me?”                                   Figure 3 | Survey results on vehicle purchase preferences

Customers would welcome guidance
in better understanding their own
habits and needs, and which criteria to     There is a risk of information                         Sales staff in Tesla showrooms are
prioritize, as our online survey shows.     getting lost or reality falling short                  also familiar with most of the questions
Two-thirds of participants want help        of expectations because the dealer                     that customers ask about e-mobility
in choosing the most suitable vehicle,      is unaware of online activities such                   and sustainability.
finding the best-fitting brand, selecting   as searches and use of the car
the optimal configuration, and using        configurator. But the phase also offers                Test-drives can be booked online
the car in the most sustainable way.        the opportunity to surprise a customer                 and are offered at all dealerships.
                                            by having the test car instantly ready                 However, the desired vehicle version is
Compare & test:                             for an extended test-drive, including                  not always available instantly or even
Support the customer in                     a trial high-power charging session.                   within two days. Mercedes scores 3.8
                                            That test-drive can cover functionality,               out of 5 points for testing due to the
finding the right product                   usability, and vehicle interoperability                option of a 6-month trial of the new
                                            of mobile apps provided by                             EQC battery-electric model. Tesla
The Compare & Test phase is about
                                            the manufacturer.                                      scores highest on the test aspect (4.0
narrowing down the various product
and service options by applying criteria                                                           out of 5 points) due to the simplicity
that were identified as important to        Our online survey shows that 57% of                    and proactiveness with which test-
the individual customer in the previous     participants (61% in Germany) would                    drives are offered and arranged.
phase.                                      appreciate enhanced mobility offers,
                                            such as options for car or bike sharing,               Overall, the SEI in the Compare &
                                            leasing of micro-mobility vehicles, or                 Test phase reaches a maximum of 7.3
Availability of relevant information and
                                            even integration with public transport.                points: almost 2 points higher than
the ability to access it in a structured,
                                            Sixty-three percent want more support                  the previous (Search & Inform) phase.
accurate, and easy-to-understand
                                            from manufacturers and dealers in                      However, variation across brands and
manner are key success factors for
                                            configuring the best individual package                dealerships is significant, which means
a positive customer experience.
                                            of product plus related services.                      that worthwhile improvements could
For instance, it should be easy to
find accurate comparisons between                                                                  be made through targeted actions.
options on the basis of GHG emissions       The OEM-focused research for this                      Improvement checkpoints should
over lifecycle, the amount of recycled      phase reveals that neither searches                    include the provision of information
materials used in production, or the        of online configurators nor personal                   and dealer enablement and training,
practice regarding battery recycling.       consultations with salespeople                         as well as availability of, and ease of
Mobile and other online tools play an       can provide all relevant information.                  access to, hands-on experience with
important role in building enthusiasm       Quite often, sales staff present                       electric mobility.
for sustainability in this phase, as does   incorrect information or are unable
concise information on the procedure        to answer some questions. Mystery
for claiming government incentives.         shopping experience in this respect
                                            has been best at BMW and Mercedes
                                            dealerships, with their “product
At this point in the journey, additional
                                            geniuses” and “product experts.”
complexity arises from the fact that
online search and contact often switches
to personal contact at a dealership.

                                                                                                                                         9
What do customers and car buyers experience today, and how can OEMs turn sustainability into a competitive advantage? - SMART MOBILITY CONNECT ...
S U S TA I N A B L E M O B I L I T Y

Select & purchase:                         Our online survey shows that 63% of        Get & use:
Make sure it’s easy to configure           participants want more support from        Prepare for e-Mobility
                                           OEMs and dealers when configuring
and simple to buy                          a car that they are about to purchase,     and make sustainable usage
                                           to help them choose the best               desirable
The Select & Purchase phase begins
after the customer has identified          sustainability options, such as the best
                                           battery size for individual commuting      After the purchase contract is signed,
at least one option that not only                                                     the customer must usually wait for
fulfills all their material needs but      habits. Support via the OEM website
                                           or social media channels is preferred      delivery – often for many months,
also meets more emotional needs                                                       and sometimes even for more than a
by creating perceptions of reliability,    by 38% of participants, while a similar
                                           proportion (39%) prefer support at         year. For this phase, we have analyzed
value, and so on. It is here that final                                               what the customer experiences during
decisions about products, services,        the dealership; 32% prefer email,
                                           chat, or telephone support.                the period until the vehicle has been
and financial aspects are taken. The                                                  delivered and is ready to use. We have
value and completeness of the final                                                   also explored how actively sustainable
offer package and the simplicity of        At 7.5 out of 10, the top SEI score in
                                                                                      ownership is supported by the OEM
configuration, order, and purchase         this phase is slightly higher than that
                                                                                      and its partners. This support might,
processes are important success            of the previous phase. This top score
                                                                                      for example, take the form of offering
factors in this phase.                     goes to Tesla, while two premium
                                                                                      digital tools to help minimize driving
                                           OEMs follow closely with 7.0 and 7.2
                                                                                      emissions, providing transparency on
Questions regarding the completeness       points. While Tesla scores equally
                                                                                      eco-impact, or actively incentivizing
of the offering mainly arise from          highly for completeness of offering
                                                                                      eco-friendly vehicle use. Incentive
complexities around e-mobility, and        and process simplicity, our two criteria
                                                                                      models leveraging third parties such
typically include the following: “Do       for this phase, the other brands all
                                                                                      as insurance companies or charging
public charge points near my               score higher for process simplicity.
                                                                                      providers are also considered in
home provide sufficient coverage, or                                                  our analysis.
do I need to install a wallbox at home?”   The main improvement opportunities
“Who will help with installation,          we have identified for OEMs in this
                                                                                      According to our online survey, 83% of
and how can I make sure I use green        phase are integrating mobile app
                                                                                      respondents expect car manufacturers
energy?” “Is the car configuration         functionality and experience both
                                                                                      to better leverage digital technologies
and purchase process simple, or at         into the product itself and also into
                                                                                      to support sustainable driving. The
least self-explanatory?” “Can I get        customers’ interactions with the car
                                                                                      most popular option is intelligent,
knowledgeable online support,              and brand – for example, managing
                                                                                      navigation-based vehicle functionality
maybe leveraging virtual reality tools?”   the charging process, finding support
                                                                                      to automatically adapt power
“Do I get instant system responses,        information, or getting in contact with
                                                                                      mode and consumption to driving
and can I switch platforms during          a customer car agent when issues or
                                                                                      needs, followed by bonus schemes
the process, including transitioning       problems arise. Other aspects worth
                                                                                      for sustainable driving evidenced
between online/mobile channels to          addressing are the service options
                                                                                      by vehicle usage data. Third-party
personal contact with a salesperson        offered regarding charging from green
                                                                                      incentives based on car data would be
or a contact center agent?”                sources, and more flexible models for
                                                                                      appreciated by 25% of participants.
                                           ownership and financing.

10
83%               expect OEMs to better leverage digital technologies to support sustainable driving,
                                                     such as navigation-based drive control for plug-in hybrids

                                                                                                    84%             79%            87%
               Vehicle
               features

                                   25%               would appreciate discounts or attractive offers from third parties (such as insurance
                                                     companies) for eco-friendly driving, based on their vehicle usage data

                                                                                                    30%             23%            21%

  Traffic Light Info                       eDrive Zones                         ECO Assist                         Car Data Platform

Figure 4 | Survey results on digital technologies and data usage

In the OEM-focused part of the study                    The second-highest score (3.0 points)          The greatest opportunity for
for this phase, the first of our criteria               goes to Tesla because of helpful and           improvement in this phase seems to
is about getting support during the                     easy-to-access energy consumption              lie in leveraging digital services better,
waiting time in terms of wallbox                        statistics and a well-designed and             both within the vehicle and via mobile
installation, signing up for government                 intuitive mobile app. This app also            apps. The integration of vehicle data
incentives, or just transparency on the                 makes interaction with Tesla’s service         (e.g. service intervals, navigation,
delivery process. Here, all five OEMs’                  organization easy and convenient.              drive mode) into the overall offer,
SEI scores are comparable, ranging                      Most other OEMs, by contrast,                  user interaction via in-car systems
between 3.4 and 3.8 points out of 5.                    seem to conduct most of their                  and interfaces, and mobile app
                                                        aftersales business using traditional          functionality – these three topics
Our other criterion for this phase is                   communication channels.                        together appear to offer the route to
about leveraging digital technologies                                                                  an outstanding and exciting customer
to support sustainable usage/                           In this Get & Use phase, the maximum           sustainability experience.
ownership. At the time of the study,                    SEI score is 7.4 points, achieved by
few OEMs seem to have been actively                     BMW due to strong support during
incentivizing sustainable usage. BMW                    the delivery phase and high-scoring
scores highest (4.0 out of 5 points) due                initiatives regarding digital tools,
to its eDrive Zones function and the                    connected services, and incentives
BMW Points program. BMW Points                          for sustainable usage.
can be gained by a vehicle owner
operating a PHEV in electric mode, and
can be used to pay for BMW’s charging
service; further options for earning
and redeeming points appear to be in
preparation.

                                                                                                                                                11
S U S TA I N A B L E M O B I L I T Y

S U S TA I N A B I L I T Y E X P E R I E N C E
I S S TA R T I N G TO B ECO M E A N
EXCITEMENT FAC TOR

In this study, we set out to determine                                       As Figure 5 shows, the SEI varies                     the Awareness (7.8) to the Search &
to what extent automotive OEMs are                                           between 5.6 and 7.8 along the various                 Inform phase (5.6) is significant. Also,
not just putting sustainability on their                                     phases of the customer journey.                       the spread between the best and the
strategic agendas, but also succeeding                                       This pattern shows that none of the                   lowest score brand, which is largest in
in transforming sustainability-driven                                        car brands we evaluated currently                     the Get & Use phase, shows that some
customer experience into an                                                  provides a consistently convincing                    brands are still significantly behind
excitement factor.                                                           customer sustainability experience.                   in terms of customer sustainability
                                                                             In particular, the drop in SEI from                   experience.

                                    1. Awareness           2. Search & Inform              3. Compare & Test             4. Select & Purchase         5. Get & Use

                                     Tesla                 VW                               Tesla                        Tesla                        BMW
 Best Practices

                                     Sustainability is     Broad vehicle portfolio          Easy access                  Comprehensive                Range of connected
                                     a clear brand value   and EV Check app                 to test-drives               offering and simplicity of   services to support
                                     Cleanest fleet        Tesla                            Tesla/BMW:                   vehicle/app/charging         sustainability, e.g. BMW
                                                           Full focus on electric           Well-trained product         Very easy configuration/     Points, eDrive zones,
                                                           vehicles (but small              experts at (selected)        purchase process             intermodal info
                                                           portfolio)                       dealerships

                                   10.0
                                    9.0
                                    8.0         7.8
                                                                                                       7.3                          7.5                          7.4
                                    7.0
 Sustainability Experience Index

                                    6.0                               5.6                                                           5.8
                                                5.0
                                    5.0
                                                                      4.1                              4.2
                                    4.0                                                                                                                          3.9

                                    3.0
                                    2.0
                                    1.0
                                    0.0
                                            Awareness          Search & Inform                   Compare & Test             Select & Purchase                Get & Use

                                                                            Median value (50th percentile)     Minimum      Maximum

Figure 5 | Sustainability Experience Index along the customer journey

12
Several promising opportunities           •	The sales organization should             •	In the Get & Use phase, customers
for improvement emerge from our              be provided with appropriate                 can be provided with digital support
investigation:                               material (e.g. product and support           in many areas of sustainable
                                             information and FAQs), and with              vehicle use, be it navigation-based
•	Sustainability should become              sales training for EVs and related           efficient drive control for PHEVs,
   a clearly formulated and                  services such as charging. This will         automatically detected low-emission
   communicated corporate objective,         equip it to proactively address the          zones, or a bonus point system
   from which consistent actions             sustainability needs and concerns            that rewards sustainable use with
   are derived; these actions must           of potential customers and help              monetary benefits and at the same
   again be communicated, and their          them to gain positive, hands-on              time increases customer loyalty.
   effectiveness measured. With their        experience of electric mobility.             BMW is setting an example here
   total focus on selling emission-          BMW, Mercedes, and Tesla are                 with its eDrive Zones and BMW
   free vehicles, Tesla and other new        showing how this can work by                 Points.
   OEMs such as Polestar or Nio follow       deploying comprehensively trained
   that principle.                           sales consultants and, in the case
                                             of Tesla, providing particularly easy
•	A wide range of sustainable               access to EV test-drives.
   products and services should be
   made available for all target groups   •	Simplified configurators and offers
   within the company's own customer         can be provided and can integrate all
   base, and the company should also         relevant aspects of electromobility,
   develop the ability to easily match       such as charging with green energy.
   individual mobility needs with            Here, too, Tesla is ahead with a
   available offerings. This is where        simplified configurator and a lean,
   mobile apps come in. Such apps have       online-driven sales model, while
   already been well implemented by          established OEMs such as VW
   VW and Mercedes, but all companies        are also catching up with new
   still have the potential to leverage      agency models or predefined
   them as a bi-directional channel to       configurations.
   the customer throughout the entire
   customer journey.

C A P G E M I N I I N V E N T R ECO M M E N DAT I O N S

Automotive OEMs need to                   From both perspectives, the measures         help OEMs identify and prioritize the
address sustainability from               to be taken must be considered,              actions they need to take. It addresses
                                          prioritized, designed, and measured          four types of experience that are
two perspectives                          in terms of their impact, using a holistic   relevant for products and services, and
Together, these individual best           approach. For instance, if consistency       in each case helps companies combine
practices can deliver an outstanding      of the customer experience is the            physical and digital elements along
customer sustainability experience.       decisive factor, it may be best to divert    different customer touchpoints and
How should they be implemented?           budget and resource away from smaller        across different interaction channels.
                                          initiatives – however excellent – and
                                          towards closing gaps that reduce
Two perspectives must be adopted
                                          consistency.
here: that of the customer, who
interacts with the company and its
offerings through many contact points     Figure 6 shows Capgemini Invent’s
and phases, and that of the company,      concept of an integrated Sustainability
whose employees, processes, systems,      Experience Management (SEM)
and not least products and services       approach. This approach focuses on
shape the customer's experience.          the customer perspective in order to

                                                                                                                             13
S U S TA I N A B L E M O B I L I T Y

CX         Customer
           Experience
                                                                                                      User
                                                                                                Experience   UX        should be made measurable in a
                                                                                                                       way that allows identification of
Satisfying customers along                                               Designing easy-to-use digital & physical      each relevant role, and provides
their journey for sustainable                                                 interfaces & touchpoints to reflect
                                                                                                                       guidance for continuous improvement
products and services                                                        the brand promise on sustainability
                                                                                                                       and adaptation.
Omnichannel journey                                                            Websites, apps, products, and places
                                                ce
                                           gy n

                                                         UX
                                         te rie

                                                                      Su and
                                       ra e

                                                                        Br
                                                                        st &
                                     St Exp

                                                                                                                       Now is the time to get
                                                                          ai P
                                                                            na ur
                                                         User
                                   s& y
                               al ilit

                                                                              bi po
                                                                                lit s
                            Go nab

               Usage                                  Experience                               Loyalty                 ready for sustainability
                                                                                   yi e
                                ai

                                                                                     n
                             st
                           Su

                                                                                                                       The automotive industry is about to
                                    CX                 SEM                  SX                                         enter an era shaped by responsibility
                                 Customer
                                                     Sustainability       Social                                       and sustainability.11 The only option
                                                      Experience
                                Experience
                                                     Management
                                                                        Experience                                     that is closed to automakers is to
                                                                                                                       take no action. Generating customer
                                                                                                                       excitement and enthusiasm about
                                                                                                                       sustainable offerings, and excelling
                            Su

          Efficiency                                     EX                                    Engagement
                              En nab

                                                                                   ta
                               st

                               Pe lem pe

                                                                                & f
                                                                              gy o
                                  ai
                                  ab le

                                                                                 Da
                                   op en ra

                                                                            lo ge

                                                                                                                       in providing those offerings, will
                                     le t & tio

                                                                          no era

                                                       Enhanced
                                                                        ch ev
                                        O

                                                                                                                       represent the new battlefield for
                                                                      Te L

                                                      Experience
EX         Enhanced                                                                                 Social
                                                                                                             SX        automotive OEMs.
                                               ns

           Experience                                                                           experience
Leveraging brand credibility                                                     Engaging sustainability-conscious
                                                                                                                       Customers are demanding sustainable
on sustainability for new                                                           communities through content
experiences                                                                               and human interactions       products and services from credible
New products & services                                                                   Communities & social media   brands. Our research shows that
                                                                                                                       they are even willing to pay a price
Figure 6 | Sustainability Experience Management Framework                                                              premium for sustainability, but only
                                                                                                                       if a consistently sustainable customer
                                                                                                                       journey is offered. That consistency is
                                                                                                                       not there yet, and certainly represents
The four types of experiences that                             Holistically applied, SEM brings the                    an area for improvement.
SEM addresses are:                                             potential to drive four main business
                                                               success factors: product and service                    What, exactly, are customers willing to
•	Customer Experience (CX),                                   usage, customer loyalty, customer                       pay for? That question probably cannot
   where the focus is on achieving                             engagement, and overall efficiency.                     be answered in terms of individual
   high customer satisfaction along                                                                                    features, functions, or facts on a data
   the whole customer journey, in                              To succeed, SEM requires a strong                       sheet. The most important step is
   a consistent manner across all                              foundation at the corporate level in                    to build corporate assets such as a
   channels                                                    addition to the customer perspective.                   centrally steered SEM function, plus
                                                               Engagement with sustainability needs                    consistent corporate governance and
•	User Experience (UX), which is                              to start at Board level. This senior                    culture around sustainability. Also vital
   about the design and usability not                          support anchors sustainability in both                  is the ability to identify sustainability
   just of physical components such                            the company’s purpose and its top-                      needs using all the available data,
   as products and places, but also                            level strategy.                                         and to meet those needs effectively.
   of digital components such as                                                                                       These assets and abilities will create
   websites and apps                                           Sustainability must then become                         a positive return on investment, but,
                                                               an intrinsic principle of the operating                 more importantly, they will equip the
•	Social Experience (SX), which                               model for all client-related activities.                industry’s front runners to create the
   relates to human interactions and                           It should inform governance structures,                 sustainable future that we all want.
   content provided via social media,                          the organization’s overall structure
   communities, or events                                      and processes, and the culture of                       Please contact us for more information
                                                               collaboration, both internally and                      about Capgemini Invent’s Sustainability
•	Enhanced Experience (EX), where                             within the ecosystem of partners and                    Experience Management framework,
   companies can leverage their brand’s                        suppliers. Corporate sustainability                     or to discuss any of the points raised
   credibility regarding sustainability                        goals need to be subdivided across                      by our study.
   when introducing new products                               all leadership levels. These goals
   or services

11
     bit.ly/New_Balance_Automotive_Industry

14
15
S U S TA I N A B L E M O B I L I T Y

THE AUTHORS

   SEBASTIAN TSCHÖDRICH                                    SIEGFRIED ADAM                        DR. MARC CÄSAR
 sebastian.tschoedrich@capgemini.com                   siegfried.adam@capgemini.com            marc.caesar@capgemini.com

     DR. CHARLOT TE HUFNAGEL                              C A R O L I N S TA L L E R          MAXIMILIAN WERNER
     charlotte.hufnagel@capgemini.com                  carolin.staller@capgemini.com        maximilian.werner@capgemini.com

       K AT H A R I N A S C H U B AC K                      MAREN KIBELE
     katharina.schuback@capgemini.com                   maren.kibele@capgemini.com

                            I N T E R N AT I O N A L AU T H O R S

        ARRY BAL ACHANDRAN                                  MICHAEL DARR
      arry.balachandran@capgemini.com                   michael.darr@capgemini.com

        Sustainable mobility 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

16
For more information, please contact:

Capgemini Group                        Capgemini Invent
Alexandre Audoin                       Sebastian Tschödrich
alexandre.a.audoin@capgemini.com       sebastian.tschoedrich@capgemini.com

Markus Winkler
markus.winkler@capgemini.com

China                                  Germany                               Spain
Chu Yan                                Ralf Blessmann                        Carlos Garcia Santos
yan.chu@capgemini.com                  ralf.blessmann@capgemini.com          carlos.garcia.s@capgemini.com

Huu Hoi Tran                           Christian Hummel
huu-hoi.tran@capgemini.com             christian.hummel@capgemini.com
                                                                             UK
                                                                             Rob Pears
Brazil                                 India                                 robert.pears@capgemini.com

Giulio Salomone                        Roshan Batheri                        Arry Balachandran
giulio.salomone@capgemini.com          roshan.batheri@capgemini.com          arry.balachandran@capgemini.com

France                                 Italy                                 US
Arnaud Bouchard                        Eraldo Federici                       Mike Hessler
arnaud.bouchard@capgemini.com          eraldo.federici@capgemini.com         michael.hessler@capgemini.com

Franck Dansaert                                                              Michael Darr
franck.dansaert@capgemini.com                                                michael.darr@capgemini.com
                                       Japan
                                       Hiroyasu Hozumi
Belgium                                hiroyasu.hozumi@capgemini.com         Global Marketing
Vincent Wouters                                                              Monika Hespe
vincent.wouters@capgemini.com                                                monika.hespe@capgemini.com
                                       Nordics
Carlos de Moura Cortes
                                       Caroline Segerstéen Runervik
carlos.de.moura.cortes@capgemini.com
                                       caroline.sergersteen-runervik
                                       @capgemini.com

                                       Hakan Erander
                                       hakan.erander@capgemini.com

                                                                                                               17
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 25 creative studios around
the world, its 7,000+ 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 partnering
with companies to transform and manage their business by harnessing the
power of technology. The Group is guided everyday by its purpose of unleashing
human energy through technology for an inclusive and sustainable future.
It is a responsible and diverse organization of 270,000 team members in nearly
50 countries. With its strong 50 year heritage and deep industry expertise,
Capgemini is trusted by its clients to address the entire breadth of their business
needs, from strategy and design to operations, fueled by the fast evolving and
innovative world of cloud, data, AI, connectivity, software, digital engineering
and platforms. The Group reported in 2020 global revenues of €16 billion.

Get the Future You Want | www.capgemini.com/invent

The information contained in this document is proprietary.
©2021 Capgemini Invent. All rights reserved.
You can also read