OEMs: the importance of a consultative approach

Grant O’Hara explains how by adapting and choosing the right planned and agreed approach, utilising all of the technology and services available to them, OEMs can trust their network implicitly to achieve the customer experience levels they aspire to

Customer experience can make or break a brand relationship: 48% of customers have switched brands for better customer service, and 94% say good customer service makes them more likely to make another purchase. Within the automotive industry globally, brand loyalty is changing at an unprecedented pace – with the latest figures revealing customer loyalty figures range from 43% to 86% of customers who would buy again. While each brand’s product offer clearly has an impact on customer perception – especially with the change in driving behaviour surrounding Electric Vehicles (EV) – after sales is hugely influential on customer retention leading to customer advocacy.

In today’s dynamic automotive world, the relationship between Original Equipment Manufacturers (OEMs) and dealerships plays a crucial role in ensuring the customer experience leads to complete satisfaction and long-term loyalty. Right now, however, the industry needs to ensure the disruptions created by the shift to direct-to-customer and agency options do not impact the customer experience. Is the customer communication not only seamless and consistent but also proactive? Is the OEM providing the level of after sales commitment – in areas such as courtesy cars for customers experiencing a breakdown or accident – that reinforces customer perception of long-term value?

Personal value

Customers’ expectations continue to rise across all sectors. For the automotive market, the shift to EVs has heightened the need to improve the quality and consistency of experience. Higher vehicle purchase prices, by default, create a customer base that expects a top-quality buying experience but the after sales process is also key to retaining customer loyalty. OEMs are committed to designing the right customer experience, leveraging dedicated field teams to support dealers in implementing ever more innovative models.

The challenge, however, is not just ensuring the concept of experience meets the customer expectations but also that dealerships are able to translate the concepts into reality. How easy is the routine service experience, from booking to courtesy cars? How good is the dealership’s communication before, during and after the service – from setting cost expectations and explaining the required work to informing the customer when the car is ready? What level of support is available to a customer when a vehicle breaks down or is involved in an accident? Almost three quarters (73%) of customers expect companies to understand their unique needs and expectations, yet 56% say most companies treat them like numbers.

In recent years, the industry has prioritised efficiency, leveraging emails and automated booking systems, as well as video inspection checks, to maximise performance. This model, however, some lack the personal touch customers truly value, with the exception of video inspections, as this connects the customer with the technician, the expert, working on their vehicle and the customer can visibly see what work is recommended, further building trust and transparency. The industry needs to adopt  a far more collaborative approach to understand customers’ changing expectations – from a seamless service experience that meets the needs of time poor customers to the empathetic response required when customers are wrestling with the emotion of breakdown or accident. 

Frictionless aftersales

Despite the industry’s gradual evolution to direct-to-customer and agency options, dealerships remain the final touchpoint for customers and the quality of experience will have an enormous impact on loyalty and future sales. A collaborative relationship between OEMs and dealers is vital for delivering exceptional, personalised customer experiences every time, especially in the creation of highly responsive and consistent after sales models that provide a clear chance for brand differentiation and enhanced loyalty.

Commitments to provide courtesy cars to customers when a car under warranty breaks down, for example, are becoming a core differentiating component of the customer promise. For any customer, the knowledge that the OEM will provide a like-for-like courtesy car within four hours of breakdown delivers a new level of brand confidence.

For dealerships, however, customer demand for courtesy cars during service can create friction due to the limited number of vehicles available, potentially leading to several weeks’ lead time  in achieving a booking slot, even when the workshop has space. To overcome the frustration this can cause, growing numbers of dealerships have created dedicated comfortable quiet areas, where customers can work while waiting, reducing the demand for courtesy cars.  Given the reduced time taken to service EVs, an efficient approach with specific two-hour time slots, rather than a day’s booking, will further cut demand for courtesy cars for routine  servicing, especially with a luxury waiting area experience, allowing priority to be given to warranty work or breakdowns.

Transformative communication

At every stage of the customer interaction, the quality of customer communication is key. How quickly can customers access the right resource – whether it is a call centre handling the service booking or courtesy car allocation or the actual dealership’s service desk? How much nuance are dealerships applying to communication strategies to meet the very diverse needs of different customer groups?

Great processes and customer promises can be quickly undermined if communication fails.  Customers should never have to chase a dealership for information about the status of their vehicle. Or make repeated calls to book a service because the automated telephone system isn’t working efficiently. Proactive communication to update customers – through their preferred method – is an aspect of customer experience that many organisations continue to work on but at the same time, also be ultra efficient. .

OEMs and dealerships must work hand in hand to utilise data to deliver a better, personalised experience for every customer. It is also important to step back and understand how customer expectations are evolving. Taking the time to listen to customers and be empathetic to their preferences is incredibly important and should provide the foundation for a collaborative approach to delivering an optimal experience, in your mind, become that customer, be your customer.

Conclusion

As OEMs and dealerships wrestle with the challenge of gaining  and retaining customers during the shift to EVs and other drivetrain concepts, the ability to deliver a differentiated customer experience will be key. Both dealers and OEMs have access to diverse sources of customer information that, together, enable new insight into changing expectations and support the creation of a far more personal experience.

A consultative approach is not just a strategy, it needs to become, ‘working practice’; it is a necessity in today’s world. Whether it’s embracing a new sales strategy, creating a highly personalised customer experience or adopting cutting-edge technology and software, the journey to excellence begins with a single step.

Grant O’Hara is Head of Commercial Development at One Nexus.