To Boost the Customer Experience, Automakers Must Enhance Collaboration with Dealers, Accenture Report Finds

Rhea-AI Summary

Accenture's new report emphasizes the necessity for automakers to enhance their collaboration with dealers to improve customer experiences and loyalty. Based on a survey of 7,500 car owners and over 200 dealers, it reveals that 47% of customers may switch brands due to poor experiences. Key factors for customer satisfaction include dealer accessibility, staff expertise, and data privacy. The report suggests four actions for automakers: regain dealer trust, define their roles, create win-win relationships, and allow flexibility in implementation to capitalize on customer insights.

Positive

• Survey of 7,500 car owners indicates strong demand for improved customer experiences.
• Recommendations for automakers to enhance collaboration with dealers.
• Focus on customer insights for better service delivery.

Negative

• 47% of customers may switch brands due to inadequate customer experiences.
• Automakers struggle with delivering cohesive brand experiences post-purchase.

Improved collaboration would give automakers and dealers alike better customer insights — which is the key to delivering better experiences

NEW YORK--(BUSINESS WIRE)-- Automakers must strengthen their relationships with their dealers to improve customer experiences, boost sales and increase consumer loyalty, according to a new report from Accenture (NYSE: ACN).

The Accenture report “Automotive Customer Experience Rebooted — Pivoting Toward the Automotive Industry’s Future Success” looks at the key levers for enhancing customers’ experience in the automotive industry. (Photo: Business Wire)

The report, “A Customer Experience Reboot: Pivoting Toward the Automotive Industry’s Future Success,” is based on a survey of 7,500 car owners and more than 200 car dealers across six countries in North America, Europe and Asia Pacific, as well as on interviews with industry executives and insiders.

According to the report, automakers often provide a fragmented brand experience, with consumers experiencing low engagement and satisfaction, particularly in the post-purchase stage. The challenge for automakers is to provide the same level of ease and personalized experiences consumers are used to from other industries. This is particularly important given that nearly half (47%) of customers said they would consider switching auto brands after one fails to deliver a relevant customer experience.

Further, the research found that drivers now consider several other factors aside from the vehicles themselves as critical to a positive customer experience, including: dealer/workshop/repair shop network and accessibility; staff expertise; data privacy and protection; and sustainability and responsibility. The disconnect between consumers’ concerns with practical, everyday considerations such as repairs and maintenance puts the industry’s sales model at risk.

The key enabler of delivering a better customer experience, according to the report, is better customer insights. However, the dealers, not the automakers, have the greatest interactions with — and therefore the best insights of — the customer. To address this issue automakers must enhance their collaboration with dealers, making them more of a partner.

“The customer experience was designed by auto manufacturers but because they don’t have full access to the end customer the way the dealers do, there is still room for significant improvement,” said Axel Schmidt, senior managing director and global automotive industry lead at Accenture. “To do this, automakers should not only listen to and follow the data, but also change the entire dynamic with their dealers by putting them on more of an equal footing.”

The report recommends four actions that automakers should take to rebuild and solidify their relationships with dealers:

• Regain dealers’ trust. Because dealers are likely to remain the backbone for automotive sales and aftersales for the foreseeable future, automakers should take a more structured approach to transform their relationship with dealers by communicating and working with them more collaboratively and transparently to gain their understanding and support.
• Define the future role of the dealer. Automakers should work with dealers to find the preferred sales model depending on the dealer’s strengths — such as geography or a high sales track record — and then build a new model, which could be direct sales, an agency model, or a hybrid.
• Build a 1+1 > 2 win-win relationship. OEMs and dealers should assume a certain amount of risk and develop standalone solutions. Once the relationship is cemented, they should focus on budget, reach, data and system integration, working together to build a data pool, among other objectives.
• Create flexibility in implementation. Automakers should avoid imposing processes and standards on dealers or replacing outdated or unproductive processes with new equally unproductive processes. Instead, OEMs should consider moving from a linear customer journey and process toward a modular toolbox of applications that dealers can dive into—and pick and choose as needed.

According to the report, automakers should develop an intelligent data-driven approach to engage customers across all touchpoints, both physical and digital. This will require tools for structured analysis and interpretation, requiring comprehensive, robust data management systems and utilization strategies.

At the same time, automakers must recognize that quality data is only a starting point to derive real customer insights. Also critical is a strong, overarching, company-wide data management system and utilization strategy that includes powerful artificial intelligence and analytics technologies to support data engineering.

“Automakers should limit data collection to the areas that facilitate the relationship and truly benefit the customer experience,” Schmidt said. “When brands aren’t too possessive with customer data, the exchange becomes natural. In fact, more than 80% of customers are open to sharing their information related to car ownership, maintenance, and driving behavior — but less open to sharing other personal information.”

For more information and to view a copy of the report, please visit: Accenture.com/AutomotiveCustomerExperienceRebooted

Research Methodology
To better understand the customer experience challenges and potential benefits in the automotive market, Accenture surveyed 7,500 car owners and 203 dealers across six countries and interviewed more than 20 experts, executives and industry insiders. We also analyzed more than 300 million social media posts and 300 investment transcripts of leading automotive companies.

About Accenture
Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services — all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 674,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at accenture.com.

Copyright © 2022 Accenture. All rights reserved. Accenture and its logo are trademarks of Accenture.

This content is provided for general information purposes and is not intended to be used in place of consultation with our professional advisors. This document refers to marks owned by third parties. All such third-party marks are the property of their respective owners. No sponsorship, endorsement or approval of this content by the owners of such marks is intended, expressed or implied.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220106005034/en/

Youssef Zauaghi

Accenture

+49 175 576 6458

youssef.zauaghi@accenture.com

Source: Accenture

FAQ

What does Accenture's report say about automakers and dealers?

The report emphasizes that automakers must strengthen their collaboration with dealers to improve customer experiences and boost sales.

What percentage of customers would consider switching auto brands?

According to the report, 47% of customers said they would consider switching brands after a poor experience.

How many car owners were surveyed in the Accenture report?

The report is based on a survey of 7,500 car owners across six countries.

What actions should automakers take to improve dealer relationships?

Accenture recommends regaining trust, defining dealer roles, creating win-win relationships, and allowing flexibility in implementation.

What key factors do customers consider important for a positive experience?

Customers consider dealer accessibility, staff expertise, data privacy, and sustainability as critical factors for a positive experience.