Customer management is a complex business: Consider the diversity of customers (private versus business customer, regional differences), the variety of contact points (pre-sales, sales, after-sales), and the broad range of potential partners (dealers, internet partners, and manufacturers). A one-size-fits-all strategy does not work. Strategies need to be tailored to individual customers’ needs.
Oliver Wyman offers automotive clients industry-shaping sales expertise - from rethinking traditional automotive sales towards a multi-channel, mobility focused and fully aligned system, down to the retail level, to profit growth programs along all aspects of the automotive sales value chain.
With Lippincott, the leading brand and design consultancy and part of Oliver Wyman, we help manufacturers to re-invent customer experience and to define future brand leadership.
The sales system is a critical link in the automotive value chain. It is challenging for automotive manufacturers to differentiate themselves in the retail and the brand experience at the point of sale, to abolish functional orientation, to integrate and streamline all sales levels, and to improve efficiency. Another challenge is connecting sales, financial services, after-sales, and used vehicles to ensure an integrated product and service offering and to safeguard downstream profit potential.
Automotive retail has been managed for decades in the same way. But retail innovation from other industries, changing customer requirements, and the notoriously high distribution costs of automotive sales will make fundamental changes in roles, steering, and formats necessary. In addition, big data analyses that were established in other industries will need to be leveraged for the automotive sales system, particularly for stock vehicle sales and distribution practices. There is a need for a well-founded tool that performs customer analytics and facilitates a better match of stock vehicles with customer type and specific demand.
Three-quarters of all new vehicles are leased or financed. In this attractive market, automotive banks are facing increasing competition: Independent vendors are gaining importance as intermediaries between brand and customer, direct financing via the internet continues to grow, and the influence of mega dealers and dealer groups is increasing.