What We Do
The automotive industry is shifting from being product-centric and asset driven, becoming a more service-oriented industry. Customers (both commercial and private) are increasingly aware of the total cost of ownership and are demanding flexible and predictable rate-based models. Automotive manufacturers, for their part, are embracing the opportunity to drastically increase customer lock-in and upselling. Advances in telematics technology will soon provide the means to efficiently manage mobility fleets, to add a broad range of services, and to offer fully flexible solutions such as corporate car sharing.
Automotive manufacturers offer a broad variety of services: wear and tear contracts, insurances, telematics services, and fleet management, to name a few. It will be a major challenge to integrate these services into stringent solutions, but that’s the only way to produce real hassle-free products for customers and strong upsell potentials for the manufacturers. Further, integrated solutions will make fully flexible products possible, such as pay per drive. Designing, packaging, and marketing these solutions will not be easy, and manufacturers will find themselves in direct competition with a part of their customer base (such as car rental companies.)
Convergence of Businesses
In the future, formerly rigid service categories will converge, and a more integrated understanding of customers’ mobility needs will emerge. Distinct customer segments (car sharing, rental, and leasing, for instance,) will wane. Instead, along the customer life cycle, customers will use and combine different offers. Automotive manufacturers will therefore need to combine their services for marketing purposes, create a clear product and pricing logic, and will need to align their offer internally to create economies of scope.