The convergence of the automotive and the mobility industries promises major changes. Powerful forces are driving this shift, including social, economic, and demographic disruptions enabled by technological innovations. But in this whirlwind of change, automotive incumbents ought not to forget the experience they deliver to their current customers—as those that do remain attentive to these customers will be the ones who will make it to the age of mobility providers.
Why customer experience is key
While autonomous vehicles, connectivity, electrification, and shared mobility (ACES) will ultimately compel fundamental changes across any OEM’s business model, its customer experience performance must advance to reflect these changes as they occur. Extrapolating current numbers from various industry sources1 suggests that millennials will represent more than 45 percent of the potential car-buying cohort in 2025. They will thereby form the largest new-car-purchasing demographic, making it paramount that OEMs understand their preferences and adapt to them. That is why, over the next five to ten years, automotive players need to look beyond the automotive industry to anticipate the needs of this first generation of integrated-mobility customers.
A good place to start looking for inspiration is the consumer-tech sector, where companies such as Airbnb, Amazon, and Uber keep raising the bar on what a best-in-class digital customer experience looks like. Today, it includes a seamless and reliable service, competent advisory functions, personalized omnichannel communication, 24/7 support, and relevant social-media marketing.
The automotive industry has adapted more slowly to these new customer-experience realities than other sectors due to the size of typical OEMs, their complex sales and service networks of independent dealers, and fear of cannibalization. As a result, the automotive customer experience can often feel outdated and inferior, especially for younger customers, who seem to be losing interest in car ownership and prefer more convenient and flexible mobility options such as ridesharing which might lead to totally new mobility concepts.
Please click here to view the full press release.
SOURCE: McKinsey & Company
