But to win in this race, they will need to be bolder and committed to more rapid change. This might be why many OEMs are still tentative about shifting their focus to customer experience. Company transformations are hard, and harder still when the future is uncertain and resources are limited, making it difficult to know where to place bets. In a world of electric, connected, and autonomous vehicles, OEMs face a considerable challenge if they intend to keep pace. With frequent software updates that improve services as the norm, the notion is taking hold among EV customers that they are no longer buying the latest car model that will last five years or so, but a smart device on wheels where they can work, socialize, and be entertained-and which will constantly improve. Both companies offer a range of add-on, customer-centric services, from worry-free energy packages, where an app click brings someone to charge the vehicle on the spot, to a “battery as a service” package that rents the battery to the buyer by the month, or even retail and dining suggestions. China’s NIO also sells direct and only through its website and app. Tesla sells direct to its customers, who can buy a car with fewer than ten clicks, choosing from a simplified range of just four models and with no price haggling. There is no reason to believe expectations will be any lower among car buyers.ĮV companies have tapped into the zeitgeist. 1 Emily Cummins, “45 customer service statistics you need to know (updated for 2021),” Netomi, May 10, 2021, Philippe Aussant, “Top 40 customer experience statistics to know in 2021,” Emplifi, June 1, 2021, emplifi.io Jacqueline Renfrow, “Most shoppers abandon their purchase if checkout is too hard,” Retail Dive, August 13, 2018,. The majority of online shoppers in other industries expect real-time customer service, switch brands if they don’t get a consistent experience across channels, and abandon their online carts if the checkout process proves too taxing. Google search trends suggest some 60 percent of car buyers under the age of 45 are likely to purchase their next car online and are interested in contactless sales and services. They prefer the convenience of digital interactions. For many consumers, visiting a car showroom has lost its appeal. The new battleground is increasingly one where tech-enabled, data-rich, electric vehicle (EV) companies currently have the upper hand: customer experience. These qualities still matter to today’s consumers, but they are table stakes. There was a time in the not-too-distant past when car manufacturers competed largely on their engineering capabilities: superior driving performance and vehicle reliability. Leadership from the CEO and a chief experience office will be key to establishing the components of a transformation: a new business model, and the ability to scale fast, to amass data at every customer touchpoint, and to measure the customer experience in a manner that reveals precisely how to improve it.Incumbents will need to commit to bolder change to keep pace with new tech-led, data-rich, electric vehicle manufacturers, leaping from technology-centric product development to customer-centric innovation.The new battleground is customer experience. These qualities still matter, but they are table stakes.
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