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Adaptation of Adjacent Retail Initiatives Driving Automotive Retail Digitalization
Future Growth Potential via Customer Engagement and Digital Tools Creates Growth Opportunities
19-Feb-2021
Europe
Market Research
MEE7-01-00-00-00
AU02118-GL-MT_25165
The COVID-19 pandemic shows the automotive retail industry’s dependence on physical stores. While these physical stores are expected to continue being relevant in the future, the pandemic has brought digital tools’ role in customer engagement to the forefront.
Every automotive retail stakeholder can transform its customers' appeal by embracing digital transformation and maintaining the customer journey at the crux of digitalization across in-store and online touchpoints. As consumers buy groceries, electronics, and fashion online and depend on digital influencers to guide their purchase preferences, automotive companies are slowly inching closer to giving customers a truly differentiated vehicle purchase experience. While the automotive industry continues to be responsive rather than proactive regarding digital retail innovations, customer delight forms the core of other industries’ existence and survival. Digitally native automotive customers expect the same ease of purchase and experience they find with consumer goods. The challenge lies in identifying the right tools and partners to impact the customer journey positively. This research looks at avenues where new customer-facing tools pioneer customer experience and efficiency and narrows them down to the top 12 non-automotive best practices for potential automotive adoption.
The COVID-19 pandemic has brought the automotive industry’s focus to digitalizing its retail practices, which was long due. Other factors contributing to automotive retail digitalization are electric vehicles and discussions on the agency model in multiple markets. This continual automotive retail refresh is expected in differentiating a brand or dealership from the competition. The research introduces some of the most efficient and impactful non-automotive digital experiences.
Key Issues Addressed
- What are current and future trends in the automotive retail industry?
- What drives and challenges automotive retail digitalization?
- Which non-automotive digital retailing trends are relevant to the automotive retail industry?
- How can automotive retail apply cross-industry digital retail innovations?
- How are changing customer engagement methods shaping the automotive retail landscape?
Author: Isaac Abraham
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top Three Strategic Imperatives on the Automotive Retail Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
Automotive Retail Scope of Analysis
Research Background and Rationale
Research Key Findings
COVID-19 Pandemic Accelerating Digital Automotive Retail Initiatives
Gearing Up for Future Retail Trends and Technologies
Automotive Stakeholders Looking for New Retail Tools and Formats
Agency Retail Model—Concept and Adoption
Agency Model Benefiting Both Manufacturers and Dealerships Despite Apprehensions
Rise of Digital Retail Tools—Impact on Customer Journey
Key Non-automotive Retail Initiatives for Automotive Retail Innovations
Best Practices from Non-automotive Retail and Tesla to Benchmark
Growth Drivers for Automotive Retail Digitalization
Younger Customers Driving Automotive Retail Digitalization
Personalized Digital Tools Aid Customer Engagement and Conversion
Growth Restraints for Automotive Retail Digitalization
Imperative to Adopt Digital KPI Metrics to Maximize Digital Retail Impact
Regional Preferences and Enablers Determine Type of Digital Tools
OEM Initiatives in Agency Retail Model
Personalized, Digital Content-based Engagement Helps Conversion
Online Retail Evolving Ecosystem of Integrators
Digital Retail Initiatives in 2020
Key Non-automotive Retail Initiatives for Automotive Retail Innovations
Feedback Factory—A Start-up Supermarket
Say Technologies—Making Individual Owner’s Voice Heard
ChargeItSpot—Phone Recharge Lockers
Target—Using Stores as Hubs
Unanimous.AI—AI-powered Collective Knowledge
Passarela—Personalized Multichannel Customer Experience
Amazon Go—Checkout Convenience
British Airways—Real-time Marketing Engagement
Threads Styling—Online Luxury Fashion Retail Without App or Website
Soul Machines—AI Customer Engagement
YouTube—Shopping Tool Strengthens Marketing Value Proposition
HERO®—Enabling Omnichannel Experiences (via Chat/Video)
Growth Opportunity 1—Customer Engagement Tools to Ensure Leads Retention and Conversions
Growth Opportunity 1—Customer Engagement Tools to Ensure Leads Retention and Conversions (continued)
Growth Opportunity 2—Digital Tools Provide KPIs Apart from Building Unique Customer Journeys
Growth Opportunity 2—Digital Tools Provide KPIs Apart from Building Unique Customer Journeys (continued)
Growth Opportunity 3—Control of Sale (and Potential Agency Model Rollout) Lies Mainly in Success of OEMs and Dealerships’ Digital Retail Tools
Growth Opportunity 3—Control of Sale (and Potential Agency Model Rollout) Lies Mainly in Success of OEMs and Dealerships’ Digital Retail Tools (continued)
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