The future of the automotive industry

Over the years, the impressive and innovative transformation of the automotive industry has given consumers diverse options on any car brand’s services. Some of its remarkable transformations evolve from negotiations to transactions and a mixture of the traditional and virtual showroom. Connectivity and electrification are also two of the trends in the industry that are taking a big leap.

This has been backed up by a recent survey from Salesforce Industries Insights in the Automotive report stating that the automotive industry is in transformation. The research found that 73% of companies believe they are overperforming in digital transformation.

However, with the fast-paced and innovative transitions of the automotive industry, it is also looking into its digital customer experience. From the 500 industry decision makers, Original Equipment Manufacturers (OEMs), dealers, and auto finance subsidiaries, there are various ways how they can provide customers to ensure a fast, hassle-free, and successful transition.

Challenge in online purchase

The emergence of the ongoing global pandemic has driven public interaction to a halt. Since face-to-face interaction bring the scare to the public, online purchases of goods became a hit. And just like how versatile the auto industry is, it also engages in digital transformation.

One of the things that customers want is price transparency and streamlined lending. 74% of consumers want more honest and transparent communication in this time of pandemic according to Salesforce State of the Connected Customer research. However, the study only says that 24% of the surveyed reports that what customers pay matches what is on their website.

In addition, challenges in customization for a brand-new vehicle also arise as a problem for consumers. With only 21% of OEMs and retailers believing they offer a fast-buying experience, the time that it takes to complete a transaction is a challenge.

Difficulty in accessing personal accounts of the consumer also faces problems thus, the process of post-purchase needs improvement.

First-party data and AI in automotive industry

Even with a high percentage of automotive companies acquiring customer data from third-party sources, internet privacy regulations push companies to get data directly from customers. First-party data plays a big role in improving customer experience and in the future, customers must have to agree on sharing personal data.

One of the new sources of first-party data is connected vehicles. It is now being used to improve road safety and customer experience.

The automotive industry is also investing more in sustainability with the production of electric vehicles. However, the cost of research and development transition might put the industry at substantial risk, 85% of companies agreed.

Subscriptions and partnerships are also the new revenue generators for OEMs. OEMs and retailers are investing in the Internet of Things like Apple CarPlay and smart home devices.

Moreover, artificial intelligence and digitizing operations are also a big help according to 40% of respondents. While 38% agreed that better targeting, attention, and marketing can help them drive incremental sales and margin.

Conclusion

The future of the automotive industry is loaded with a lot of possibilities. From connected to electric vehicles and a future driven by data and digital experiences, customers, car manufacturers, OEMs, and retailers should expect a more improved and fast-paced digital experience.

The future of the auto industry is a future for all.

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