MARKETING OF SUCCESSFUL COMPANIES AND THE ROLE OF … · MARKETING OF SUCCESSFUL COMPANIES AND THE...

MARKETING OF SUCCESSFUL COMPANIES AND THE ROLE OF TECHNOLOGY

Christoffer Hultin, CEO GroupM Finland

&

Giles Graham, Global Automotive Director at Xaxis

BRAND

For a potential customer

EXPECTEDCUSTOMEREXPERIENCE

=

3

SALES ARE DRIVEN BY

THE EXPECTED CUSTOMER EXPERIENCE

Expected CX

Rational

Benefit

Emotional

Benefit+

Price

Perception

=

4

SALES ARE DRIVEN BY

THE EXPECTED CUSTOMER EXPERIENCE

Expected CX

Rational

Benefit

Emotional

Benefit+

Price

Perception

=

5

1. BE EMOTIONALLY RELEVANT

SOURCE: Siegel + Gale6

2. BE SIMPLE

#1 #3

7

SOLVING ONE PROBLEM - PROPERLY

8

MIELE

”

SOURCE: CEO of Ben & Jerry’s Matt McCarthy9

3. HAVE A REAL PURPOSE

Go like hell after purpose –

as fast as you’re going after your innovations, as

fast as you’re going after your cool next campaign.

Businesses that don’t do the thing they set out to

do and tackle a real social challenge may actually

be dead, they just don’t know it yet.

They’re just coasting to a slow demise.

v

v

10

UNITED COMMERCIAL BANK

11

O c t o b e r 2 0 1 9

THE FUTURE OF

AUTOMOTIVE MARKETINGHOW DATA AND TECHNOLOGY ARE CHANGING THE LANDSCAPE

TECHNOLOGY IS IMPACTING AUTOMOTIVE FUTURES

NEW

TECHNOLOGY

TRENDS

NEW

AUDIENCE

TRENDS

NEW

PURCHASE

TRENDS

TECH ENABLED SERVICES - RIDE HAILING AND CAR SHARING - CHANGING ATTITUDES AND BEHAVIOURS

Source:

https://www.theguardian.com/world/ng-interactive/2016/mar/07/whos-winning-find-out-how-your-income-compares-with-every-other-generation

https://www.autoexpress.co.uk/car-news/102466/number-of-young-adults-with-driving-licences-falls-by-40-per-cent

Those holding driving licence in decline:

75% (1990) – 63% (2018)Car usage in decline:

36% fewer trips (‘90 –’18)

Dis

po

sa

ble

inco

me

20

10

-2

01

8

Forecast worldwide new car sales decrease of 4m in 2019

24% global new car sales in China

Driven by US sanctions; big drop in China sales and exacerbated by tougher emissions legislation in

Europe

Source: Germany’s Centre for Automotive Research (CAR), 2019

IMPACTING GLOBAL NEW CAR SALES

Efficiency and

savings are

critical

Source: Nomura Analysis 2019

THE WORLD MAY HAVE ALREADY PASSED "PEAK CAR” –PRESSURE TO EVOLVE QUICKLY

Global demand for

cars will decline

3%+ in 2019

2019

More than 38,000 job

losses among OEMs in

the past six months

(2019)Commercial vehicle exports

from the UK collapsed by

89% in April 2019

Decline in new car

sales has wiped

0.2% from global

GDP according to

Fitch Ratings

BRANDS AND DEALERSHIPS MUST PROVIDE POSITIVE CONSUMER EXPERIENCES

67%

say they will pay

more for great

experience

57%

have stopped

buying from a

company because

one of their

competitors

provided a better

experience

64%

find the customer

experience more

important than

price when it

comes to buying

Source: https://www.autonews.com/commentary/dealers-focus-experience-not-price

• Globally OEMs under-invest in digital - spend 23% advertising budgets vs global ave of 41%

Sources: https://www.youtube.com/watch?v=e81TjUHRRkU; (2.4m views); Zenith 2018, Xaxis 2018; https://www.forbes.com/sites/sarwantsingh/2019/06/13/airline-digital-transformation-takes-flight/#6732964d46c5

DIGITAL TRANSFORMATION ULTIMATELY DELIVERS BETTER CUSTOMER EXPERIENCE

• Airline industry focusing digital transformation around embracing changes to culture, business

models, people, products, as well as advanced technology services

TECHNOLOGY HELPS US RESPOND TO KEY SIGNALS ALONG A COMPLEX PURCHASE JOURNEY

BUYERS CHANGE THEIR MINDS AT A MOMENTS NOTICE

Source: Carwow 2018

ECOMMERCE IS HERE AND FOR EVERYONE

Average age of automotive

aggregator site new car buyer – 49

Average new car buyer age – 44

63%would consider buying a new

car online in next five years

Sources: https://www.businessleader.co.uk/survey-reveals-millennials-prefer-complete-vehicle-purchases-online/40750/; Carwow UK

APPS PROVIDE NEW VALUE OPPORTUNITIES, COMMUNICATION CHANNELS AND….DATA!

Mercedes Me –

Security support;

Remote Parking

Assist; Access to

Concierge Services

Volvo On Call -

Designed to provide

security and peace of

mind, offering direct

access to Volvo’s own

bank of operators

VW Car-Net connects

apps to car operating

system

CONNECTED CARS OFFER SIGNIFICANT OPPORTUNITIES

• 2018 global electric car fleet exceeded

5m, +40% y-o-y

• China remains the world’s largest electric

car market

• Western markets are forcing change

through changes to the law

Source: Bloomberg

STRONGER EMISSIONS LEGISLATION WILL IMPACT CARS MARKETED AND BOUGHT

Source: International Council for Clean Transportation

EV PURCHASE BEHAVIOURS ARE DIFFERENT –DECISIONS MADE FASTER, WE MUST REACT TO THAT

Source: Carwow

Information required differs to ICE vehicle research EV buyers more decisive

AND MORE CAUSE DRIVEN 81%

of global respondents feel

strongly that companies

should help improve the

environment

Source: Huffington Post; Nielsen Intelligence 2019

SOCIETY IS INCREASINGLY TECH SAVVY & SUSPICIOUS

61% of millennials are worried

about the world, feel

responsible for making a

difference

Just 8% of consumers consider themselves to be firmly committed loyalists

46% of consumers are more likely to try new brands than they were five years ago

Source: Nielsen Intelligence 2019

DISLOYAL IS THE NEW NORMAL

PEOPLE WANT BRANDS TO MAKE THEM FEEL SPECIAL

“The majority - 79% - of consumers say brands have to actually

demonstrate that “they understand and care about me”

before they consider purchasing.”

Brands need clear purpose and to demonstrate commitment across every consumer touch point.

Source: Jamie Gutfreund, Global CMO at Wunderman

PERSONALISATION IS KEY

OEMS ARE OFFERING INDIVIDUALISM AT SCALE

BUT DEMANDS FOR PERSONALISATION CLASH, TO A DEGREE, WITH…

DATA PRIVACY

Source: WFA

ACTIVE OUTDOORFAMILIES

MENSTARTING OFF

GEARHEADS

(QUINTESSENTIAL BOLD GUARDIAN)

60%The Brief

YOUNGGAMERS

OLDERBUSINESSMEN

YOUNG TRENDSETTERS

RETIRED & STILL GOING

40%The Opportunity

Bold Guardians

DiscoverLet consumers get to know

the brand and product

through engaging and

exciting content and

messages.

ShopProvide more detail about each product or service

including information,

features, and specifications.

BuyServe up key information on

how and where those

interested can make a

purchase.

OwnNurture relationships with

owners post- purchase

Journey Spectrum

High Low

Brand Love Spectrum

IntendersReinforce & delight

consumers who are already

bought into the brand

Fence SittersProvide information that

reinforces why the brand is the

best option

AvoidersCapture the attention and pique

interest of consumers who are

closed to the brand.

PERSONALISE MESSAGING TO A NEW LEVEL

Technology can be used to build loyalty, trust and long-lasting relationships with your customers

USE TECHNOLOGY TO CONNECT TO YOUR CONSUMERS AND BUILD BETTER RELATIONSHIPS AND EXPERIENCES

33

IN SUMMARY

BE BRAVE AND

PERSONAL BE SIMPLE

HAVE REAL

PURPOSE AND

DELIVER ON

THAT

34

THANK YOU

For more information please contact Christoffer Hultin

Christoffer.hultin@groupm.com or Giles Graham giles.graham@xaxis.com