Engaging with todays automotive consumers

Engaging with today’s automotive consumers

Klaus PAUR Global Head of Automotive Hong Kong, 15th November 2012

Nobody’s Unpredictable

2 Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers

17 21

13 18

32 41

62

80

-20

0

20

40

60

80

100

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mill

ion

s

Motor Vehicle Production

Europe (millions) Americas (millions) Asia Pacific (millions) Global (millions)

Source: International Organization of Motor Vehicle Manufacturers

2012: ~84 million

(~5%)

Motor vehicle industry is growing

Despite economic woes in various parts of the world, production of motor vehicles (passenger- and commercial vehicles) is expected to grow in 2012.

3 3 Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers

In the various market places, demand for new passenger vehicles shows different modes and speed of development:

Developing economies: growing, due to huge pent-up demand in car ownership

United States: recovering, reaching ~14.5 millions

Europe: declining, but still ~12 million new PV sales

All markets have one thing in common: A shift in needs assessment and expectations towards vehicles!

Rapid consumer maturation in emerging economies

Gradual shift of attitudes towards the role of cars in mature countries

In essence, consumers become more critical towards the value proposition of cars, and expect better offerings to match their individual needs.

Cars remain a high involvement category in the various markets


Consumers have an ever growing choice to find the right vehicle

Over time, the automotive market has developed from a simple and straightforward model offering into a vast and complex, and for consumers rather unmanageable market proposition. This development is ongoing.

The sophistication of market offer allows the car makers to cater to individual needs, but makes it more difficult to stand out of the crowd, and catch the attention of potential

buyers.

Various cross-over body types with countless models and model versions in all markets!


Increasing information need for consumers is facilitated by digital world

Internet has become the dominant information tool for car buyers, offering a series of online research platforms (websites, social media sites, automotive forum, networking sites, etc.)

Source: CapGemini Cars Online Report 2012

Number of car consumers researching online

In a world – mature markets and emerging economies alike – where information about most things becomes freely available, car consumers remain constantly connected!

Internet is an opportunity for car makers to connect with their clientele, but they need to engage them and interact with them on an individual level.

The abundance of information is filtered by the search for relevance, enjoyment, and benefit.


Consumer behaviour is shifting

Consumer autonomy and independence

New technologies

in a digital world

Intensified automotive competitive landscape

THE EMPOWERED CONSUMER


The consumer is not only better informed, but also has higher expectations

“I want to buy a new

car”

Communications

Purchase

Trigger Event

Brand Association

s

Performance

Status Quality

Safety

Short List

Dealer Experience

“needs wants

and desires”

Initial Consideration

Set Brand Fit

$

The traditional “marketing funnel” has become a “consumer journey” with a series of loops. Instead of systematically narrowing down a large number of brands , consumers evaluate a range of constantly shifting options.

Dealer performance remains extremely

critical


Evolution, not revolution

This change within the market has profound implications for our quest to understand and anticipate consumer behaviour. Methods used so far are just not as engaging and relevant in today’s world, and sometimes even risk to miss out critical aspects.

Our task is to find the missing links to better comprehend the driving forces behind consumer behaviour

It is no longer only about understanding consumer needs and purchase motivations, but about knowing what excites consumers.

Design perception Brand image Perceived quality Dealer performance Post purchase experience


Example: ”Audi City“ – first digital showroom

Leveraging modern technology to focus on individual consumer needs

In a virtual environment, customers can choose all possible colour- and vehicle options, and display the cars on digital screens.

Experiencing life-sized 1:1 vehicle display

Bridging online product presentation and personal dealer visit

Nevertheless!

However important the virtual excitement, real-life experience cannot be fully compensated seeing, touching, feeling and smelling the new car are supposed to

remain critical triggers for deciding on a car purchase in the next future

Marketing mobility services

Formidable opportunity to engage in personal dialogue with prospective customers


Car purchase is a big decision and an important investment – customers expect to be treated accordingly

Information gathering: • Website is easy to navigate • Relevant information is easy to find • Appointment can be easily made • …

Required: Visibility about how well dealer service fits customer expectations!

Dealer visit: • Visitor is expected • Product experience is supplemented

with digital content • …

After sales: • Service visit reminder is sent out • Product experience is supplemented

with digital content • …


We are living in a socially networked mobile world

Continuous update and speed are more than ever vital qualities! Engagement and interaction are key!

Transparency increases Demand levels rise

Action and reaction times shorten Good and notably bad news travels fast

Everyone and everything is connected

Things change quickly

Contents (information, opinions, etc.) are constantly produced and exchanged


Shifting focus to socialised research

People

Averaged out

Survey data

Long-time

Monologue

Linear

Pre-determined

Structured

Active

Data reporting

Communities of people

Individualized

Non-survey data

Right-time

Dialogue

Immersive

Dynamic

Non-reflected

Interactive

Storytelling

traditional socialized


Survey based and passive data collection

Lots of data help us to generate better insights

Mobile in the center of market research

Fast turnaround, in real-time and engaging

Knowing the consumers better

Nobody’s Unpredictable

Thank you!

© 2012 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not bedisclosed or reproduced without the prior written consent of Ipsos.

Experience the Voice of the Customer! Multi Touch Point Feedback Solutions for the Automotive Industry

16

WELCOME TO THE NEW NORMAL

Where consumers are constantly

connected and “always on” is their

default setting

17

TODAY’S DIGITALLY CONNECTED CONSUMERS ARE DIFFERENT

We have to engage them in ways

that capitalise on and mimic

their expectations in a digital

world. They want to feel that

what they are doing is relevant.

What’s more, they want to

enjoy and benefit from

the experience.

This has profound implications for traditional market research: Old methods just aren’t as engaging and relevant in today’s new world

Disruptive market realities

are stimulating needs for

more agile research processes.

CONTINOUS FEEDBACK

INTEGRATED DATA

ACTIONABLE INSIGHTS

CONTEXTUAL REPORTS

NEW REALITIES BRING NEW NEEDS

PROJECTED USE OF EMERGING TECHNIQUES CONTINUES TO INCREASE

Source: GreenBook GRIT Report 2012

SMARTPHONE = EVERYWHERE

10%

23% 28% 30% 34% 39%

51%

69% 70% 78% 79% 80% 83% 85%

26%

37% 40% 40% 40%

53%

75%

80% 80%

85% 93%

85% 90% 90%

2012 2015 EST

LOCATION BASED SURVEYS

EVENT TRIGGERED SURVEYS

MOBILE ON THE GO ALLOWS US TO CAPTURE BRAND MOMENTS

23

REVOLUTIONARY BUT SIMPLE

This is game changing. Our exhibitors and sponsors

could engage with consumers like never before.

We could influence crowd movements and made

the event even more fun for our visitors.

24

James Goode, Event Director Golf Live

THE FUTURE OF RESEARCH IS NO LONGER ABOUT GENERATING REPORTS It’s about driving precise,

informed decisions by

sharing insights and

encouraging conversations

around them….

25

26

Why customer experience matters in

the Auto-Industry

26

The Influence of Marketing and Customer Experience Shifts Over Time

27

Influence of Marketing Communications

Influence of Customer Experience

Problem Recognition

Motivated Search

Evaluation Purchase Ownership

WEAK

STRONG

TIME

Customer Experience matters!

Poor service experiences are a risk for your dealership!

Service

Why customer experience matters!

The Car Trade is currently confronted by changing consumer behaviour as well as increasing Inter-/Intra-Brand competition. Consequently, car dealers are under pressure to constantly enhance their customer service levels to differentiate themselves from competitor dealers.

To monitor service quality on a 24/7 basis, an automobile dealer requires an automated customer feedback system.

Ipsos

93%

89%

75

80

85

90

95

100

Will buy next vehicle at same dealer

Dealer loyalty

2007 2011

28

29

Multi Touch Point Feedback

29

ViewsCast – The Voice of the Customer

Full service Voice of the Customer solution

Automated customer feedback collected

online, via IVR (Interactive Voice Response),

SMS (text) or mobile devices.

Enterprise class reporting and dashboard

designed for various functions throughout the organization, from Operations to Senior Executives

Real time online report and customer comments

Imports of customer data from other sources as background variables is a standard functionality.

Actionable analytics to promote best practice across the business and improve the bottom line

Cloud based solution requires no investment in hardware or software

ViewsCast Key Business Benefits

Improve Customer Loyalty

Improve Customer Engagement

Minimize Customer Loss

Increase Repurchase Intention

Rectify Strategic Goals

Improve Operational Efficiency

Focused and Smart Budget Spending

Service Level Target Optimisation

Improve Employee Compliance

Enhance Coaching Effort

ViewsCast directly impacts your Bottom Line, by improving both customer loyalty and operational efficiency

Feedback from multiple touch points

What to survey?

How to invite?

How to survey?

Per tracker an online reporting tool and e-mail reports to all stakeholders

Showroom

SMS, IVR, E-mail

IVR SMS

(Mobile) Online

Service

SMS, E-mail, Invite Card

IVR SMS

Mobile online

Roadside Assistance

SMS, E-mail, Invite Card

IVR SMS

(Mobile) online

E-channels

E-mail, Online slide-up

(Mobile) online

Contact Centre

IVR, SMS

IVR SMS

Website

Online slide-up, E-mail

(Mobile) Online

Monthly evaluation

Quarterly: • Dashboard • Analysis • Workshop

Monthly evaluation of study performance, interpretation of results and recommendations from Ipsos.

Quarterly management dashboard and on site workshop to discuss progress (scores, verbatims, benchmark, analysis) and set targets to achieve best in class performance

Feedback from multiple touch points

ViewsCast is an automatic Sales und Service customer feedback-system

Throughout the Sales and Service Process, there are many customer contact points. At all of these „Customer Touchpoints“ there exists a danger that dealer staff do not provide the customer with optimal quality service.

As part of the ViewsCast automatic customer feedback system, negative feedback is collected and provides dealer management with the information required to guide improvments at the dealership and through to action resolution

ViewsCast – The automated customer feedback system on the service side

Service or Repair

Notification of feedback opportunity directly after

the vehicle handover (E.g. on Rearview mirror)

We have commited ourselves to continually improve our customer service. As part of this undertaking, we would be delighted if you phoned the following free-of-charge Feedback Hotline and answered 3 questions about our service levels . Free-of-charge Hotline 0800 – 99 600 460 Thank you!

Wir haben uns zur Aufgabe gesetzt unseren Kunden-service kontinuierlich zu verbessern.

Wir würden uns daher sehr freuen, wenn Sie unsere kostenlose Feedback Hotline anrufen und uns drei Fragen zu Ihrer Betreuung beantworten. Kostenlose Hotline 0800 – 99 600 460 Besten Dank!

More than just a dealer

Beside telephone feedback also online (www.audifeedbacknow.com) and SMS feedback would be possible.

http://www.audifeedbacknow.com/

Sales (Reception / Advice)

Notification of feedback possibility prominently

placed in Showroom / at the salesmens desk /

at the front desk or on brochures.

ViewsCast – The automated customer feedback system on the sales side

Beside telephone feedback also online (www.audifeedbacknow.com) and SMS feedback would be possible.

http://www.audifeedbacknow.com/

Taking back control of online research!

Customers should be able to complete our questionnaires on the device that they choose.

ViewsCast automatically detect the device of the customer and adapts.

The respondent will not need to do anything to have the best user experience possible.

We will not be able to control the way our customers access online content, such as customer feedback surveys

Actionable reporting - ViewsSummary

Real-time graphs, tables and raw data

Digitally recorded IVR verbatim comments

Export charts into PowerPoint, Excel, Word or Outlook

Automated recurring push e-mail reporting

Empowering your employees

39

ViewsSummary; Automated email reporting

Create and save key graphs (queries) that are automatically sent to a specific e-mail address user on an hourly, daily, or monthly basis

Scheduled e-mail example. Tables can be pushed as well.

Tag Clouds

40

Use tag clouds to identify key topics within open ends then drilldown and examine those verbatim by clicking the target word

Closed feedback loops

In any modern day business it is not simply enough to identify that a customer is unhappy or that a problem has occurred

ViewsCast has developed the ability to allow the organisation to close the loop on identified problem areas

Any red flags that have occurred as a result of dissatisfied customer feedback can now be fed back into the organisation so that customer service reps can be assigned and take appropriate actions

This is all done through the ViewsCast reporting portal so that our clients can quickly see where and how remedial action has been taken

As well as seeing if that action has been successful

Case Study (1)

Challenge

Our client wanted to understand the quality of service customers received in the sales and after-sales environment and take action by providing immediate solutions for dissatisfied customers

ViewsCast Approach

OEM provided contacts of customers who had been through a brand touchpoint experience. Through a combination of SMS and Online, ViewsCast contacted customers in a relevant and simple manner

Outcome

ViewsCast was able to conduct surveys straight after the customer experience and feed results real-time back into the business at a dealer level allowing the dealer to take remedial action with unhappy customers. This is a continuous study done on a daily basis

Case Study (2)

Challenge

Our client hosts an annual motorshow with industry and retail customers participating. This event takes place over a number of days and our client wanted to get feedback on specific elements of the show and be able to modify them in a live event environment to the benefit of attendees

ViewsCast Approach

Tablets were distributed around the event location and attendees were able to participate in a short online study asking them about their experience with different elements of the event. This was then reported ‘live’ to our client who could take immediate action

Outcome

ViewsCast was able to conduct surveys straight after the customer experience and feed results real-time to event organisers. They then changed elements of the event to make the attendee experience more rewarding

45

ENGAGING TODAY’S CONSUMERS THROUGH NEW APPROACHES GIVES US GREAT OPPORTUNITY

Through relevant, interesting and in

the moment research we can achieve

deeper insight and real time feedback

By layering multiple sources

we open a new era for research

46

For any further information or questions please feel free to contact us

Ben Llewellyn [email protected] +60 (129) 737 547

© 2012 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not be disclosed or reproduced without the prior written consent of Ipsos.

Richard Korn [email protected] 852-6650 3062