McKinsey&Company
Time to accelerate
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No supply, much demand. Auto sales were historically low in 2021. Not because consumers didn’t want to buy cars; demand remained high. But there just weren’t enough cars available for sale, thanks to the global microchip shortage that continues even today, forcing carmakers to limit their outputs. Some sales staff have resorted to showing customers images of their potential purchases on computer screens, since inventory has plummeted. [Bloomberg] |
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Forget the showroom. Step into the “brand experience center” instead, where you may find one or all of the following: a fancy restaurant, a library, a café, a teahouse. Oh yeah, and cars. The newest iteration of a car sales floor features a low-pressure, soft-sell approach, designed to appeal to consumers craving personalized and immersive experiences. [NYT] |
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A new battleground. In the not-too-distant past, car manufacturers relied on their engineering prowess—outstanding reliability and exceptional driving performance—as a competitive edge. But a new battleground has emerged: customer experience. To make customer experience the driving force for every department, automotive CEOs should appoint a chief experience officer (CXO), a position that already exists at many companies known for their strong customer focus. |
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‘A new lifestyle.’ Car shoppers aren’t just choosing a vehicle; they’re “buying a ticket to a new lifestyle,” the CEO of one electric-car maker has said. Consumers still want cars that drive well and look good, but these are now bare minimums. By 2030, flexible ownership models will allow people to lease vehicles and buy services through short-term subscriptions. Customers will also expect a smooth, superfast integration of all the digital services they use, including connectivity, mobility, entertainment, and hospitality. Read more about the trends that will shape the next decade of car buying. |
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| — Edited by Justine Jablonska |
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