On The Automotive Customer Journey

Most customers would agree that car shopping can be a nuisance, even with a luxury car brand. The obligatory visit to the dealership (they all look identical and nondescript), stereotypical test drive, offer of a plastic bottle of water and cup of coffee while you sit around waiting for your advisor to check inventory and run permutations of pricing/build/availability, simply misses the mark. Especially when considering the average luxury car price tag in recent times, much more effort should be expended on inspired product reveals, elevated experiences, and differentiation. And, yet, most car brands fail to deliver.

The automotive customer experience should be more engaging and memorable, whether the vehicle is a Bugatti or a BMW. Historically, the dealership model worked, and brands did not see a real need for change. In the US, this was also underpinned by strong franchise laws. However, with the entrance of pure-player EV brands, the paradigm is shifting, and quite seismically so.

Electric Vehicles (EV) Carmakers: The Disruptors

Since the pure-player EV start-ups introduced a new product with limited inventory, and most vehicles are sold “to build,” they needed to identify a new retail concept and find significant points of differentiation. They were starting from scratch and had nothing to lose. From a CX point of view, they rewrote the book on automotive retail.

Most EV brands have adapted their sales model to resemble that of a retail boutique model. Tesla first introduced the retail showroom concept, opening in high-end shopping destinations and malls in the early 2010s. Lucid and Rivian, two American EV car makers, followed suit, clustering near high-end restaurants and boutiques. For time-strapped customers who are used to shopping online, the EV sales model is much more appealing, with a myriad of customization options online. In addition, the fact that EVs require fewer mechanical replacement parts and servicing and that much of the repair and maintenance is software-driven facilitates the EV retail model further. All these characteristics can strengthen brand loyalty and improve the customer experience. For example:

Rivian has ambitious growth plans, and while it currently only has a few retail locations, these are truly novel in their approach, as they are conceived as community spaces bringing customers together. “Experience spaces” feature employee speaking events, interactive gardening experiences with local experts, communal halls for creative projects and activities, and an open-air play space for kids, along with Rivian’s vehicles. In “Seasonal Spaces,” a concept focused on exploring the outdoors, Rivian plans to run indoor and outdoor pop-ups that include vehicle and gear rentals, with some located further in nature on protected land.

Lucid is focused on the DTC (Direct-To-Consumer) automotive sales model, with currently about 20 locations across the US. Lucid studios are conceived as technology hubs for an integrated digital experience, with Virtual Reality taking center stage. Customers can explore the Lucid Air independently or with a group by combining the physical and virtual worlds with a vehicle interior model and immersive VR. The VR configurator, the materials customers can touch and feel, the studio’s design, and the physical locations help customers get a better sense of the product. Customers can customize their visit according to their preferences.

Since the automotive sales model is still largely dictated by the parameters of the wholesale model, it is difficult for brands to control or reshape the retail experience. However, taking a page from the DTC model of pure-player EV brands, quite a few traditional carmakers are beginning to transform and tentatively venture into the world of DTC. As the automotive retail experience is quickly evolving and customers expect more from their car brands, carmakers will need to find creative ways to uplevel the experiential component of their sales model. Technology is bound to play a significant role in this. At CXG, we have experience working with automotive brands to enhance their customer journey and can assist in these exciting transformations!

Read the full "The Automotive Customer Journey: Rewriting the Retail Playbook" from Silvia Coleman

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