The automotive industry is in the midst of the second great inflection point, shifting from car ownership to mobility solutions. They have to optimise the current business and ramp up for Mobility in parallel - with the same resources on board. Auto makers indeed face change from multiple angles, including:
As a result, auto makers are facing a classic “innovator's dilemma”, with its legacy business focusing on vehicle sales, while the market is looking at mobility solutions. This is clearly reflected by Uber's IPO ($70 Bn market cap, at time of writing), while traditional OEMs (e.g. Renault / FCA) are seeking scale to remain afloat.
At our Salesforce World Tour in London, we had the privilege of seeing a variety of perspectives of the impact of these changes.
Addison Lee is Europe’s largest premium car service, operating in more than 350 cities and transporting 10 million passengers every year. The company's 5 year strategy focuses on growth, whilst putting the passenger at the heart. “Our service is key to getting an emotional connection with the brand”, Matt Baker, Head of CRM at Addison Lee, explained.
Leveraging Service Cloud, Addison Lee improves services for the passengers (e.g. simple escalations of lost items) as well as for the drivers (e.g. contract changes). In the next months, the company will explore how messaging platforms such as Facebook Messenger and WhatsApp can be leveraged, how bots can automate the volume of incoming requests and how voice AI/NLP can create even more seamless experiences.
Clearly, these initiatives are key for the future of mobility. “As the industry evolves to driverless vehicles, putting the passengers in control through voice AI and giving them the right control through their preferred channels is absolutely key.”
Jaguar Land Rover is the UK's largest automotive manufacturer, having grown from ~150K units in 2009 to ~600K in 2018 and delivering award winning vehicles such as the I-PACE. Equally as impressive as the vehicles, is JLR's approach to the future of mobility, as Matthew Simpkins, GM Overseas Customer Experience, explained.
On the one hand, JLR is enhancing its retail activities by exploring new channels to reach the customers. For instance, it has launched an online sales advisor in Japan, Hong Kong and Singapore to streamline the online/offline experience.
On the other hand, JLR set up its InMotion subsidiary to provide new mobility solutions whilst still connected to its R&D and engineering functions. These include Carpe Drive (all-inclusive, unlimited driving for 12 months), THE OUT (On-demand premium car rental exclusively for Londoners), Earn as you drive (sharing non-identifiable vehicle telemetry data to improve road services and earn drivers credits for smart services such as tolls, parking and charging) and its self-driving partnership with Waymo.
“All OEM's are exploring a range of mobility services, recognising that the next generation will demand the same level of convenience and personalisation as Netflix and Amazon deliver today”, Matthew concluded.
The role of the retailer and distributor will undeniably change, given shifting customer behaviors and new business models resulting from ACES.
Inchcape, a global retailer and distributor group active in 30+ markets representing 40 brands, is clearly at the forefront of this change. Paul Leon, IT Director for Business Development and Customer Experience, explained how the company is currently personalising marketing and service, building a 360-degree customer view that is closely integrated with its legacy systems, leveraging Service Cloud, Marketing Cloud and MuleSoft.
With regards to the future of mobility, Paul stated clearly that “the implementation will be influenced by a number of market factors such as size, emerging or established, and rural or urban which may have their own complexities”. In Singapore, for instance, Inchcape has a strategic partnership with Grab and Toyota to optimize vehicle utilisation. In Australia, new network configurations such as pop-up experiences and small service workshops in shopping centres, for example in Subaru Australia. Finally, in South America, the mobility approach focuses more on commercial vehicle telematics.
Collaboration in the value chain is clear: “We continue to support our valued Brand OEM partners, and look to Salesforce and other technology partners to be able to collaborate with us in the execution of our vision.”, Paul concluded.
Connected customer management is the key to successfully implement mobility services and customer centricity has to be the starting point. In order to add value and deliver a seamless and convenient journey for a customer, new capabilities along the value chain have to be developed. A unified platform requires 4 fundamental elements:
The future of mobility is a superbly interesting and deep topic. If you are keen to hear more, feel free to reach out to Jessica Geutner (email@example.com) or me (firstname.lastname@example.org) directly.