Actionable Insights From APT's Retail Practice
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What Auto Players Can Learn From Other Industries: Evolving Consumer Preferences

August 31st, 2017 | Posted by APT in Auto - (Comments Off on What Auto Players Can Learn From Other Industries: Evolving Consumer Preferences)

Imagine being able to complete the entire car-buying cycle – browsing, choosing a car, financing, test driving, and ultimately, buying – without ever setting foot in a dealership. With new, customer-focused home delivery programs, that scenario is quickly becoming a reality.

As the car-buying experience becomes increasingly omnichannel, the role of the dealership is shifting. Many customers still purchase vehicles at dealerships; however, they expect immediacy and customization, and on top of that, they are becoming more open to alternative ways of buying vehicles. In fact, research suggests that about 4% of all new cars could be sold online by 2020. As a result, dealerships are becoming increasingly focused on education and demonstration, offering car buyers the experiential component of the auto purchase cycle that other channels are unlikely to provide.

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What Auto Players Can Learn from Other Industries: Nurturing Customer Relationships

May 31st, 2017 | Posted by APT in Auto - (Comments Off on What Auto Players Can Learn from Other Industries: Nurturing Customer Relationships)

The average time between a consumer’s vehicle purchases continues to grow. Reports indicate that people expect to own the same car for six, seven, or even eight years – a notable shift from the typical past purchase cycle of every three to four years.

This shift is just one reason why automakers must think critically about customer retention strategies and how their new revenue streams can grow customer relationships. As leading OEMs increasingly invest in mobility programs like car-sharing services, these initiatives serve the dual purpose of providing an additional revenue stream and an added touchpoint with consumers between vehicle purchases. These benefits align with an evolving goal in the auto industry: Nurturing the customer relationship throughout the sales cycle, including between purchases.

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Disruption Across the Value Chain: What Auto Players Can Learn from Other Industries

March 27th, 2017 | Posted by Haley Jackson in Auto - (Comments Off on Disruption Across the Value Chain: What Auto Players Can Learn from Other Industries)

With Google manufacturing cars, Tesla selling directly to the consumer, and Amazon selling non-genuine parts, the automotive industry landscape is quickly shifting. In order to succeed as the industry evolves, incumbent auto players must continually evaluate key business strategies, from pricing to marketing to new offerings.

Automakers are not the first to come up against industry disruptors. Similar competition has developed in other sectors, including travel, retail, and consumer goods manufacturing, and organizations are already using experimentation and innovation to respond. By learning from their strategies, auto OEMs can emulate their approach to refine key business programs and develop a competitive edge to profitably navigate disruption themselves.

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Car-Sharing Conundrums: Four Key Considerations for Automakers

March 2nd, 2017 | Posted by APT in Auto - (Comments Off on Car-Sharing Conundrums: Four Key Considerations for Automakers)

U.S. car sales are declining, and with them, so is private car ownership. In response, many OEMs like Ford and GM are adapting by offering their own mobility services, like car- and ride-sharing programs.

As car manufacturers continue to roll out their own mobility operations, there are many potential implications to consider. The best way to determine which programs will truly drive profits is by conducting a test vs. control analysis on a smaller scale before widespread deployment, empowering OEMs to strategically implement new programs for maximum ROI.

Here are four key considerations for car manufacturers thinking about developing their mobility initiatives, with insights on how testing can help guide their decision-making for the best possible outcomes.

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