NGG Automotive presentation at the E.N.G. Automotive Retail & Distribution summit in Berlin was about "Dealers and OEMs in the Omni Channel World – The shift from a traditional to an Omni-channel organization".
The presentation was presented by Rami Jaulus, NGG Automotive Owner & President, Customer & Omni Channel
Strategy Leader
Equity Lab: Inked with Intent by The Greenlining Institute
Dealers and OEMs in the Omni Channel World
1. Dealers and OEMs
in the
Omni Channel World
The shift from a traditional to an Omni-channel organization
2. Customers visits the showroom much less prior a purchase decision
5
1.4
2004 2015
Visits before buying
35%
85%
2004 2015
62%
56%
2004 2015
Online Information Test Drive
85% drop in new retail space opened annually
3. 80% use the Internet prior to purchasing a car
75% read vehicle surveys on designated websites.
Negative Posts widely circulated on social media sales
63% search for information on their smart phones while in
the showroom
4. Digital world = Immediate feedback (here and now).sales
Digital world = trust
6. The Digital is taking over the physical world.
Decision processes has shifted out of the showroom.
Connected car changes communication with customers
Consumers has developed Omni-channel habits.
7. All is known!?
What about the Dealers, OEM’s?
03 Digital Space
01 Physical space
02 Call Centers
The Organization
9. Value offer customized to digital
The Natives: Digital - top to bottom
Digital Strategic Thinking
Digital supporting structure, processes and functions
Digital distribution channels or integrated telephone support (minimal physical world)
11. Digital Development parallel to existing channels
Activities shifted from traditional to digital channels
Integrating the different channels
The Immigrants: Adopting Omni-channel strategy
18. Structural distance from the end customer
Heavy and Bureaucratic structure and processes
Digital doesn't seem as a must
Old School - “what has been will be again…”
Many or heavy legacy IT systems
19. “Even in a 100 years our customers will trust our sales
consultant and service advisors more”
“We are a dealers, we know our community and they
will come to us”
“We don’t sale to customers, that’s a dealer job”
“I must do all the work since the customer trust only
me”
Old School
20. The Natives
1 2
Old School
3
The Immigrants
Native skills
Immigrants
skills
Old School
skills
In every organization that wasn’t born
digital you'll find the 3 types of activities
21. Old School activities “hiding” digital world activities
Sales Consultant is doing admin’ work
Sales Consultant calls customers
Barriers on the way to become Omni-channel
Customer prefers to talk to technician himself Instead
of the call center
22. Call center sales agents providing opening hours
Staff member in workshop schedule appointments
A customer asks to speak with a Sales consultant to
schedule an appointment
Technician call customer to verify a complain/issue
Using valuable resources to perform simple, repetitive tasks
Barriers on the way to become Omni-channel
24. Inflexible IT systems
Multiple systems developed for years
No integration, no one unique database
Development of a report requires months of waiting
Barriers on the way to become Omni-channel
25. “Old school” managements are late to embrace change
If done, the change is “cosmetic” and does not
assimilated across the organization
Enterprise culture is not ready to embrace change
Barriers on the way to become Omni-channel
26. Smartwatch Smartphone Tablet
Laptop
Devices
Dealer
• Purchase process
• Car delivery
• Complaints
Workshop
• Repair
• Maintenance
• Car history
• Car diagnostic
Work place
• Leasing conditions
• Maintenance
Insurance
Company
• Emergency
• breakdown call
• Insurance Claims
Authorities
• Licenses
• Ownership transfer
Connected car
Customer’s view Road Services
• Purchase process
• Car delivery
• Complaints
27. OME/Dealer
Showroom
• Purchase process
• Car delivery
• Complaints
Workshop
• Repair
• Maintenance
• Car history
• Car diagnostic
WEB
• Marketing
• Customer service
• Self service
Text
communication
• 1 on 1 marketing
• Status updates
• Personal Greetings
Call center
• Sales
• Customer service
OEM’s View
Social
media
• marketing
• Complain
Mail & Fax
• Documents
• Licenses
• Contracts
a flow of information
about customer
Engagement shift
from one channel to
another
Connected car
• Customer service
• Emergency and breakdown
call
• Diagnostics of the car and
driver
OEM
28. OME/Dealer
Showroom
• Purchase process
• Car delivery
• Complaints
Workshop
• Repair
• Maintenance
• Car history
• Car diagnostic
Call center
• Sales
• Customer service
Dealer's View
Mail & Fax
• Documents
• Licenses
• Contracts
Dealer
29. Advanced Services
Every OEM develop it’s own communication
Self-service abilities
Digital platform for sales
30. What about the dealers?
Large showrooms Dependency on Sales people
Small basic call center
31. 01 Physical space
01 Call center
01 Digital space
OEM Dealer
What about the dealers?
35. What's next ?
Scenario A
OEMs continue developing their own specific channel
Conflict between OEMs and dealer groups grow
Dealers develop independent channels
Scenario B
OEMs continue developing their own specific channel
OEMs Open their channels to Multi brand use and invite dealers
Competition between OEM’s on dealers recruitment
Scenario c
OEMs continue developing their own specific channel
Only Mono brand dealers survive.
Conflict
Collaboration
Take Over
37. Dealers and OEMs
in the
Omni Channel World
The shift from a traditional to an Omni-channel organization