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PART 2

Companies believe customer data builds a better customer experience

 
 
 
 

Companies are having trouble using customer data

Ninety-five percent of automotive companies buy customer data from third-party sources to support marketing initiatives, but changing internet privacy regulations mean companies must gather information directly from customers themselves. In the future, customers must explicitly agree to share first-party data like an email address and mobile phone number, along with zero-party data like product preferences and purchase intentions.
 
93% circle statistic.
93% of companies agreed that first-party data will substantially improve the customer experience.

And with the customer data they do have, companies across the industry are having trouble putting it to good use. In fact, only 46% of companies report having comprehensive data. Why is there a gap for the rest? In many cases, it’s because their customers’ profile data, transaction history, and customer service cases are siloed in different systems. This limits their ability to analyse data from an enterprise perspective. Making matters more complicated is that 58% of companies report that not all of their customer data is accurate and updated in real time.

These issues also prevent companies from delivering timely and relevant communications. Only 26% of captive finance companies and 22% of OEMs and retailers can personalise communications across channels like email and text — something that 73% of customers already expect. This kind of messaging drives incremental sales and margin, according to 87% of executives surveyed. Yet according to our research, 78% of OEMs and retailers report they cannot customise communications based on specific accounts or even customer complaints.

Connected vehicle data lights the road ahead

Connected vehicles that link to devices or services over the internet are an important new source of first-party data. Today, connected vehicle data helps insurers deliver lower rates to safer drivers and even warns drivers about potholes. But future possibilities are even more tantalising. Using information like location and speed, for example, vehicles could communicate with one another and prevent accidents or calculate emissions and incentivise drivers to reduce their carbon footprint. Unsurprisingly, connected vehicle data emerged as the top choice among companies surveyed for the type of first-party data most likely to improve the customer experience.
 
50% circle statistic.
50% of companies surveyed reported they are currently investing heavily in activating first-party data from connected vehicles to improve the customer experience.

“With the advent of connected vehicles, I see several opportunities to remain competitive and to build and enhance existing customer relationships while creating new ones.”

Anonymous respondent, Vice President of Sales

Respondent ranking of the types of first-party data that would help improve customer service

In which areas of connected vehicle customer experience is your company investing?

 
 
 
 

Next: Part 3: Research and development investments are pressuring margins like never before.

 

Find out:

  • Why electric vehicle development is the biggest threat to profitability
  • How subscriptions and partnerships help maintain profits
  • Where companies are investing next
GO TO PART 3
 
 

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