Customer lifecycle management (CLM), or the measurement of key customer related metrics over time aimed at tracking and improving performance, is important for any industry, and more so for the automobile industry where the relationship with the customer is long-term.
In most industries, the relationship with a customer culminates when they make a purchase, and post-purchase, marketers vie for upgrades and repeat sales. However, the nature of the automobile industry, where repairs and services take place throughout the lifecycle of a vehicle, means that the relationship with the customer actually deepens post-purchase.
CLM for the auto industry makes use of data provided by existing and new customers to improve processes. However, like all management intervention, the theory is only as good as its application. Here are some ways to apply CLM in the right way, so that automobile dealers can increase their productivity and ROI.
Big Data analytics is a big source of competitive advantage. However, even as firms go all out to collect customer data from all possible sources, many of them lose focus when it comes to analyzing the data and deriving actionable insights from it. Automobile dealers need to have specific goals that result in improving CLM metrics, such as how to delight customers, how to reduce waiting times, how to improve service standards, and how to improve process efficiency. They could also use such data to track customers who have not visited the dealership for some time, and send timely reminders, or even better, try to lure them with relevant offers!
Automobile dealers can put technology to good effect to improve their productivity and boost their ROI. A case in point is many dealerships suffering on the service side due to erratic appointments that lead to rush and long waiting at certain times. State of the art retention software that works in real time helps to improve scheduling to even the flow of service appointments throughout the day. This leads to multiple benefits such as improved productivity, higher customer satisfaction and greater profitability. However, software alone will not solve the issue. Only when customer-facing staff has easy and ready access to customer information, such as customer preferences and service history, can they make accurate recommendations and set the right expectation for each customer.
Technology and big data analytics notwithstanding, it requires a well-oiled, in-store staff and process to implement the resolutions and deliver outstanding results. A transformational strategy would require an understanding of all points at which the company interact with customers, and determining the right level of customer experience at each point, based on the relative worth of such engagement and customer expectations.
CLM in the automobile industry allows marketers and sales personnel to identify which programs aimed at pleasing the customer or improving process efficiency work and yield effective results, without resorting to costly and time-consuming trial and error methods.
The automotive industry faces significant macro level challenges such as demographic changes, shifts in global economic power that cause massive upheavals in demand, radical change in consumer expectations, and impact of new technologies that change how a car operates. Businesses would invariably have to take cognizance of such trends, by introducing changes that resonate with customer wants and expectations.
CLM helps automobile dealers and other stakeholders in the ecosystem understand the extent to which these trends have influenced customer buying habits and preferences. Such understanding helps them to draw effective strategies and plans that directly address their customer’s wants, thereby increasing their effectiveness and improving the ROI of the marketing investment.
Conneqt Business Solutions offers simplified CLM solutions that allow companies in the automobile sector to maximize value from existing customers retain them longer and make up-sells and cross-sells to them to the extent possible. Read case study on how we helped a $35B automotive giant to scale their operations. Our CLM solutions automotive companies facilitate monitoring the quality of customer-focused interactions, and strive to provide a consistent brand experience across all channels, aimed at building greater affinity between the customer and brand. Know more about our CLM solutions for automobile industry