Automotive retail is a massive industry, with a global market value of approximately USD $2.95 trillion dollars. Technology continues to change this growing sector, and the industry as a whole is moving more toward e-commerce, another massively burgeoning area. With this move comes more competition, and the industry's understanding of customer loyalty must evolve.
As consumer behaviors shift and technology propels industries forward, automotive product owners find themselves at a crucial crossroads. How do we leverage these changes to ensure brand loyalty and increase consumer engagement?
Changes to the Customer Loyalty Sector
The concept of customer loyalty is evolving. In the past, loyalty often hinged on product quality or brand heritage. Today, while those elements remain crucial, the focus is increasingly on the entire customer experience, from initial inquiry to post-purchase interactions. Automotive product owners must, therefore, view loyalty through a broader lens.
The integration of digital touchpoints has been a game-changer. No longer restricted to traditional showrooms, customers now engage with automotive brands online—be it via virtual tours, online chats, or AI-driven personalization. This digital transformation calls for a nuanced understanding of loyalty.
Insights from the Frontline: The Automotive Loyalty Program Product Owner's Perspective
From the vantage point of a product owner, several strategies are emerging:
-
Personalized Experiences: With the influx of data, there's an unparalleled opportunity to understand individual consumer preferences. Tailored recommendations, personalized outreach, special offers and promotions, and even customized vehicle features can elevate the consumer's connection with the brand.
-
Leveraging Technology: Augmented reality (AR) can transform the car viewing experience, allowing potential buyers to 'see' a car in their driveway without stepping outside. Virtual reality (VR), on the other hand, can offer immersive test drives from the comfort of home.
-
Enhanced After-Sale Services: Post-purchase engagement is key. This could be in the form of app notifications for service reminders, loyalty programs for servicing and accessories, or even simple gestures like 'anniversary' discounts.
-
Create a Brand Mission: Tell customers what the brand has to offer in terms of vision. Show them what problem the brand is solving and how it can make a difference in the customer's life.
-
Showcase Customer Success Stories: Let customers create content for you by telling their success stories and how the brand helped them achieve a goal or overcome a problem. User-generated content is the chance to share authentic stories that build an emotional connection, loyalty, and trust.
-
Omni-Channel Presence: Go where customers are—Target Apps, social media, emails, newsletters, etc. Make it convenient for them to interact with the brand from anywhere.
Strategies to Boost Engagement in the New Age
-
Reward Loyalty Actively: A mere 'thank you' is passé. Brands need to reward loyalty tangibly. Loyalty programs in the automotive sector, akin to those in the retail world, can incentivize repeat purchases and brand advocacy. Service discounts, extended warranties, or exclusive previews of new models can keep customers engaged and invested in the brand.
-
Engage Across Platforms: The modern consumer is everywhere—from social media to brand apps. Engaging them requires a multi-channel approach. Interactive content, polls, or even car-themed games can enhance brand recall and engagement.
-
Feedback Is Gold: Listening to consumers and acting on feedback can turn even a critic into a loyal advocate. Brands should actively solicit feedback and showcase its impact. For instance, if an improvement was based on popular consumer demand, highlight it! Feedback can be collected from active customers via surveys, forms, and feedback on the website. This makes customers feel valued and empowered.
-
Offer Value Beyond the Product: Workshops on car maintenance, safe driving webinars, or even community events can offer consumers value beyond their purchase. It shows consumers that brands care about their overall experience and well-being.
-
Providing Early Access to Esteemed Members: Create a VIP experience with special promotions on certain products that are available to higher-tier customers to stir up excitement.
-
Tier Benefits: Tier-based loyalty programs keep customers engaged and enable them to unlock tier-based benefits. Accumulating points for activities or completing tasks that require customers to engage with the brand can move them up in tiers.
-
Improved Customer Service and Support: Customer support teams are the voice of the brand and the first point of contact. Well-trained support staff and modern technology like chat and call-back options make customers' lives easier.
Navigating Challenges
While the roadmap might seem clear, challenges are a-plenty:
-
Data Overload: With multiple touchpoints, there's a deluge of data. Deriving actionable insights from this data maze is challenging.
-
Changing Consumer Expectations: With every industry upping its game, consumer expectations are skyrocketing. Meeting and consistently exceeding these expectations is easier said than done.
-
Technological Advancements: The pace of tech evolution is frenetic. Investing in a technology today might render it obsolete tomorrow.
To navigate these challenges, an agile mindset is crucial. Regular training, staying updated with global trends, and an unwavering focus on the consumer's voice are indispensable.
Real-World Examples
Two pioneering loyalty programs in the automotive industry that leverage key strategies to differentiate themselves from others:
Ford Motor Company: FordPass Rewards
Ford Motor Company has been a pioneering force in the automotive industry from the outset. With its ingenious approach, Ford launched a cutting-edge loyalty program aimed at rewarding loyal drivers in various ways.
-
The FordPass app offers a range of useful features, including remote vehicle start, 24/7 roadside assistance, and service scheduling.
-
FordPass Rewards allows customers to earn points in many ways, such as buying or leasing a new Ford, on vehicle service, and for purchases with their FordPass Visa card.
-
Points can be redeemed for vehicle service, the purchase of accessories, a Ford vehicle down payment, and other rewards and experiences.
-
The program has three membership Tiers—Bronze, Silver, and Blue. Higher Tiers unlock exclusive benefits and enhanced earning opportunities.
Enterprise: Enterprise Plus
Established in 1957, Enterprise is a globally available car rental service company. The company presents a customer-focused loyalty program that employs innovative earn and redeem features, coupled with a well-structured tiered system that bestows additional benefits upon its customers.
-
By renting cars, customers can accumulate points for every dollar spent, which can later be redeemed for discounted or complimentary car rentals.
-
As long as customers remain active members and have at least one qualifying rental every three years, their points will never expire.
-
The program comprises four tiers, each with its own set of requirements, such as a specific number of rentals or rental duration.
-
Customers in higher tiers enjoy better point conversion rates and complimentary car upgrades as part of the program's tiered benefits.
Concluding Thoughts
The automotive industry is on the cusp of a significant transformation. Electric vehicles, AI-driven enhancements, and self-driving cars are the imminent future, and it's a very exciting time technologically. In this transformative phase, consumer engagement and loyalty will be the pillars on which brands will thrive or falter.
For automotive product owners, the task is twofold: understand the changing trends and pivot strategies accordingly. As the industry races ahead, fueled by technological advancements, the age-old principle remains—the customer is king. Engaging them, valuing them, and earning their loyalty will be the keys to success.
The automotive world is not just about machines and horsepower anymore; it's about the people who drive them and the experiences that surround them. And in this journey, every touchpoint, every interaction, and every gesture counts.
About Vijeta Aluru
Vijeta Aluru has over a decade of deep-rooted experience in multiple industries and seven years of experience in the automotive loyalty domain. She specializes in the realm of customer experience and loyalty. Currently serving as the Product Owner at a major motor company, she has been instrumental in the conceptualization and execution of the company's multi-million-dollar rewards program. Aluru is a graduate of Information Technology from Osmania University and is skilled in blending technological solutions with consumer needs, leading to transformative user experiences. She is recognized for her contributions to launching multiple rewards initiatives and remains committed to leveraging design thinking and data-driven insights to curate unparalleled automotive customer journeys.
Learn more: https://www.linkedin.com/in/vijeta-a-67002516a/
* This is a contributed article and this content does not necessarily represent the views of sciencetimes.com
