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A.Joseph rexon, Dlrector, TIST recelvlng exchunge of MOU to plunt one lukh trees for the yeur 2011
yundai's 'AIways Around' campaign enters tird consecutive year
New DeIi, November 6, 2009: With the novel idea of 'AIways %ere, Because We Care' ,
Hyundai Motor ndia Ltd, the country's largest passenger car exporter and the second
largest car manufacturer, is back with its nationwide service initiative - 'AIways
Around' campaign in a mega avatar for the third consecutive year.
Starting from November 8th the 'Always Around' campaign will provide free check-ups for its
customers at convenient locations. Last year around 80,000 Hyundai vehicles across 6,000
locations attended the camp.
This year, the 'Always Around' campaign has grown much wider in terms of locations and
reach and will continue till December, 2009 covering 6,500 locations wherein Hyundai will be
reaching out to around 90,000 customers in an effort to make them smile by ensuring that
their car is in the best of condition. Around 4,000 vehicles across 270 locations nationwide
are expected to attend the camp on the launch day itself.
The mega 'Always Around' campaign will be conducted at various locations which customers
in their normal course of life frequent on an everyday basis like Joggers Park, Shopping
Malls, Apartments, Multiplexes, etc. The 'Always Around' campaign is truly innovative one as
it reaches out to the customers at a time and a place where it is most convenient for them
and at no extra cost. For example, while the customer might be busy shopping in a mall, his
car is serviced and cleaned which saves both his time and money as it is a free service, and
the advice that he gets from trained technicians helps him maintain his car even better.
Along with the camp various value added services and schemes are offered e.g customer
Referral Scheme, Hyundai Advantage, Health Check-Up Camps, customer education
towards improving the vehicle mileage/performance, information related to Hyundai
products, etc are also part of this campaign.
Commenting on the campaign, Arvind Saxena, Sr. V P, Marketing & Sales, HML said, "At
Hyundai it is our belief that owning a car is a special experience; and the experience should
be one of delight. With Always Around campaigns, we offer our customers the most
convenient after sales service. The positive feedback received from the campaign till now
has encouraged us to value add by adding more locations and offering more attractive
schemes and offers.
The 'Always Around' campaign will offer a comprehensive 17 point check-up and a thorough
examination of the vehicle and services such as tyre and vehicle polishing, coolant and oil
top-up. The Hyundai team will also collect suggestions and feedback on the performance of
the vehicle & after sales service. The customers will also have a chance to see and test
drive the latest Hyundai cars which would be there on display at the venue.
yundai continues its 'AIways Around' campaign
- Organises a third year mega campaign with South African Safari contest as a special offer
New DeIi, ApriI 23, 2009: With the novel idea of 'Always There, Because We Care', Hyundai Motor ndia Ltd, the
passenger car exporter and the second largest car manufacturer, is back again with its nationwide service initiative
campaign in a mega avatar for the third consecutive year.
Starting from April 26th the 'Always Around' campaign will provide free check-ups for its customers at convenient lo
around 80,000 Hyundai vehicles across 6,000 locations attended the camp.
This year, the 'Always Around' campaign has grown much wider in terms of locations and reach and will continue til
covering 6,500 locations wherein Hyundai will be reaching out to around 90,000 customers in an effort to make them
that their car is in the best of condition. Around 2,500 vehicles across 100 locations nationwide are expected to atte
launch day.
The mega 'Always Around' campaign will be conducted at various locations which customers in their normal course
an everyday basis like Joggers Park, Shopping Malls, Apartments, Multiplexes, etc. What makes the Always Aroun
innovative one is that it reaches the customer at a time and a place where it is most convenient for him at no extra c
as well e.g while the customer is busy shopping in a mall his car is serviced and cleaned and this saves both his tim
a free service and the advice that he gets from trained technicians which will help him maintain his car even better.
Along with the camp various value added services and schemes are offered e.g customer Referral Scheme, Hyund
Hyundai South African Safari contest, Health Check-Up Camps, customer education towards improving the vehicle
performance, information related to Hyundai products, etc are also part of this campaign.
Commenting on the campaign Arvind Saxena, Sr. VP (Sales & Marketing), HML, said, "We are committed to provid
with the highest quality product and the best after sales service. We value our relationship with our customers and t
not end after they buy our cars. With the launch of the Always Around campaign two years ago we strengthened ou
relationship with our valued customers and the positive feedback has served as an encouragement for us to not on
service but also value add by taking it to more locations and offering more schemes and services this year.
The 'Always Around' campaign will offer a comprehensive 17 point check-up and a thorough examination of the veh
such as tyre and vehicle polishing, coolant and oil top-up. The Hyundai team will also collect suggestions and feedb
performance of the vehicle & after sales service. The customers will also have a chance to see and test drives the l
which would be there on display at the venue.
This year Shell ndia has partnered with Hyundai as the recommended oil consumable vendor for 'Always Around' a
the year. There will be active participation from Shell ndia at various locations to support this event so that they can
feedback directly from the customers.
|nformat|on techno|ogy |s a cost|y enab|er of customer re|at|onsh|p management.
ut 6RH programs coup|ed w|th smart techno|ogy and strategy may soon mean
the end of the road for mass market|ng |n the auto |ndustry.
Vass rar|el|rg |s c|ear|y al a crossroads, as corpar|es reco|| lror lre |rell|c|erc|es
lrey perce|ve |r corverl|ora| red|a sperd|rg. Vagaz|re adverl|s|rg pages dec||red oy
11.Z percerl |asl year, lre sleepesl p|urge |r a quarler cerlury. Verr||| Lyrcr |s
pred|cl|rg a 1 percerl dec||re |r u.3. le|ev|s|or adverl|s|rg sperd|rg lr|s year, lo||oW|rg
a s|r||ar la|| |asl year.
Trese acl|ors are rol s|rp|y a rel|ecl|or ol a Wea| ecoror|c cyc|e. Trey're lre resu|l ol
a reW derard lor grealer accourlao|||ly ard |rcreased relurrs lror rar|el|rg sperd|rg.
Tr|s |s dr|v|rg corporale |rveslrerl |r cuslorer re|al|orsr|p raragererl (CRV)
syslers. Ara|ysls pred|cl lral g|ooa| sperd|rg or CRV W||| lola| oelWeer S20 o||||or ard
S15 o||||or |r 2002.
Embraceable CRM
8ul rar|el|rg execul|ves are oeg|rr|rg lo d|scover lral CRV sysler |rp|ererlal|or--|r
Wr|cr s|rp|e dalaoase corso||dal|or car rur lror S20 r||||or lo S30 r||||or--|s rol ar
easy l|x lo lre proo|er ol corrur|cal|rg lo, Woo|rg ard rela|r|rg cuslorers. Tre
proo|er slers lror a |ac| ol correcl|or oelWeer corpar|es ard cuslorers lral ro
|rlorral|or lecrro|ogy sysler a|ore car so|ve. Tre aulorol|ve |rduslry |s a c|ass|c
exarp|e ol lr|s d|scorrecl. 0r average, |rleracl|or oelWeer ar aulo corpary ard a
cuslorer occurs 1.2 l|res per year. Tral s|rp|y does rol prov|de erougr dala lo
arsWer sucr cruc|a| quesl|ors as, wr|cr peop|e srou|d gel Wral oller or Wr|cr producl
al Wral l|re?
Corpar|es reed ar approacr lo CRV lral rar|elers--ard
cuslorers--car erorace. Eroraceao|e CRV slarls W|lr a
s|rp|e prer|se: Tre rosl |rporlarl parl ol lre dalaoase
|sr'l lre oase; |l's lre dala. To ga|r lre |rlorral|or
recessary lo erorace lre cuslorer, re|al|orsr|p progrars
rusl oe oased or lWo pr|rc|p|es:
F|rsl, lrey carrol Wa|l url|| lre l|rsl purcrase |s
corsurraled lo oeg|r lo urderslard corsurer |rleresls, corcerrs, des|res ard rao|ls.
Tre |ey lo ur|oc||rg va|ue |s lo recogr|ze lral d|llererl cuslorers lo||oW d|llererl
purcrase palrs. Ellecl|ve CRV syslers rusl d|ve deep |rlo lre purcrase dec|s|or
oelore lre purcrase |s rade. Ca|| lr|s purchase-cycle intimacy.
3ecord, oecause d|llererl cuslorers lo||oW d|llererl oWrersr|p palrs, ellecl|ve CRV
syslers rusl ||r| deep|y ard oroad|y lo lre |rd|v|dua|'s oWrersr|p exper|erce--lre
corsurer's re|al|orsr|p W|lr lre car lrrougroul lre
oWrersr|p cyc|e.
Acl|rg or lrese lWo pr|rc|p|es requ|res corpar|es lo or|rg
olrerW|se separale lecrro|ogy progrars logelrer |r
corp|ererlary Ways. For exarp|e, lrlerrel-erao|ed
corrur|cal|or syslers ra|e |l |rcreas|rg|y poss|o|e lo
caplure va|uao|e |rs|grls aooul corsurers |r lre r|dd|e ol
lre purcrase process. lrleracl|ve ||os|s |r dea|ersr|ps--or |r a|lerral|ve sa|es verues,
sucr as ra||s--are prov|rg lo oe exce||erl loo|s lo oeg|r lo ergage corsurers |r
d|a|ogue. 0r||re acl|v|ly al rore or |r lre oll|ce represerls arolrer v|la| opporlur|ly lo
acr|eve purcrase-cyc|e |rl|racy. Tre oursl|rg ol lre e-correrce ouoo|e srou|d rol
ooscure lre lacl lral sore Z0 percerl ol corsurers |r lre ur|led 3lales use lre lrlerrel
al sore po|rl dur|rg lre aulorol|ve purcrase process.
Cross-platform marketing
NoW cors|der Wral rappers lo a corpary's ao|||ly lo acr|eve ard use purcrase-cyc|e
|rl|racy Wrer lrese la||ored corsurer-ergagererls rove lror lre lrlerrel |rlo rore
erlerla|rrerl cerlers. w|lr d|g|la| v|deo recorders (0vRs) |||e T|vo oe|rg ou||l |rlo sel-
lop ooxes, ass|sled sa|es processes W||| occur |r lre |ear-oac| corlorl ol lre lar||y-
roor sola. A|lrougr 0vR perelral|or loday |s |oW--aooul 280,000 T|vos rave oeer so|d
Embraceable CRM
starts with a simple
premise: The most
important part of the
database isn't the base;
it's the data.
nteractive kiosks in
dealerships--or in
alternative sales
venues, such as malls--
are proving to be
excellent tools to begin
to engage consumers in
dialogue.
|r lre pasl lWo years--Forresler Researcr pred|cls rore lrar ra|l ol u.3. rousero|ds W|||
rave |rleracl|ve Tv capao|||ly oy 2005.
Ever W|lr pr|vacy prolecl|ors |r p|ace, lre dala l|oW|rg oac| lo rarulaclurers ard
dea|ers W||| erao|e lrer lo la||or lo||oW-up carpa|grs lral ellecl|ve|y or|dge lre gap
oelWeer rar|el|rg ard sa|es. Tre ao|||ly lo deve|op |rcerl|ve pac|ages la||ored lo lre
Way d|llererl sels ol cuslorers go lrrougr lre purcrase cyc|e ard lo gel cuslor|zed
pac|ages |r lrorl ol recepl|ve aud|erces |s vasl|y prelerao|e lo s|app|rg a S2,000
|rcerl|ve or a ver|c|e ard oller|rg lral sare pac|age lo everyoody.
Advarced aulorol|ve rar|elers are a|ready exper|rerl|rg
W|lr cross-p|allorr rar|el|rg, us|rg 0vRs as lre cerlra|
corlro| dev|ce. Toyola re|ped |aurcr lre Lexus E3-300
ear||er lr|s year W|lr a T|vo cross-prorol|or sWeepsla|es
lral up|oaded correrc|a|s |rlo lre oox; |rv|led sarp||rg ol
olrer correrc|a|s prograrred |rlo N8C relWor| sroWs;
ard as|ed corleslarls lo reg|sler lor lre corlesl or lre
weo. lrag|re lre opporlur|l|es Wrer lrese p|allorrs--
le|ev|s|or, 0vRs ard lre weo; erlerla|rrerl, orard
adverl|s|rg ard |rleracl|ve d|recl rar|el|rg--corverge or a
s|rg|e screer.
0vRs are rol lre or|y reW corrur|cal|ors lecrro|ogy aulorol|ve execul|ves rusl
exp|ore. 0lrer lecrro|og|es are equa||y |rporlarl, |rc|ud|rg peer-lo-peer (P2P) ard
|rslarl ressag|rg (lV). P2P syslers sucr as Napsler, L|rew|re, ard Vorpreus are rol
pass|rg lads, ard Arer|ca 0r||re's |rslarl ressag|rg serv|ce |s rol go|rg aWay soor.
K|ds sperd rours us|rg lrese serv|ces everyday, ||ds Wro are lororroW's aulorol|ve
cuslorers.
Rise of telematics
Posl-purcrase, arolrer |rleracl|ve lecrro|ogy--ver|c|e-oased le|eral|cs--car re|p
aulorol|ve rar|elers corprererd lre |rlr|cac|es ol lre oWrersr|p exper|erce.
Te|eral|cs are lre W|re|ess dev|ces lral sear|ess|y caplure ard corrur|cale ver|c|e
dala, erao||rg lre aulorol|ve rar|eler lo urderslard lre dr|ver's usage requ|rererls,
|rl|uerce doWrslrear serv|ces, ard lac|||lale rerar|el|rg. Te|eral|cs, Wr|cr |s groW|rg
|r use, a||oW ver|c|e re|al|orsr|p raragererl lo oullress cuslorer re|al|orsr|p
raragererl.
A|ready, lre 0r3lar sysler ard ?o|ac| oox? progrars |rrovaled oy corpar|es |||e
0erera| Volors ard Peugeol are relurr|rg ver|c|e ard cuslorer dala lo corpar|es,
Telematics applications
like General Motors'
OnStar system return
vehicle and customer
data to companies,
which enable them to
shape concierge and
maintenance services
for individual
customers.
Wr|cr erao|e lrer, |r lurr, lo srape corc|erge serv|ces ard ra|rlerarce progrars lor
|rd|v|dua| cuslorers. A 8ooz A||er lar||lor ara|ys|s projecls le|eral|cs reverue ol S20
o||||or lo S10 o||||or W|lr|r lre rexl 10 years.
Adapl|rg lo le|eral|cs W||| rol oe easy lor aulora|ers. Trere |s lre orgo|rg d|ll|cu|ly ol
sr|ll|rg lror rar|el|rg lral |s ou||l or lre corcepl ol rass adverl|s|rg lo rar|el|rg lral
|s prer|sed or |rl|rale cuslorer urderslard|rg. Aulo corpar|es a|so reed lo
overcore lre|r r|slor|ca| ?s|oW lo||oWer? rao|ls re|al|ve lo lecrro|ogy. Ard lre slraleg|c
p|ays arourd le|eral|cs car oe corp|ex, requ|r|rg oolr delers|ve poslures, lo prolecl
ex|sl|rg ous|ress lerr|lory, ard ollers|ve rareuver|rg, lo creale va|ue oeyord lre
ex|sl|rg ous|ress.
Tre grealesl cra||erge lor lre rarulaclurers ard lre dea|ers |s lo parlrer arourd lr|s
|rl|rale cuslorer |rlorral|or, so lral lre dala car l|oW sear|ess|y up ard doWr lre
cra|r. 0r|y lrrougr sucr parlrersr|ps W||| lre average sa|espersor oe ao|e lo crall p|ars
re|evarl lo corsurers Wa|||rg |rlo lre dea|ersr|p, oller|rg eacr polerl|a| ouyer
exc|lererl sraped oy lre r|grl va|ue propos|l|or.
Tral, |rdeed, |s lre esserce ol eroraceao|e CRV--lor corpar|es lo oller va|ue lo
|rd|v|dua| cuslorers, ard lo rece|ve |everagao|e va|ue |r relurr.
The car-buying experience is the ultimate American love/hate relationship:
People love to drive away with a new set of wheels, but the process that puts
the keys in their hands historically has filled most consumers with fear and
loathing. Now, one of America's largest and most tradition-steeped industries is
finally catching up with the changing face of customer interaction--largely for its
own survival.
"Profit margins on new vehicles are paper-thin," says Thilo Koslowski, senior
analyst with GartnerGroup's automotive practice. "Manufacturers want to make
sure they are capturing the consumer after the sale of the car and keep the
consumer once they look for another car."
The potential payoffs for the industry are enormous. In general, good CRM
drives out bad sales and marketing efforts and, according to David Nathanson,
director of retail automotive operations for PricewaterhouseCoopers, those
expenditures can reach 30 percent of the cost of a new car.
In an increasingly multichannel world, automakers are discovering with the rest
of the enterprise community that their target audience is uninterested in the
details. "Customers don't seem to remember if they phoned you or wrote you or
visited the dealer, but they do remember the product," says Charles Kirk,
general manager of GM's enterprise customer management (ECM) program.
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the full picture when you have D&B 360. Data on demand, directIy in your CRM system.
Slow Off the Line
Despite the industry's size, there are few CRM software suites tailored
specifically to meet its needs. The vendors that provide back-end dealer
management systems, such as Reynolds & Reynolds and ADP, are only slowing
adding CRM modules, and although companies like Siebel and E.piphany have
some automotive clientele, there is no definitive package.
Until recently, the automotive industry's distribution systems distanced the auto
manufacturers from the end customer. "Traditionally, the real customer for Ford,
GM and Chrysler was the dealer," says Kevin Prouty, automotive research
director for AMR Research. "The Big Three ran marketing campaigns, but their
job was to keep the dealer happy. Once the car was off-loaded to the dealer, the
original equipment manufacturers (OEMs) were paid, so other than making sure
the dealer could continue to move inventory, they really didn't have a vested
interest."
Manufacturers have lived to regret that arrangement. "By absolving themselves
of all responsibility for customer contact, they're losing a big piece of control of
the channel," says Prouty.
There is little doubt that the charge for a truly vertical CRM solution needs to
start at the top. Dealerships are traditionally extremely conservative in their use
of technology, and even the largest and most modern dealer groups boast a tiny
fraction of OEM resources and reach a small minority of the customer base.
Another problem lies in the relatively small role customer preferences currently
play in the manufacture of automobiles. "Cars today are built primarily on a
'push' manufacturing model," explains Dan Garretson, senior analyst for
Forrester Research. That model makes the transition to a fully customer-centric,
even build-to-order service philosophy difficult. According to Garretson, car
companies are simply unaccustomed to taking ultimate responsibility for end-
consumer preferences. "Factories are incented to keep the factories running,
producing output. The manufacturers produce the cars and ship them off--it's
the dealer's responsibility to sell them."
The trouble is, the sale of that car does not necessarily reflect a satisfied
consumer, or even one who drove off the lot with the car he originally wanted. If
a buyer heads to a local Pontiac dealer hoping to buy a black Firebird with
heated seats and a sun roof, but is forced to compromise on a green Firebird
with plain seats, a standard roof and a $1,000 discount, nobody wins, according
to Steve Waters, vice president of marketing for transportation industry CRM
developer FirePond.
"From a Pontiac perspective, customers do not get the type of experience that
would necessarily encourage them to buy another Pontiac," he says. Meanwhile,
Pontiac's marketing people are now under the impression that green is hot, and
heated seats are not, when nothing could be further from the truth. "If they had
been able to capture individual needs in the conversation that took place prior to
[the sale], they would have been better at understanding demand
segmentation," adds Waters.
Computer Sciences Corporation, the El Segundo, Calif.-based technology
consulting company, is working to help Saturn do just that. CSC is currently
engaged in a 27-month development and deployment program to integrate
Siebel eSales, Reynolds & Reynolds' dealer management system and back-end
manufacturing capabilities to create the Next Generation Saturn Retail System.
The system rolls into the first of Saturn's 500 stores in Q2 2001. "Saturn already
had business processes that emphasized CRM, but they didn't have good
systems support for it," explains Tom Hachiya, a partner in CSC's consulting
group. "You still see a lot of white boards, spiral binders and everyone has their
own methods."
Hachiya says that one of the major goals for Saturn is to get away from what he
calls "organizational Alzheimer's," making a customer's sales, service and
finance activity totally integrated, no matter how the customer, dealership or
manufacturer examines the data. "Yes, we know who you are, we know what
your business represents to us, and you don't have to tell us for the fourth time
what the problem is," he says. "If you fill out a credit application with GMAC
online, we can pick up where you left off, rather than starting over again. If
you've configured a vehicle on the Web, a sales consultant will see it and can
order that vehicle for you."
hanging hannels
Saturn is an anomaly, however, as its retail operations are run in close concert
with the manufacturer. This is not the case for other major U.S. and foreign
makes. For most other automobile operations, franchise dealers, finance
companies and manufacturers are under little obligation to share information
with each other, and in fact may deliberately avoid exchanging and integrating
customer data because of competitiveness and mistrust. "Given the millions of
consumers and the way that the data is dispersed across all these different
platforms...it's a pretty sizeable undertaking," says Doug Gross, managing
director of KPMG Consulting's automotive practice.
Achieving the goal of "the car that CRM built" requires two major steps for the
industry: 1) increasing the flexibility of the manufacturing process and 2)
improving the integration between manufacturers and dealers. Believe it or not,
the manufacturing process may be the easier nut to crack. Forrester's Garretson
points to process changes--such as delaying paint and detail work and seating
installation until the distribution center or even point of sale--as relatively low-
tech, but high-reward customizations the industry could offer.
The challenge will be to pair the singular view of the customer with a singular
view of the enterprise inventory. In order to make this system work, "They need
to be able to see where every single car they have in inventory is--on a dealer
site, on a truck, at a distribution center, in the factory, in the production
sequence," says Prouty.
As for the truly built-to-order (BTO) car, it appears that the problem may
eventually take care of itself, because sooner or later, manufacturers won't be
able to afford doing business any other way. "People from Michael Dell to [Ford
CEO] Jacques Nasser have announced this as the next big thing coming down
the pike," says CSC's Hachiya.
"BTO will probably be the future, because we have to get away from huge
inventories," says Koslowski. He cited GM's $50 billion per year in inventory
costs as an intolerable result of the old marketplace theories. "They are trying to
cut this back to $20 billion by using a better build-to-order model. The ideal
world is to have BTO in place that will require 10 days for the manufacturer to
build the car after getting the order from the customer."
It's the dealerships that may be the heaviest anchor in this process, keeping the
industry from achieving a truly integrated view of the customer. "There's a
cultural issue: Dealers fear the OEMs," says Prouty. Not only do they fear giving
up control of the customer relationship, they worry about the bottom-line impact
of having to stock an ever-widening variety of cars to keep up with increasing
calls for customization.
But GM's Kirk believes that competent CRM management will make build-to-
order more manageable for dealers than the current guess-and-test approach to
inventory. "You can have 1007 varieties of vehicles and 2470 customization," he
says. The key is eliminating options nobody wants to buy. "Consumers buy on a
narrow range of features. We try to do everything for everybody, and of course
that's somewhat inefficient. A way out of having a needless variety of features is
to increase communication: I ask you what you want, and I build it for you."
Manufacturers cannot simply dismiss the dealer channel and their concerns with
a wave of the hand. State laws that govern auto franchise dealerships prohibit
manufacturers from selling new cars to the public, and many restrict the entry of
tech-friendly dot com dealers. Koslowski is unflinching in his assessment of the
situation. "The fact that dealerships are the only ones who can deliver a car to
the consumer has made them feel very safe and has not motivated them to
think about how they can provide a better
customer experience," he says.
The trouble may be a floor mentality that values the satisfied quota more than
the satisfied customer. "There needs to be more emphasis on the serving and
keeping [of customers], as opposed to the continual prospecting that tends to be
the norm in the industry," says Mark Brown, general manager of Reynolds &
Reynolds' eCRM efforts.
Traditional sales representatives bring tremendous potential value to the CRM
process, if they can be convinced to work for the greater vertical good. One of
the long-standing problems in the automotive industry is accurately measuring
demand, and the solution is not merely technological. PWC's Nathanson points to
the Mercedes M-Class car, only available with an automatic transmission in the
United states. No matter how intricate and flexible a configurator or prospect
profiling tool is, Mercedes cannot accurately gauge demand for a stick shift M-
Class, because the customer is never presented with the opportunity to express
interest. A sales representative can note that interest and send it back to the
manufacturer for consideration, but only if he or she believes in the CRM
process.
Randy Rahe, vice president of e-commerce operations for AutoNation, the
country's largest automotive group with 400 dealerships in 26 major markets,
knows from experience that adopting a customer-centric approach can be a slow
process. The company plans, in time, to implement a uniform CRM software
system and customer life cycle process, but to date has only worked to migrate
legacy dealership software and procedures to the parent group norm slowly.
Rahe believes separating salespeople into those who are interested in long-term
customer relationships and those who are effective dealmakers goes a long way.
"Our best stores have individual [sales] departments where all they do is contact
customers and re-market."
But the industry isn't sitting back waiting for Rahe and other major dealerships
to apply CRM practices. New dealer code of conduct certifications--notably the
Ford Blue Oval program--reward dealers who maintain certain approved
business practices. These programs provide a potential entry point to begin
promoting cross-channel CRM policy and practice.
According to Prouty, any foot-dragging by dealers is counterproductive to their
own cause. "What they will get out of [CRM] is feedback on their own community
and the support of the OEM," he says, including a certain level of implied
protection from dot com car sites, and from the cannibalization that results from
customers playing multiple dealerships within the same brand off each other. By
unifying the customer experience and product price, dealers will have to
differentiate on service and customer care, rather than cut into their margins
just to start a relationship.
"Small dealers will be the holdouts, chiefly because the technology is not cheap,
and they really don't have the critical mass to be able to buy a hefty piece of
technology," says Vince Bowey, vice president of solutions marketing for
E.piphany, which has deployed CRM solutions for Nissan, Toyota and Mitsubishi.
"That could change if [OEMs] decide to adopt this stuff in a big way and roll it
out to all of their dealers."
John Lancaster, who operates a five-dealership chain in Madison, Wis., agrees.
"It's just way too cost-intensive for an individual dealership," he says. "It needs
to be done on a much higher level."
ndustry Tune-Up
It is clear that a growing number of customers are not willing simply to accept
the shopping experience offered by manufacturers and traditional dealerships.
Interest in objective, open-access sites like Kelley Blue Book and next-
generation buying sites like CarsDirect.com remains high. "They need to create a
manufacturer's portal that will have the same level of disclosure as Kelley Blue
Book Online" says Lancaster. "Pricing will have to become rather fixed. What I
believe will have to end up happening is you'll have to get to a single price and
say 'This is the value we create.'"
Kirk believes he can do the independents one better, by offering not only open
pricing and extensive factual data, but offering inventory visibility, as well.
"Kelley and AutoByTel and other guys don't know when I'm going to make
another [car] with a moon roof or how much yellow paint I have," he says. "That
[information] creates the utility to incent the consumer to come back to us."
Tight integration between manufacturer and dealer may be necessary to prevent
information overload or improper levels of customer contact. "It's possible for
one part of the business to do something really stupid, like market you a blanket
proposal while another division is doing targeted proposals," says Bowey. In his
opinion, OEMs "have to be able to tell dealers, 'No, this is a bad offer,'" and have
the enforcement power to prevent the customer from being alienated.
"If you tell Pontiac not to call you at dinnertime, who's going to tell Buick not to
call you at dinnertime?" notes GM's Kirk. "If I post that information against your
name in the database, it's now in a central place and anyone finds it much easier
to apply."
GM has been running targeted marketing campaigns through its ECM program
for about a year, and Kirk says that the company is extremely pleased with the
results. "If I treat you with marketing programs and your name shows up later
in the list of people who bought vehicles, I can draw some causal deductions,"
he says. "We can measure money in versus sales out, which is a level of
instrumentation that we didn't have on most programs [before ECM.] We make
better marketing decisions and marketing investment management."
hat About the Driver?
Customers will know soon enough when the auto industry gets its CRM initiatives
properly implemented. Don't be surprised to see auto Web sites that adjust to
suit a customer's known profile and preferences, in the vein of the chameleon
Amazon.com homepage. Envision Ford.com leading off with a Focus link for a
user browsing from a college domain, and an Explorer splash screen for a
matriarch.
Watch for car manufacturers to try to convince consumers that they are
anything but. One of the vanguards of this effort is GM's Onstar. Although it may
look like a terribly expensive wireless phone service, insiders claim that its life
cycle has just begun. "It's about direct connectivity to the consumer, it's a portal
into the car," says Lancaster, who believes GM will greatly extend the reach of
the service in coming years. Potentially, Onstar could be used to transmit a
vehicle trouble report immediately to a dealership as soon as the car's internal
diagnostics detect a problem or a scheduled maintenance milestone is reached.
The customer can immediately schedule an appointment, without having to take
any initiative. Or a GM partner merchant, wirelessly identifying you as a likely
customer based on GM data, may beam a discount offer directly into your car as
you drive by.
"It's a completely new way of generating revenue--a recurring revenue stream,"
says Gartner's Koslowski. "That can mean more money in the end than
manufacturers are making selling cars to consumers." Koslowski also cites fixed
or near-fixed pricing as a logical outgrowth of a more intelligent auto industry,
with possible discounts for customers who use efficient purchasing channels such
as direct Web sites. "It saves time and doesn't require a sales rep to be involved
in the process," he says.
But avowed car bargain hunters may have a more difficult time of "beating the
system" in the future. One of the major goals of the industry is to build only
those cars that will be sold to the people who want them most, not simply those
who can be bargained down into taking them off the lot. "The industry spends
$15 to $25 billion on incentives to push models they can't find consumers for,"
according to Prouty.
When automakers can individualize the car, they and the dealers can also
individualize the incentives, offering just enough of a price break to seal the
deal, rather than the blanket $1,000 and $2,000 price cuts that are the norm
today. Rather than having to send our hypothetical Pontiac shopper away with
the wrong car, the dealer can quickly come up with a black Firebird that will be
the envy of the neighborhood--and that means the customer will take very little
convincing. "We don't have to incent him to buy it, because that's the car he
wants," he says.
In much the same way that car prices have gone up as a result of better
construction, mandatory air bags and nearly maintenance-free operation, any hit
in the pocketbook should be compensated for by the fact that customers will be
able to buy exactly what they want.
"[Customers] will pay more if they get more value," says Forrester's Garretson.
"The value will be in terms of greater control over exactly what vehicle they
get."
Enjoy your new car market, and don't forget to change your database every
3,000 miles.
Make a Wish
By Jason Compton
iMotors.com offers a top-notch customer experience for used car buyers with
exacting demands. The year-old online buying service pledges to find a late-
model car that matches not only your make and model requirements, but
specific mileage, color and even option package preferences.
iMotors quotes a firm price at the beginning of the search, then combs various
nationwide used car auctions, off-lease distributors and brokerages to locate the
specified vehicle. After a wait of two to six weeks, the car is available for pickup,
at a price no higher than the original quoted price plus tax and license fees.
iMotors runs the car through an extensive inspection and reconditioning process,
rejecting about 3 percent of the vehicles that enter the rehab center, and
presents the buyer with the results along with a complete title history. A 7-
day/700-mile full money-back guarantee, and a 3-month/3,000-mile extended
warranty are thrown in to sweeten the deal.
sticking to used cars makes life a lot easier for iMotors. "There's a patchwork of
state regulation as to who can and can't sell a new car," says Rob Erlichman, the
company's vice president of marketing. A few states, Texas among them, have
made it virtually impossible for a dot com to do new car business within their
borders. Even as a licensed used car dealer, iMotors faces some interesting
challenges as it tries to open doors in new states, such as a Connecticut law
requiring them to have 3,500 square feet of garage space. But the delivery
centers do not offer service; iMotors does its inspection and vehicle rehab at
facilities in Sacramento, Cincinnati and Atlanta, and outsources its extended
warranty business to NAPA. "Some of it, we'd prefer to find a way around and
compromise, so we've got efforts with all of the relevant state DMV and
attorneys general to see if there's not some other way."
start with a Zip
Casual shoppers can start configuring cars and obtaining quotes by providing as
little as a ZIP code (used to ensure that the buyer is near an iMotors delivery
center, where the sale is ultimately consummated), although saving a
configuration and price quote for later consideration requires registration on the
site.
In June, iMotors turned to Octane Software (now a division of E.piphany) to
enhance its targeted customer offer abilities. All customer records, quotes and
purchases are stored in Octane 2000, integrated in the contact center to handle
personal interactions better. "Our customer care specialists continue to build our
data profiles for customers based on what they're inquiring on, so we can
present appropriate selections to the customers toward the goal of getting the
order," says Erlichman.
Even without a single live contact, let alone an established purchase, iMotors
begins making targeted pitches. Assumptions gleaned from a logged and saved
car quote (a request for a price on a 1998 Honda Accord reflects a likely interest
in imported mid-size sedans) as well as ZIP code demographics from registration
data provide the basic customer profile. iMotors will automatically recommend
special offers that crop up from time to time when buyers notice a large number
of a certain vehicle coming through the channel--say, a juicy Toyota Camry, a
fine substitute for an Accord.
Although other used car dealers are adding instant marketing tools to their
arsenal through providers such as Reynolds and Reynolds and Carabunga.com,
Erlichman points out that iMotors can help a larger audience of customers
immediately capitalize on supply gluts not on an individual dealer lot, but at the
wholesale level.
uilding Trust
Erlichman explains that his company needs to build trust through relevant, CRM-
enabled communication in order to overcome the consumer perception problems
in his industry. "We start off in a business that people have a fair amount of
distrust for to begin with, and we do it over the Internet, which adds another
level of skepticism," he says. His instincts turned out to be correct--response
rates went up fourfold when iMotors switched to targeted e-mail messaging.
iMotors is now in the process of installing E.piphany to improve the integration of
customer data and marketing campaigns across not only the sales and customer
service channels, but the delivery centers and field car buyers, as well.
iMotors makes a point of contacting customers every three days while their
order is in the queue, and the agent that made initial contact is given the
responsibility of determining the best channel (e-mail or phone) for order status
updates. All automated customer contacts are "branded" with the name of the
agent that first established a relationship with the customer.
No used car deal is ever as good as it seems, so naturally, there's a catch. As of
this autumn, iMotors can deliver the used car of your dreams to a sales center in
one of just six states, although the company plans to add about three dozen
delivery centers to the map by year's end.