6 Customer Experience Trends in Automotive Industry

Customer Experience

6 Customer Experience Trends of Automotive Industry in 2024

Mar 17, 2023

8 mins read

Manisha Khandelwal

Contents

The automotive industry has recognized the importance of offering a seamless customer experience and is evolving by adopting new customer experience trends. 

Accenture’s recent study stated that 92% of dealers believe that customer experience will play an integral role in future growth. Additionally, 46% of customers said that they’d switch to a different OEM if it delivered better customer experiences.

These statistics demonstrate the growing importance of providing a positive and personalized customer experience in the auto industry.

Car manufacturers, dealers, and OEMs are utilizing customer feedback tools to understand customer expectations and improve their services accordingly. 

To meet these evolving customer expectations, customer experience cannot be simply an additional activity for OEMs. Instead, it must serve as the main driving force for every department, from product development to IT, quality, and purchasing. This requires a significant shift in perspective for the OEM, and thus, it is the responsibility of the CEO to emphasize the necessity of change and take action to implement it. – McKinsey

To help customers keep up with the latest customer experience trends, we have come up with the top 7 customer experience trends in the automotive industry to provide a seamless customer buying journey.

Top 6 customer experience trends in the automotive industry 

Here are the top 6 trends in the automotive industry to deliver a top-notch customer experience and enhance their journey.

1. Digital presence MATTERS

Over the past few years, two significant disruptions have altered the nature of the car-buying experience to some extent.

  1. The emergence of the mobile-first generation – who have the purchasing power and prioritize experiences over material possessions. 
  2. The pandemic – which has permanently changed the behavior of customers.

Post-pandemic, an increasing number of customers are opting for a digital-first approach for several stages of their buying process. 

This approach involves customers seeking online platforms that facilitate precise product searches and comparisons, allowing them to make purchasing decisions online with confidence.

That’s why automotive companies need to integrate digital technologies into their operations and build an online presence for their customers. 

Although offline touchpoints continue to be critical in the car buying journey, online touchpoints are playing an increasingly influential role in shaping customer experiences and decisions. – McKinsey

Statistics of digital channels in the automotive-purchase experience
To stay ahead of the competition, it is important to digitize your entire process and create a more efficient, effective, and delightful customer experience. This can be achieved by keeping up with the latest technology trends and continually improving your digital presence.

2. Possession of Mobility is Changing

Accenture surveyed 7.5K car owners and found that 48% of respondents would consider giving up car ownership in favor of using autonomous mobility solutions. 

This shift in the consumer behavior can be attributed to

  • Rising costs of car ownership due to inflation affecting costs of maintenance, fuel, insurance, etc.
  • Increasing demand for electric vehicles that companies are unable to meet.

As a result, there has been a visible change in consumer preferences from Generation Z to Millennials, who opt for ride-sharing, subscription models, and rental services instead of owning a car.

But how to address these downward trends? 

Businesses can 

  • Offer a range of services, including repair and maintenance
  • See accessories as per their requirements
  • Introduce unique ways of owning and using cars, such as renting and ride-sharing. 

However, it is crucial to provide the best possible customer experience to stand out from the competition. 

According to a survey conducted by McKinsey & Company, 53% of customers consider a better service experience to be more influential than the actual purchase experience in the entire customer journey. 

A graphic representation of the importance one customer experience by journey

Therefore, it is essential to focus on delivering exceptional customer service and training your team to ensure that they offer satisfactory service.

Suggested read: Why Customer Experience Is The Real Driver Of Brand Success?

3. Create More CONNECTED Vehicles

By creating vehicles that are more connected, car manufacturers can better serve tech-savvy customers who expect the latest technology in all aspects of their lives. 

With the right technology and features, connected vehicles can provide a safer, more personalized, and more enjoyable driving experience, reducing the risk of car accidents and other similar incidents.

  • With IoT telematics, you can connect in real-time with various applications, such as Google Maps, voice control, vehicle performance, and updates. It enhances the driver experience by improving safety and convenience.
  • Thanks to sensors, cameras, and other technologies, vehicles are becoming increasingly aware of their surroundings, alerting drivers to prevent accidents and providing information to make wise decisions during emergencies. For instance, galvanic skin response sensors can detect if a driver is feeling sleepy or stressed, prompting the car to warn them and prevent any harmful accidents.
  • In addition, radar, cameras, and laser scanners on cars help drivers navigate the road by reading it and responding accordingly to avoid obstacles. Car manufacturers like Honda and Suzuki use this technology by offering telematics apps with exclusive features to improve their customers’ safety and convenience.

As technology advances, self-driving capabilities, advanced safety systems, and other innovations are making cars smarter and more capable than ever. For tech-savvy customers, these features make for a rich and satisfying automobile experience.

4. Changing Preferences to Autonomous Vehicles

Autonomous vehicles offer a unique and exciting experience for passengers. 

With self-driving technology, you can sit back and relax while the car takes care of everything. These cars are smart enough to reduce traffic congestion by communicating with each other. It will help to optimize traffic flow and reduce delays, leading to faster and more efficient travel times.

Furthermore, in addition to the convenience of hands-free driving, you can enjoy virtual reality entertainment, immersive soundscapes, and even in-car shopping experiences. These features save time and maximize efficiency, making your journey more enjoyable.

With the pros of autonomous vehicles come some limitations as well. 

There are also concerns about losing control when everything is automatic. 

To address this, the automotive industry can enhance the customer experience by incorporating a human-machine interface (HMI) that allows drivers to interact with their vehicles, calm themselves down, and enjoy entertainment options. 

With these enhancements, autonomous vehicles can offer a truly enjoyable and stress-free travel experience.

5. Seamless Key Moments Experience

Let’s talk about delivering a hassle-free and stress-free customer experience. 

After all, that’s what every customer wants, right? They don’t want to deal with mistakes and delays.

In fact, many customers prefer to stay loyal to those businesses that offer timely personalized suggestions and updates as part of their customer experience. 

This means that providing a personalized experience can help retain customers and attract new ones.

So, how can you offer a seamless customer experience? Well, it’s simple. 

  • Identify the persona and map the entire customer journey.
  • Build relationships with your customers. 
  • Make sure that they feel heard and valued.
  • Offer 360-degree support that should be easily approachable for your customers to reach out to you
  • Do not irritate your customers by sending the same message or information constantly 
  • Create self-service channels that can help your customers sort their issues on their own via FAQs, blogs, chatbots, video tutorials, etc. 

And with the rise of digital services, it has become easier than ever to deliver an exceptional customer service experience. Make sure to stay on top of customer trends and preferences.

 

Manage Your Customer Data Digitally the Right Way!

6. Roadside Assistance for Your Vehicles

The roadside vehicle market is massive, estimated at a whopping $25 billion, and is projected to reach $40 billion by 2033. 

With these numbers, it’s no surprise that many automotive businesses are leveraging roadside services to improve customer satisfaction and loyalty, especially during breakdowns.

As customer expectations continue to rise, the automotive industry is making strides to deliver efficient and effective roadside assistance to its customers. 

But what exactly is roadside assistance? 

Well, roadside assistance is a service that automotive businesses offer customers when their cars break down. It can cover minor mechanical or electrical issues like flat tires or a dead battery, among others.

Many auto companies have recognized the value of offering these services to their customers. If implemented right, they can do wonders for driver safety and satisfaction. By creating a process that is available 24/7, businesses can ensure that their customers receive the help they need quickly and efficiently.

Thanks to digitization and technology, offering these services to customers has become even easier. With mobile apps and IoT devices, businesses can provide roadside assistance to customers with just a few clicks or taps. 

By leveraging these technologies, businesses can improve customer experiences and build brand loyalty.

Conclusion

If you’re in the automotive industry and looking to improve your customer experience, implementing the 6 customer experience trends mentioned above could give you a competitive edge. 

Not only will they improve your customer loyalty, but they’ll also help you stay ahead of the curve. 

Above all, it’s essential to focus on understanding your customer’s expectations and needs rather than solely trying to sell them a product. 

You can increase customer loyalty and retention by offering them exactly what they want and building long-lasting relationships. So, take these 6 customer experience trends into consideration and start offering an exceptional customer experience in the automotive industry. And, if you need help with any of these steps, don’t forget to reach out to us.

Manisha Khandelwal

Senior Content Marketer at SurveySensum

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