In our first blog post, we highlighted the current status quo of CRM and took a glance into the future that will be characterized by a central unit within global CRM hubs, called the CRM Service Hub.
Connected vehicles as enablers
One of the main drivers why tech companies are so valuable, is the immeasurable amount of data at their disposal. Traditional automakers especially still struggle to collect and utilize user data in a value-adding way. The good news is: the currently evolving generation of cars enable OEMs to finally catch up with the big tech players. The potential of connected vehicles for the automotive industry is huge. As early as 2023, about 25% of all passenger cars in use worldwide will be connected, and this connectivity will continue thereafter (CV Trend Radar 1).
In addition to the growth in connected vehicles, the number of possible data points transmitted from the vehicle to the OEMs will also increase enormously. Currently, an average of 100 data points is available, whether through automakers’ own data platforms or ecosystem. However, today’s data transmission technologies are not capable of sending even this amount of vehicle data to OEMs’ servers in real time. For the future, looking towards 2030, Capgemini experts expect that the next generation of vehicles will be able to deliver up to 10,000 data points. Thus, cars as data interface are capable of providing more customer insights than any other digital or physical touchpoint.
Customers’ willingness to share data is key
However, in order for OEMs to exploit the full potential from the generated vehicle data, customers willingness to share their data needs to be increased and consents need to be collected accordingly (conforming to GDPR standards). Within the study Monetizing Vehicle Data, our Capgemini colleagues conducted research with an EU sample compromising 3,000+ participants, revealing that currently only around one-third are willing to share data.
Automotive OEMs are trusted most with data
The good news is that the end customers within the study would rather trust their data to OEMs than insurance companies, government, or third-party platforms.
OEMs should make use of these advantages and benefits by enabling its CRM to combine generated vehicle data with customer data.
Since it is self-evident that data wins the race for the customer, we developed the hypothesis that the intelligent combination of vehicle & customer data will bring CRM to the next level.
Data Enrichment – implications for CRM
If we now turn our gaze towards 2030, when the majority of vehicles are connected and enormous amounts of data are available for use, we see a huge impact on CRM. The intelligent enrichment of customer data with vehicle data opens up tremendous potential for OEMs.
To extract the greatest benefits from the various data sources, the data is combined and processed in a central CRM Service Hub as outlined in our first blog post. By using AI-based technology, the smartest insights and next best actions can be derived.
In this part of our blog series Future of CRM we outline 3 major benefits for OEMs that will be enabled by integrating car data into the CRM process:
- Extended 360-degree view on the customer
360-degree customer view is on everyone’s lips – but what does it actually mean? It’s a holistic view of who your customer is – including every single touchpoint where the customer interacts with the brand. So of course, when looking towards 2030, integrating vehicle data into CRMs will be of central importance to achieving a 360-degree view.
Generating insights on driver condition (stress level, heart rate), driving behavior (eco vs. sport mode), navigation data (points of interest), usage data (charging profile), and more creates a holistic view on the customer and comes with a multitude of benefits:
- More personalized & seamless interactions throughout all touchpoints, boosting brand loyalty and minimizing churn
- More accurate forecasts of customer behavior, e.g. when changing the product portfolio, and more precise predictive analytics – allowing foresight into the direction customers are moving and identifying their future needs
- Insights into where OEMs should change or adapt their services
The better OEMs know their customers and how they are using their products & services, the easier it is to connect with them, strengthen personalized relationships and gain trust.
- Individualized offerings & upselling potential
Integrating vehicle usage data into CRM allows OEMs to derive clear usage patterns and individual customer preferences with the help of AI-based technology. Based on these insights, tailor-made offers can be provided to the customer for certain car models and functions that are highly relevant for customer needs. For instance, for a customer who uses the sunroof very often, offering a convertible as their next lease / subscription in the summer.
In addition, there is huge upselling potential for services or functions on demand because individualized campaigns can be provided at the right time & place – directly in the vehicle – determined from the smart combination of factors such as driving behavior, music and pulse.
As an example: additional advanced driver-assistance systems for commuters or users who take longer to park their cars can receive suggestions booking for autonomous parking systems via over-the-air updates.
Individualized offerings and the right timing lead to satisfied customers and thus customer loyalty can be increased accordingly.
- Predictive customer service
The smart integration of vehicle data also opens up completely new possibilities in customer service and technical support. In situations of technical issues, customer service agents can proactively approach the customer – already having a satisfying solution in mind which was provided by the CRM system as “Next Best Action.” Furthermore, the broadened knowledge about the customer enables personalized interactions with the customer to find the perfect fitting solution.
For example, an already arranged service appointment with a replacement car provided, that includes exactly the technical specs and functions the customer desires.
Predictive customer service enables automotive players to keep one step ahead by knowing & delivering more than what was expected to ultimately surprise the customer.
Laying the foundation early is key to success
In order to exploit the full potential of vehicle data integration for CRM and to overcome challenges, we recommend beginning to put the basic building blocks in place today:
WILLINGNESS TO SHARE DATA: Increase end customers’ data trust by providing transparency about the purpose of data sharing and pointing out the benefits and use cases.
CONSENT MANAGEMENT: Set-up a resilient consent structure to centrally collect and store data, so you can enrich your CRM with customer, vehicle usage and contract data.
SET IT UP RIGHT: Manage complexity by setting up a suitable data collector and platform infrastructure backed by AI-based technology early, before getting overwhelmed with data in the future.
CRM SERVICE HUB: Establish a CRM Service Hub as outlined in the first blog post to combine and process data centrally and be able to apply smart analytics to personalize communication and offerings.
This blog was co-authored by Thomas Ulbrich, Malte Völkoi and Alexander Stotz. Watch out for our third blog, where we will examine the introduction of new sales models that disrupt the classical CRM. Please get in touch if you have questions or need further information. We look forward to exchanging ideas on this particularly current topic.
Director, Customer Transformation, Capgemini Invent
Manager, Customer Transformation, Capgemini Invent
Senior Consultant, Customer Transformation, Capgemini Invent