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Digital is changing the car buying experience

McKinsey research puplished a study titled “Racing ahead: How digital is changing and enhancing the car buying experience”.

Six core beliefs emerged:

    1. Digital is the no. 1 information and customer influencing channel.
    2. Digital has given rise to a new type of customer.
    3. Digital car sales are a matter of fulfilling prerequisites and of creating a value proposition.
    4. Digital will turn the existing auto retail model upside down.

The summary of the study can be found here

Here is the complete PDF version of the study.

The Automotive Customer Experience of Tomorrow

Deloitte examines how connected vehicles should change to engage the evolving consumer expectations.Connectivity in the automotive industry is just beginning, with younger and often more connected Gen Y consumers driving change. Explore the featured insights below to understand the changing nature of connected vehicles.

Technologies that can seamlessly connect vehicles and consumers daily lives will likely serve as key enablers in defining the vehicle ownership experience — and those connected technologies have the potential of fundamentally changing the traditional customer life cycle. Vehicle connectivity is also starting to transform the basis of competition beyond the product.

Copyright Deloitte

Copyright Deloitte

The Automotive Customer Experience of Tomorrow

Copyright Deloitte

To enable effective, technology-enabled business models, automotive OEMs and dealers should explore opportunities within the entire customer experience ecosystem and, in doing so, address five key points that can result in exceptional connected customer experiences:

  1. OEMs must seek internal alignment on the vision of connected technology and how far they want to  transform their businesses.
  2. OEMs and dealers must also see eye-to-eye on the implications of connected technology and align on impact of customer experience.
  3. Internal OEM governance and organizational structure must be carefully assessed to determine what the impact of a connected services vision has on the business.
  4. Related to number three, OEMs must align and accept the requirements (e.g., build internally, acquire throug business partners, etc.) needed to enable new connected services capabilities.
  5. OEMs and dealers must work across the value chain to build a broader, more holistic brand experience  enabled through connected technologies.

Download the complete report here

 

Maybe Young Consumers Aren’t Averse to Owning Cars After All

Recent research suggests young consumers are less interested in owning cars than their parents are. But two studies say that may not be true.

J.D. Power and Associates, best-known for its car quality ratings, says its data show that U.S. consumers under age 26 have represented an increasing proportion of retail car sales in the American market since 2009. Compared with other drivers, this group is more likely to buy a vehicle that stands out, personalize it with options and other features and agree that their vehicle says a lot about them.

These younger drivers also are more likely than average drivers to focus on vehicle handling and power, according to Power. Its conclusion: “Young drivers really do have an interest in new vehicles and are emotionally connected to the vehicle they purchase.”

Meanwhile, Deloitte finds similar interest in cars, but also greater willingness to embrace other transportation options, in its global automotive consumer study of 23,000 consumers in 19 countries. Its analysis of American Generation Y consumers—some 80 million citizens born in the 1980s and 1990s—finds 80% who say they plan to buy or lease a vehicle within five years.

But Deloitte also finds sharp differences in the attitudes that shape their decisions about mobility. Compared with other generations, Gen Y members are more concerned about the cost of ownership, convenience of travel and the driving experience. If those measures fall short, this group is more likely to abandon car ownership and switch to other modes of transportation.

Gen Y consumers are more interested than other age groups in owning cars propelled by alternative power systems such as electric-hybrid powertrains. They’re also more receptive to vehicles equipped with at least some capability to drive themselves—or to switching to alternative modes of transportation.

This group also expresses above average willingness to move closer to work or share rides if it would enable them to abandon personal vehicle ownership. Deloitte says two-thirds of American Gen Y consumers love there cars. But they’re also three times as likely as other generations to abandon  ownership if costs get too high.

Source: http://www.advancedmobilityproject.org/

Key findigs Deloitte

Gen Y market potential: Over three-quarters of Gen Y consumers plan to purchase or lease a vehicle within the next five years.

Copyright Deloitte

Vehicle loyalty: 64% of Gen Y consumers love their cars, but are 3x more likely to abandon their vehicles if costs increase.

Copyright Deloitte

The customer experience: The cost and quality of the service bundle influences over two-thirds of Gen Y consumers’ purchase decision.

Copyright Deloitte

Download the complete report 

Google Project “Tango” – Mobile 3D Mapping

The goal of Project Tango is to give mobile devices a human-scale understanding of space and motion.Over the past year, our team has been working with universities, research labs, and industrial partners spanning nine countries around the world to harvest research from the last decade of work in robotics and computer vision, concentrating that technology into a unique mobile phone. Now, we’re ready to put early prototypes into the hands of developers that can imagine the possibilities and help bring those ideas into reality.

We hope you will take this journey with us. We believe it will be one worth traveling.

- Johnny Lee and the ATAP-Project Tango Team

Our current prototype is a 5” phone containing customized hardware and software designed to track the full 3D motion of the device, while simultaneously creating a map of the environment. These sensors allow the phone to make over a quarter million 3D measurements every second, updating its position and orientation in real-time, combining that data into a single 3D model of the space around you.

It runs Android and includes development APIs to provide position, orientation, and depth data to standard Android applications written in Java, C/C++, as well as the Unity Game Engine. These early prototypes, algorithms, and APIs are still in active development. So, these experimental devices are intended only for the adventurous and are not a final shipping product.

Sources:
Venturebeat
Google Project Tango

Starbucks Mobile Payment – made by Capgemini

Creating the digital “Starbucks experience”
At Starbucks, coffee is big business. Since opening its first location in Seattle, Washington in 1971, the company has grown into one of the world’s largest specialty foods retailers and one of the most globally-recognized brands. But Starbucks has built a billion-dollar enterprise on more than just coffee; it has succeeded in creating a unique Starbucks experience in its stores and online.

Capgemini delivered a study on mobile payment.

Capgemini Consulting für Starbucks