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Innovations in Digital Consumerism for Automotive IndustryIntegrated Digital Marketing & Services

www.infosys.com

- Ashutosh Agrawal, Stephen Arockiadoss

Abstract

Potential car buyers are taking decisions online. Their online activity generates a vast amount of digital footprint, critical information that drives brand perceptions and influences buying decisions. Recent studies show that the Automotive industry is the largest producer of online conversations. Besides this, with vehicle telematics and vehicle internet connectivity hitting mainstream, the car itself is quickly becoming the “Fourth” screen (Your Computer, TV and Mobile being the three screens), opening the doors of innovation for cloud based service solutions.

Are the Auto OEMs and dealerships doing enough to embrace this new digital driver avatar? Do these efforts integrate well into the traditional marketing and services efforts? Are they achieving the targeted ROI?

This document details out how the industry is catering to the needs of a digital buyer, where are the opportunities to make a difference? And how OEMs and dealerships can gain decisive competitive advantage by adoption of Infosys automotive digital solutions.

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Response from the Automotive IndustrySo how is the Industry responding to these new changes in customer expectations? Automobile OEMs and Dealers are a bit slow in adapting to this outburst of digital activity. However there is a definitive trend of change in marketing spending patterns.

• According to a leading analyst firm, Digital Marketing spend in Automotive industry will grow at 21% CAGR from 2009 to 2014. Spend to almost double to $4 B in 2014 from $2.1 B in 2011.

• A Dealers association in USA reports that Dealers increased Internet advertisement spends from 4.6% in 2000 to 23.7% in 2010. Total Dealer Internet Advertising Expenses (2010) = $1.5 B.

OEMs and dealerships are embracing technology and reaching out to other players in the ecosystem in search of combined value and market differentiation.

• A leading US based automotive firm unveiled a technologically advanced car in mobile world congress 2012 which features a host of technologies which reduces fuel consumption and CO2 emissions These include Auto-Start-Stop, the Ford Eco Mode driver information system, Gear Shift Indicator and Smart Regenerative Charging.

• A large dealer company in US has teamed up with EA Mobile for in-game advertising push.

• A European luxury car maker promoted its new model on smartphones and allowed customers to book test drives on it.

• A world leading automotive company is adopting interactive bar codes across all its marketing.

Changing Automotive

Buying Behaviour in Digital Age

Forced by latest technology trends and growing environmental concerns, the Automotive industry is at an inflexion point. Almost every Auto OEM is realigning their value chain to remain relevant:

• Electric component suppliers are quickly gaining significance in the new scheme ofthings. Hybrid vehicles, fuel cells and electric powered vehicles are on the rise.

• Advancements inVehicle-bound internet connectivityandbuilt-in technologieshaveraised the likelihood of convergence between automotive and telecommunication, IT and media & entertainment sectors.

• Proactivecustomerserviceiscatchingupwithservicehubsbeingintegratedtovehicletelematics.

• OEMsarealreadydesigningappexchangeplatformsfordeveloperstoeffectivelyusethe car data to build innovative applications.

On the other hand, the new socially wired & empowered customer today has enough online information to decide on his purchase.

• AleadingInternetServiceProvider’sresearchsurveyshowsthat62%offuturecarbuyerswill use internet as their primary source of information. Nearly 52% of those online researchers also look for information on accessories.

• Mobilehandsetsandtabletsarepoweringtheadoptionofonlineinformationlikeneverbefore. Dealership and OEM websites have witnessed spurt in traffic from mobiles.

• ThebuyingactivityisnotjustrestrictedtoOEManddealerwebsites.Accordingtoanonline survey, nearly 64.9% of potential buyers look for information on 3rd party sites.

• Commentsandreviewsfromfriendsarebecominginfluencersinthedecisionmakingprocess.

• According to a leading consulting firm, consumers show strong interest in mobile/smartphonecarapplications.68%forremotelocking/unlockingofvehicledoors,67%for service reminders and same amount for roadside assistance.

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Infosys Approach to Innovation in Automotive Digital ConsumerismInfosys provides an integrated solution for digital marketing and services throughout the sales cycle. The key differentiation lies in generating customer intelligence and building customer intimacy.

Figure 1: Infosys Integrated Digital Marketing & Services Approach

Know your customer better!• Integratebothdigitalandtraditionaltouchpoints

Existing solutions in market mines the digital content on the web. However, the enterprise systems (like Dealer and CRM systems) also need to be integrated to provide true all-round 360⁰ customer profiles.

• IntegrateCartelematicsandGeo-spatialdata

Digital touch points are further expanding with advent of ‘Connected Car’. Geo-spatial data and Car telematics canprovide us real-time intelligence and connect to both customer and car.

Build customer intimacy with targeted marketing & services• Customer fencing & targeting

Customers canbe‘geo-fencedbased onGPSdata’ or‘on-carhealth with telematics data from on-board diagnostics’ or‘timefenced’.Severalcombinationscanfencecustomerswithspecific needs. For instance, cars within 50 miles radius that have not been to the service center for last 4 months may need oil change and wheel rotation.

• One-to-One connect throughout the customer lifecycle

Theconnected-caranddigitalmedia isalways‘on’andsamecan be used by companies to remain plugged-in to their consumers.

- Auto Co. Services: Prognostic services can alert an automotive

company of possible failure and the automotive company can

proactively guide the customer with DIY service or road service

or nearby service center.

- 3rd Party Services: Taxi & Car rental agencies can provide

enhanced services like smart navigation, infotainment and in-

car billing & payment.

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Infosys Automotive Digital solution frameworkInfosys solution is an integrated Digital solution which provides enhanced capabilities in both marketing & services (as discussed in previous section). It integrates both structured and unstructured data coming from various digital and enterprise touch points. The data is then massaged and analyzed to derive intelligence and insights. The functional capabilities layer leverages the intelligence and insights to deliver contextual and personalized services through the Service Hub and App Exchange.

The solution is designed to serve throughout the entire automotive customer lifecycle and disseminate content and services through multiple digital channels to multiple stakeholders.

Service Hub

A Service Hub provides cloud based services like personalized marketing, lead generation,

eCommerce, prognostic services etc. The services can be delivered to a HMI (Human Machine

Interface) in the car or a smartphone or other digital channels which would provide an immersive

experience to consumer. The Service Hub will have a dedicated service help desk to enable various

scenarios like emergency help, vehicle tracking, vehicle loss including vehicle-to-enterprise

scenarios like cold storage fleet management and others.

AppExchange

The AppExchange is the online marketplace for cloud computing applications using the car’s data.

Developers can develop innovative applications to improve customer experience. Customers

can browse, test and install these apps. AppExchange would enable crowd-sourcing and open

innovation to further enhance the consumer experience.

Figure 2: Infosys Automotive Digital Solution Framework

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Infosys solution facilitates effective management with its performance monitoring capabilities and is geared towards reducing overall marketing costs.

Measure marketing performance and RoI• The impression made on the digital medium may result in a

sale over the counter at showroom. Infosys solution tracks from ‘prospect’to‘sale’andrelatesthedigitalmarketingmetricslikePage views, Click Through rate, Recommendation rate etc. with business metrics like leads to customer ratio, repeat buyer percentage, wallet share etc.

Reduce marketing costs• Manage, Share and Re-use digital assets: Infosys solution

manages all the digital assets like email templates, online banners, SMS text, games, apps and facilitates its reuse. Also OEMs can share their digital assets with Dealers to avoid cost duplication and ensure consistency in messaging.

• Integrated Multi-channel Dissemination: Infosys provides a single digital marketing platform to disseminate digital content on various channels like Mobile sites, Online sites, Social Sites, Emails etc.

• Pay-As-You-Go model: Using Infosys platform avoids the CapEx investment and enables SaaS (Software as a Service) pricing models.

• Reduce Total Marketing Expenses per Sale: With Infosys solution, Digital Marketing will cost less than Traditional Marketing for the same given impact.

Illustrative Scenarios for Integrated Digital Marketing & Service• As depicted below, by analyzing preferences of customers

and fencing them provides a target group of customers with specific needs.

• The existing digital assets can be reused for the targeted campaign and disseminated to target customers through multiple channels.

• The performance of the targeted marketing campaign can be measured on-the-fly and its financial impact can be measured.

Figure 3: Infosys Integrated Digital Marketing & Services Approach

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ConclusionDigitalTechnologies are transformingautomotive customer’sbehavior andexperience. Companies, having realized its disruptive impact, now maintain a digital marketing portfolio and are giving the digital edge to their service offerings. But, digital technologies themselves are dynamic and evolving. Connected Car is all set to become mainstream in the near future. Digital Media analytics have been evolving with support for both audio and video search. Infosys solution leverages latest developments in digital technologies to deliver a lasting customer connect and more-bang out of the marketing buck.

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About the Authors

Ashutosh Agrawal

Lead Consultant, Infosys Limited

He has rich industry and consultancy experience and has worked across industry verticals like Aerospace, Automotive, Agribusiness and clean-tech. He has been involved in various projectsrelatingtobusinessstrategyandexcellenceformanufacturingcompaniesandhasdeveloped ecosystem focused solutions in Supply Chain, Marketing and Customer service.

Stephen Arockiadoss

Principal Architect, Infosys Limited

He has developed key solutions in areas of LOB Business work places, Enterprise Innovation, Sales effectiveness, Next Gen Customer Care, and Customer intelligence. He has also been involved in Product incubation & development, IT strategy consulting, Enterprise Architecture &Webtransformationprojects.HecloselyworkswithManufacturingenterprisesandhelpsstrategize many technology focused business initiatives.

© 2012 Infosys Limited, Bangalore, India. Infosys believes the information in this publication is accurate as of its publication date; such information is subject to change without notice. Infosys acknowledges the proprietary rights of the trademarks and product names of other companies mentioned in this document.

About Infosys

Many of the world's most successful organizations rely on Infosys to deliver measurable business value. Infosys provides business consulting, technology, engineering and outsourcing services to help clients in over 30 countries build tomorrow's enterprise.

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