The future of the auto service experience
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This is an initial view that brings together a number of different perspectives on the future of car servicing being driven by potential changes within the sector, in adjacent arenas and beyond. Having gained some feedback and opinion from around the world on which of these shifts will have greatest impact, which will happen first and what is missing from this view we have added in some potential future scenarios for how the future shifts could change customer experiences and business models for dealers and workshops. Further comments on these thoughts are welcome and will be shared in a few weeks time As with all futureagenda projects, the outputs will be openly shared for all to use as sources of insight and stimulus for innovation, strategy challenge and wider engagement.
Transcript of The future of the auto service experience
The Future of The Auto Service Experience 28 Oct 2013 | Tim Jones | Charlie Curson
Overview This presenta:on shares some views on trends that could impact auto servicing over the next few years. It includes trends, feedback from across the sector and some poten:al scenarios for the future
Ini:al Views
Sector Feedback
Poten:al Scenarios
Ini7al Views
Star7ng Point An ini:al view brought together a number of different perspec:ves on the future of auto-‐servicing being driven by poten:al changes within the sector, in adjacent arenas and beyond. This follows.
Sector ShiOs
Adjacent Changes
Macro Trends
Shi>s Within The Automo7ve Industry
Intelligent Highways Mesh networks and ubiquitous mobile connec:ons deliver automated highways to improve safety,
increase capacity and reduce conges:on
Autonomous Vehicles Led by urban delivery pods and long distance trucks, the rise of automa:cally driven vehicles leads to the
reinven:on of the travel experience around infotainment
Digital Showrooms Vehicle selec:on and purchase takes place on the high street
and in shopping malls with immersive digital experience replacing edge of town physical car dealerships
Smart Cars Every vehicle has thousands of sensor-‐connected computers that collec:ve provide the intelligent car able to monitor
itself, its environment and its passengers
Declining Cost of Ownership Increased compe::on, system efficiency and more open
pricing leads to a net decline in the ongoing cost of ownership of a vehicle aOer purchase
Inclusive Service Plans Customers increasingly have their first three years servicing included within as a fixed price the purchase or lease cost of
their vehicle as long as this takes place at a dealer
Smaller Cars More crowded urban environments and the drive
for beVer fuel economy reverse the trend for larger cars and, especially for the young and old, smaller is beVer
Pervasive Leasing Driven by a combina:on of sustainability, business model and convenience factors, leasing becomes the predominant
mode of new vehicle access for all
Declining DIY Greater product complexity and more sophis:cated diagnos:c equipment makes customer ‘do it yourself’
servicing almost impossible for new cars
Electric Car Services The growth in electric vehicles brings with it the advent of a completely new service experience with clean environments,
super fast diagnosis and plug and play component swap
Convenient Fast Fit Na:onal fast-‐fit tyre, service and retail chains extend their drive in service support for low complexity,
high volume wear items and maintenance ac:vi:es
Every Car is A Node in the Network With the introduc:on of embedded SIM cards in every new
vehicle, all cars are tracked and the advent of the connected car experience is accelerated
Late Customiza7on Wider personaliza:on of vehicles is enabled by the shiO of
op:on-‐fit from manufacturer to dealer and opens the doors to new owner makeovers when cars are resold second hand
Mobile Servicing Significant growth occurs in at-‐home or at-‐work low complexity servicing from mobile technicians provided via roadside assist
companies, independents and dealer networks alike
20,000 Mile Service Intervals All new cars can go for 20,000 miles or two years between services due to universally adopted long-‐life products,
ubiquitous diagnos:cs and greater overall vehicle reliability
Predic7ve Remote Maintenance F1 and satellite technology is applied at scale enabling car manufacturers to con:nuously monitor vehicles, diagnose any future faults in advance and remotely update soOware
Drive Thru Servicing With pre-‐arrival diagnosis the norm, drivers opt to take their vehicles to loca:ons able to do a full service in 30 minutes
while they have a coffee, relax and browse the net
Uninformed Customers As efficiency improves and automa:on grows, drivers are
ignorant of how vehicles work and, especially in fast growing economies, unaware of anything under the bonnet
Adjacent Sector Changes That Could Have Impact
Dynamic Pricing Real-‐:me consump:on paVerns and data seamlessly drive
the marginal value of products, the cost of access for adver:sing and the underlying cost to produce
Personalized Localized Informa:on is con:nuously updated to reflect current
need states and interests of the individual and provided for seamless cross-‐pla`orm consump:on
Retail Showrooms Physical retail outlets diverge in ac:vity between tradi:onal stores and showrooms where we browse and research
ahead of online purchase and at-‐home delivery
Perfectly Informed Consumers BeVer informa:on of cost, quality, benefit and availability enables consumers to set the right price for products and
services and buyers pay sellers what they want
Everything Niche Niche becomes the mainstream as the cost to connect those with common interests drops to zero and more of us can
pay aVen:on to specialist, tailored long-‐tail needs and wants
Transparent Pricing Consumers, supply chains and regulators share informa:on openly and force manufacturers and retailers to be more
transparent about costs and accountable for errors
Less Variety The future is one of reduced choice but not less interest as bricks and mortar retailers provide an increasingly edited por`olio of products through ever more efficient channels
Small and Distributed Local at home produc:on matches consump:on with 3D and digital scanning and prin:ng providing highly efficient and good quality instant physical outputs
Bridging The Last Mile The need to make public transport as flexible as private
focuses aVen:on on the first or last mile between mul:-‐modal hubs and the home / work des:na:on
Access Not Ownership Rising sustainability impera:ves and increasing cost of ownership all shiO the balance from
ownership to access and we prefer to rent than buy
Redefining Value Consumers want to par:cipate in value crea:on, shiOing the mindset to “made with me” -‐ Value is about “shared with me”
as the ownerless economy expands
Openly Shared Insight Knowledge is nothing if not freely shared as value crea:on shiOs
from insight ownership to insight use and applica:on while branded and local sources of content compete to share
Mass Customiza7on Consumers’ expecta:ons of unique and bespoke are met through the apparent delivery of individual combina:ons
drawn from choreographed choice architectures
Macro Trends Impac7ng Many Sectors
Ubiquitous Data Access We will finally be connected everywhere -‐ everything that can benefit from a network connec:on will have one and
everyone will have access to the mobile internet
Con7nuously Earned Trust Inherited and historical status of brands and icons is subsumed
into a world where trust goes to the most credible source in the moment and many fight for authen:city
Ci7es Not Countries Ci:es are more important than countries and increasingly set the standards as cultural connec:ons predominate over na:onal iden::es and urban markets group around common issues
Internet of Things Every device and consumable product has an integrated unique IP address that enables everything to become an
ac:ve node in the shared network
Peer to Peer Networks Recommenda:on and advice shiOs from experts to the crowd
as peer to peer networks dominate in an era of shiOing trust and declining respect for ins:tu:ons
Adapta7on to Climate Change As the :me to impact of renewable alterna:ves becomes clear, the world recognizes a period of increased planetary stress and we seek to beVer adapt to more extreme weather paVerns
Almost Zero Waste Escala:ng waste produc:on, changing aftudes to resources alongside new approaches, regula:on and business models
lead many to aim for the almost zero waste society
Dense Ci7es As urban migra:on increases, efficient, densely populated ci:es, not distributed op:ons, are the blueprints for more sustainable places to live
All Digi7zed By 2020 all the world’s informa:on is digi:zed, storage is nearly free and the volume of data in the world is doubling monthly –
we can all access the 21st century archive
Sector Feedback
Gaining Feedback We shared the ini:al views on emerging trends for feedback
from around the world – on which may have greatest impact , which could happen first and why.
Wider Views Feedback from car manufacturers, dealerships and industry
commentators helped to priori:ze the trends that are seen to be most likely to happen first and those that could have greatest impact
Trends most likely to happen 1. Predic:ve Remote Maintenance 2. Uninformed Customers 3. 20,000 Mile Service Intervals 4. Declining Cost of Ownership 5. Access Not Ownership 6. Transparent Pricing 7. Mobile Servicing 8. Smart Cars 9. Retail Showrooms 10. Autonomous Vehicles
Those that may have greatest impact 1. Transparent Pricing 2. Predic:ve Remote Maintenance 3. Mobile Servicing 4. Retail Showrooms 5. Digital Showrooms 6. Uninformed Customers 7. Access Not Ownership 8. Pervasive Leasing 9. Electric Car Services 10. Inclusive Service Plans
Poten7al Scenarios
The 2020 Perspec7ve From the feedback, it is clear that, sooner or later, most agree that technology will have a major impact on the service experience in providing a more connected, efficient and simplified landscape
2020 -‐ A World With: Smart cars
Electric car services
Predic:ve remote maintenance
Transparent pricing
Smaller cars
20,000 mile services
Uninformed Customers
Pervasive Leasing
Inclusive costs
Everything digi:zed
But, there seems to be two dis:nct ways in which the future experience can be delivered that have different implica:ons for
customers and impacts for the auto-‐service providers
Small and Distributed
Large and Concentrated
Small and Distributed In the ‘Small and Distributed’ scenario, we can see a world in which customer’s vehicles are maintained away from the retail space where and when they wish with maximum convenience and minimum hassle
Small and Distributed
Large and Concentrated
Customer Experience: Local and personal Mobile servicing Fast fit whenever possible Cross-‐brand support Convenient loca:ons Value-‐based pricing
Workshop Impact: More flexible approach Less frequent foo`all Just-‐in-‐:me stock access Mul:-‐skilled but fewer staff Decoupled from retail Best price parts and labor
Large and Concentrated In the ‘Large and Concentrated’ scenario, we can see a world in which customer’s vehicles are maintained away from the retail space where and when they wish with maximum convenience and minimum hassle
Customer Experience: Immersive centers Drive thru op:ons Digital showrooms Mul:-‐brand access City-‐center / mall loca:ons Compe::ve pricing
Workshop Impact: Infotainment experiences Fast priority lanes Smaller forecourts Mul:-‐brand rela:onships Integrated with other retail Best price parts and labor
Large and Concentrated
Five Ques7ons For the sector, these both raise a number of key ques:ons for the future – primarily around the speed of change but also impac:ng
issues such as control, profitability and business models
With all the data openly available, how quickly can the customer experience be reinvented?
What new approaches can be adopted to unlock new sources of value and differen:a:on?
How will margins be impacted by more transparent pricing and greater efficiency?
Will the control balance between manufacturers, dealers and workshops have to change?
What can be learnt from other sectors that have gone through similar and rapid shiOs?
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