Adapting to Change: Insights to Consider

The automotive retail industry is undergoing a rapid transformation, with significant changes in retail network structures and formats.

Here are five insights, that could support the transformation. 

1.     Within the next 5 years, we will witness a remarkable shift in retail network structures and formats. This changing landscape necessitates a proactive approach from automotive retailers to build flexible networks that can adapt to new market dynamics. 50% of the network will have changed in comparison to a few years ago. The “current” retail network will be replaced partly towards a flexible Network with the right formats and touchpoints to be able with lower structural cost to grow fast and profitable.  

2.    Tough, but even after 15 years, lead conversion remains a major challenge for automotive retailers. With the advent of new digital channels and customer expectations, it is crucial to adopt an agile customer relationship management (CRM) system, but it is not the overall functionality that is key. It is that it matches your purpose and needs. Ensure effective usage, do not neglect a channel in our growing omnichannel world. Having the right balance will be the key for success and is the ‘guarantee’ for sustainable growth. 

3.    It’s a fact: customer journeys have become increasingly complex. Automotive retailers must adapt their sales strategies to encompass the digital landscape. It is vital to have strong digital sales customer touchpoints which covers at least 75% of your target group. This requires an adapted organization that can provide flexible touchpoints, catering to the unique needs and preferences of your customers. Gaining buy-in from all involved parties will become a unique selling proposition (USP) in this evolving landscape. 

4.    The concept of the transformation towards the agency model requires the right foundation. Getting the execution right within the traditional governance structure and/or without a detailed mapping of all new interactions and/or the right skill sets will fail. The success of the transformation lies in the expertise of change management and knowledge of the details! One Team will bring success in a flexible environment. 

5.    New mobility players have emerged as significant disruptors in the automotive retail industry. They excel in implementing various network and sales strategies, covering in a different way, the aspects of the customer journey. Traditional automotive retailers can learn from these players, adopting the best practices and strategies that align with their business goals. Learning fast, staying flexible and remaining professional is key to adapting to changing market dynamics and ensuring long-term success. 

What is your view? We invite you to participate in the MSX survey focusing on the future of automotive retail. We will be sharing survey results and our insights at the ENG RETAIL & DISTRIBUTION summit on June 6TH and via our social media channels.