User generated content receives a special meaning in used car forums, blogs and social media platforms. Used car customers award a higher credibility to this sources than to advertising, brochures or sales talk. Sales expert Thomas Dmoch presents market research, best practices examples and factors for successful contact with used car customers whose purchase decision is mainly influenced by the judgment of other customers, i.e. eers from social media platforms.

1. Customer Management in Used Car Business
Leveraging Customer Engagement by seamless Processes
Thomas Dmoch

2. # 1 New technology creates new customers.
# 2 Customers force vehicle business to go digital.
# 3 Today’s UC business is not sustainable.

3. 3
Customer Management organizes exchange relations.

4. New technology
creates new
customers

5. 5
The traditional dealership is dead.

6. 6
Customers trust online reviews more than car dealers.
2003 2004 2005 2006 2007 2008
60%
Trust in „a person like me“
30%
“Russian soldiers are not
present in Ukraine.
““I had no sexual relation
with that women.
“
“This is a quality car.
““The Vodafone compensation
was totally appropriate.
“

7. Recognize how
customers force
vehicle business
to go digital.

8. 8
The internet turns the sales funnel to an interactive one.
In former days
purchase
various brands
fewer
choice
Today: interactive
consider
compare
replace
use
purchase

9. 9
Consumers interact in the internet in various ways.
event
input
appeal
comment
upload
Today: interactive
consider
compare
replace
use
purchase

10. 10
The internet
is the first entry point for
purchase research.
Online interaction strongly influences purchase decision.
Today: interactive
consider
compare
replace
use
One out of three
buyers gets inspiration for
additional brands online.
24%
of buyers consider
online reviews to
be most helpful in
deciding where to
make their
purchase.
Every customer used the internet for information
at least once before purchasing an used car.
1.8dealerships visited
before purchase,
compared with
3.6in 2008.
75% of used car buyers sharetheir
purchase experience online.
purchase
73%of customers consulted
online reviews
of dealer-
ships.

11. 11
Dealers can’t influence purchase decision any more.
Play Bowling:
A clear shot!
In former days
purchase
choice
various brands
fewer
Play Pinball:
Keep the ball in the game!
Today: interactiveToday: interactive
consider
compare
replace
use
purchase

12. 12
Service of Online Portals exceeds Brick-and-Mortar.
Online portal Brick-and-mortar
Contact
Consider
Vehicle presentation
Need analysis
Comparison offer
Human interaction
Financing
Insurance
Test drive
Contract
Warranty
Interaction with other
customers
Customer service
Loyalty program
Customer
satisfaction
Purchase
Use
Measures
Provide online brochure
Warranty reminder
Replace
Configurator
Video chat
Detailed pricing information
Schedule test drive
Offer for financing
Online insurance contract
Offer for service contracts
Loyalty program
Facebook account
Certified quality
Compare
Opinion on test drive

13. 13
Dealers could win customers picking up their digital habits.
1 Interactive touch screens to view car information
2 3D virtual vehicle configurator
3 Virtual test drive stations
4 Availability of digital information in showrooms
5 Send information to the iPhone
6 Digital shopping assistant helping with questions

14. 14
But to be perfect the service has to cross boundaries.
- 14 -
Measures
• Joint activities of OEM, captive
bank and retailers
• Higher margins for demo cars
and one-day-registrations
• Attack the segment of 3-to-6
year old cars
• Appreciate residual value as
part of the brand value
• Exclusive distribution of the
manufacturer’s leasing returns
• Linking of existing instruments
• Raise residual value
• Qualify dealers in operational
processes
• Transparency
• Inventory management
• Price comparisons
• Marketing controlling
• Transversal and national
coordination
operative strategic

15. Acknowledge
that today’s
vehicle business
is not
sustainable.

16. 16
Alternatives to dealer for vehicle purchase.
Directly from manufacturer
(e.g. call center, Website)
Independent online vendors
(e.g. Amazon)
Retail store
(e.g. Metro, Sears)
Car rental company
Auction service
I would only buy from a car
dealership
42%
21%
18%
17%
17%
21%

17. 17
Standardization
Customer
Management
Multichannel
Management
Customers expectations are formed by other branches.
Customer data sharing
Intra-system reward trading
Status acknowledgement
Transparent stock
Brand Experience
Customer interaction
Success factorsBest in class
Automotive
industry

18. 18
Standardization
1
Three levers to improve used car business.
Customer
Management
Multichannel
Management
Requirements Target picture
2
• Prospecting
• Customer care
• Up-selling
• Sales funnel management
3
• Seamless customer
experience
• Across all touch points
• Strong brand
• Workflow management
• Homogenous processes
• Data transparency
• One frontend at POS
Levers

19. 19
One layer bridges all OEM business areas and retail.
Dealer Service Call Center Online
Point of sale
One common layer
(Unified sales platform)
New Car Used car
Financial
Services
Aftersales
Corporate
Sales
Business areas
OEMRetail

20. 20
Retail CRM contains entire customer contact history.
DMS
OEM
Wholesale
CRM
Digital Car-Net OnlineCall CenterKUBA
Central touch points
…
Synchronized
customer follow up
Unified Service
Platform
Retail CRM
Retail

21. 21
Look ahead.
1. Improve customer experience above all touchpoints.
2. Rationalize customer management by seamless processes.
3.
Create service bundles with captive bank, retail and
aftersales.
4. Create transparency of inventory and pricing.

22. Dr. Thomas Dmoch
T (mobile): +49 174-1720028
E (Home): Thomas.Dmoch@Web.de
Internet: www.dmoch.info