As the automotive industry undergoes significant transformation, the integration of digital and personalized customer interactions becomes paramount. While completing a purchase entirely online is not yet the norm, digital touchpoints are already shaping consumer decision-making.
To stay competitive, OEMs must navigate this shift with a keen focus on emerging trends and technologies. Here’s a comprehensive look at key insights driving the future of automotive e-commerce.
Redefining the customer journey
The traditional car-buying process is evolving, with digital platforms now playing a central role. Consumers are becoming more online-savvy and expect seamless, personalized experiences throughout the entire customer journey.
- E-commerce Acceptance: The rise in online purchases signifies changing consumer behaviors. 60% of customers find their car online, while only 40% choose the traditional way through the dealership (Source: Foundever 2022). This highlights the increasing importance of digital platforms in the car-buying process.
- Omnichannel Strategy: Despite the digital shift, offline channels remain essential. A balanced approach that combines the ease of digital access with personalized, face-to-face interactions is crucial.
AI as a driving force
Artificial Intelligence is a critical enabler of digital transformation, impacting both consumer and OEM interactions.
- Consumer Experience: AI-powered features such as virtual test drives and customized recommendations enrich the digital shopping experience.
- OEM Benefits: AI enhances marketing efforts, optimizes campaign management, and improves lead qualification. In fact, AI-driven predictions of car-buying behavior and targeted engagement lead to a 17% increase in conversion rates (Source: Rock.co 2024). This demonstrates AI's significant role in streamlining sales processes and boosting revenue.
Evolution of business models
New business models are reshaping how cars are marketed and sold, particularly in the realm of electric vehicles (EVs).
- Subscription Services: These services appeal to younger demographics, offering flexibility and new market expansion opportunities. Notably, 78% of automotive subscription service users are under 40, and 50% of them had never driven a new car before signing a subscription contract (Source: BCG 2023). This indicates that subscriptions are opening the market to new customer segments.
- Digital Marketplaces: Subscription models and third-party marketplaces are driving online automotive sales, making vehicles more accessible to new customer segments. Leasing plays a key role in this shift, with a significant portion of EV sales happening online due to flexible leasing options. Additionally, certain customer groups will only purchase a car if it's available online. To support this growth, OEMs must focus on online-ready products rather than simply transferring offline processes to digital platforms.
Preparing for a digital future
To remain competitive, OEMs must embrace innovation and commit to digital readiness. This involves:
- Enhanced Digital Strategies: Adapting to evolving expectations with a seamless integration of online and offline experiences.
- Customer-Centric Focus: Keeping customer experience at the forefront, ensuring technology enhances personalization and satisfaction.
By understanding these trends and adapting accordingly, the industry can thrive in this new era of digital advancement and personalized customer interaction. Success will hinge on the ability to balance cutting-edge technology with the inherent value of human connections in the automotive purchase journey.
A glance behind the curtain: our research
This article is based on our comprehensive automotive e-commerce study, which delves deep into the industry trends and digital transformation strategies. Our research covers key areas such as digital sales models, delivery excellence, and the growing impact of AI-driven customer engagement. At diconium, we are committed to delivering data-driven insights and actionable strategies. If you would like to explore our research findings in detail and discuss specific implementation opportunities for your business, we would be happy to connect.
In our study on automotive e-commerce, we shed light on the “engagement ecosystem” - the sweet spot between OEMs and customers. We combine in-depth expert knowledge, current trends and practical strategies to provide you with guidance in a complex and dynamic environment. Would you like to know more? Then get in touch with us.