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Technology is Affecting Premium Brands and Dealers

June 12, 2018 0 Comments

With growing technology comes increased consumer expectations, especially when it comes to premium brands.

That’s according to the Harvard Business Review who says premium brands and dealerships need to step up their game or step out of the game completely.

For instance, premium brand marketing and sales is traditionally emotional, but with emerging technology, emotional will turn to experiential.

In a survey by Virtual Reality News they found 82-percent of car buyers would like to view cars by virtual and artificial reality. And 65-percent say they’d be more likely to go to a dealership that had this technology.

When it comes to the car buying journey, premium car-buying consumers average about 8.9 touch points before buying. 60-percent of those touch points happen online. Although most dealerships are doing online marketing, the Harvard Business Review says if premium brands don’t lead the way in emerging online retail and e-commerce technology, they will slip out of the public eye.

Implementing technology doesn’t just fall on the dealerships. Premium OEM’s are feeling the pressure as well.
In research by Morgan Stanley, premium car buyers view hardware as 90-percent of the total value of a car. But in the future hardware will only account for 40-percent of the value where software will account for the other 60-percent.

Premium cars are already known for increased software and tech, but these studies show if they aren’t creating new technology, consumers will start to feel these brands are average.

Thats your tech news from drivingsales.Com.
Let me know if there’s something you want me to look into inside the auto industry.
For DrivingSales News, I’m Sherri Riggs.

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