The automotive industry is a crazy place to be right now. The disruptive Uber-isation of the industry has presented itself with many challenges and rewards. It is now easier than ever to get from point A to point B, with more choices available. As with other industries, disruption will lead to obsolescence (for example, taxi drivers are leaving in droves).
Electric vehicles, subscriptions, self-driving cars, companies threatening the dealer model, and more, we’re going to be seeing changes in the way vehicles are owned, sold, and serviced.
In a recent interview with Jeff Bezos, he said, "If you think about the auto industry right now, there are so many things going on with Uber-isation, electrification, the connected car — so it's a fascinating industry,"It's going to be something very interesting to watch and participate in, and I'm very excited about that whole industry." The Amazon CEO is investing 700 million dollars in automotive technology.
Warren Buffet sees opportunity as well. He’s actively acquiring dealerships.
Adapting to change will be the biggest differentiator for success in the industry. Subscription services haven’t taken off like some thought they would years ago, but if or when they do are you prepared to adapt and go full steam ahead with a subscription model for your customers?
Regardless of the changes that will impact this industry, relationships has been a constant. People want to trust the sales person and the dealership they are purchasing a car from, and this is a good place to invest your resources. Developing a strong CX strategy and executing on it will help you bolster your organization against dealership threats.
As we have seen with the evolution of the internet it is as important as ever to train and develop best practices to take your dealership to the next level in sales, marketing, and customer service. If you are lacking in one of these areas you will struggle to obtain a large portion of any market. Constantly be adapting and changing how these operations are interacting with each other as well as the customer and you will set your dealership up to be successful now and in the future. The best businesses, and industries, are ready to respond to change as soon as they see it.
With Jeff Bezos and Warren Buffett being so optimistic about the future of automotive it is only appropriate that we do the same and embrace the change we are about to see in the industry.