The automotive industry faces a transformative decade marked by continuous challenges including the requirement to reduce carbon emissions and post pandemic mobility still not reaching previous levels, with greater flexibility a core requirement for the decision-making unit. Furthermore, new government legislation, notably changes to Internal Combustion Engine (ICE) regulations by 2030, is resulting in an impact on decision-making within new fleet generations. These challenges (among many) mean the industry is grappling with unprecedented levels of change. The transitioning to electric vehicles (EVs) encounters obstacles related to planning, costs, and practicality, while inconsistent vehicle supplies and aging fleets complicate fleet strategies. Rising ownership and maintenance costs add further complexity.
Amidst these challenges, technological advancements (particularly automation and AI in fleet management) are reshaping the industry. Trends like data connectivity and remote services, along with advancing autonomous driving technology, are redefining the role and of vehicles.
Broader macro trends, such as sustainability, underscore the need for a balance between commercial, social, and environmental considerations. Legislative efforts, like the EU's focus on greenwashing, highlight the importance of genuine sustainability commitments.
In response, automotive businesses are focusing on futureproofing experiences, emphasising integrated buyer journeys that connect digital marketing with franchise sales, leasing, and fleet management. Personalizing these journeys for decision-makers, especially Gen Z and Millennial leaders, accelerates deal cycles. Understanding decision-maker motivations and exploiting behavioural data are crucial for staying competitive. In this blog we’ll look at how, by embracing innovation, sustainability, and customer-centricity, businesses can thrive in this transformative automotive landscape.
Macro trends shaping decision-making
Sustainability under scrutiny
In the dynamic landscape of the automotive industry, macro trends have profound influence on decision-making processes. Sustainability has emerged as a focal point, compelling businesses to navigate a perpetual cycle of forensic reporting. The mounting pressure of Scope 3 emissions adds an additional layer of complexity, posing challenges that can be daunting to control. In response to these challenges, there is a growing emphasis on embracing the sustainability trilemma—a delicate equilibrium between commercial viability, social responsibility, and environmental consciousness.
The European Union is actively planning legislative measures to counter greenwashing, reinforcing the industry's commitment to genuine and impactful sustainability practices. As businesses grapple with these macro trends, the automotive sector is poised for a paradigm shift, ushering in a new era where environmental considerations and social responsibilities are integral to strategic decision-making.
Every business is a tech business
Automation and artificial intelligence (AI) is unlocking unprecedented possibilities. The CTO/CDO's growing influence within the Decision-Making Unit (DMU) underscores the pivotal role of technology in shaping strategies. Simultaneously, the adoption of tokenisation and digital IDs is revolutionizing customer relationships by facilitating secure and efficient digital interactions. This tech-driven evolution is crucial for navigating the industry's complexities, emphasising collaborative synergy between technology leaders and decision-makers.
Productivity, cost and resilience
Efficient system and data integration, along with automation and AI, are pivotal for maximising existing technology investments in the automotive industry. Operating within static or reduced budgets is met with an adaptive approach through hybrid working models. The industry faces the challenge of managing supply chain disruption, requiring agile responses. Fuel price volatility and the expansion of Ultra Low Emission Zones (ULEZ) underscore the need for sustainable and cost-effective mobility solutions. In this dynamic landscape, the automotive sector is required to innovate and adapt, leveraging integrated technologies to overcome budgetary constraints, address supply chain uncertainties, and meet environmental considerations.
B2B audience dynamics
Millennials and Gen Z's increased presence in boardrooms and the DMU is rapidly reshaping brand experience expectations. The emphasis on "doing good" and purpose has become integral to decision-making, highlighting the need for businesses to align with evolving values in order to meet the expectations of these influential demographics.
How to futureproof experiences in automotive
Create integrated buyer journeys that matter
Futureproofing experiences in the automotive industry involves creating integrated buyer journeys that resonate. This means engaging decision-makers on their terms, leveraging data, technology, and digital channels during pivotal moments. Empowering decision-makers by providing access to highly tailored content and services, places them in control. This approach is particularly effective with Gen Z and Millennial decision-makers who seek authentic engagement with brands aligned with their values and purpose. Ensuring these journeys seamlessly connect digital marketing efforts with franchise sales, leasing, and fleet managers creates a meaningful holistic experience.
Our Superpowers Index research highlights the impact of getting these journeys right. Meeting customer expectations in this way can accelerate deal cycles by an impressive 25% and potentially double the average deal size. By prioritizing perzonalised and value-driven interactions throughout the decision-making process, automotive businesses can not only meet, but exceed the expectations of the modern consumer, securing a competitive edge in an ever-evolving market.
Drive competitive advantage through insight
Driving competitive advantage through insight in engaging with the Decision-Making Unit (DMU) is critical. Success relies on understanding current and future decision-makers' motivations and needs, enabling brands to craft compelling offers and content. Digital and technology roles, along with sustainability roles, are increasingly influential in the automotive DMU. Pinpointing specific decision drivers is imperative, potentially determining the outcome between winning and losing.
This insight is crucial, given our Superpowers Index research findings that over the last two years, the average number of brands considered in a buying decision surged by 58%. The decision process extended by approximately 3.5 weeks, now averaging 350 days. In this landscape, the incumbent loses out in over a third of decision journeys, a notable increase from 29% the previous year. In this competitive environment, businesses must leverage insights into decision-makers' preferences and industry trends to stay ahead in the automotive sector.
Use behavioural data to increase value
Leveraging behavioural data to enhance value is crucial in addressing challenges such as longer sales cycles, intensified competition for buyer attention, and more intricate business needs. Campaigns and experiences must adapt, responding to incremental data capture and real-time customer behaviour.
Behavioural data proves instrumental in further personalizing experiences for automotive companies, providing insights and opportunities for franchise sales, leasing, and fleet managers to engage customers and guide conversations. This relationship and contact strategy extend well beyond the point of sale, connecting individuals with the services they need, generating heightened satisfaction throughout the fleet and customer lifecycle. In a landscape where perzonalisation and adaptability are key, leveraging behavioural data emerges as a strategic imperative for automotive businesses to not only meet but exceed the evolving expectations of decision-makers within the DMU.
Within the Decision-Making Unit (DMU), each individual's expectations are evolving, shaped by industry trends, wider macro-trends, personal experiences, preferences, and convictions. By focusing on these key decision drivers, automotive businesses can navigate logistical, legislative, and industry-wide challenges to provide an experience that delivers real results.
