Introduction
The Middle East and Africa is a diverse region with varying levels of consumer behaviour and technology adoption. However, the similarities are greater than the differences and one thing holds true: consumers – wherever they are – are increasingly demanding when it comes buying and servicing their cars.
So how do retailers not only capture consumer interest, but turn this into a long-term relationship that will reap long term benefits?
How will you keep up with customer expectations in 2024?
Consumers across the Middle East and Africa (MEA) like to do more than visit a showroom. They like to research and purchase online and – in the Middle East especially – do so on the go via an app. For many automotive businesses this means embracing digital transformation.
Yet ‘digital transformation’ covers a huge range of possibilities, and what it means for one business can be completely different to another. It’s important to have a clear picture about what you want transformation to deliver – especially when the aim is to deliver an exceptional customer experience, not always easy as we serve some of the most sophisticated consumers on earth in the MEA region.
To deliver, retailers need a deep understanding of the technology available, how it can be used, and what it can achieve, and our role at Keyloop is to help the industry harness the power of Experience-First to help transform every customer touchpoint.
Getting transformation ready
Change management must happen across teams before a new solution is implemented. It is just as much about the people being digitalisation-ready as it is about the tech being ready.
As well as investing in new technology, retailers need to manage significant changes in how business is conducted if a digitalisation strategy is to really work.
Change management must happen across teams before a new solution is implemented. It is just as much about the people being digitalisation-ready as it is about the tech being ready.
As a global automotive leader, Keyloop guides its customers through technology trends and market changes, sharing knowledge and insights to help them visualise their digital transformation journey, what it will involve, and where it will take them. We show them the different steps and help them determine the impact and the value of each stage to their business.
In the Middle East, especially in the GCC countries, most of our dealerships are part of large family-owned, portfolio businesses. These businesses will have advanced technology departments, led by super-informed CTOs who are used to dealing with enterprise software platforms. They know what they want in terms of performance and deliverables and are seeking premium solutions. So, when it comes to deploying automotive technology for their dealerships, they demand specific and deep sector knowledge, streamlining and efficiencies and forecasting to drive their businesses in into the future. Their expectations are high because customer expectations are sky high.
Elsewhere across MEA, such as in South Africa, businesses are not necessarily family owned, but are part of large, networked franchises, with technology departments used to working with global software platforms. Like their peers in the Middle East, they are seeking a technology provider with deep specialist support and the ability to unlock customer loyalty and growth.
Ours is an innovation-ready region
This is a region that is quick to try and adopt emerging technologies, both from a retailer and customer point of view. Often to early adopters, smart tech implementation can be a key success factor in customer experience and retention. It is certainly something retailers should, and do, showcase.
The power of AI is the one of the biggest discussions we are having with automotive retailers currently, with two stand out areas: chatbots and data analysis.
Retailers want to deliver a more intelligent chatbot experience, with the ability to provide recommendations, connect customers with the right departments, and help underpin the final sales decision. They also want AI to help improve customer data analysis, to automate and deliver a highly personalised experience, whether it be messaging, car configurations, or upsell recommendations such as finance or insurance.
The power of AI is the one of the biggest discussions we are having with automotive retailers currently, with two stand out areas: chatbots and data analysis.
Connected cars, and how we link the customer, OEM, and retailer, are also being explored across MEA, especially when it comes to predictive maintenance. Technology can now predict when a car needs work or when the car might face an issue. By joining the dots, retailers can proactively communicate with the consumer to alert them to maintenance required, book services, and more. It is another level of customer service that is a key pillar in building long-term relationships.
These technologies are not unique to our region, even if we are rapid in our adoption of them. However, we are also pushing the boundaries as an industry when it comes to innovation. I recently visited a customer in Saudi Arabia who was showcasing a car ‘scanner’ – not dissimilar to airport scanners – as part of the car service. The scanner reduced the service diagnostic time to three minutes, instead of 30, delivering a detailed and actionable report. Truly cutting edge and demonstrates the heights retailers want to go in order to stand apart.
Dealerships are busy places. Where efficiencies are lacking in process control and data management, automotive retailers need solutions that will help find and fix the gaps.
Consumer expectations are high – and first impressions matter
This Middle East market is one of high vehicle turn over, especially in the GCC countries. I estimate that consumers exchange their vehicle every two years, sometimes more frequently. It is also a digitally native, mobile-first region. These are customers that not only know their cars but know how, where, and when they like to be looked after. And their expectations are exacting. Dealers must capture their loyalty, and keep capturing it, if they are to maintain custom amongst a group who are increasingly happy to vote with their feet and fingers. Consumers across the vast MEA landscape have widely varying needs, from car spec to budget available, when it comes to choosing and servicing their vehicle of choice. But they also all have one thing in common: they want an exceptional, relevant, and personalised buying and aftersales service experience, and increasingly, this is driving their purchase decisions.
Almost no-one today walks to a showroom without having any idea of what they are looking for. Buyers will have done some research, based on their preference, spec, or budget. When they do walk into the showroom, they want clear and specific answers to their questions from experts. The same applies if their first interaction is over the phone or online. This first impression is critically important in building an immediate and long term relationship.
And these high expectations only grow from this starting point. For example, if a customer goes to book a test drive, they expect confirmation of availability straight away. When they arrive, they don’t want to wait for an extra 15, 20 or even 30 minutes – they want to walk in and get straight behind the wheel. Getting these key touchpoints right is increasingly becoming the difference between conversion or seeing a customer go elsewhere.
And expectations of the aftersales experience are no different. Today’s buyers expect to receive an automated message to remind them when their car is due for service. Even better, their dealer offers a choice of suitable dates and times. They expect somebody will collect the car and then drop it back to them. An omnichannel CX is everything.
Most car buyers in MEA are digital natives, and they expect buying or servicing their car to be like every other retail interaction they make.
Many consumers now conduct most of their purchasing online, however; not all dealers have the payment technology to offer this. Buying online may be an option, but the ability to complete the purchase is not universal.
It is still common for this to take place in the old-fashioned way, with a buyer coming to the showroom to pay by cheque or bank transfer. This is changing as car finance deals, leasing, and hire purchase become more common in the region and is something retailers and customers would like as standard in the future.
An Experience-First approach builds customer loyalty
The right digital transformation will help dealers enrich the customer journey, not only attracting new customers, but also building loyalty within their existing base. This is particularly relevant in a region where vehicle turnover is high; maximising customer lifetime value is extremely important.
This is also a region where word of mouth has real impact. We often see loyal customers bringing family members in as new customers, helping to increase market share and loyalty.
All this means that automotive retailers in MEA have a real chance to build trust and long term loyalty amongst their customers. A key tenet of Experience-First is that retailers need to move away from function-out mindset, where selling a car is the focus, to an experience-in mindset where the focus is on long term relationships.
Retailers need to be proactive in reaching out to the customer: communicating with them about offers, services, initiatives, activities, and events that maintain customer loyalty, as this will reap rewards.
Three things that consumers are looking for right now.
Throughout the MEA region, customers are looking for three main things from their dealers:
|
|
|
|
Of course, what consumers are expecting and what dealers are delivering can often be two different things. Which is why our focus at Keyloop is on Experience-First, empowering automotive businesses to adopt, implement, and get the best out of the technology that enables them to deliver a seamless customer journey.
Read the full whitepaper here.
Key Takeaways:
