Tim Smith, Chief Strategy Officer at Keyloop
The motor retail sector is undergoing one of the most transformative and disruptive periods in its history. Global economic and geopolitical headwinds continue to impact demand, while the sector’s evolving regulatory framework only piles on the pain.
Against this backdrop, new technology is helping dealers address myriad challenges relating to profitability, efficiency and the delivery of digital-first customer experiences. However, point solutions that address specific problems often paper over the cracks and create entirely new issues relating to data consistency and integration. Many dealers have to grapple with the implications of improperly co-ordinated systems and outdated data management practices.
Rather than more technology per se, there is a strong case for greater strategic focus on the unification of processes, systems and data across the business to facilitate improved performance, at scale.
Poor data hygiene erodes customer trust
Perhaps the biggest challenge for retailers is fragmentation; systems from different vendors fail to communicate effectively, necessitating repetitive sign-ins and data input cycles to fulfil a task that might ultimately lead to the desired outcome. We refer to this as ‘heat loss’, where data fragmentation and a lack of systems interoperability creates inefficiencies that cost retailers time and money.
Data from ‘The Crisis of Fractured Organizations’ (Forrester) shows that data silos cause employees to lose 12 hours a week, much of that spent chasing information. Siloed point-solutions also undermine customer trust and loyalty. Research from Zendesk highlights that more than 70% of consumers believe companies should collaborate on their behalf, removing the need to repeat information to different representatives.
The answer is unification; shared data sets, common architectures and platforms that connect processes rather than fragment them. A unified data system draws upon the same information at all touchpoints through sales and aftersales, underpinning a seamless experience for customers and dealer staff alike.
Retailers able to unify the customer journey reduce the ‘heat loss’ and improve the productivity of their people and processes. These benefits are amplified for those dealers scaling up their operations by taking on more manufacturers at more locations.
Using data to power AI and growth
Data must be clean, accurate, consistent and structured to provide the foundations for digital-first retailing and underpin a wide range of business-critical decisions – from what stock needs to be on the forecourt to fulfilling fleet orders, calculating financing decisions and tracking residual values.
Crucially, clean and reliable data is also essential for any AI-led process improvement. AI technology will not replace the human elements of the customer journey; instead, it can automate lower-value actions. In the context of a sales process, that means freeing up staff to focus on the more meaningful, nuanced interactions with customers further down the sales funnel. Human relationships remain vital to a retailer’s success, fostering customer trust and loyalty.
Actioning unification is the responsibility of all users across the ecosystem: OEMs, retailers, fleet providers and technology partners. Each user must align around common standards, platforms and governance to unlock efficiency and reduce friction.
The future of automotive retail belongs to organisations that simplify, connect and unify. The winners won’t be those with the most tools, but those with the most connected customer journeys, the cleanest data and the strongest human-centred processes.
If we unify, we don’t just improve the system – we redefine it
