Digital hits the road The more digital car buyers become the more they miss the showroom OEMs need to raise their game both online and off 1 For today s drivers purchasing a car should be much like buying any other consumer product a swift convenient and cost effective exercise in online self service1 New Accenture research reveals that only one third of customers who bought a new car in the past five years would do so again from a standard dealership in the future Most prefer different options regardless of whether they are premium or volume customers2 Our research also reveals a paradox the more digital car buyers get the more they seek a rewarding physical experience Indeed early adopters of new technologies digital natives visit car dealerships more often than digital laggards Having made their decisions online they have very specific reasons for their visit to a store They want the excitement of the showroom and to be really listened to and understood 1What Digital Drivers Want Accenture 2016 2Accenture surveyed a representative number of private car buyers in the US China and Germany in spring 2016 About the survey Accenture s research was carried out in spring 2016 as an online survey in three major automotive markets US China and Germany The survey participants are a representative number of private car buyers in each market who had purchased a new car in the past five years 2 THE MORE DIGITAL CAR BUYERS GET THE MORE THEY SEEK A REWARDING PHYSICAL EXPERIENCE Liquid Expectations All of which suggests that if OEMs could collaborate with dealers to offer more engaging offline customer experiences while leveraging more active online options and ensure that customer geniuses are on hand in both channels they could control the customer interface more effectively and fend off the new entrants whose platform business models have already disrupted the second hand car market Such a shift from product to customer centricity and from passive online information provision to active online consultation would mirror what has already occurred in other retail spaces where providers struggle to retain control over the increasingly liquid expectations of their customers 3 THE DIGITAL PARADOX Despite their online enthusiasm car buyers still seek a personal touch Sixty percent of all digital natives visit the dealership more than twice before making a purchase Only 47 percent of digital laggards do the same However customers don t believe that in person interaction is necessary at every step 49 percent of respondents would use or would strongly prefer to use a digital channel for purchase advice as long as it was neutral For every purchase customers visit the dealer only two to three times including to sign the contract and to handover the vehicle see Figure 1 VOLUME CUSTOMERS PREMIUM CUSTOMERS OEMs have traditionally regarded premium customers as more demanding than volume customers But our research shows that both premium and volume customers have much the same expectations when it comes to the sales process Moreover customer experience not product is the critical differentiator For example in person interaction with sales staff is of equal importance to both customer types see Figure 2 Figure 2 How important to you is in person interaction with the sales staff during the buying process Volume CustomerPremium Customer 3 012 94 Copyright 2016 Accenture All rights reserved Scale 1 Not important at all 2 Nice to have but ok if doing through mail phone 3 Important to have somebody to talk to in person 4 Essential in every step REGIONAL DIFFERENCES COMPLICATE THE PICTURE There are clearly regional variations in retail format expectations While in Germany and the US the standard dealership is still an important first option for 45 percent and 35 percent respectively most car buyers would prefer a different format And Chinese car buyers have a strong preference for flagship stores see Figure 3 Copyright 2016 Accenture All rights reserved Digital Laggards Copyright 2016 Accenture All rights reserved Figure 1 How many times did you visit the location where you purchased your vehicle during the buying process US and German customers prefer a standard dealership In the future standard dealerships will be complemented by flagship stores Especially for Chinese male urban and digitally savvy customers Figure 3 Only one third of customers want to buy their car at a standard dealership in the future 2 28x Digital Natives 2 45x 4 CAR BUYERS ARE LOOKING FOR CUSTOMER GENIUSES WITH REALLY DEEP PRODUCT KNOWLEDGE ONLINE AND OFF 5 Figure 5 Which reason would most motivate you to buy a vehicle online in the future Copyright 2016 Accenture All rights reserved Figure 6 Customers expect a Customer Genius with high knowledge of the product who is able to listen to them DIGITALLY EMANCIPATED CUSTOMERS ONLINE OUT OF CONVENIENCE AND PRICE Almost all car buying decisions are now made online and as technology advances digital threatens to take over th