Customer experience in automotive 2024

High standards of customer experience (CX) are raising consumer expectations, but the automotive industry is lagging behind compared to other sectors.

Joining the race: Automotive’s drive to catch up with customer experience ­– a new report from the Capgemini Research Institute – highlights the importance of CX in the automotive industry and suggests ways for industry leaders to improve it.

The report reveals that in a survey of 13 major consumer industries, auto manufacturers and dealers are ranked 9th and 11th, respectively, for CX. Consumers are more satisfied with the overall experiences provided by physical and online retailers than they are with their experiences with vehicle manufacturers and dealers.

The automotive industry not only has significantly lower customer experience compared to other consumer-facing industries, but there is also a notable gap between customer and executive perceptions of CX. While 48% of consumers consider brand reputation a key factor in their vehicle buying decisions, 73% of executives believe it to be the top factor. This misalignment contributes to widespread dissatisfaction among consumers with their vehicle brands or mobility providers.

About three in four consumers are unhappy with the bundled services offered by their brands, and nearly as many report inconsistent experiences across various channels, including apps, websites, and in-person interactions, from pre-purchase to aftersales.

Consumers today are seeking an experience that is hassle-free, digitalized, and sustainable. However, this ideal experience remains elusive to the automotive industry. Nearly half (48%) of consumers are likely to subscribe to a vehicle or mobility service, but the industry underestimates this interest, believing it to be only 33%.

CX is important for brand loyalty. Our data indicates that 52% of potential car buyers are uncertain or unhappy with their current automotive brand, and 57% who are displeased with post-purchase services consider switching brands within 6 to 18 months. However, by prioritizing customer experience improvements, automotive brands and dealerships could see significant financial gains – between $20 million and $70 million annually based on sales volumes around 500,000 vehicles.

Only 18% of organizations in our survey have a coherent CX strategy, and less than one-third of respondents consider CX to be an organization-wide strategic priority. It is also interesting to note that most organizations have yet to harness the full CX potential of AI. Organizations need to bridge the gap between CX expectations and reality.

To achieve excellence in automotive CX, industry leaders adopt several key practices: Design comprehensive experiences encompassing all phases from pre-purchase to repurchase; offer extensive mobility services simplifying car ownership; leverage consumer data for better insights and stronger connections; build a brand ecosystem engaging customers beyond just vehicles; foster loyalty through community involvement, exclusivity, and meaningful rewards; provide cutting-edge digital experiences; and employ AI for a personalized and frictionless customer journey.

Download the report, Joining the race: Automotive’s drive to catch up with customer experience , to learn more.