Drop into an OEM store to see how China is revolutionizing the way NEVs are sold with interactive VR/AR experiences
Most conversation about new energy vehicles (NEVs), not surprisingly, centers on their environmental benefits. But the growth of the NEV sector is not just about greener, cleaner vehicles. It is also about a revolution in how these vehicles, and others, will be sold - a revolution being led by China.
The country's mobile-native, next generation car buyers are not just interested in being green. They are also attracted by seamless, online-to-offline (O2O) interactions that create truly unique, personalized experiences.
Traditional carmakers may not be best placed to satisfy this desire, as they have substantial legacy processes and systems in place. Newer market entrants appear better set, as they already have direct sales at the heart of their business models in China.
To appeal to China's new generation of tech-savvy customers, many NEV makers integrate digital tools into their physical stores, enabling them to not only create personalized experiences, but also to collect large amounts of valuable data. These interactive tools include facial recognition, virtual and augmented reality (VR/AR) and specialized apps.
The typical sales experience using these technologies goes something like this:
A customer enters a new, state-of-the-art brand store operated by an original equipment manufacturer (OEM). A sales specialist welcomes the customer, and together they proceed to a video screen displaying the OEM brand and its products. The customer is then invited to use VR/AR to experience various scenarios, including the creation of their personal vision of their ultimate vehicle. VR/AR also allows the customer to experience a "drive" in this ideal car in any chosen scenario, from a starlit desert safari to a neon-infused city street.
By providing such interactive experiences, an OEM is not just selling products, it is capturing buyers' imaginations and stimulating their thirst for new experiences.
The process is typically realized through a combination of hardware (sensors) and software (algorithms). The data collected - such as how long a customer lingers on a particular car color, feature or configuration during the interaction, or the area of a store in which they spend the most time - can be fed back to R&D and marketing teams.
Mobile apps are becoming more than just "one-stop shops" for vehicle sale, use and service, contemporaneously enabling OEMs to offer customized interactions and services, even if the customer does not purchase a vehicle.
Through seamless, unified O2O store+ app experiences, customer interactions are unconstrained by time or physical location. Some NEVs have introduced user-friendly user interfaces and user experiences (UI/UX) design and layered social tools on top of their apps' functionality. This can extend engagement. The longer a customer is engaged, the "stickier" they will become, and the more data an OEM will be able to collect.
NEV OEMs in China are also developing central customer interaction centers (CCICs) to pull together priceless data gathered at every touch point of the customer experience.
CCICs enhance every step of the customer journey, from lead cultivation and online advertising to purchase contract signing and vehicle handover, maintaining the data within a single system.
Using this information, a CCIC can identify high potential customers and refer them to physical stores, facilitating O2O conversion. They can also undertake administrative work, leaving store staff to do what they do best - sell vehicles - and improve efficiency.
For example, if a sales consultant is not able to deal with a customer because the consultant is otherwise occupied in-store, the CCIC can be automatically notified to take over the interaction until the sales consultant is ready to deal with the customer, recording every aspect of the interaction so the consultant has everything they need to continue the sales process. This seamless experience is equally as effective whether through a hotline, live chat, app or in-store.
CCICs are also particularly effective in collecting information from OEM franchisees. Used properly, they offer full transparency on stores' key information, including but not limited to daily traffic, lead generation, and customer satisfaction with various phases of the sales process.
This can be used to incentivize franchisees, for example by evaluating customer satisfaction to boost commission and bonuses for the best performers.
The best have realized that however good an AR/VR interaction or app may be, if it is not connected with other parts of the experience, it will not paint a full picture of what customers want. Thus, data collected from every touch point must be collated under a single customer ID. These aims are best served by a CCIC or "central brain" approach.
The author is consulting partner of Deloitte China. The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.
Editor:Cheire
