This article is part of our 'What makes a configurator that converts?' insight series.
The retail arm of the automotive industry is undergoing a period of unprecedented transformation, with a number of key challenges forcing a departure from the status quo. Profit margins are set to be squeezed to levels not seen since 2010 (Bain and Co., 2023), putting immense pressure on original equipment manufacturers (OEMs) to cut costs.
Meanwhile, digital channels have transformed car-buyer behaviour, with only 28% of customers visiting a dealership to begin their research (Teads, 2022). This shift has also led to soaring customer expectations, with two-thirds of car buyers seeking out enhanced digital tools to provide a more seamless and streamlined purchasing experience (Capital One, 2023).
The increasing focus on electrification has further complicated matters, with many consumers seeking out more information and reassurance when buying an electric vehicle compared to a more familiar internal combustion engine vehicle (EY, 2022).
To address these challenges, you should turn to a more efficient and effective digital-first retail model, with a high-performance omnichannel configurator at its heart.
Our in-depth report offers four key recommendations for OEMs looking to optimise their configurator experience and transport customers closer to conversion. These recommendations include:
By embracing these recommendations, you can create a high-performance omnichannel configurator that meets the needs of modern car buyers, reduces cost of sales, and helps boost overall conversions.
Bain and Co. (2023): 'Automotive Profitability: How OEM and Supplier Margins Are Faring'
Teads (2022): 'EV Consumers Still Need Education as 42% Don't Understand Full Benefits of Buying an Electric Car'
Capital One (2023): '2023 Capital One Car Buying Outlook'
EY (2022): 'How electric vehicles are reshaping the car buying journey'