Cognizant’s Head of Innovation Says Businesses Must Have Customer Insights
“It is well-documented that both the automotive and retail industries are undergoing major disruptive transformation,” says Prasad Satyavolu. “Not only are new players entering the market and creating competitive tension as they tempt buyers away from traditional providers, but new business models are being created due to the speed at which products and services can now be ordered, dispatched and consumed.” Extracts:
“Traditional automotive businesses are under pressure on multiple fronts to reduce costs, improve fuel efficiency, lower emissions and become more software-competent.
Many manufacturers are partnering with technology providers to stay ahead of the fast pace of evolution, racing to be the first to launch the first fully connected car, or the first driverless car.
New car-sharing platforms, such as BMW’s DriveNow, are likely to become more commonplace, demonstrating an additional way that manufacturers are attempting to respond to changing consumer habits and ensure their business is not falling behind the new age disruptors.
The automotive sector has always depended on dealerships to deliver a great customer experience and understanding of its customers. Social platforms are becoming a first stop information seeking channel, in much the same way as retail eCommerce.
The analytical insights on consumer behavior and presence gained from these platforms helps organizations make more informed decisions.
Retailers are also experiencing similar shifts as they seek increased direct access to their customers to better understand them. There has already been significant progress in this field, particularly due to insights accrued from loyalty cards and online shopping, influencing brand strategy and merchandising decisions.
Both industry sectors are facing challenges around how to engage the consumer as they seek to make a purchase, specifically the notion that having does not necessarily mean owning, as we have seen from increases in streaming services such as Netflix and Spotify.
Automotive organizations are starting to get a grasp of this by renting vehicles through new services, but firms across both sectors must respond to these changing demands to ensure that they meet consumer needs.
The reality is that the increasing amount of data available and ability of businesses to analyze said data, is giving rise to new entrants into the market, creating additional competition for consumer attention.
Businesses need to ensure they have the customer insights and business agility in place to ensure that they can respond to changing industry dynamics.”