The document provides an overview of disruptive forces facing automotive dealerships and scenarios for their survival. It discusses 6 disruptive forces including digitization of the car sales journey, changing customer expectations, rise of mobility services, decreasing need for car ownership among younger generations, advancements in electric and autonomous vehicles, and declining dealership profitability. It then outlines 5 elements of the dealership experience that may not be disrupted like test drives, used car sales, service, human touch, and good customer experience. Finally, it proposes 10 survival scenarios for dealerships with examples including experience centers, digital showrooms, brand flagship stores, and partnerships like Maserati's with Alibaba to create smart stores.

1. 19/11/2019 1.
The Future of the Automotive Dealership
An introduction to the highly opinionated white paper
FUTURELAB

2. TODAY’S AGENDA:
6 disruptive forces.
5 saving graces.
10 survival scenarios
3 short term fixes
FUTURELAB

3. Alain ThysStefan Kolle
@FLB_StefanKolle
www.futurelab.net
Stefan Kolle, Founder of Futurelab
Welcome

4. Industry solutions
A structured approach for automotive firms to embed the
customer perspective in every aspect of their business, from
customer journey development to POS training.
Automotive
An approach for financial retailers, insurers and asset
managers to capture the attention of mass-affluent & high-net-
worth customers.
(Mass-affluent) Finance
A structured approach for telecommunication firms to embed
the customer perspective in every aspect of their business.
Telecommunications
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customer-friendly place (for fun & profit)
Our Purpose
Why we exist
We help you make customer experience happen.
Profitably.
Our Promise
What we deliver
Strategic Programmes
Tactical interventions
• Increase customer value
• Manage multi-channel journey
• Improve employee effectiveness
• Improve commercial impact
• Align departments, processes and
systems around the customer.
• Develop a customer mind-set
• Transform the organisation
• Challenge the industry
Our Activities
What we do
Strategy Experience Customer VoiceCulture Enablers
Design
Develop customer
programmes based on
current and future
needs.
Implement
Translate ideas into
processes, KPI’s,
trainings, that ensure
implementation.
Accelerate
Enthuse all
stakeholders so they
(pro-)actively
contribute.
Sustain
Ensure continued
momentum and
innovation across the
business.

5. 18.000
7.400
4.500
2000 2015 2020 prediction
Number of car dealerships
Germany
Is this the end of the Automotive Dealer?
Reality Check
Source: Institut für Automobilwirtschaft (IFA)
FUTURELAB
75% of key industry players think
that only half of the UK
automotive dealerships will
survive by the mid-2020s.
Source: KPMG Global Automotive Executive Survey 2018
USA 2016 USA 2018
Number of dealerships 18,058 16,794
Avg. dealer profit (% gross) 6.2% 1.7%
Luxury dealer profit (% gross) 2.3% -0.6%
Source: National Automobile Dealers Association, USA

6. 19/11/2019 6.
Digifatality
The car sales journey has turned into a cross-channel process where there is little space for a dealer

7. >50%
WAS:
of modern day car buyers
start their buying process online
NOW:
5+ visits <2 visits
Customer switch up to 4 times from off-to online channels and back
Sources: Bain & Company: The Future of Car Sales is Omnichannel; Capgemini: Cars Online Trend Study; McKinsey & Co : Innovating automotive retail.

8. FUTURELAB
WAS: ‘I perceive my dealership as an
advisor; someone who would
understand what I really need and help
me choose what’s best for me’
NOW: ‘Do not try to trick me, I do not
trust you. I know what I want because I
did my research. Just give me a
discount and don’t waste my time.’
>60% decide on brand, model and price BEFORE
visiting a dealership”
Sources: Bain & Company: The Future of Car Sales is Omnichannel; Capgemini: Cars Online Trend Study; McKinsey & Co : Innovating automotive retail.

9. 2.4
average number of visits per dealer globally;
in some geographies it is only 1.
FUTURELAB
Sales person
The car itself
Internet
Friends / family
Other
WAS: Internet is the most important
information source until 2 weeks before
the purchase
NOW: 72% of all car buyers would
consider to complete the purchase
online.
Answered “Yes” to: Would you consider buying a new car online?
60%
77% 77%
72%
USA Germany China Total
Online car sales are perceived to deliver lower prices and be faster.
Sources: Roosen/Mobile.de, 2013: Customer Journey im Autokaufprozess; ; Capgemini: Cars Online Trend Study; McKinsey & Co : Innovating automotive retail.

10. Image source: William Murphy, https://flic.kr/p/JtsDTd
10.
Mobilikill
Society is changing, and the need to own a car is dropping – and so do sales

11. Source: World Bank, United Nations, Business Insider, INRIX Global Traffic Scorecard 11
Urbanisation Traffic Cost
Our pain
Why do we need mobility services?
55%
of the world population of
the world in 2018 is urban
hours a year loses in traffic
an average driver in Paris
$1,400
per year a USA commuter
wastes on petrol in in traffic
237

12. 19/11/2019 12
The customer is ready to ditch car ownership
Reality check
Sources: E&Y, Future of automotive retail; McKinsey, How shared mobility will change the automotive industry

13. 19/11/2019 13
Mobility becomes a big game
Reality check
$54 bln
Was the shared-mobility market in
China, USA, and Europe in 2016 – $
500Bln in 2025
Sources: BMW Group; Lufthansa Innovation Hub; McKinsey, How shared mobility will change the automotive industry, Grandview Research

14. 16 estimated average number of privately owned cars which
can replaced by a shared vehicle (DE)
FUTURELAB
THOUGHT: 49% of car buyers would
consider a no-ownership solution.
PRACTICE: >40% of car sharing
platform users decide not to buy a car
(Case study, Bremen)
Answered “Agree” or “Strongly Agree” with: “I would rather buy a
flexible mobility model (e.g., car share, pay-per-use) online than a
traditional vehicle ownership model.”
31%
45%
72%
49%
USA Germany China Total
Sources: Analysis of the impacts of car sharing in Bremen, Germany, 2018, McKinsey, How shared mobility will change the automotive industry.

15. Image source: https://www.ft.com/content/b994895e-83a6-11e9-b592-5fe435b57a3b 15.
Millenicide
Younger generations do not feel the need to buy a car anymore – and they don’t like doing it at a dealership

16. 60% Do not prioritise buying a car….ever
FUTURELAB
Not getting a licence: The youngest
generation is not even bothering to
learn to drive
Sharing to save: Millennials entered
the workstream in the great recession,
cant afford cars
https://www.goldmansachs.com/insights/archive/millennials/.

17. 57%
Percentage of millennials that would like to avoid
dealing with a car sales person while buying a car
FUTURELAB
Trust: Salesperson at the dealership is
the least trusted person – they just don’t
believe you anymore
Efficiency: Amazon has shaped
expectations – Millennials demand a
very efficient sales process
Sources: Deloitte, 2014: Global Automotive Consumer Study: Exploring consumers’ mobility choices and transportation decisions
.

18. 92% Do not trust the salesperson – especially women
are very unhappy with the process
FUTURELAB
The buying process doesn’t work for
Millennials : Only 1% indicated they
like the current process
Losing the sale: Poor experience, not
the right vehicle, no deal.
Source: Cox Automotive 2018, Customer Journey / Future of Digital Automotive Retail. CDK Global
.

19. 19/11/2019 21
Sources: Deloitte, The Future of the Automotive Value Chain
Dealers face high pressure to close the deal
A sales person must understand psychology, technology, and financials.
What Dealers say:
• For sales people they [importers] only look at
sales targets. We get training on how to close a
customer and make the sale – that’s the priority
• We get customer experience standards but not
the resources for it
• My people are trained to sell and repair cars, not
to do small talk
• We only get 15 minutes with the customer

20. Image Source: https://www.carmagazine.co.uk/electric/electric-charging-stations-uk-find-nearest-ev-charging-point-best-journey-planner-for-electric-cars/ 22.
Cold as ICE
Dealers are stuck on selling Internal Combustion Engines (ICE), not EVs

21. >50%
of automotive executives believe
battery electric vehicles to be the #1
key trend
ICEs are (slowly) heading for extinction
Sources: KPMG, Global Automotive Executive Survey 2017, BloombergNEF Battery Price Survey
Answers to “Is diesel dead?”

22. 60%
estimated drop in revenues from the
spare parts business due to growth of the
EV market
Electric vehicles are cheaper to maintain
Sources: UBS Evidence Lab Electric Car Teardown

23. Sources: Fast Company; 2016 Sierra Club mystery shopping of 300 dealers in the USA
But can the dealers rise to the challenge?
Mystery shopping shows that dealerships are not very keen on electric vehicles

24. 19/11/2019 26.
Autonomously Dispatched
Self-driving vehicles are changing the industry – and after-sales

25. Source: Bain
80% of customers would use assistive features
Safety assuring technology is the top scoring feature

26. 68%
of executives already feel that the traditional
purchasing criteria will not
determine the purchase of a car anymore.
Autonomous world: a totally different sales landscape
Sources: KPMG, Global Automotive Car Survey

27. 95%
estimated drop in accidents caused by human error
(by 2050) due to AVs and other advanced driver-
assistance systems
Sources: KPMG, Will this be the end of car dealerships as we know them?

28. 19/11/2019 30.
Internal Money Bleeding
Profitability of dealerships is under great pressure

29. 19/11/2019 31
Source: KPMG
Dealers are facing internal troubles
By 2040, the current business model will not be sustainable
Average dealership operating profits plunged from 8.9% in 2015 to 1.7% in the first half of
2018, while gross profits over the same period fell from 3.3% to 2.4%. Automakers… face
price competition and squeeze the margins of their dealer networks. And third-party digital
channels are increasing pricing transparency and enabling consumers to make product
comparisons easier, thus limiting the ability of dealers to capture margin.
McKinsey & Co

30. Sources: Deloitte, The Future of the Automotive Value Chain
Which is not going to be solved by OEMs
OEMs must invest into R&D, digital / connectivity, mobility, eco, image
Forces disrupting the Automotive Value Chain:

31. Sources: McKinsey
As a result…
Dealership organizations continue to face operational challenges that include high turnover rates and consolidation pressures.

32. 18.000
7.400
4.500
2000 2015 2020 prediction
Number of car dealerships
Germany
And ultimately…
Reality Check
Source: Institut für Automobilwirtschaft (IFA)
FUTURELAB
75% of key industry players think
that only half of the UK
automotive dealerships will
survive by the mid-2020s.
Source: KPMG Global Automotive Executive Survey 2018
USA 2016 USA 2018
Number of dealerships 18,058 16,794
Avg. dealer profit (% gross) 6.2% 1.7%
Luxury dealer profit (% gross) 2.3% -0.6%
Source: National Automobile Dealers Association, USA

33. 6% Standard discount given at our client’s dealerships
– and the percentage that the customers know
FUTURELAB
VAG Dealer, Lodz Customers come from Warsaw:
Great experience, trusted and reliable
Source: Cox Automotive 2018, Customer Journey / Future of Digital Automotive Retail. CDK Global
.
0%
Discount
4%
Margin

35. Is there anybody out there?

36. 19/11/2019 38.
5 Saving Graces
Experience elements which will not likely be disrupted in the near future
Test-Drive Used Cars Non Urban Service SpecialHuman Touch
…plus great Customer Experience

37. 19/11/2019 39.
10 Survival Scenarios
With some real life examples
FUTURELAB

38. 19/11/2019 40.
1. The Experience Centre
A solution for a company with a strong capacity of training on the soft skills or an automotive brand with an emotional component
The purpose of this place is to tell the history of the
brand, demonstrate the features of the latest models,
and unobtrusively explain the benefits. Well trained
personnel will listen to what the customer says,
understand their needs, and if the customer is
interested, help design their dream car and calculate
the financial options. If the customer does express a
wish to buy the model, the results of the
configuration will be seamlessly converted into an
offer with a click of a button. Paperwork done, the
customer receives a precise date and location of the
pick-up – or chooses a delivery to home option.

39. 19/11/2019 41
Volkswagen Home Warsaw is a new philosophy of presenting VW cars.
In the 200m2 location in the centre of the Polish capital the brand created an inviting, sleek space area which
combines a homely atmosphere with solutions inspired by the Volkswagen style. Using this new method and
building a smaller showroom allowed to enhance the individual approach to clients. In this home-like space
the customers can customise their dreamed car. The showroom displays only a few latest models, but the
guests can create their dream model using a big screen and the help from an attentive host..
Example: Volkswagen Home

40. Take the Brand to the higher level
New York. 'The Sound of Porsche' is place to
experience the brand character and history. The
interior of the lounge is divided up into four different
areas, including stations where visitors can watch
clips curated around themes like design and racing.
Another station inside the lounge includes a 911
Carrera 4S Coupe display, where people can interact
with the car by choosing a projection to be displayed
on it. Beyond this, there's also a station where
visitors can draw dream Porsche for a trip to the
Porsche Museum in Germany.
Brussels. The Loft by Lexus brings the visitors of the
lounge subtle luxury and sleek Japanese design
inspired by the traditions of omotenashi (the art of
hospitality). This ancient Japanese philosophy of
treating every visitor as a valued guest in one’s own
home is one of the core values of Lexus. The Loft is
therefore designed to help the visitors relax and feel
at home while they are waiting for their flight. A
delicate selection of Japanese goods and Lexus
merchandise helps to bridge waiting times.

41. 19/11/2019 43.
2. The Digital Showroom
A solution for an innovative hi-tech brand or an OEM who have successfully undergone digital transformation (or are well underway).
Accessible, open 24/7, AI-empowered Digital Garage
can answer any customer questions on the spot.
This dealer is like a cinema theatre owner, equipped
with seats, and a few powerful computers. They will
be able to download the latest model demos and
broadcast them to multiple customers. The potential
customer will have a possibility to see, drive, and
almost touch any car, modifying colour, configuration,
or interior. The package from the importer will also
include a set of scenes for test-drives so that
customers can take a new model to a Paris street or
a Paris-Dakar road – in virtual reality.

42. 19/11/2019 44
London, Piccadilly. 3 display Audi models are
accompanied by the 4 large touch-screens and a
display wall. Visitors can configure any current Audi
and have access to the full range of options. At any
stage they can fling their Audi-in-development onto
the display wall to see a near life-sized view of their
configuration. Once it's there, they can manipulate it,
change the viewing angle and so on, using the touch
display. Both exterior and interior views are on offer.
Example: Audi Digital Showroom; DS Virtual Experience
Autosalon 2018, Paris, Brussels. Visitors of Citroen DS
booth can try DS VIRTUAL VISION which allows the
person in the headset to configure and display the
model of their dreams in 3D, and see it almost in the
real world.

43. Maserati partners with Alibaba to create smart stores
In March 2018, luxury automaker Maserati partnered with Alibaba, becoming the first auto brand to
incorporate its smart store technology. Maserati converted two of its outposts in China into smart
dealerships that gather data on and combine customers’ online and offline experiences. Maserati also
developed a racing game for Mobile Taobao, with in-game features that encourage players to visit their local
showrooms. In-store, smart receptionists use artificial intelligence and facial recognition to identify
customers who walk in from their in-game avatars and provide them with personalized service.

44. 19/11/2019 46.
3. The Test Drive Centre
A solution for importers or dealer networks with a substantial fleet, or experience brands with a strong lifestyle element
This tailor-made, highly personalised experience will
allow people to test drive their potential buys in the
conditions that are closest to the actual usage. For
this purpose, some locations will feature a dirt road,
and others will be set as pop-ups in shopping malls.
A potential buyer can arrange a 30-minute spin
around the block or request a prolonged test drive for
the weekend. The agent will order the right model for
your visit, with a configuration very close to your
wishes. You may also be able to drive several
models in short succession (to get a feeling of which
one suits you better).

45. Ford Gives Fans an Interactive Adventure in San Francisco
With a backdrop of the gorgeous city of San Francisco,
Ford allowed fans to drive in style, and visit some of the
cities most iconic locations. By creating an immersive test
drive experience, lovers of the brand were able to try out
some of Ford’s newest models and interact with their
latest technologies.
Pairing each vehicle with a specific location allowed all
those who participated to fully experience the city, as well
as interact with some beautiful cars. The new Ford F-150
took you to Alcatraz, while the Ford Edge brought you up
to the hilly streets under Coit Tower. Participants also got
to try out the new Sync 3 technology, and everyone was
amazed at the advancements Ford has made when it
comes to safety, and the overall driving experience.
No matter what your favorite vehicle is, being able to test
drive some amazing cars in the beautiful city of San
Francisco was an immersive marketing experience like no
other. As always, Ford continues to surprise their
customers with the latest in technology, style and comfort.

46. 19/11/2019 48
BMW Test Drive Center in Incheon
BMW has invested ca $75.5 million building the ultimate test drive centre in Incheon, near
Seoul, South Korea. Customers can stretch the legs of BMW's range of performance cars and
motorcycles on a 2.6-kilometer (1.6-mile) closed circuit racetrack, or put an SUV through its
paces on an off road area. The 240,000-square meter (almost 60 acre) site will also house a
service centre, bars and restaurants, training academy, historical exhibits, kids' area – and of
course, a giant BMW and MINI showroom.

47. 19/11/2019 49.
4. The Mobility Provider
A solution for a network with locations placed around or in the vicinity of the centre of big cities, or parking and rental networks
A smart dealership located just outside the city can
create a multi-level parking garage for those who
want to drop their car off and continue the commute
by public transport (the bus stop is just outside the
building).
Next to the parking, a rack full of city-owned or rental
bicycles, scooters, and other means of personal
transportation wait for those who prefer to get into
town while having a workout at the same time. The
dealer asks for subscription or rental money but also
gets paid for services such as cleaning, charging,
minor repairs, and even food and drinks.

48. 19/11/2019 50
Cars, Bikes, Scooters – you pick
This Mobility-as-a-Service (MaaS) company which focuses
on sustainable micro-transit has been named one of the
USA’s fastest-growing private companies.
In an industry that’s getting increasingly crowded, theirs is
the only platform to offer four shared transit options,
combining dockless e-bike share, 100%-electric rideshare
vehicles, electric scooters and newly-launched electric
trikes.
GOTCHA started in 2009 as a way to offer free, safe and
eco-friendly transportation on college campuses using a
fleet of electric vehicles that the founder Sean Flood
developed with co-founder Drew Sfugaras. GOTCHA is an
acronym for “green-operated-transit carrying humanity
around.” Like a hybrid between a golf cart and an electric
car, the GOTCHA Ride is a street-legal vehicle that can
transport up to six passengers. Since they don’t go any
faster than 35 mph, they’re ideal for short distances.
Recently Gotcha was recognized as one of the fastest-
growing private companies.

49. 19/11/2019 51.
5. The Subscription Dealership
A solution for a network with a substantial fleet at their disposal or a mobility-oriented brand with a broad model range.
This business offers their fleet to the customers
based on a subscription. The subscriber pays a fixed
fee which guarantees them a set number of days of
car usage per month, quarter or a year, with a
specification for weekdays or weekends. The twist is
flexibility about the model. Need a smaller car for a
couple of days, or a bigger one for a family holiday?
Something to drive through the rough terrain or a
sedan for a business day? This dealership offers it
all. Subscribers can choose when they need the
special car: 5 days of convertible in summer or 15 in
spring, so the dealer will use their fleet efficiently.

50. 19/11/2019 52
Subscription model tests in process
Nearly all key car makers are testing the subscription model
at this moment. BMW introduced its Access by BMW
subscription service in April 2019. Mercedes-Benz is testing
its multitiered Mercedes-Benz Collection subscription
service. Audi launched its service, Audi Select in late
September 2018. Ford's used-car subscription service,
known as Canvas, already operates in San Francisco and
Los Angeles. Other testers are Lincoln, Porsche, Volvo,
Lexus, and Cadillac.
Start-up companies and dealership groups in the car
subscription business include the following: Fair, Flexdrive,
Clutch Technologies, and others, specialising both in mass
market and luxury cars.

51. 19/11/2019 53.
6. The Buy-and-Drive
A solution for a mid-range brand with a focus on convenience or a network with strong digital support from importer / OEM
The waiting times for certain models can reach a
year. But the world is moving towards faster sales.
Here is a dealer that can help you g et a car faster.
Watching trends and using predictive analytics will
allow them to pre-order models which are likely to be
popular and have them on stock at any time. Walk in,
point at the one you like, and you will get it, together
with the paperwork – literally on the spot. While
some legal arrangements will have to be done
towards creating a shop according to this scenario,
this is a no-discount (more likely, a mark-up) sales
scenario which can save a dealership or two.

52. 19/11/2019 54
Car supermarket
Since its foundation in 1949, Cardoen car
supermarket has become an established name. Now
a fully online car shop, the company offers new and
young used cars at a competitive rates.
At any time, the car supermarket offers ca 1000 new
cars from 25 brands (and many more second hand).
It is open 7 days a week. Customers can brows
online (stock is updated every hour) and compare
models and prices. If a customer wants to make
changes to interior or tires, the company obliges.
The legal paperwork and payment processes are
streamlined for the quickest delivery,

53. 19/11/2019 55.
7. The Relaxed Service Centre
A solution for an urban brand with a comfort / personal freedom component or a high-end dealer network
Dropping a car off for service should be as convenient
as getting a haircut. It should neither involve stress nor
take too much time. This is where this model comes into
play. Drop your car off for the service in the basement of
a shopping mall, a hypermarket, or in a parking garage
in the city centre. Take a replacement car (scooter, bike)
if you want to continue your journey, or relax and have a
walk, a shop, and a bite while waiting for your car to be
serviced. And if you want to have a look at the newest
models, just one level up there is a showroom with 3D
features.

54. 19/11/2019 56
The Spa at the Mercedes Dealership
The Mercedes-Benz Burlington Dealership in
Ontario, Canada, is revolutionizing the car shopping
experience. The first dealership in the world to offer
an on-site salon and spa, Mercedes-Benz Burlington
offers customers free manicures and hair styling
while they wait for their car to be serviced in their
high-tech luxury car spa.
The Mercedes-Benz Burlington location, in addition
to boasting a spa, also features a golf simulator and
a full-service cafe, with employees trained as
baristas.

55. 19/11/2019 57
Lunch, haircut or massage while you wait
It's easy to mistake the amenities at Big Two Toyota in
Chandler, Ariz., for those at a high-end resort and spa. Cafe
1250 serves triple-chocolate brownies, chef salads and roast
beef sandwiches - made fresh daily - near where new
Camrys and Tundras glisten under showroom lights. Not far
away is a 700-square-foot pirate ship play area, arcade and
video game room for children.
The dealership also owns and staffs a barbershop and nail
and massage salons a short walk from its on-site service
centre. A 15-minute chair massage while customers' tires
are rotated costs $15. A French manicure costs $20. The
showroom also includes a business centre with telephones,
free Wi-Fi and a shuttle to a nearby shopping centre.
The amenities have been offered since Big Two opened in
Chandler in 2007, and are meant to make customers feel
more comfortable in a usually high-stress environment.
Big Two consistently ranks among the top three Toyota
dealerships in its five-state region in monthly service volume.

56. 19/11/2019 58
From Dealership to Rock and Roll Bar

57. 19/11/2019 59.
8. The Off Road Dealer
A solution for specialising in vehicles for off-road driving; or a rural or non-urban retailer
It is unlikely that in the short run cars will be able to drive
through rough terrain autonomously. Mountains or
country roads are not likely to accommodate it any time
soon either. Therefore, for decades still to come, the
market for heavy duty, working vehicles which can carry
a load and withstand harsh road conditions will be
untouched by the trends in the automotive sector.
Focusing on the rural area market enables dealerships
to go all out on the theme: the tough test-drives, the
most specialised expertise, and tailored after-care: the
off-road dealership controls the market like an SUV
controls the terrain.

58. 19/11/2019 60
AUTOHAUS KÖLSCH specialise in Land Rover cars. They are professionals in the field of construction and
conversion, retrofitting, maintenance and equipment. Customers from Germany, Austria, Switzerland, and
other European countries arrive here for their vehicle. The dealer concentrates on maximising the pleasure
of driving and the best possible experience, whether off-road or on the road. But this is not just about the car:
the dealer embraces the totality of the off-the-road life and provides tips, advice, and goods necessary for
those who prefer a challenging lifestyle.
Full Scale Off Road

59. 19/11/2019 61.
9. The Niche Garage
A solution for a niche brand that is already working with a particular subculture or customer segment.
Personalisation and catering to niche consumer groups
is the future of all retail. The Niche Garage is a type of
dealership that will target specific groups of population
with particular needs or wants, interest-based or
otherwise. The variations can be multiple: from serving
a subculture to catering to the needs of the disabled.
The only common feature here would be an owner who
has a vision and can execute on it. Some examples
include:
• Luxury vehicles
• Women-only
• E-cars only, etc.

60. Car as a luxury art object
STERLING, Va. — At many dealerships, customers
taking delivery of a vehicle would be fortunate to walk
away with a handshake and keys to the car. But
ultraluxury vehicles call for extraordinary experiences.
At Sterling Motorcars, about 35 miles outside
Washington, D.C., that mindset is central to the
company's white-glove delivery program.
A key piece of the customer experience is delivery, and
Sterling Motorcars makes it a full production, much like
the unveiling of a work of art or a ribbon-cutting
ceremony. Staged in the showroom, the car is draped in
black with a bow on front and the lights turned on. A
salesperson wearing white gloves slowly pulls back the
cover to reveal the car. The client receives a champagne
toast and, in some cases, flowers.
The dealership is also extremely transparent: not only
you can take a virtual tour of the location, but you can
pick the sales person based on their personal style and
the latest customer reviews.

61. Women only
SheCar™ is a woman-owned and operated online car dealership
created to help women and men trust – even love – their car-
buying experience. The company offers full transparency. No
sales pitch – just open access to the information about a car’s
value and condition. The SheCar online portal gives access to a
vehicle’s estimated price based on its wholesale market value.
There is no obligation to buy.
Women are buying more and more cars. Their share of new car
licenses in Germany rose from 32 to 39 percent in the last four
years. And the dealership Senorita Maria in Hennigsdorf near
Berlin wants to profit from this trend. It aims to use women to
appeal to women.
Senorita Maria is Germany's first car dealership that employs
only women. The founder Maria Erkner and her colleagues all
used to work in mechanics' shops. And at this dealership female
customers are taken seriously.

62. 19/11/2019 64
Electric only
With EV developing fast, there are many private and
business buyers that are looking for support in
understanding what is the right solution for them.
Switching to an electric vehicle means also looking into
charging infrastructure (possibly including solar power
installation), adapting to a different driving style and
particular tax- and subsidy regulations.
Companies like Stroohm in Belgium provide full service
to companies making the switch. Offering to install
infrastructure – and even make the charging points
accessible to the public and thereby revenue
generating!
Other companies focus on the maintenance and repair
of EVs only – which of course then also allows for a
role in the second hand market.

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10. The Super Serviceman
A solution for a dealer network or a single garage with the existing capacity to employ and train highly skilled mechanics and IT
Once again, service should be smooth and effortless.
Requesting the car data in advance and assigning
exact timeslots will allow the Super Serviceman garage
to work like a Formula-1 pit-stop. The car is brought in
while the mechanics are ready with the necessary
spare parts at their disposal. No lines (maybe just for
the coffee machine). By receiving car data beforehand,
technicians will know precisely what they are up to, so
they can make precise estimations and work as
efficiently as possible.

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Dealer knows which customer comes in
When a Nissan vehicle pulls into the service area of Fenton
Nissan of Rockwall in Texas, one of five 72-inch screens
lights up to greet the owner by name. The message is
generated by radio-frequency identification technology, or
RFID. At the same time that the customer is welcomed, the
RFID system sends a message to dealership computers and
iPads, and alerts to the salesperson who sold the vehicle.
The system helps the dealership to know how long it will take
to perform specific jobs.
A service writer is also notified that a customer has arrived
and is responsible for greeting the owner with an iPad to
review scheduled work. If the customer wants to wait, they
will be updated: which bay is servicing the vehicle, when the
vehicle goes to the car wash and when it is ready.
The RFID system costs about $60,000, including the software
and monitors, and likely will be installed at all 19 stores
owned by the Fenton Motors Group. Fenton has nine Nissan
stores and 10 others that sell Buick, Cadillac, Chevrolet and
GMC; Ford and Lincoln; Chrysler, Dodge, Jeep and Ram;
Honda; Hyundai; Mitsubishi; and Mazda.

65. Some good news
Customers are ready for the new formats!
FUTURELAB

66. Keep in mind
A great CX is essential for ALL scenarios
FUTURELAB

67. FUTURELAB
Quick Fixes
How can Futurelab help increase sales in the short term

68. FUTURELAB
Lost dealership sales. Why?Dealerships lose sales opportunities because of misalignment.
A visit to a dealership becomes a sales opportunity that must not be
missed. But substantial sales are lost due to a mismatch between
the sales and buyer personalities.
When your salesperson just isn’t the right person to talk to the
buyer, you lose the deal.
How many sales are you losing in each dealership: 1 car a month?
1 car a week?
Can you stop that loss?
Yes, you can!
We have developed an innovative approach to rapidly match the car buyer with
the right sales person in the dealership:
• A car geek should talk to an inspiring expert
• An emotional buyer listens to a caring friend
• A practical businessman meets a sensible partner
Futurelab’s Car Buyer Persona Matching will allow the dealership to instantly
identify who is in front of them – and let the best person on the floor take the lead.

69. FUTURELAB
Stop that loss now:
1
Which of these seems more like you?
Following your heart Thinking it through
DIY car service Having it serviced
Sticking to rules Breaking rules
Hate tech Love tech
Family guy Lone wolf
2 Define the Persona:Ask simple questions *:
+ + =
+ + =
2 Match the salesperson!**
to
to
* The exact questions will depend on what Personae are found during the Discovery step. We can identify the Persona by asking just a few (3 max)
really easy personal questions.
**If there is only one salesperson in the showroom, the benefit lies in fast identification of the sales persona reducing miscommunication
The questions can be presented in a form of a visual game or a “personality test” which can be deployed via multiple channels, e.g. as a lead to the
test-drive conditions on a website. In-store the receptionist or greeter can approach a walk-in with a tablet to let the customer choose in 5 seconds,
upon which they can bring the right sales person (or inform the only available sales about the persona for them to act upon).
Alternatively, by combining insights from the totem system, we can identify Persona by their in-showroom behaviour
We also test the sales person for their persona characteristics to match them correctly.

70. FUTURELAB
Introducing Customer Experience 4D Scan: Automotive.

71. FUTURELAB
Introducing Customer Experience 4D Scan: Automotive.

72. FUTURELAB
Introducing Customer Experience 4D Scan: Automotive.
1. We run a retail check exercise: visit your locations with a check-list, designed to see whether
they are future-proof and ready to face the new customer realities
2. We interview key stakeholders in your organization (management, importer, and even
OEM if necessary) in order to discover how they see the dealer network in the future,
particularly when it comes to new trends.
3. We talk to your staff to understand their perception of CX standards. We ask their opinions
consumer desires. It will help to see if there are any skill gaps between what they should and
can do, and if they are able to go beyond what is needed today.
4. We run a survey of your customer base to see the experience from their eyes: what is good,
what can be improved, what elements are crucial for them.

73. FUTURELAB
3. Motivate dealer leadership and staff.
HQs wants results, but dealers are hesitant.
How do you make sure that people are willing,
skilled and able to give your customers a better
experience? And how can the Dealer Principal
become the CX leader?
With the help of our Dealer Staff and
Leadership Engagement programmes you
will be able to finally get CX done.
4. Prove to dealers that CX = money.
To most dealership staff, CX sounds like a lot
of “fluffy stuff”. But good dealers know that
great CX means higher margins and quicker
growth.
Our down to earth but robust Business case
for CX in dealership will demonstrate to the
non-believers the financial value of delivering
excellence, and turn the “our people only ask
for discounts” chant into “we sell more cars!”.
6. Get the right KPI and template toolbox.
Motivated and engaged staff needs a clear
understanding of what the next best action is.
Operationalizing the CX strategy so that
everyone knows what they should do and
what’s in it for them is crucial.
From Dealership Academy to CX KPIs,
templates and automation, we know how to
make it real, specific and concrete.
5. Create the right CX processes
Sometimes lack of action roots in having too
much on your plate. We will help you get
focused, and begin doing practical, pragmatic
things that will bring both short-term results as
well as long-term change.
Start with Closing the loop on unsatisfied
customers or creating Advocacy Moments
to achieve positive WoM – those will kick off
action to get the first tangible results.
2. Get the right insight from data.
Let’s face it: as far as customer is concerned,
IACS doesn’t cut it – the results are hardly
actionable. You need real insight, presented
with a clear path to increase consideration,
conversion, loyalty – and drive up sales.
From implementing a simple NPS® program
for individual brands to a full scale AutoIndex
benchmarking, we know the drill.
1. Prioritise investment into CX.
When there is so much to do, what should you
focus your attention on? You need a clear
understanding of your organisation’s readiness
for action, the weak points to focus on, the
quick wins, and your roadmap for profitable
action.
Our Automotive Customer Experience Scan
helps you tick all of those boxes… quick.
Other services:
Net Promoter, Net Promoter Score, Net Promoter System, and
NPS are trademark of Satmetrix Inc., Bain and Co., and Fred
Reichheld.
Get the people on board. Start the CX engine running.Focus the dealers’ CX action:

74. 19/11/2019 76.
Questions?
Please fire away

75. Want this presentation? sko@futurelab.net
Please get in touch