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Automotive manufacturers' opportunity lies in going digital, says Microsoft
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29/01/2009
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The automotive industry needs to turn to digital technology, if it wants to see a resurgence, according to a survey conducted for Microsoft.
It finds that online customisation, mobile alerts, self-service kiosks and the like are right up there on the menu for so-called ‘millennial’ generation of customers shopping for cars, trucks and SUVs. And that’s an estimated 80 million people – those born between 1981 and 2000.
‘Millennials in Automotive Survey 2009,’ conducted by US-based KRC Research, found that not only do millennials want automakers to work with them via high-tech channels, but they expect newer, more innovative technologies wherever they are.
“Millennials represent an untapped market for many automakers, as these younger adults are now entering the workplace and purchasing vehicles on their own for the first time,” comments Dave Graff, US automotive industry solutions director at Microsoft.
“However, for automakers to court these tech-savvy consumers, they need to embrace newer technologies as a way to communicate and sell more effectively to them.”
The survey suggests that 77% of millennials use social networking sites, 71% instant messaging and 59% wikis – with 64% using social networking sites every day. It comes as little surprise, then, that 91% say it is important for auto manufacturers to offer web sites that give a full view of purchase options and service history, while 86% and 87%, respectively say web-based auto financing and service requests, and customisation of car options – such as colour and add-ons – are important.
Beyond that, 56% say they want to interact with automakers using IM, while 74% say they would like to be able to visit automotive company-hosted blogs to post concerns or ask questions. More than half of them (52%) also want to get mobile alerts of new car releases and price drops, while 44% want to network with other auto enthusiasts through automotive company-supported social networking sites.
“Automakers and dealers already face enormous problems around operational costs, union contracts and the credit crisis,” says Graff. “As the largest wave of consumers entering the market since the baby boomers, millennials represent an amazing opportunity for [them] to tap into a new customer base.
“However, this requires a larger strategy toward leveraging customer-facing technology for competitive advantage – such as social networking sites, instant messaging and mobility.”
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Author
Brian Tinham
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