Introduction to the Agency Model for Automotive
Written by Jason Craker on
The Agency Model for Automotive
Transcript
Have you heard the term 'Agency Model' and ever wondered what it's all about? Well then please bear with me for a few minutes, and with the help of David, our Animation wizkid, let me try and bring it to life a little…
It's time to throw away our preconditioned ideas and grab the new digital keys to the hottest thing in town. In my opinion, the agency model is simply the enabler for future automotive business models, and to be honest, the key to doing business in the 21st century.
There’s been considerable negative press shared in the automotive news recently about the agency model - its disruptiveness and how it's redefining the existing supply chain - but in my honest opinion, in order to keep pace with the changing consumer demands, moving to the agency model is simply a necessity, and there is clearly a bright future after the storm!
To simplify this pivotal transformation, the agency model creates a direct and transparent relationship between the manufacturer and the customer, with pricing transparency at the heart.
We are clearly seeing the automotive manufacturers using Europe as their testing grounds, with the likes of Polestar leading the way from the new disruptor group of OEMs ahead of some of the traditional manufacturers, like Mercedes and Volvo, who are taking the initiative well ahead of some of the laggards who are still sitting on the fence.
As I mentioned earlier, I do believe that this major transformation that’s hitting the industry with its diverse stakeholder groups is well worth the effort, and can be seen as generating pots of gold at the end of the rainbow. Yes, it's obviously revenue-driven, but revenue for all - not only the manufacturers - built around the opportunity to get closer to the consumer by strengthening the relationship to build real advocacy and loyalty in a multi-transactional service-minded world, where you have a joined-up view of the consumer throughout their life.
We know this is not going to be a straightforward journey. There are diverse stakeholders, there are regulatory and compliance hurdles, organisational change with new roles and responsibilities. There are technical digital journeys and integrations to map out and build, plus there are culture and behaviour shifts that all need to be managed in a joined-up way to avoid ruining brand reputations
So how can we secure success at the end of this journey? Well, in my mind, it’s like any major transformation programme; you want to have a clear direction with a good navigation system that you can trust, because this is not going to be a simple straightforward journey. We are going to learn, adjust and reinvent ourselves a number of times to really succeed.
In my mind, this journey is not only going to be won by those that have the best digital ecosystem. It’s going to be won by those that combine the digital ecosystem with exceptional customer care, adding value across the whole experience. We are all consumers with individual needs. We demand flexibility and have an underlying desire to be loved and cared for... We need to bring that into our new ways of working.
So here at changemaker within our automotive practice, we look to partner up with organisations that can support the supply chain through what I believe will be the largest pivotable shift we have ever seen in this automotive retail arena. Arvato CRM solutions are one such organisation, with their expertise in delivering exceptional customer care.
So if you are looking for a number of copilots, who by working together can bring a combined strength and experience to help you navigate this journey and avoid the potential pitfalls and hurricanes along the way, do reach out to us - we would love to have a more detailed conversation.