Tuning In To The Auto Industry’s Customer Experience Challenges
I don’t remember when I was first introduced to the (now mainstream), channel of podcasts. Maybe it was due to my foray into politics during university — or maybe when my roommate and I first obsessed over murder-mystery documentaries eventually transforming into murder-mystery podcasts. Either way, now I’m addicted.
Each morning on my ride to work I tune into something that makes me think, or smile, or never want to leave my house again (i.e. murder-mystery podcasts). But last week, I tuned into a podcast that really struck a chord with me.
Recently, SAP acquired Qualtrics, global pioneer in the experience management (XM) software category. Being a finicky Gen Z. consumer, I know first-hand how important XM is. My boyfriend and I even have a “blacklist” of places we will no longer go because of our poor experiences.
This acquisition is so important and so fascinating I was elated to see that SAP Radio’s “Future of Cars with Game-Changers” series pioneered the subject matter, inviting two Qualtrics colleagues on a panel to discuss customer-centricity in the automotive industry. It was a unique mix of automotive and CX experts on the panel providing fine-tuned insights into happenings in the automotive world.
The panel started out discussing Uber’s IPO — one of the largest in U.S. history; valuing the ride-hailing giant somewhere between $76-$120 billion. I was most intrigued by the perspective Jordan Katz, from Qualtrics, took on the news based on the fact that Uber & Lyft have been able to manage the customer experience through a totally unconnected third party (driver and application).
Their ability to deliver a standardized experience for customers across these untrained “workforce contractors” is a MASSIVE accomplishment. This is why the IPO valuations are so high, because if you can have such a highly scaled business with such a light lift around how you interact with employees — you’ve solved the puzzle.
Based on this news, Raju Moncombu, of SAP’s Automotive industry business unit, chimed in with his parallel to traditional OEMs; who are playing catch-up in the zone of experimentation. Ownership models are changing — OEMs need to determine what makes sense for them and compete with those who are offering EXPERIENCE; arguing that any company will find success if they put customer experience at the forefront of everything they do.
Another topic of interest was the power play Apple made in re-hiring Doug Fields, a mechanical engineer who moved to Tesla as head of electric power trains, was re-hired to work on Apple’s secretive automotive project — and brought quite a few colleagues along with him.
While we don’t know what Apple is working on — we do know that they’ve just taken critical talent from a competitor. This goes to show that employee focus and satisfaction can prove to be a very profound differentiation strategy. People left Tesla to follow their leader.
That is what you call impact.
Dave Mingle, VP of Automotive at Qualtrics, took a different perspective on the news; noting that the ability to provide the software behind a vehicle experience is far easier than building the vehicle itself. Tesla has done a phenomenal job in creating the OS for their vehicles with capabilities for significant over the air updates; but where they’re struggling is scaling production and doing so at quality levels that justify the price point they’re at.
Apple and Google see this and are (if he had to guess) just taking the software approach — meaning they will need a “Detroit” partner to create a physical vehicle marrying the two to create a great user experience.
I was elated to hear that the panelists were all invited back to the flagship series, Coffee-Break with Game-Changers, 5/22 at 11 am EST to further discuss CX in Automotive. While I’ve set my reminder and blocked my calendar — I was even more excited to discover that David Mingle and Raju Moncombu will join Jim Davis of SAP Automotive, providing an interactive session at SAPPHIRE NOW 2019!
The session will allow attendees to gain actionable insights to help design better products and services, improve processes, employee satisfaction, and brand loyalty; while exploring success stories from automotive, high tech, and industrial manufacturing sectors!
Will I see you there? Shoot me a tweet @Miranda_LaBate and let’s go to the session together!
