There have been plenty of airplane rides for me in the past few weeks. This time of year holds a number of important industry events, and the Canadian auto dealer team makes sure we cover off our fair share.
I was in Las Vegas for the J.D. Power Automotive Marketing Roundtable, one of the events I look forward to as it provides a really good look into what the automotive OEMs and their agencies are thinking about.
During one of the presentations, Audi announced that 2019 will see the release of their first “all digital” car. The explanation of what that meant boggles the mind. At least, if you really let your imagination run, it boggles the mind.
Here’s the background: by “all digital” car Audi means a vehicle that is in constant digital contact with Audi, sending back a range of information that covers just about everything to do with the vehicle. Specifically, the vehicle will measure more than 800 different data points every single minute of every day! This massive volume of data will let Audi build a deep and constantly updated profile of that customer.
Consider the implications of this.
It’s not just that Audi will know exactly how the car is performing or what service it needs. They will know everywhere it goes. Everywhere it stops. How long it stops for. Audi will know if that vehicle pulls into a grocery store, stays, and leaves with a trunk full of grocery bags (as suspension and tire pressure will be among the data measured). Audi will be able to gauge with reasonable precision whether or not that customer went to a store and DIDN’T buy anything.
All of this is done to attain the goal I heard mentioned over and over again: mass personalization.
Mass personalization simply means being able to build a unique and personalized relationship with a customer, across millions of customers at the same time. And for the first time in history the technology is there to do it, not only by gathering the data but by running it through artificial intelligence engines that can turn a flood of data into actionable knowledge.
Audi will be in a great position to sell that customer additional products and services. They will be in a great position to sell advertising to that customer. That kind of constantly updated and highly personalized connectivity can be the foundation for a wide range of potential revenue streams.
The question I had in my mind was: how does the dealer participate?
For generations, the dealer has been the link in the chain that knows the customer best. Most of what an OEM knew about a customer came via the dealer. A digital scenario like Audi’s “all digital” car means that many (maybe most) customer insights will come directly to Audi, and then need to be shared back to the dealer. That, like so much of what is going on in the industry, is a significant change.
Done right, dealers, OEMs and customers will all benefit.
Done right, there is potential revenue growth for all tiers of the industry.
As we sit on the eve of dramatic changes brought about by data acquisition and artificial intelligence, let’s work together to make sure it’s done right.
