• by editor , David Baker , September 11, 2006

I often go back and read analyst reports from 2000-2001. It's uncanny how accurate some of those thoughts were. I look at the strategies that were being implanted back then and realize that we have come a long way. Recently, I was reading a May 2003 article from Gartner entitled "Drivers Like to Hear from OEMs and Dealers the Old-Fashioned Way." The question they were trying to answer was, "How would U.S. consumers prefer to receive messages from auto dealers and manufacturers during the ownership phase?"

If you've ever done work for an auto manufacturer, you would certainly have realized the shift in how they use digital methods of communicating with customers. I want to highlight a few of these methods, simply to illustrate how the digital world now impacts this buying cycle and ownership phase.

The way we look and shop for cars has changed dramatically. The vast majority of consumers now shop, compare, get quotes, get financing and some even buy their cars online. Many will start conversations through e-mail with online sales managers--a job that didn't exist in the past. Their sole responsibility is to facilitate the dialogue and get you to the dealership. The largest category of sales on eBay, in terms of volume, is--you guessed it--automobiles. Dealers large and small use the Internet to extend their brand, merchandise their products, facilitate a dialogue and manage customer service. Yet I remember not too long ago when people would say, "Why on earth would you buy something so expensive over the Internet?"

Gartner's article indicated that almost all automobile owners wanted to be communicated with, but e-mail was the "least popular way to receive communications," even going as far to say, "consumers would rather go into a dealership than receive e-mail." Ironically, this attitude has shifted for owners of Japanese and European luxury automobiles. Back then, they were talking about building a "customized portfolio of communication methods to meet customer preferences" and believed "e-mail was not an ideal way to send proactive communications." Rather, they relegated its use to service reminders or event-driven messaging.

The shift I've seen is the multichannel nature of how sales and relationships are developed these days, and how e-mail is laced throughout this multichannel experience.

So, you've decided to go test drive this great car that you researched and compared. You contact an online sales manager (through e-mail) and set up a test drive. You have the dealer costs, manufacturer costs, line items of all the things you want, including that cool six-disk CD player and sunroof. After a test drive, you walk away to think about your future purchase. The next day, you get a phone call from that salesperson, the day after you get an e-mail inviting you back to the weekend sales event. Then, one week later, you get a "thank you" card in the mail from the salesperson at the dealership.

You decide after this great test drive, smooth negotiations and diligent follow-up by the salesperson to purchase the car. What happens next?

In the old days, you would get a monthly mail piece or call from the service department reminding you of oil changes and regular maintenance. What's changed is, you now get e-mail reminders that are personalized by your car type, with detailed service reminder messages that come with pre-set appointments, so there is no waiting. You get holiday cards electronically from your dealer. You get e-mails about sales events when your lease is about to expire, with feature-rich information about that newest model and a custom test-drive event.

I've always felt the auto manufacturers had a solid vision of customer loyalty and lifecycle management. They looked at the consumer through pure lifetime value lenses. They didn't always execute well, but I've been inspired by some of the experience from companies like Lexus, which has changed its view of customers, how it caters to them, how digital supports the experience, and the relative convenience of e-mail as a dialogue that is not seen as intrusive.

The industry has changed. In the past it was mass e-mails about product launches (new models), or maybe even national financing plans. Today, it's about a different "consideration phase." It's about local marketing, reinforcing experiences, and creating reasons to stay in touch with the consumer in unobtrusive manners.

It's amazing how the world changes in a few years. Tomorrow your on-board GPS or TV will spring up reminders of car maintenance at your local dealership, you'll be alerted by mobile and do all your scheduling through text messaging. The dealer will upload a maintenance schedule reminder into your phone or PDA through Bluetooth, and you will become e-mail "pen pals" with your service manager and salesperson. There is certainly a lot to look forward to.