21 March 2016

Our Agenda story focusing on over the air (OTA) updates for tech-heavy new cars poses a few challenges for auto retailers. The story might have its origins in the US, but the prospect of being left out of the loop when it comes to the routine servicing of modern cars is real irrespective of the country you operate in.

Good customer service is a cornerstone of the auto retail industry; get it right and buyers will often pay you back by being a loyal customer. We all know that the aftersales function is a key part of this relationship, not to mention a crucial revenue stream for your business. However, with OEMs increasingly in a position to circumvent that process with an electronic ‘update’, the need to stay relevant in the eyes of the consumer post-sale is key.

As yet there’s no magic answer. And it doesn’t matter what you sell. Even budget cars are gaining more clever kit, which means it’s no longer the case that those selling premium models with all the bells and whistles will be the only ones needing to think fast about devising new customer relationship strategies. The alternative is shaping up to be increasingly infrequent face-to-face contact as updates to navigation and safety kit will be done over the air, not in your workshop.

Iain Dooley

Editor, Agenda

Auto Retail Network

Tags: aftersales, customer service, OTA, technology, threat