Great analysys on Automotive market by Klaus Paur (Ipsos) 15 November 2012

1. Engaging with today’s automotive consumers
Klaus PAUR
Global Head of Automotive
Hong Kong, 15th November 2012
Nobody’s Unpredictable

2. Motor vehicle industry is growing
Despite economic woes in various parts of the world, production of motor vehicles (passenger-
and commercial vehicles) is expected to grow in 2012.
Motor Vehicle Production
Europe (millions) Americas (millions) Asia Pacific (millions) Global (millions)
100 2012:
Millions
80 80 ~84 million
62
(~5%)
60
40 32 41
21
20 17
18
13
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-20
Source: International Organization of Motor Vehicle Manufacturers
Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers 2

3. Cars remain a high involvement category in the various
markets
In the various market places, demand for new passenger vehicles shows different modes and
speed of development:
Developing economies: growing, due to huge pent-up
demand in car ownership
United States: recovering, reaching ~14.5 millions
Europe: declining, but still ~12 million new PV sales
All markets have one thing in common:
A shift in needs assessment and expectations towards vehicles!
Rapid consumer maturation in emerging economies
Gradual shift of attitudes towards the role of cars in mature countries
In essence, consumers become more critical towards the value proposition of cars,
and expect better offerings to match their individual needs.
Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers 3

4. Consumers have an ever growing choice to find the right
vehicle
Over time, the automotive market has developed from a simple and straightforward model
offering into a vast and complex, and for consumers rather unmanageable market proposition.
This development is ongoing.
Various cross-over body types with countless models and model versions in all markets!
The sophistication of market offer allows the car makers to cater to individual needs, but
makes it more difficult to stand out of the crowd, and catch the attention of potential
buyers.
Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers 4

5. Increasing information need for consumers is facilitated
by digital world
Number of car consumers researching online
Internet has become the dominant information
tool for car buyers, offering a series of online
research platforms (websites, social media
sites, automotive forum, networking sites, etc.)
Source: CapGemini Cars Online Report 2012
In a world – mature markets and emerging economies alike – where information about most
things becomes freely available, car consumers remain constantly connected!
The abundance of information is filtered by the search for relevance, enjoyment, and benefit.
Internet is an opportunity for car makers to connect with their clientele, but they
need to engage them and interact with them on an individual level.
Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers 5

6. Consumer behaviour is shifting
Consumer New
autonomy and technologies
independence in a digital
world
THE
EMPOWERED
CONSUMER
Intensified
automotive
competitive
landscape
Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers 6

7. The consumer is not only better informed, but also has higher
expectations
The traditional “marketing funnel” has become a “consumer journey” with a series of loops.
Instead of systematically narrowing down a large number of brands , consumers evaluate a
range of constantly shifting options.
Communications
Initial
“I want to Dealer
Consideration
buy a new Short Experience
Brand Fit
Set
car” List
Purchase
Brand
Association
s
$ “needs
wants
and
Status Quality
desires”
Safety
Dealer performance
Performance
Trigger remains extremely
Event
critical
Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers 7

8. Evolution, not revolution
This change within the market has profound implications for our quest to understand and
anticipate consumer behaviour. Methods used so far are just not as engaging and relevant in
today’s world, and sometimes even risk to miss out critical aspects.
Our task is to find the missing links to better comprehend the
driving forces behind consumer behaviour
It is no longer only about understanding consumer needs and purchase motivations,
but about knowing what excites consumers.
Design perception  Brand image  Perceived quality  Dealer performance  Post purchase experience
Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers 8

9. Example: ”Audi City“ – first digital showroom
In a virtual environment, customers can choose all possible colour- and vehicle options, and
display the cars on digital screens.
Leveraging modern technology to focus
on individual consumer needs
Experiencing life-sized 1:1 vehicle display
Marketing mobility services
Bridging online product presentation and
personal dealer visit
Nevertheless!
However important the virtual excitement, real-life experience cannot be fully
compensated  seeing, touching, feeling and smelling the new car are supposed to
remain critical triggers for deciding on a car purchase in the next future
Formidable opportunity to engage in personal dialogue with prospective customers
Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers 9

10. Car purchase is a big decision and an important investment –
customers expect to be treated accordingly
Information gathering:
Dealer visit:
• Website is easy to navigate
• Visitor is expected
• Relevant information is easy to find
• Product experience is supplemented
• Appointment can be easily made
with digital content
• …
• …
After sales:
• Service visit reminder is sent out
• Product experience is supplemented
with digital content
• …
Required: Visibility about how well dealer service fits customer expectations!
Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers 10

11. We are living in a socially networked mobile world
Everyone and everything is connected
Things change quickly
Contents (information, opinions, etc.) are
constantly produced and exchanged
Transparency increases
Demand levels rise
Action and reaction times shorten
Good and notably bad news travels fast
Continuous update and speed are more than ever vital qualities!
Engagement and interaction are key!
Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers 11

12. Shifting focus to socialised research
traditional socialized
People Communities of people
Averaged out Individualized
Survey data Non-survey data
Long-time Right-time
Monologue Dialogue
Linear Immersive
Pre-determined Dynamic
Structured Non-reflected
Active Interactive
Data reporting Storytelling
Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers 12

13. Knowing the consumers better
Survey based and passive data collection
Mobile in the center of market research
Fast turnaround, in real-time and engaging
Lots of data help us to generate better insights
Ipsos Automotive Center of Excellence – Engaging with today’s automotive consumers 13

14. Nobody’s Unpredictable
Thank you!

15. Experience the Voice of the Customer!
Multi Touch Point Feedback Solutions
for the Automotive Industry
© 2012 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information and may not bedisclosed or reproduced without the prior written consent of Ipsos.

16. WELCOME TO THE NEW NORMAL
Where consumers are constantly
connected and “always on” is their
default setting
16

17. TODAY’S DIGITALLY CONNECTED
CONSUMERS ARE DIFFERENT
We have to engage them in ways
that capitalise on and mimic
their expectations in a digital
world. They want to feel that
what they are doing is relevant.
What’s more, they want to
enjoy and benefit from
the experience.
17

18. This has profound
implications for traditional
market research:
Old methods just aren’t as
engaging and relevant in
today’s new world

19. NEW REALITIES BRING NEW NEEDS
Disruptive market realities
are stimulating needs for
CONTEXTUAL
more agile research processes. ACTIONABLE REPORTS
INSIGHTS
CONTINOUS
FEEDBACK
INTEGRATED
DATA

20. PROJECTED USE OF EMERGING TECHNIQUES
CONTINUES TO INCREASE
Source: GreenBook GRIT Report 2012

21. SMARTPHONE = EVERYWHERE
93% 90% 90%
85% 85%
80% 80%
75%
2012 2015 EST
53%
83% 85%
78% 79% 80%
40% 40% 70%
40% 69%
37%
51%
26% 34% 39%
28% 30%
23%
10%

22. LOCATION BASED SURVEYS
EVENT TRIGGERED SURVEYS

23. MOBILE ON THE GO ALLOWS US TO
CAPTURE BRAND MOMENTS
23

24. REVOLUTIONARY BUT SIMPLE
This is game changing. Our exhibitors and sponsors
could engage with consumers like never before.
We could influence crowd movements and made
the event even more fun for our visitors.
James Goode, Event Director
Golf Live
24

25. THE FUTURE OF RESEARCH IS NO LONGER ABOUT
GENERATING REPORTS
It’s about driving precise,
informed decisions by
sharing insights and
encouraging conversations
around them….
25

26. Why customer
experience matters in
the Auto-Industry
26
2

27. The Influence of Marketing and Customer Experience Shifts Over Time
STRONG
Poor service experiences are a
risk for your dealership!
Influence of
Marketing
Communications
Influence of
Customer Experience
Customer Experience matters!
WEAK
Problem Motivated Evaluation Purchase Ownership Service
Recognition Search
TIME
27

28. Why customer experience matters!
The Car Trade is currently confronted by changing consumer
behaviour as well as increasing Inter-/Intra-Brand competition.
Consequently, car dealers are under pressure to constantly enhance
their customer service levels to differentiate themselves from
competitor dealers.
To monitor service quality on a 24/7 basis,
an automobile dealer requires an automated
customer feedback system.
Dealer loyalty
100 93%
95 89%
90
85
2007 2011
80
75
Will buy next vehicle at same dealer
Ipsos
28

29. Multi Touch Point
Feedback
29
2

30. ViewsCast – The Voice of the Customer
 Full service Voice of the Customer solution
 Automated customer feedback collected
online, via IVR (Interactive Voice Response),
SMS (text) or mobile devices.
 Enterprise class reporting and dashboard
designed for various functions throughout the
organization, from Operations to Senior Executives
 Real time online report and customer comments
 Imports of customer data from other sources as
background variables is a standard functionality.
 Actionable analytics to promote best practice across the
business and improve the bottom line
 Cloud based solution requires no investment in
hardware or software

31. ViewsCast Key Business Benefits
ViewsCast directly impacts your Bottom Line, by improving both customer loyalty and
operational efficiency
Improve Customer Loyalty
 Improve Customer Engagement
 Minimize Customer Loss
 Increase Repurchase Intention
 Rectify Strategic Goals
Improve Operational Efficiency
 Focused and Smart Budget Spending
 Service Level Target Optimisation
 Improve Employee Compliance
 Enhance Coaching Effort

32. Feedback from multiple touch points
Roadside
What to survey? Contact Centre Showroom E-channels Website Service
Assistance
IVR, SMS, IVR, E-mail, Online slide-up, SMS, E-mail, SMS, E-mail,
How to invite? SMS E-mail Online slide-up E-mail Invite Card Invite Card
IVR IVR IVR
IVR
How to survey? SMS
SMS (Mobile) online (Mobile) Online SMS SMS
(Mobile) Online (Mobile) online Mobile online
Per tracker an online
reporting tool and e-
mail reports to all
stakeholders
Monthly evaluation Monthly evaluation of study performance, interpretation of results and recommendations from Ipsos.
Quarterly:
• Dashboard Quarterly management dashboard and on site workshop to discuss progress (scores, verbatims, benchmark,
• Analysis analysis) and set targets to achieve best in class performance
• Workshop

33. Feedback from multiple touch points
ViewsCast is an automatic Sales und Service customer feedback-system
Throughout the Sales and Service Process, there are many customer contact points.
At all of these „Customer Touchpoints“ there exists a danger that dealer staff do not
provide the customer with optimal quality service.
As part of the ViewsCast automatic customer feedback system, negative feedback is
collected and provides dealer management with the information required to guide
improvments at the dealership and through to action resolution

34. ViewsCast – The automated customer feedback system on the service side
Service or Repair
 Notification of feedback opportunity directly after
the vehicle handover (E.g. on Rearview mirror)
More than just a dealer
We have commited ourselves
to continually improve our
customer service.
As part of this undertaking, we
would be delighted if you
phoned the following free-of-
charge Feedback Hotline and
answered 3 questions about
our service levels .
Wir haben uns zur Aufgabe gesetzt unseren Kunden-servic e
kontinuierlich zu verbessern.
Wir würden uns daher
sehr freuen, wenn Sie
unsere kostenlose
Beside telephone feedback also online Feedback Hotline Free-of-charge Hotline
anrufen und uns drei
Fragen zu Ihrer 0800 – 99 600 460
(www.audifeedbacknow.com) and SMS Betreuung
beantworten.
feedback would be possible.
Kostenlose Hotline
0800 – 99 600 460 Thank you!
Besten Dank!

35. ViewsCast – The automated customer feedback system on the sales side
Sales (Reception / Advice)
 Notification of feedback possibility prominently
placed in Showroom / at the salesmens desk /
at the front desk or on brochures.
Beside telephone feedback also online
(www.audifeedbacknow.com) and SMS
feedback would be possible.

36. Taking back control of online research!
 We will not be able to control the way our customers access online content, such as customer
feedback surveys
 Customers should be able to
complete our questionnaires
on the device that they
choose.
 ViewsCast automatically detect
the device of the customer and
adapts.
 The respondent will not need
to do anything to have the best
user experience possible.

37. Actionable reporting - ViewsSummary
 Real-time graphs, tables and raw data
 Digitally recorded IVR verbatim comments
 Export charts into PowerPoint, Excel, Word or Outlook
 Automated recurring push e-mail reporting
 Empowering your employees

38. ViewsSummary; Automated email reporting
 Create and save key graphs (queries) that are automatically sent to a specific e-mail address
user on an hourly, daily, or monthly basis
Scheduled e-
mail example.
Tables can be
pushed as
well.
39

39. Tag Clouds
 Use tag clouds to identify key topics within open ends then drilldown and examine those
verbatim by clicking the target word
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40. Closed feedback loops
 In any modern day business it is not simply enough to identify that a customer is
unhappy or that a problem has occurred
 ViewsCast has developed the ability to allow the organisation to close the loop on
identified problem areas
 Any red flags that have occurred as a result of dissatisfied customer feedback can now
be fed back into the organisation so that customer service reps can be assigned and take
appropriate actions
 This is all done through the ViewsCast reporting portal so that our clients can quickly
see where and how remedial action has been taken
 As well as seeing if that action has been successful

41. Case Study (1)
Challenge
Our client wanted to understand the quality of service customers received in the sales and
after-sales environment and take action by providing immediate solutions for dissatisfied
customers
ViewsCast Approach
OEM provided contacts of customers who had been through a brand touchpoint
experience. Through a combination of SMS and Online, ViewsCast contacted customers in
a relevant and simple manner
Outcome
ViewsCast was able to conduct surveys straight after the customer experience and feed
results real-time back into the business at a dealer level allowing the dealer to take
remedial action with unhappy customers. This is a continuous study done on a daily basis

42. Case Study (2)
Challenge
Our client hosts an annual motorshow with industry and retail customers participating.
This event takes place over a number of days and our client wanted to get feedback on
specific elements of the show and be able to modify them in a live event environment to
the benefit of attendees
ViewsCast Approach
Tablets were distributed around the event location and attendees were able to participate
in a short online study asking them about their experience with different elements of the
event. This was then reported ‘live’ to our client who could take immediate action
Outcome
ViewsCast was able to conduct surveys straight after the customer experience and feed
results real-time to event organisers. They then changed elements of the event to make
the attendee experience more rewarding

43. ENGAGING TODAY’S CONSUMERS THROUGH NEW
APPROACHES GIVES US GREAT OPPORTUNITY
Through relevant, interesting and in
the moment research we can achieve
deeper insight and real time feedback
By layering multiple sources
we open a new era for research
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44. For any further information or questions
please feel free to contact us
Ben Llewellyn
ben.llewellyn@ipsos.com
+60 (129) 737 547
Richard Korn
richard.korn@ipsos.com
852-6650 3062
© 2012 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information
46
and may not be disclosed or reproduced without the prior written consent of Ipsos.