Lessons Learned By Ginny Whelan
ginny@araeducation.com
The Next Generation
hanging customer habits and expec- tations are causing manufacturers to rethink how they build and sell vehicles. Cars must have a user experience that meets the expectations of the next gen- eration, whether that’s accessing Face- book, Twitter, or other social apps. But it extends well beyond that. We’re witness- ing an OEM striving to digitize the whole showroom experience with stores in major cities where there are no physical cars, just large screens. It’s an experience for the whole family, not just the car buyer. On the other hand, levels of conven- ience in car sharing may mean that driv- ers won’t feel the same need to purchase and own their own vehicle. They can eas- ily locate a cheap opportunity to get from A to B with a sharing service. It allows them to access the car, start it, and pay for the ride from a simple smart phone app. This level of integration into a mobile device is something which opens up total- ly new perspectives to younger people. As information technology grows in the design, production, and operation of vehicles, so do concerns about security and privacy. Cybersecurity is no longer in the backseat in the auto industry; it’s a core strategic element, as this vision for the future of the industry becomes a reality.
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More questions remain to be answered with respect to what platforms and stan- dards will be used to develop car-based IT systems. Will advancing technology lead us to the driverless car? Yet, before we address the technical challenges, do we really want this? Are people willing to hand over their safety to any kind of com- puter system?
The automotive recycling business is in the midst of an unparalleled shift in how and why the industry interacts with their customers.
According to a recent study on what’s driving the automotive parts online shop- per, 70% of online auto parts shoppers
18 Automotive Recycling | September-October 2015
select a retailer based on price. These con- sumers have become so conditioned to price- based shopping that 75% will leave a website to comparison shop compared to just 40% of general retail stop- pers.
Online parts shop- ping has created a cul- tural shift that presents a tremendous opportu- nity, but automotive recycling retailers must
respond to changing customer prefer- ences and behavior to take full advantage. At the top of their wish list, consumers want intuitive websites with detailed prod- uct information to research, specifica- tions, prices, warranties, shipping cost, and return policy. About 83% of con- sumers say they compare prices online and 62% prefer to buy their auto parts online. Some of your target-market cus- tomers can virtually point, click, and check-out without a moment’s hesitation. Other visitors are not quite as experi- enced when it comes to buying recycled auto parts; those are the ones you have to try to turn into customers.
If you think your sales closing rates will benefit from some hand-holding, try uti- lizing one of the training tools that spe- cialize in customer care that allows customers immediate access to service representatives who can easily offer assis- tance via live chat or browser control. By activating a live link through the web site, your visitor can exchange text messages with an informed customer care person who even has the ability to take control of the visitor’s browser to direct them to the appropriate page. The industry of recycling cars and har- vesting their valuable car parts has changed dramatically over the past five
years because of an explosion of techno- logical advancements, environmental reforms, the economy, and the advent of an international, online bazaar of recy- cled car parts. Several factors have been driving the value of recycled car parts: Fewer cars are being produced; people are keeping their cars longer; motorists are having fewer accidents and better- built cars are better able to withstand the damage; and with the creation of an inter- national marketplace to buy and sell used cars and car parts, there are more buyers. Professional auto recyclers are becoming increasingly vigilant and intelligent in nav- igating the system. And one has to know what parts are most desirable. Two ways to increase success is to invest in technology and spend more for the cars, so to accomplish this you have to get creative in production and marketing to decrease costs and make up those mar- gins. Many have made that capital invest- ment. Yet, there are many recyclers who thought this all was a fad. The reality of the future is it appears that they need to double down.
Ginny Whelan, an ARA Past President, is Man- aging Director of the ARA Educational Founda- tion and founder of the ARA University, the leading Web-based training resource in auto re- cycling education. Visit
www.arauniversity.org.
iStock.com/andrewgenn
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