By Kanav Singla
Initially, decision-making while buying a brand-new vehicle was accompanied by a lot of apprehensions. It seemed like a maze to navigate through, and customers had to shuffle through a lot of print ads, showroom visits, and conversations with the salesperson. However, gone are those days as technology has intertwined itself with the sales process, where automakers are constantly striving to provide a unique experience to their customers digitally.
The preferences of the customers have also changed significantly, with technology having a significant impact on their lives. Since the last decade, customers have been proactively researching online before purchasing a vehicle. In India, 96% of car purchases start digitally, as per a joint research study conducted by Google and Kantar TNS. As a result, automakers have also started to leverage new-age technologies such as XR (Extended Reality), which is a game-changer in the automotive industry as it can provide seamless product visualisation, personalised product demos, and immersive virtual experiences to customers. The XR technology is not only changing car showrooms and online sales but also the auto sector as a whole.
Seamless product visualisation
Extended reality, or XR, such as AR (Augmented Reality), VR (Virtual Reality), and MR (Mixed Reality), greatly enhances product visualizations of cars for customers. This immersive space lets the potential buyer explore in any direction while interacting with the vehicle. The whole experience is made seamless with the help of visuals, sounds, and haptic feedback, which is initiated with a set of wearable devices. AR adds another layer of the environment to the user’s experience as it brings the real and virtual worlds together. It allows the customers to visualise the vehicle from the inside out, and they can experience various aspects such as design, vehicle specifications, interior features, colours, and customizable options. With these features, the automakers can engage customers in an efficient manner and provide them with a unique experience, which they demand nowadays. According to the Augmentality Shift Global Report, 79% of customers are interested in using AR to interact with a product before purchasing it.
Ease of personalisation
The potential customers of today not only want personalisation; they also readily demand that companies understand them efficiently. According to a study by Salesforce, 66% of buyers expect companies to comprehend their unique requirements and expectations. In this regard, new-age technologies are helping automakers provide unique experiences to their customers. For instance, with XR, customers can start their buyer’s journey in an automobile showroom by creating an avatar, which would help them navigate through the virtual world. Here they can be provided with 4K touch kiosks that have a 3D configurator, and by using it, the customers can personalise the cars they like, select colours and variants, compare models, and more. After the selection process, the customers can be presented with a personalised landing page where they can view the cinematic videos of their configured vehicles in real-time. This whole process can provide customers with a personalised experience and potentially improve sales for the automakers. A study conducted by Epsilon found that when given personalised experiences, 80% of customers tend to make a purchase.
Creating an immersive virtual experience
A test drive is always a critical step for potential customers in their car-buying process, and now the customers have the convenience of experiencing it virtually. Virtual test drives are not entirely a new concept; however, the pandemic acted as a catalyst, making it a popular avenue for dealerships as well as customers. Virtual test drives enable customers to fully evaluate the potential of a car before making a purchase. They can assess how their choice performs in various settings and environments, giving them additional peace of mind after taking it on a long journey. Virtual test drives also give potential customers the chance to experience all situations and terrains in a safe environment, regardless of the sort of car they are interested in or the type of roads they plan to drive on, providing the utmost pleasure prior to making a purchase.
All things considered
Emerging technologies have not only influenced how a vehicle is designed and manufactured but have also had a significant impact on the potential customer’s buying journey. It has further enabled seamless vehicle visualisation, ease of personalization, and the creation of virtual worlds, which have been collectively reshaping how customers connect, interact, and purchase from a car brand.
Technology has enabled processes that were not possible before, and as it advances, it is anticipated that virtual showrooms, virtual test drives, and virtual handovers will become the norm. As a result, the customers will also be able to own the vehicle without the inconvenience of visiting a showroom, as they will be able to inspect their choice from every angle before making the purchase.
Today, customer expectations are higher than ever, and there is a greater focus on providing superior, consistent digital experiences across all platforms. And in a bid to cater to their needs effectively, the automakers will require cutting-edge technologies such as XR, which will also ensure a seamless experience. According to research by PwC, 73% of people believe the customer experience to be a critical aspect of their purchasing decisions. Thus, the aspect of technology adaptation will continue to be one of the deciding factors that define an automaker’s revenues, along with their relationship with their customers.
(The author is Mr. Kanav Singla, CEO & Co-founder of Metadome.ai, and the views expressed in this article are his own)
