Navigating the customer journey - UK perspectives from Deloitte's Global Automotive Consumer Study

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Navigating the customer journey
UK perspectives from Deloitte’s Global Automotive Consumer Study
Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Key findings

How do consumers feel about autonomous vehicles?                            In-dealer consumer experience

•• Consumers are more positive about fully self-driving vehicles            •• 60% of consumers visited their selling dealer more than once

•• Consumers still want an established track record for autonomous          •• Customer experience is clearly not dead
   vehicles
                                                                            •• Salespeople and printed brochures are considered the most
•• Speaking of trust, most consumers put their faith in OEMs                   useful in gathering information at a dealership

                                                                            •• Consumers are most concerned with getting a good deal
How do consumers feel about electrified vehicles?
                                                                            •• Interaction with a real person is the most important buying
•• Slightly fewer consumers want gasoline/diesel (ICE) engines going           aspect of the vehicle buying process
   forward

•• Driving range is still a significant concern for all battery-powered     Communication from dealers and manufacturers
   electric vehicles (BEVs)
                                                                            •• Both OEMs and dealers could be missing a big opportunity
•• If consumers can get past the upfront price premium, more
   would consider going electric for their next vehicle                     •• Dealers trump manufacturers in quality of communication

How do consumers research a vehicle purchase?

•• Most consumers start researching 3 months before purchase

•• OEM websites and personal relationships have the highest
   impact

•• The majority of consumers do not use third-party pricing services

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

How do consumers feel about autonomous vehicles?
Safety first
In 2017 autonomous car safety was a major concern for UK consumers with 73% believing safety would be an issue. Over the last
12 months, consumers' attitudes have changed significantly as the proportion of those concerned about safety has dropped to 49%.
This highlights that overall acceptance of autonomous technology has grown rapidly in a short time.

Brands can help build trust
Over 50% of UK consumers would feel better about riding in a fully self-driving vehicle offered by a brand they trust, with a majority
also keen to see government regulation and evidence of an established safety record.

Looking at which types of brand consumers would trust most to bring a fully autonomous vehicle to market, more than half would
favour traditional car manufacturers, although trust in technology companies has also grown.
Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Consumers are more positive about fully self-driving vehicles
Consumer perception regarding the safety of self-driving vehicles has improved
considerably in the last 12 months

Consumer opinion on fully self-driving vehicles

                            If price and/or safety were not an issue,                    49%
                  I am willing to use a vehicle that could drive itself

                                                                                         49%
                                Fully self-driving cars will not be safe
                                                                                                     73%

                                                                                      43%
                                         A fully self-driving car will
                  free up my time so I can focus on other activities
                                                                                         49%

                                                                                   37%
    Travelling in a fully self-driving car will be a positive experience
                                                                                         51%

     2018       2017

Note: Percentage of respondents who strongly agreed or agreed have been added together
Q1: To what extent do you agree or disagree with the following statements?
Sample size: n= 1,209 [MOD 2], n= 1,081 [MOD 1]

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Consumers still want an established track record for AVs
Half of consumers would also feel better about AV technology if they were
offered by a trusted brand and there were government regulations

Factors making consumers feel better about riding in a fully self-driving vehicle

                                                                                                66%
                  An established track record of self-driving cars
                                being used on the streets safely
                                                                                                65%

                                                                                          53%
                          Vehicle is offered by a brand you trust
                                                                                       44%

                                                                                         51%
            Government regulation/approval of self-driving cars
                                                                                        48%

    2018     2017

Note: Percentage of respondents who strongly agreed or agreed have been added together
Q2: Would the following factors make you more or less likely to ride in a self-driving car?
Sample size: n= 1,196 [MOD 2], n= 1,161 [MOD 1]

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Speaking of trust, most consumers put their faith in OEMs
However, the other half of consumers would most trust someone else to bring
AV technology to market

Type of company consumers trust the most to bring fully self-driving technology to market

                                                                                                     51%
                                    Traditional car manufacturer
                                                                                                     53%

                                                                                    23%
       A new company that specializes in autonomous vehicles
                                                                                    24%

                                                                                21%
                                   Existing technology company
                                                                              17%

                                                                      5%
                                                            Other
                                                                       6%

    2018     2017

Q3: Would the following factors make you more or less likely to ride in a self-driving car?
Sample size: n= 1,270 [MOD 2], n= 1,246 [MOD 1]

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

How do consumers feel about electrified vehicles?
Powertrain preferences
Most UK consumers (73%) still favour either a gasoline or diesel engine. Only 19% said they would choose a hybrid engine and only
5% an all battery-powered electric engine in their next vehicle.

Looking specifically at the reasons why consumers might not choose an all battery-powered engine in their next vehicle, our
research shows that consumers are concerned about driving range and cost/price premiums followed closely by a lack of charging
infrastructure.

Cost is the main reason that consumers would consider switching to an all battery-powered engine, with 37% of the consumers
agreeing that lower ongoing operating costs for BEVs would most compel them to consider going electric for their next vehicle.
Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Slightly fewer consumers want ICE engines going forward
Survey evidence suggests consumers may be starting to shift their thinking
towards alternative powertrain technology

Consumers’ expectations with respect to engine type in their next vehicle (2018)

         Gasoline/Diesel (ICE)                                 73%

          Hybrid electric (HEV)        19%

                                                                                                                    2017 Data

                                                                                                        77%
          All battery-powered
                                       5%
                  electric (BEV)

                         Other       3%                                                                                16%
                                                                                                                                  7%

                                                                                                     Gas + Diesel     Hybrid    Other Alt

Note: “Other” category in 2018 data includes ethanol, CNG, and fuel cell
Q38. What type of engine would you prefer in your next vehicle?
Sample size: n= 965 [MOD 2], n= 949 [MOD 1]

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Driving range is still a significant concern for BEVs…
A quarter of consumers still worried about driving range and cost/price
premiums – followed closely by a lack of charging infrastructure

Biggest concerns regarding all battery-powered electric vehicles

                                                       Driving range                                  26%

                                                Cost/price premium                                   24%

                     Lack of electric vehicle charging infrastructure                          22%

                                            Time required to charge                  13%

                           Safety concerns with battery technology             6%

                The brand I prefer doesn’t offer electrified vehicles        4%

                            An all battery electric powertrain is not
                                                                          3%
               offered in the type of vehicle I want (e.g., SUV, truck)

                                              Other (please specify)     2%

Q39. What is your greatest concern regarding all battery-powered electric vehicles?
Sample size: n=965

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

But, if consumers can get past the upfront price premium…
37% of consumers feel lower ongoing operating costs for BEVs would most
compel them to consider going electric for their next vehicle

Reasons to consider an all battery-powered electric vehicle

                   Lower vehicle operating costs (e.g., fuel, service)                               37%

                     Lower emissions/environmental responsibility                           25%

                                             Rebates/tax incentives               15%

                    Social status/keeping up with latest technology       5%

                                                               Other     2%

                              I would not consider it for any reason                16%

Q40. What would be the main reason for you to consider an all battery-powered electric vehicle?
Sample size: n=965

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

How do consumers research a vehicle purchase?
Purchase habits
A third of consumers spend less than a month reviewing their vehicle options before making a decision. In fact, 70% spend less than
three months, suggesting that brands have a relatively short time to engage with consumers and influence their purchase decisions.

Looking more closely at the customer journey and which marketing channels have the most impact on purchase decisions, 31% of
consumers agreed that the manufacturer website had a significant impact on choice of vehicle, followed closely by family and friends
(30%). Only 15% of consumers viewed third-party websites as having a significant impact on vehicle purchase decision, however of
the 15% who did use them, 35% found the service very/extremely useful.
Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Most consumers start researching 3 months before purchase
Vehicle brands have relatively little time to identify, intersect and connect with
a consumer to influence a vehicle purchase decision

Duration of research before deciding to acquire current vehicle

                                               Less than a month                               33%

                                   1 month to less than 3 months                                     37%

                                  3 months to less than 6 months                  19%

                                  6 months to less than 9 months          6%

                                          9 months to 12 months      2%

                                            More than 12 months      3%

Q10. How long before you made the decision to acquire did you start researching your current vehicle?
Sample size: n=857

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

OEM websites and personal relationships have the highest impact
Third-party websites regarded as much less impactful on the actual vehicle
purchase decision

Impact of information sources on which vehicle is bought

                   Manufacturer websites (e.g., ford.com)                  39%                       25%                      31%     5%

                                  Family, friends, co-workers                  47%                     20%                     30%    3%

                            Dealer websites (view inventory,
                                                                            42%                       24%                     28%     6%
                                 find dealer hours/location)

                              Salespeople at the dealership                  45%                       23%                    26%     6%

Retail Websites (e.g., eBay Motors, Autotrader, Amazon)                            54%                       20%                20%   6%

         Safety-related websites (e.g., consumer reports,
                                                                                   57%                       16%              17%     10%
                          government crash test ratings)
                        Third-party websites (e.g., Edmunds,
                                                                                   58%                        18%               15%   9%
                                       Autohome, WhatCar)

                          Other (media reviews, magazines)                            63%                          13%         12%    12%

                                 Financial provider websites                             67%                        10%        11%    12%

                                Social media (e.g., Facebook)                            70%                             9%     10%   11%

     Little/No impact       Some impact      Significant impact    N/A

Q12. When considering purchasing or leasing your current vehicle, how much of an impact did information from each of the following
sources have on your ultimate decision of which vehicle you chose?
Sample sizes – n=857

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Majority of consumers do not use third-party pricing services
Of those who used them, 35% found the service very/extremely useful

Percentage of consumers using third-party vehicle                         Percentage of consumers who liked the pricing support
pricing support services to purchase a vehicle                            received while purchasing a vehicle

                                             16%

                                                                            Extremely useful                 12%

                                                                                  Very useful                               23%

                                                                          Moderately useful                                         30%

                                                                           Somewhat useful                                            32%

                                                                             Not useful at all       3%
     84%

     No     Yes

Q14. Did you use a third-party, vehicle pricing support service           Q15. How useful did you find the vehicle pricing support
(e.g., TrueCar, Edmunds, BitAuto, CarTrade, etc.) in the process          you received?
of acquiring your current vehicle?                                        Sample size: n=133
Sample size: n=857

13
Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

In-dealer consumer experience
Customer experience
Customer experience is not dead, 71% of the consumers who bought their car via a dealer, rate customer experience as either a
somewhat or very important factor in choosing where to buy a vehicle. The importance of relationship to dealer purchases is further
highlighted by the fact that 60% of consumers visited the dealer where they made their purchase more than once.

Interaction with a real person ranked as the most important buying aspect with over half acquiring their current vehicle from the
dealership they visited.

Two-thirds of consumers still find printed brochures and spec sheets very useful for gathering information at the dealership.
66% rate getting a good deal/price as the most enjoyable part of the dealer experience. The test drive ranks second with forty-three
percent.
Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

60% of consumers visited their selling dealer more than once
Over half of the consumers did not visit any other dealerships apart from the
one where they acquired their current vehicle

Dealer where I acquired                                  Other dealers that sell                            Other dealers that sell other
my current vehicle                                       my current vehicle                                 brands of comparable vehicles

                        0   3%                           0                                 57%              0                        53%

                        1                  38%           1           14%                                    1         13%

                        2               34%              2           13%                                    2         13%
     Number of visits

                        3         16%                    3         9%                                       3      11%

                        4    6%                          4      5%                                          4    5%

5 or more                   3%                   5 or more    2%                                     5 or more   5%

Q17. How many dealer visits did you conduct during the buying process for your current vehicle?
Sample size: n=702

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Customer experience is clearly not dead…
71% of the consumers rate customer experience as either a somewhat or very
important factor in choosing where to buy a vehicle

How important is customer experience in choosing which dealer to buy from?

                                                     Very important                       28%

                                               Somewhat important                                    43%

                                                             Neutral                20%

                                                 Not very important       6%

                                                 Not at all important   3%

Q18. Thinking about the dealer where you acquired your current vehicle, how important was the customer experience
in making the choice to buy there?
Sample size: n=702

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Salespeople and printed brochures considered most useful
Two-thirds of consumers still find printed brochures and spec sheets very useful
in gathering information at the dealership

Presence of channels at a dealership

                                                                                                                                2
                    Conversation with a salesperson       5% 11%                                     82%                        %

          Printed brochures and specification sheets       6%        20%                               65%                  9%

                              Your own mobile device       10%        19%                   32%                      39%

           A tablet device provided by the dealership      10%        17%            19%                       54%

                         Interactive computer kiosks       11%          20%           14%                     55%

      Augmented/virtual reality headset provided by
                                                            12%        17%          14%                       57%
                                     the dealership

     Not useful     Neutral      Very useful       N/A

Q23. How useful are each of the following channels in helping you gather information while at a dealership?
Sample size: n=702

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Clearly, consumers are most concerned with getting a good deal
Also, importance of experiences such as a test drive and quick/efficient process
cannot be underestimated

The most enjoyable aspects of the dealer experience are…

                                                Got a good deal/price                                               66%
                                                                                                      32%
                                                        The test drive                                        43%
                                                                                            17%
                                               Quick/efficient process                                        38%
                                                                                  8%
                        Friendliness/relationship with sales associate                                 35%
                                                                                      11%
                                     All my questions were answered                                    34%
                                                                                   9%
                                                  Convenient location                                30%
                                                                                  9%
                                            Did not have to negotiate                   14%
                                                                             3%
                                       I learned about extra features                 11%
                                                                            3%
                                            Follow-up post-purchase               8%
                                                                           1%
                                                 Dealership amenities             7%
          (e.g., kid’s play room, restaurants/coffee shop, cocktail bar)     2%
         Technology that made the experience more efficient/easier                 6%
                                                                            2%
Technology that made the experience more fun (e.g., virtual reality)             6%
                                                                            2%
                                                                Other       2%
                                                                           1%

     Top 3 choices     Top choices

Q24. What are the three aspects of the dealer experience you enjoyed most when you acquired your current vehicle?
Sample size: n=702

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Interaction with a real person most important buying aspect
Less paperwork and getting pricing information online are the other most
important aspects for consumers

Consumer opinions on important aspects of a vehicle buying process

              Interacting with a real person to ask questions     5%      20%                                     75%

                                          Minimal paperwork       6%          27%                                   67%
              Getting pricing information and/or locking-in a
                                                                  10%               29%                                 61%
                       vehicle price online prior to purchase
                             Building rapport with the dealer     11%               31%                                 58%

      Extended duration test drives (e.g., 24 hours or more)           20%                  31%                           49%
            Ride-and-drive events where you can test drive
                                                                       21%                  32%                           47%
                                several vehicles at one time
       Innovative technology to make the purchase process
                                                                    15%                   39%                             46%
                                              more efficient
        Getting pre-approved for financing before shopping                 28%                        31%                      41%
          Innovative technology to make the purchase more
                                                                             37%                            35%                     28%
                           engaging/fun (e.g., virtual reality)
Access to product specialists (e.g., Apple “genius” concept)               33%                             39%                      28%

                             Minimal contact with the dealer              30%                              44%                      26%

     Not at all important/Not very important     Neutral      Somewhat important/Very important

Q45. How important are each of the following items related to the vehicle buying process?
Sample size: n=766

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Communication from dealers and manufacturers
Interaction matters
Interacting with a real person, having a friendly relationship with the dealer, minimal paperwork, and getting vehicle price
information online are the most important aspects of the vehicle buying process. However, this relationship appears to end at the
point of purchase. Both manufacturers and dealers could be missing an important opportunity as 62% of consumers say they were
never contacted by the manufacturer after acquiring their vehicle.

Dealers surpass manufacturers in terms of quality of communication with 73% of consumers saying dealer communication is good/
very good.
Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Both OEMs and dealers could be missing a big opportunity
62% of the consumers say they were never contacted by the manufacturer after
acquiring their vehicle

                  Manufacturer touchpoints                                                      Dealer touchpoints

                                                                    Number of times

                62%                                                        Never                                      23%

                                          17%                          Once or twice                                             39%

                                             11%                         3-5 times                                   21%

                                                   4%                   6-10 times                             9%

                                                   2%                   11-20 times                   3%

                                                    1%             More than 20 times                1%

                                                   3%                   Don’t know                        4%

Q31. How many times has either the manufacturer or dealer contacted you (for any reason) after acquiring your current vehicle?
Sample size: n=702

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

Dealers trump manufacturers in quality of communication…
73% of consumers rated dealer communications as good/very good

Manufacturer quality of communication                                        Dealer quality of communication

                                21%                            Very good                              25%

 67%                                                                                                               73%
         46%                                                     Good                                              48%

                           26%                                    Fair                               22%

                                               6%                 Poor             3%

                                                    1%         Very poor           2%

Q33. How would you rate the quality of the communication you have received from both the manufacturer and dealer
since acquiring your current vehicle?
Sample size, average for manufacturer and dealer : n=257, 525

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Navigating the customer journey |
                                 UK perspectives from Deloitte’s Global Automotive Consumer Study

The 2018 Deloitte Global Automotive Consumer Study includes 22,177
consumer responses across 15 global markets

                                                   Belgium          United Kingdom
                                                   (n=1,275)        (n=1,261)

                                                                                Germany
                                                                                (n=1,759)
                    Canada
                    (n=1,261)

                                                        France
                                                        (n=1,258)                                                    Japan
                   United States                                                                                     (n=1,762)
                   (n=1,760)
                                                                                                                     Rep of Korea
                                                                                                                     (n=1,763)
                        Mexico                                                                                       China
                        (n=1,269)                                                                                    (n=1,759)

                                                               Italy
                                                               (n=1,260)
                                                                                            India
                                                                                            (n=1,760)
                                                                           South Africa
                                                                           (n=1,251)
                                                                                                  Malaysia Thailand Indonesia
                                                       Brazil                                     (n=505) (n=515) (n=503)
                                                       (n=1,256)                                  Southeast Asia (n=1,523)

Study methodology
The study is fielded using an online panel methodology where consumers of driving age are invited to complete the
questionnaire (translated into local languages) via email. It was fielded in 17 countries and designed to be nationally
representative of the overall population in each country.

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