Despite continued annual declines in new-vehicle sales, more than 272 million cars and light trucks are on the road in the United States. Ownership journeys — and the aftersales and aftermarket processes that support them — remain overdue for reimagination and investment by automakers and their dealer partners.
The latest innovations in marketing, digital retailing, finance and insurance technology, and mobility services make headlines. Yet aftersales generate 20 percent of revenue, and about 50 percent of profits, for car companies' dealerships.
Other indicators of the importance of aftersales: About 23 million vehicles were recalled last year in campaigns not related to Takata airbags. Warranty claims reduce OEM revenues by about 3.3 percent. And three-fourths of vehicle owners say they would pay a flat monthly fee for "invisible" effortless service, including such conveniences as vehicle pickup and drop-off at home.
Automotive enterprises continue to juggle too many aftersales processes, systems and applications that were designed for another era. Most of them don't work together when automakers, dealers and vehicle owners attempt to engage across channels.
This failure is especially disruptive as vehicle technology becomes more complex and owner connectivity more ubiquitous — along with a proliferation of factory recalls, service campaigns and warranty events. Customer interactions, dealer visits, repairs, claims and reimbursements grow, but budgets and headcount remain static or decrease.