Modern Automotive Marketing Operations - An R3 Report (Extract)

Modern Automotive

Marketing Operations An R3 Report

Marketing Operations & Future-Fit Systems & Goals Running marketing teams and agency ecosystems on legacy structures is like racing the 24 Hours of Le Mans on an old engine. Your car might be able to cover the track, but it’s not going to give you a winning, competitive advantage.

An often-neglected component in the dash to digital transformation is the design of marketing operations. It might be easier to purchase and implement the right tools, but for optimum data-driven and agile marketing, you need to have the right structure and mindset. It requires a shift from old processes that might misdirect the team away from their intent, and therefore clear paths and processes need to be mapped.

This report addresses the opportunities that present themselves to marketers when they take a second look at their operations in light of the new consumer journey, product-centric marketing, and the increasing need for specialization in an increasingly complex landscape. The examples provided in this report are meant to give readers further insight into the process and thinking that many of these companies undertook to get to where they are today.

Modern Automotive Marketing Operations

Helping Teams Stay on Course Nurturing Data-Driven Organizations

Beware Derailers

Forward-Looking. The strategic role of data and analytics shifts from ex-post use cases of historical reporting and performance review to ex-ante predictive analytics.

De-Centralized, Non-Conforming Projects. Data-andanalytics capabilities are too often scattered across the enterprise with little consistency or meaningful linkage; consolidation is often difficult because of political barriers.

Company-Wide. The use of data and analytics is fully scaled and operationalized with applications to thousands of small decisions.

Talent Gap. Most firms have never hired people with good data instincts or skillsets or made it a priority to do so. And the supply of trained data engineers and scientists falls far short of current demand.

Full Toolkit. A set of core capabilities—such as data sourcing, standardized analytical tools, analytical models/techniques—is available to all lines of business for a range of use cases.

Poor Governance: Data quality suffers when it isn’t managed. Many firms have internally inconsistent or incomplete data, conflicting definitions, and manual processes that inhibit scaling.

New Breed of Professionals. The data talent bench is refreshed with new experts and groomed in-house talent, including “tweeners” who understand both business and technical issues.

Fear-of-Failure Culture. Few companies foster and reward experimentation. IT tries to make sure things “don’t break,” and analysts more often work on reports than front-line decision support. Making data work requires a culture of innovation and agility.

Easy Front-End Access to Data. Centralized and connected authoritative data sources that describe a “single version of truth” are accessible to employees for analysis, decision-making and reporting.

Legacy IT. Many firms’ IT systems and software platforms grew haphazardly into what is now an unwieldy “stack,” with data held in disparate databases and formats.

Centralized Data Governance. Data is a strategic asset across the organization, with formal procedures and accountability to maintain accuracy and timeliness.

Complex New Architecture. Wiring next–gen systems to source, clean, and process data is tricky and demanding work. Huge data volumes present new technical challenges and pose new cyber-security risks.

Metrics for Benchmarking. The business impact contributed by data and analytics is continually measured through a set of KPIs. Source: Oliver Wyman

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DRIVING TRANSFORMATION FOR MARKETERS & THEIR AGENCIES

The Digital Customer Journey: Automotive Awareness

Phase

Digital Engagement

Information Gathering

Configuration/selection consultation

Virtual Engagement & Configuration

Dedicated Cross-Channel Assistance

Personal Driving Experience

Website, live store, VR salesroom, phone and video telephony, live chat

Website, phone and video telephony, chatbot, FAQ bot, live chat

Website, phone, messenger, SMS, chatbot, live chat, test drive management

Purchase

Exclusive & Custom Offer

Retention

Ongoing Engagement prior to Handover

Enhanced Experience Through In-Car Assistance

App, personalized videos, push notification, self-service

Phone and video telephony, live chat, push notification, self-service

Physical Digital

Social Media Website

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Website, phone and video telephony, live chat, co-browsing, digital signature

DRIVING TRANSFORMATION FOR MARKETERS & THEIR AGENCIES

Nissan Builds its Marketing Team & Tech Capability on CX Nissan overhauled seven key customer journeys and changed how it’s organized to rapidly adapt and respond to future customer needs. The transformation is ongoing — it is not a one and done — but it has already delivered some promising results.

Use the Consumer Journey to Build A Team Nissan used quantitative and qualitative customer research to identify and understand a high-level framework of seven journeys that cover the lifetime of a Nissan customer.

Each journey is made up of several key moments — steps a customer takes to reach their goal for the journey. Some moments are shared across multiple journeys.

Nissan set up a global CX team that included representatives from experience strategy and design; product; implementation (technical delivery); analytics; market and business engagement (focused on regional alignment and country rollouts); and business operations (project management). A CX steering committee of senior executives ensure top-down alignment, balancing long-term projects and continuous improvement. Nissan’s global digital platform ensures a unified user experience and empowers teams with rapid testing and hypothesis verification.

Building Tech Capability to Support the Consumer Journey What started off as a front-end experience optimization and brand consistency project expanded to include data integration (online data, car data, configuration data, offers, inventory, and dealer systems); integrations of various back-end systems; and a regional and scalable cloud infrastructure (network security and automation).

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Modern Automotive Marketing Operations

Result The transformation included a consolidation of more than 200 websites across 100 markets and a shift from touch points to journeys to see the world as Nissan customers do.

2020 Year-on-Year Performance (USD) Based on average foreign exchange rates of 106.1 JPY /USD and 127.8 JPY /EUR for FY20 Q4

+$1.6bn

+$713m

+$5.9bn

Revenue

Operating Profit

Net Income

Consumer Journey = Needs = Capabilities CONSUMER

Making Confident Finance Decisions

Experiencing a Seamless Test Drive

Choosing My Vehicle

Managing My Drive-On-The-Go

NEEDS Tailor financial packages; Apply for finance approval; Obtain a trade-in value; Finalize finance contract; Renew and adjust finances; Order, pay and arrange delivery; Save and share; Talk to Nissan – with finance Customize and book a test drive; Check-in for test drive; Test drive; Talk to Nissan - on a test drive; Receive follow-up

NISSAN’S TRANSFORMATION • One complete online journey -

from choosing finance to applying, and transacting - for a car and services.

• Quality and precision of financial information (including pricing and offers).

• Reduce effort for customers and dealers.

Explore options; Select the perfect vehicle; Find availability and offers; Save and share; Talk to Nissan - on choices and offer Learn and improve; Check and manage vehicle information; Customize the drive; Order, pay, and arrange delivery; Manage account - services and preferences; Talk to Nissan throughout ownership; Receive followup

Onboarding to Ownership

Get to know your vehicle; Teach and receive vehicle; First time set-up; Talk to Nissan - onboarding help; Receive follow-up

Getting Aftersales Service

Explore and review upgrades and services; Book an appointment; Checkin for service; Service vehicle; Review work; Order, pay, and arrange delivery; Manage account - view service history; Talk to Nissan - aftersales service; Receive follow-up

• Customers value, book, shop and

pay for the best products and services in the simplest way possible - including a fully digital ecosystem for connected services.

• Increase customer trust with dealer and the aftersales product and service.

• Reduce effort for customer and dealer (no reliance on email).

Source: Nissan/Forrester 2020

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DRIVING TRANSFORMATION FOR MARKETERS & THEIR AGENCIES

Using Component Business Model Thinking to Exploit Business Value The challenge for marketers operating in a complex ecosystem is how to maintain consistency when they are unable to fully control end-to-end value chains. The solution lies in component model thinking.

In marketing, this can be thought of as a combination of optimizing processes and allowing specialization in areas like data analytics and e-commerce. This requires thinking around operational structure and how assets interact and inform each other to drive value.

It is important to distinguish specialization from process optimization. Optimizing is the task of making existing processes better. Specialization results in made-tomeasure outcomes that are tailored to a business’s specific purpose.

Applying Component Model Thinking Map current business and network components

Gauge the business value of different components on the map. What requires immediate attention? What has the potential to deliver the most return?

Compare the current operations architecture with the future-fit operations. Where are the gaps?

What data can we show to support the narrative?

What will making the leap cost? What are the quick wins? What should the company focus on first?

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Modern Automotive Marketing Operations

Looking Through a CBM Lens Insights

Architecture

Investment

STRATEGIC ARCHITECTURE

1

Assess business strategy

3

4

Determine strategic business model/value network

5

Operationalize strategic business model/value network

Identify “hot” components

BUSINESS ARCHITECTURE

2

Develop business component model

6

Define target component requirements

7

Assess current component capabilities

9

Define and prioritize opportunities

10

Develop transformation roadmap

Processes

Assets

People

Governance

Alliances IT Infrastructure

8

Develop shortfall impact

Source: IBM Global Business Services

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DRIVING TRANSFORMATION FOR MARKETERS & THEIR AGENCIES

About R3 OUR REASON FOR BEING In a word, we are about transformation. R3 was established in 2002 in response to an increasing need from marketers to enhance their return on marketing, media and agency investments, and to improve efficiency and effectiveness.

We want to help CMOs make marketing accountable.

RETURN ON AGENCIES We help marketers find, pay and keep the best possible agency relationships – covering Creative, Media, PR, Digital, Social, Performance, Event, Promotions and CRM.

OUR BACKGROUND We’ve worked with more than one hundred companies on global, regional and local assignments to drive efficiency and effectiveness.

We have talent based in the US, Asia Pacific and Europe and partners in LATAM and Africa.

We take the lead on improving the Integration process through proprietary software and consulting.

Through global work for Samsung, Coca-Cola, Johnson & Johnson, Visa, Unilever, and others, we have developed robust benchmarks and process targets for more than 70 countries.

What we do We are an independent transformation consultancy hired by CMOs to make their marketing more measurable and accountable to business impact.

How we do it

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We invest in the best talent, bringing in senior leaders from marketing, agency and analytic backgrounds.

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We’re independent. Because we’re not your marketing team or agencies, we’re empowered to be honest and transparent.

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We use external benchmarks. We have proprietary data pools to inform our in-depth analysis.

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Since 2002, we’ve interviewed more than 2,000 marketers about their agency relations.

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Since 2006, we’ve spoken to more than 80,000 consumers in China’s top-twenty cities and continue to do so every three months.

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We have co-developed software to measure agency and media performance.

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Each month, we exclusively track over 500 agency new business wins, as well as 100’s of deals in the marketing M&A space.

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We have insight into global best practice. We work with companies who want to do best-in-class marketing across diverse categories and geographies.

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We authored the book “Global CMO” about marketers leading Digital Transformation around the world.

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We maintain an ongoing database of media costs for key markets.

Driving Transformation for Marketers and Their Agencies

RETURN ON MEDIA We offer professional analysis of the media process, planning and buying with proprietary benchmarks and tools to set and measure performance.

We conduct financial audits to validate and benchmark transparency.

RETURN ON investment Using a bespoke and proprietary methodology, we help benchmark and provide insights into how your digital strategies perform in your category and across categories.

Modern Automotive Marketing Operations

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