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Why Customer Experience is the New Battleground for Automakers

Hands on a laptop keyboard navigating an online car buying tool. vehicle images and financing options displayed on the screen emphasize the ease and efficiency of purchasing cars online.

Over the last decade, customer expectations have undergone a quiet revolution.

Digital giants like Amazon have set new standards for frictionless, personalized experiences, and today’s consumers expect no less from automotive brands.

Over 90% of car buyers conduct online research before ever stepping into a showroom. They expect Netflix-like recommendations, Amazon-like convenience, and Apple-like simplicity, from first click to post-sale service.

This shift is challenging OEMs to rethink their entire approach. Because in a world where 47% of customers say they’d switch brands after a poor experience, product alone is no longer enough.

Here’s what today’s customers expect and how OEMs can respond.

Four Ways Automotive Customer Expectations are Changing

1. Digital is the default 

Online research, virtual showrooms, and mobile servicing are the norm. The expectation of digital excellence from first interaction to post-sale support and service has never been higher. 

2. Personalization is table stakes

43% of global car buyers rate personalization as extremely important, and 92% are willing to pay more for it. Yet, only 57% feel their needs are adequately met. Today’s customers want brands to anticipate their needs and make them feel seen.

3. Flexibility over ownership 

Younger customers, in particular, are embracing subscription models, short-term leases, and usage-based pricing. They want value and convenience, not the hassle of ownership.

4. Experience matters more than features

From ease of booking a service to transparency around issues, the overall experience of engaging with your brand matters more than yet another new feature.

Where Traditional Engagement Falls Short

But automotive OEMs aren’t used to competing with the likes of Netflix and Apple on the experience front. And many don’t yet have the capabilities to meet these new customer expectations.

Customer-facing systems and data are fragmented, making it difficult to provide a unified customer view. Dealers are often running legacy processes, so the brand experience is disconnected. Personalization is minimal. And the experience, for the customer, feels clunky

They might receive irrelevant marketing messages, face delays due to inaccessible data, or struggle with a poorly designed app. Every friction point puts their loyalty – and your revenue – at risk. 

So, how can automotive businesses close the gap on customer expectations? 

The Connected, Customer-Centric Automaker

The key is to design your processes and services around the customer from the ground up.

This means putting your data at the heart of everything you do, creating a seamless view across your customer, your people, your dealers, your parts, and your services, laying the foundation for a truly customer-centric business. 

Here are three critical areas to focus on: 

1. Unified customer data 

It starts with understanding your customer: who they are, what they’ve bought, how they use their vehicle, and what they need next.

A connected data infrastructure allows every team, from sales to service, to share a near-real-time view. That foundation enables deep personalization, faster support, predictive service, and smarter offers.

2. Personalized support and service 

Customers now expect Spotify-style personalization across every touchpoint.

With the right tools, OEMs can:

  • Offer tailored service plans based on vehicle usage 
  • Use real-time vehicle telematics and tracking to proactively flag potential issues before they become problems 
  • Automatically deliver accurate, transparent communications so the customer is always informed 
  • Deliver smart offers personalized to individual customer needs 
  • Resolve issues quickly with AI-powered support

With that kind of closeness to the customer, they’ll stick with you for longer, spend more, and become advocates for your brand. 

3. Flexible, value-based business models

As the cost of living rises and lifestyles change, to the modern consumer, ownership can feel more like a burden than a benefit. Customers want flexibility, whether that’s pay-per-use, bundled subscriptions, or over-the-air upgrades.

OEMs can meet this demand by leveraging connected car data to design offerings that align with real-world usage and preferences. These models not only improve experience but also create stable, recurring revenue streams.

Final Word: The Battleground is Experience

Customers aren’t just buying a car. They’re buying an end-to-end experience, from first touch to final service.

The future belongs to brands that can deliver that experience in a way that feels effortless, personal, and genuinely valuable. Not just at the point of sale, but at every point in the journey.

What’s standing between you and a loyal customer base?
Download our latest guide, Navigating Disruption in the Automotive Industry, to explore how leading OEMs are transforming their service models, embracing flexibility, and using data to elevate customer experience from a differentiator to a growth engine.