Technology Innovation Award

Transcription

1 Technology Innovation Award Automotive Dealership Virtual Reality Tours NORTH AMERICA Frost & Sullivan We Accelerate Growth

2 Contents Background and Company Performance... 3 Industry Challenges... 3 Technology Attributes and Future Business Value... 3 Conclusion... 9 Significance of Technology Innovation... 7 Understanding Technology Innovation... 7 Key Benchmarking Criteria... 8 Technology Attributes... 8 Future Business Value... 8 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices... 9 The Intersection between 360-Degree Research and Best Practices Awards Research Methodology About Frost & Sullivan Copyright Frost & Sullivan We Accelerate Growth

3 Background and Company Performance Industry Challenges The automotive retail approach is shifting focus from product to customer. Adapting to changing customer expectations has become crucial for dealers as today s digitally connected customers prefer to browse and access vehicle information from anywhere at any time. As such, a well-defined omni-channel strategy is the new path towards profitable business opportunities for both automakers and traditional dealerships. Consumers reliance on mobile devices, proliferation of social media, and demand for personalized online experiences are driving dealerships to rethink their conventional retail business models. Although most customers prefer to make a final purchase offline, a growing portion of the vehicle purchasing journey is occurring online. It is therefore imperative to offer an engaging online customer experience in order to steer more traffic into offline dealership stores. Customers should feel confident that their digital and brick-and-mortar shopping experiences are efficiently connected; ensuring so will help build trusting relationships and brand loyalty. Besides the advantages of digitizing vehicle showrooms, dealerships are struggling to capture customer data across multiple touch-points and to make actionable decisions. This challenge is limiting their capability to offer personalized marketing campaigns because they are not able to identify the most profitable customer segment across channels. It is critical for dealers to accept these new variables in today s automotive retail space and adopt digital technologies designed to motivate their customers to visit dealerships more often. In Europe, original equipment manufacturers (OEMs) are much ahead of North America in terms of digitizing their conventional showrooms. For instance, Hyundai opened a digital store named Rockar Hyundai that integrates in-store, online, and mobile platforms, thereby digitizing the entire vehicle purchase journey for customers. However, in the United States, due to stringent state auto franchise laws, a direct OEM sales approach is not permitted. A vehicle sale through franchised dealerships remains the most common vehicle retail channel in the United States. US dealership organizations are rather conventional in their approach, and their retail model has seen no radical changes in terms of customer experience, services, or cost. Nonetheless, dealerships will need to adapt quickly and accommodate today s most prevalent technological changes (e.g., social media integration, virtual reality, 3D imaging) to ensure a customer-centric ecosystem. CarVR Tour, founded in 2017, is working to transform the online customer experience across dealerships in North America. CarVR Tour offers interactive dealership virtual tours, allowing customers to remotely experience showrooms and vehicle inventory as if they were visiting the store in person. The company s proprietary vehicle capture technology overcomes the challenges experienced by traditional dealerships and transforms their online channel to significantly boost website traffic and direct customers to brick-andmortar dealerships. Frost & Sullivan We Accelerate Growth

4 Technology Attributes and Future Business Value Industry Impact & Product Impact Fuelling a multi-channel and mobile-rich customer experience is imperative for dealerships in the age of omni-channel retailing. Google research indicates that creating a virtual tour experience for websites can boost business traffic by 41% and attract customers within the 18 to 34 year age group. Therefore, automotive dealerships are identifying new ways to implement digital initiatives and integrate the offline and online shopping experience for customers. However, key challenges such as limited budgets, an aging workforce, and lack of both clear vision and digital strategies are restraining dealerships from making the move from product-centric to end-to-end digital retailling. CarVR Tour, through its virtual reality capture, aims to increase online engagement by bringing the physical store upfront when online customers are researching vehicles. The company s revolutionary virtual tours capture the consumer eye by simulating a virtual walk around the showroom and providing a view inside/outside of any car in 3D. This feature is highly beneficial for automotive dealerships looking to instantly generate qualified leads, boost showroom traffic, and increase brand value, all while building trust between their establishments and shoppers. CarVR Tour, in addition to virtual reality capture and 3D tours, integrates a lead capture platform by utilizing artificial intelligence (AI) chatbots, and live chats. Chatbots connect dealerships with live hot-leads instantly, along with buyer interest data. The lead capture platform is personalized to assist customers based on their vehicle shopping inquiries. For instance, chatbots can instantly book a test drive, check vehicle stock, reserve a car, start a credit application, and transfer contact information to a dealership sales team member. By turn, online customers can get information about a vehicle s quote or any other useful information 24/7, within a short response time. Integrating this feature into the dealership website increases customer interactions, purchase decisions, and incremental in-store traffic. With the majority of competitors offering virtual reality tours alone, creating a personalized experience for end-customers using AI chatbots and a live chat platform is a distinctive value proposition for CarVR Tour. Through its ground-breaking virtual technology and 24/7 personalized customer support, CarVR Tour stands out to Frost & Sullivan as favorably positioned for winning future sales and improving online customer experience in the evolving NA automotive industry. Customer Acquisition & Brand Loyalty CarVR Tour s 3D virtual tours allow dealerships to expand their brand presence and inventory awareness online where more than 80% of car purchasing decisions take place. In 2017, CarVR Tour successfully partnered with GM as part of its Digital Marketing Partner Program to revolutionize GM websites by offering an in-store digital experience for customers. The Cadillac of Norwood website, for instance, has implemented CarVR Tour s 3D virtual tours to visually transform the online experience and help customers feel more Frost & Sullivan We Accelerate Growth

5 fully engaged when browsing through the different vehicles available in that particular dealership. For instance, customers can choose to view the interior of Cadillac vehicles (e.g., XT5 Premium Luxury AWD, ATS Sedan Luxury AWD, and Escalade 4WD Platinum, CT6 Luxury AWD, CT6 Premium Luxury AWD, and CT6). By viewing the vehicle s interior in 3D, customers can explore all the features at their leisure, right from the dealer s website. Also, if shoppers click on a particular feature inside the vehicle, a YouTube video pops up to explain the design in detail. These virtual options create a high-value interactive experience for customers on GM dealership websites. Apart from GM, CarVR Tour is also part of CDK Global s Digital Media Partner Program, for which it has helped CDK s customers transform their websites using virtual reality technology. Frost & Sullivan finds that an integrated customer experience strategy is the key to building loyalty, retention, and, consequently, higher profit margins in sales and aftersales. In today s increasingly digitized retail world, dealerships must capture customers attention online by allowing them instant interaction with a vehicle. Omni-channel presence and interactive customer experience are today s keys to locking in brand loyalty. Hence it is imperative for dealerships to provide an in-store shopping experience to the online shopper to win their pre-qualification of what store to choose when purchasing a vehicle. Therefore, Frost & Sullivan believes that through strong industry partnerships with GM Cadillac and CDK Global to help these brands digitally transform their dealerships online presence, CarVR Tour is rightfully positioned to attract new business opportunities and on the path to becoming a trusted partner in the NA automotive industry. Application Diversity Primarily, CarVR Tour caters to OEM franchised dealerships and dealership solutions providers. Whereas the company provides virtual tours of showrooms and vehicle interiors for dealership customers, its dealership solution providers integrate CarVR Tour s solution as part of their digital marketing tools when building efficient websites for their dealership customers. Looking ahead, however, CarVR Tours expects to penetrate the insurance segment by partnering with automotive insurance companies. When an accident occurs, CarVR Tours would effectively assist customers in capturing images of the damaged vehicle that can then be directly sent to the insurance company s preferred list of repair shops, which will quicken the claims process. Frost & Sullivan recognizes that the virtual reality platforms and 3D tours innovated by CarVR Tour hold the potential for a diverse array of applications and customer use cases that are sure to attract a wider range of clients. Once CarVR Tour extends its capabilities to automotive insurance companies, it will strengthen its position as a leading virtual reality provider in the NA automotive industry. Frost & Sullivan We Accelerate Growth

6 Technology Licensing CarVR Tour s virtual solution is offered on a subscription-based model and can be easily integrated into a customer s server in the backend. Pricing starts at $55 per vehicle per month and ranges up to $69 per vehicle per month. However, pricing varies based on the key features selected by the dealerships, such as 3D tour of exterior/interior, AI chatbot lead generation, hi-res 2D photos, automatic website integrations, customer live-chat platform, and digital marketing. The 3D virtual tour of an entire dealership starts at $1,499 per showroom. The pricing may vary based on the features selected, number of rooftops to be deployed, and contract period. CarVR Tour s flexible pricing and deployment options enable dealerships to seamlessly integrate the 3D virtual tours with their backend systems and websites. The company s cutting-edge virtual technology and affordable pricing options are huge competitive advantages that will help in building a strong customer base in the industry. Conclusion Frost & Sullivan recognizes the excellence of CarVR Tour s 3D virtual tour platform that enables effectiveness for both automakers and dealerships through its virtual reality solutions for the automotive industry. The young company s cutting-edge remote virtual viewing tours bring the physical storefront to the online shopping experience, thereby allowing customers to explore inside and walk around any car from the convenience of the dealer s website. Partnerships with GM Cadillac and CDK website solutions are a strong testament of CarVR Tour s growing success in the auto sector. Having efficiently dealt with challenges typical in this sector, CarVR Tour has successfully deployed the virtual tour solutions to leave a remarkable impression in the industry through its visionary platform. The company also aims to strengthen its market presence and extend its product line by offering 3D virtual capture solutions to automotive insurance companies. Frost & Sullivan believes that with its potential for scalability and application diversity, CarVR Tour is set to revolutionize the automotive retailing industry. For its strong overall performance, innovative solutions, and key industry partnerships, CarVR Tour has much deservingly earned Frost & Sullivan s 2019 Technology Innovation Award. Frost & Sullivan We Accelerate Growth

7 Significance of Technology Innovation Ultimately, growth in any organization depends upon finding new ways to excite the market and upon maintaining a long-term commitment to innovation. At its core, technology innovation, or any other type of innovation, can only be sustained with leadership in three key areas: understanding demand, nurturing the brand, and differentiating from the competition. Understanding Technology Innovation Technology innovation begins with a spark of creativity that is systematically pursued, developed, and commercialized. That spark can result from a successful partnership, a productive in-house innovation group, or a bright-minded individual. Regardless of the source, the success of any new technology is ultimately determined by its innovativeness and its impact on the business as a whole. Frost & Sullivan We Accelerate Growth

8 Key Benchmarking Criteria For the Technology Innovation Award, Frost & Sullivan analysts independently evaluated two key factors Technology Attributes and Future Business Value according to the criteria identified below. Technology Attributes Criterion 1: Industry Impact Requirement: Technology enables the pursuit of groundbreaking ideas, contributing to the betterment of the entire industry. Criterion 2: Product Impact Requirement: Specific technology helps enhance features and functionalities of the entire product line for the company. Criterion 3: Scalability Requirement: Technology is scalable, enabling new generations of products over time, with increasing levels of quality and functionality. Criterion 4: Visionary Innovation Requirement: Specific new technology represents true innovation based on a deep understanding of future needs and applications. Criterion 5: Application Diversity Requirement: New technology serves multiple products, multiple applications, and multiple user environments. Future Business Value Criterion 1: Financial Performance Requirement: Potential is high for strong financial performance in terms of revenues, operating margins, and other relevant financial metrics. Criterion 2: Customer Acquisition Requirement: Specific technology enables acquisition of new customers, even as it enhances value to current customers. Criterion 3: Technology Licensing Requirement: New technology displays great potential to be licensed across many sectors and applications, thereby driving incremental revenue streams. Criterion 4: Brand Loyalty Requirement: New technology enhances the company s brand, creating and/or nurturing brand loyalty. Criterion 5: Human Capital Requirement: Customer impact is enhanced through the leverage of specific technology, translating into positive impact on employee morale and retention. Frost & Sullivan We Accelerate Growth

9 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and assess their fit with select best practice criteria. The reputation and integrity of the Awards are based on close adherence to this process. STEP OBJECTIVE KEY ACTIVITIES OUTPUT 1 Monitor, target, and screen Identify Award recipient candidates from around the globe Conduct in-depth industry research Identify emerging sectors Scan multiple geographies Pipeline of candidates who potentially meet all bestpractice criteria 2 Perform 360-degree research Perform comprehensive, 360-degree research on all candidates in the pipeline Interview thought leaders and industry practitioners Assess candidates fit with best-practice criteria Rank all candidates Matrix positioning of all candidates performance relative to one another 3 Invite thought leadership in best practices Perform in-depth examination of all candidates Confirm best-practice criteria Examine eligibility of all candidates Identify any information gaps Detailed profiles of all ranked candidates 4 Initiate research director review Conduct an unbiased evaluation of all candidate profiles Brainstorm ranking options Invite multiple perspectives on candidates performance Update candidate profiles Final prioritization of all eligible candidates and companion best-practice positioning paper 5 Assemble panel of industry experts Present findings to an expert panel of industry thought leaders Share findings Strengthen cases for candidate eligibility Prioritize candidates Refined list of prioritized Award candidates 6 Conduct global industry review Build consensus on Award candidates eligibility Hold global team meeting to review all candidates Pressure-test fit with criteria Confirm inclusion of all eligible candidates Final list of eligible Award candidates, representing success stories worldwide 7 Perform quality check Develop official Award consideration materials Perform final performance benchmarking activities Write nominations Perform quality review High-quality, accurate, and creative presentation of nominees successes 8 Reconnect with panel of industry experts Finalize the selection of the best-practice Award recipient Review analysis with panel Build consensus Select recipient Decision on which company performs best against all best-practice criteria 9 Communicate recognition Inform Award recipient of Award recognition Present Award to the CEO Inspire the organization for continued success Celebrate the recipient s performance Announcement of Award and plan for how recipient can use the Award to enhance the brand 10 Take strat gic action Upon licensing, company is able to share Award news with stakeholders and customers Coordinate media outreach Design a marketing plan Assess Award s role in future strategic planning Widespread awareness of recipient s Award status among investors, media personnel, and employees Frost & Sullivan We Accelerate Growth

10 The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Frost & Sullivan s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS participants and for identifying those performing at best-in-class levels. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages more than 50 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from 45 offices on six continents. To join our Growth Partnership, please visit Copyright This research is owned by Frost & Sullivan. No part of this research may be disclosed to external parties without formal written permission from Frost & Sullivan. Furthermore, no part may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the written permission of Frost & Sullivan. Frost & Sullivan We Accelerate Growth