The automotive industry is investing more in digital transformation and electric vehicles

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According to recent research from Salesforce, the automotive industry is in the midst of a historic digital transformation. For the Trends in Automotive report, Salesforce Industries Insights surveyed 500 employees of original equipment manufacturers (OEMs), captive finance companies, and retailers worldwide to learn more about digital imperatives that are transforming the customer experience. 

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The research highlighted three key trends: 

1. Automotive customers ride a bumpy road: Customers are eager for streamlined digital buying experiences, but companies are struggling to deliver.
   Less than one in five OEMs and retailers believe their digital storefronts are engaging and mobile-friendly and with the same number reporting inventory accuracy problems online. 
2. Companies believe customer data builds a better customer experience: Companies are prioritizing collecting customer data but are having trouble putting it to good use. 93% of companies agreed that first-party data would substantially improve the customer experience.
3. With profits under pressure, companies pursue new revenue opportunities: Companies are investing large sums in electric vehicle research and development and offsetting tighter margins with new revenue from subscriptions and partnerships. 85% of companies agreed that the research and development cost of transitioning to EVs will be a substantial risk to the industry's profits for the next five years.  

Automotive customers ride a bumpy road 

The automotive shopping experience is more digital today than ever before. OEMs, captive finance companies, and retailers are building on the digital experiences offered in other industries, such as retail. The research also highlights the post-purchase experience to be more digital and virtual, from managing their loans to purchasing additional miles on their leases to downloading service updates.

Research indicates that companies aren't as far along on their digital journeys as they might believe. Salesforce research found that 73% of companies believe they are overperforming when it comes to digital transformation; recent research from McKinsey shows physical touchpoints (and unsatisfying interactions) still dominate the buying experience.

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