Industry Voices | The Future of Automotive Owner Engagement: Beyond the Dealership

Rising consumer expectations and rapid advancements in car technology and connectivity are driving a one-to-one experience with vehicle owners. As a result, automakers are increasingly evolving their strategies for engaging with vehicle owners throughout the entire ownership lifecycle. 

While dealer networks have traditionally played a central role in the relationship with vehicle owners, the shifting landscape of an automaker’s direct role in the relationship with the vehicle owner requires more accurate ownership data at the automaker level, particularly for used-vehicle owners.

Automakers have multiple opportunities to engage with used-car owners if they want to improve brand loyalty and enhance the vehicle ownership experience. It’s a missed opportunity when automakers don’t engage with used-car owners, especially when owner expectations focus on the brand, not necessarily where or how they bought the used car. To reach these owners often means looking at this segment from a new lens and advancing data strategies including additional (alternative) data sources that further enhance an automaker’s ability to identify and engage used-vehicle owners.

The Blind Spot: Maintaining Visibility in a Changing Market

In the used-car market in particular, where two-thirds of transactions occur outside of traditional dealer networks, it can be difficult to maintain accurate and up-to-date vehicle ownership data. Vehicles are sold through private parties or independent dealerships, and automakers can lose track of who owns their vehicles, creating blind spots within their organizations that hinder effective communication and engagement.

Recent research we conducted of U.S. vehicle owners who purchased or leased a used car, model year 2013 or newer, reveals that no matter where someone purchased their used vehicle, whether at a dealership or privately, a majority of used-vehicle owners expect automakers to reach out to them. Over half of consumers (53%) expect to be contacted within the first two months of ownership, and another 12% say they expect communication after two months, totaling 65% who expect to hear from their automaker. While only 35% don’t expect any communication from their vehicle OEM, proactive communication by the automaker is a solid way to engage and nurture relationships with used-car owners, transfer services in this new, more digital era and ultimately foster long-term loyalty.

Building Relationships: Meeting Owner Expectations

Our research found that used-car owners are most interested in receiving information about safety recalls (94%), vehicle services and diagnostics (89%), warranty coverage (86%), roadside assistance (82%) and connected services free trials (75%). By tailoring communication strategies to address these key areas, automakers can demonstrate commitment to owner satisfaction and safety.

With nearly 35 million vehicles recalled in 2023, it remains crucial to reach used-vehicle owners. Getting unsafe vehicles off the road is critical to improving owner safety and can serve as a building block of customer trust and loyalty.   

Communication Channels: Reaching Owners Where They Are

Email is the preferred communication channel for 55% of used-vehicle owners, with nearly half of owners (47%) preferring direct mail, according to respondents. Only 36% of owners prefer a phone call, and only 26% want to receive a text. This underscores the importance of maintaining accurate contact information and utilizing these channels for effective outreach. Data hygiene and robust data management practices are imperative to ensure automakers send the right communication to the right person at the right time.

Technology as a Catalyst: Enhancing the Ownership Experience

A robust data strategy can also support automakers in maintaining visibility over vehicle ownership changes, which is particularly crucial in the used-car market. Traditional data sources often fall short in tracking vehicles sold through private parties or independent dealerships, creating blind spots. By integrating alternative data sources, automakers can achieve a more complete view of their vehicle ownership landscape.

An integrated alternative data source that utilizes advanced linking technology for timely updates on vehicle ownership changes can help automakers maintain accurate contact information to promptly deliver recall notifications and other critical information. This enables automakers to build stronger relationships with used-car owners, improve brand loyalty and enhance the overall ownership experience.

Additionally, with advancements in over-the-air (OTA) technology, automakers can now monitor vehicle health more effectively, enabling early detection and proactive resolution of potential issues. OTA allows for remote deployment of software updates and bug fixes, helping enhance safety and extend the lifespan of the vehicle for the owner. 

By leveraging OTA technology alongside a robust data strategy, automakers can not only meet but also exceed owner expectations, providing a seamless, safe and connected vehicle experience.

The Road Ahead: A Strategic Imperative

In this evolving landscape, a proactive and data-driven approach to owner engagement is a valuable tool. Automakers must prioritize the following key strategies:By focusing on these key areas, automakers can build stronger, more meaningful relationships with vehicle owners, fostering loyalty and driving long-term business success. The future of automotive owner engagement lies in a customer-centric approach that prioritizes communication, convenience and the seamless integration of technology.