What is the Market Value of Autonomous and Connected Vehicles?
According to a report by McKinsey, by 2035, autonomous driving is expected to generate $300 billion to $400 billion in revenue in the automotive industry. This opens a huge area for companies to invest in. With autonomous and connected vehicles, these companies can create immersive and personalized experiences for their customers.
Time is money; and according to a survey conducted by Salesforce, almost 67% of consumers will expect companies to provide quicker customer service. Keeping this in mind, automotive companies need to supercharge their efforts in analyzing related data that will help them drive tailored customer experiences. However, care should be taken by these companies to protect their data and stay aligned with data privacy policies as 75% of global consumers are likely to put their loyalty in their brand, if their data remains protected.
As automotive companies focus on pushing the boundaries of innovation, manufacturing IoT connected cars, and other vehicles will also redefine other industries and create new opportunities. These points will further explain the value of autonomous and connected vehicles:
Enhanced Safety and Reduced Liability
Autonomous driving technologies significantly reduce human error, which is responsible for the majority of traffic accidents. For automotive companies, this shift means a direct impact on safety standards and the opportunity to position their technology as a leader in road safety.
As these technologies become more advanced, accidents will be reduced which will in turn benefit consumers and help lower insurance premiums. These premiums are a major cost for both consumers and manufacturers. A significant shift towards automation will encourage more widespread adoption of autonomous vehicles, increasing the market share and consumer trust.
Disruption of Traditional Insurance Models
One of the most significant changes that autonomous and connected vehicles will bring is the potential disruption in the traditional auto insurance industry. With autonomous systems in control of the vehicle, the risk of human error is drastically reduced. This creates an opportunity for automotive manufacturers to explore new insurance models.
By leveraging real-time data from the vehicle’s performance, automotive companies can understand driving behavior and accident history and offer personalized insurance policies that are more accurate and tailored to each customer’s driving habits. This provides a competitive advantage over traditional insurers and generates new revenue streams.
Opportunities in New Business Models and Services
Autonomous and connected vehicles are not just changing the way we drive—they are transforming the entire automotive industry. This is a great news for automotive companies, as this will help can utilize the opportunity to tap into new revenue models. Additionally, connected and automated vehicles enable you to provide data-driven services such as predictive maintenance, traffic management, and real-time location-based services to your customers.
As automotive companies continue to innovate, their new business models can unlock substantial new streams for generating revenue while creating more seamless and personalized experiences for consumers.
Why Automotive Companies Are Facing Challenges to Monetize Autonomous and Connected Vehicles?
The improvement in the automotive industry through autonomous and connected vehicles is looking promising. However, there are still some major challenges that the automotive industry faces to create connected and automated vehicles. These challenges mainly arise due to the inability to utilize data effectively. Here are some more challenges faced by the automotive industry:
How Salesforce Automotive Cloud Can Help Automotive Companies Navigate These Challenges?
Salesforce Automotive Cloud is designed particularly to address the challenges faced by the automotive industry. With this platform, automotive companies can drive revenue, improve customer experiences, and optimize operations through industry-specific automation, real-time intelligence, and AI-powered analytics.
Here’s how Salesforce Automotive Cloud can help companies navigate these complexities:
Enhancing Customer Experience with Driver 360
Automotive companies can get a comprehensive view of their customers with the Driver 360 feature in the Salesforce Automotive Cloud. This tool enables automakers and dealers to understand the complete customer journey – beginning from browsing and purchasing to ongoing service and vehicle history. By leveraging a unified customer profile, service teams can provide personalized recommendations, timely alerts, and proactive engagement. This ensures that automotive companies are continuously improving customer experience that meets the evolving expectations of today’s digital-first consumer.
Improving Lead Conversion and Collaboration
Automotive companies are increasingly relying on digital channels to generate leads and communicate with customers. Salesforce Automotive Cloud’s Lead Management feature helps marketing teams rank and route high-quality leads directly to the appropriate dealership, ensuring that sales teams can focus on the opportunities.
This platform helps automotive companies get detailed customer and vehicle history, enabling personalized and informed follow-ups. Through Dealer Performance Management, automakers and dealerships can collaborate more efficiently by monitoring sales pipelines, tracking performance, and aligning marketing strategies to boost sales.
Streamlining Inventory Management and Sales
Managing inventory and coordinating sales across a network of dealers and automakers can be a challenging task. Salesforce Automotive Cloud enables companies to gain insights into purchase agreements and inventory performance. This helps them keep an insight into future sales of autonomous and connected vehicles. By monitoring dealer performance and collaborating on demand forecasts, these companies can optimize their supply chain strategies, reduce stock-outs, and manage their inventory with greater precision.
Leveraging Industry-Specific Automation, AI, and Analytics
The automotive market is rapidly driven by economic pressures, evolving consumer expectations, and technological advancements. To stay competitive, companies need special solutions that reduce costs, improve efficiency, and uncover new revenue streams.
Salesforce Automotive Cloud integrates AI-powered automation through tools like Flow for Automotive, enabling businesses to deliver automated shipment notifications. This helps companies complete more tasks with fewer resources, improving productivity and enhancing the customer experience.
With the Salesforce Automotive Cloud, companies can track critical performance indicators such as sales trends, customer behavior, and asset lifecycle. This allows businesses to make more informed, data-driven decisions that improve operations and drive profitability.
Real-Time Customer Insights with Salesforce Genie
With Salesforce Data Cloud, previously known as Salesforce Genie, automotive companies can unify customer and vehicle data across all customer touchpoints and communication channels. This real-time, 360-degree view of the customer allows automotive companies to proactively engage with customers, from service reminders to personalized marketing offers.
By consolidating all relevant data—whether from service requests, inquiries, or vehicle performance—Salesforce Genie ensures that businesses can respond faster, make smarter decisions, and increase customer satisfaction.
Ensuring Compliance and Data Security
As the automotive industry embraces more connected and autonomous vehicles, ensuring data security and regulatory compliance becomes crucial. The Automotive Data Foundation, built on industry standards like the STAR Standard (Standards for Technology in Automotive Retail), provides a trusted, secure framework for sharing and protecting data. This foundation enables the automotive companies to maintain compliance with global regulations while ensuring interoperability between different data systems and partners.
Why Choose Kasmo to Help you Implement the Salesforce Automotive Cloud in Your Business?
Kasmo is the ideal partner for you if you are looking to implement Salesforce Automotive Cloud to streamline your business operations. With our deep expertise in Salesforce and in-depth knowledge of the automotive industry, our experts help businesses streamline customer engagement, optimize data-driven decision-making, and enhance operational efficiency.
As a Salesforce Crest Partner, Kasmo focuses on delivering tailored solutions to our global clients. Our Salesforce experts ensure seamless integration of Salesforce Automotive Cloud, and help you drive personalized customer experiences, improving lead conversion, and maximizing revenue. We also provide end-to-end support and strategic guidance to help you transform your business strategies and achieve lasting success in this dynamic and competitive market.
