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  • Writer's pictureInsightrix Communities

The Customers are in the Drivers Seat

If you have watched Tesla stocks in the past two years you will know that Elon Musk is connecting with both customers and investors in an unprecedented way. When you consider the state of the auto industry today, it is clear that the status quo is just not cutting it anymore. Since the 1960’s it has not been hard convincing the general public of their need for a car. Especially in North America where distances between work and home are typically far, and mass transit often has limitations. However, with the new digital generation, car companies like Tesla are accelerating and other car companies are being left in the dust. We believe that the only way to stay current or advance is through connecting to your customers through software like market research online communities or experience management platforms.

Rideshare Dominance

Did CMO staff in the auto industry see Rideshare coming? The trouble with most senior managers is that they are typically nearing senior age status, and the new innovative technology is often adopted by the young. This disparity requires senior management to be researching their customers and looking for trends, because the ability to spot trends will not be reliable if the staff is basing it on their personal experience or preferences. The need for objective research has never been more critical.

With the emergence of rideshare services the concept of car ownership has been dramatically altered. Millennials and younger are more likely to not buy a car and opt for ridesharing or public transportation. The whole process of car purchasing is being transformed and the youth are driving this change. Today the car purchase begins with online research and checking prices and comparing cars. The other options that are being carefully considered are electric vehicles, hybrids, and for those who can afford it, self driving vehicles such as those made by Tesla.

Why Tesla?

Why does Tesla connect with young people? If you visit a non-Tesla car dealership you are likely to have some sales person come over and try to “guide,” or in some cases push you into a car purchase. These sales individuals make their livelihood off commissions and so it will be their tendency to push you to a sale. The trouble is that the individual visiting the dealership has likely done their research and knows exactly what a good price is for the vehicle that the salesperson will be showing. Any attempt for “a special discount” will be clear as day to the buyer, as they have seen behind the curtain while researching.

If you are to visit a Tesla dealership you will find it more like visiting an Apple store. The staff are simply there to help the customer if they have any questions. They receive a good salary and are not paid based on sales commissions. They are specifically trained not to push people towards a sale. The product sells itself and the prices are standardized.

A Tailored Experience

The problem with change for large industries such as automotive is that they were used to decades of dictating terms to their customers. Now the customers are dictating the terms of their purchases. The companies who provide a good product that is inline with what their customers want, and packaged in a way the customer like will have no problem leading the pack. This product research and marketing insight comes from listening and researching the customers and doing away with preconceived ideas and notions.

If you would like to find out how our insight community software can be used to connect with your customers please do not hesitate to contact us.

To learn more about what Insightrix Communities have been up to, check us out on YouTube, Facebook, Twitter, and LinkedIn!

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