Digital Transformation in Traditional Car Companies: A Customer Lifecycle Management Perspective

With the emergence of digital technology and the increasing demand for personalized customer experiences, the automotive industry has undergone significant changes in the past decade. In Deloitte's (2023) Global Automotive Consumer Survey - China report, traditional car companies now realize the need to transform their business models and strategies to remain relevant in the digital age. One of the key areas of focus for these companies is customer lifecycle management (CLM), which involves understanding the customer journey from pre-purchase to post-purchase stages and using digital technology to enhance the customer experience. This literature review aims to explore the current state of digital transformation of traditional car companies based on CLM.

Traditional Car Company CLM:

According to empirical research by Stone et al. (2003), in analyzing the detailed findings of how companies collect and use customer data, traditional car companies' CLM typically includes four stages: pre-purchase, purchase, post-purchase, and loyalty. In the pre-purchase stage, companies use digital technologies such as social media, online advertising, and email marketing to attract and engage potential customers. In the purchase stage, companies utilize digital platforms such as online marketplaces and e-commerce websites to facilitate the buying process. In the post-purchase stage, companies focus on customer retention and satisfaction by providing personalized services such as maintenance reminders, loyalty programs, and customer support. In the loyalty stage, companies aim to retain and upsell existing customers by providing personalized services and incentives.

Digital Transformation of Traditional Car Companies:

Llorens-Montes et al. (2020) conducted a study on the impact of digital transformation on the automotive industry. It covers small and medium-sized enterprises (SMEs) that provide products or services to the automotive industry and multinational companies operating in Spain. The study analyzes how traditional car companies' digital transformation involves integrating digital technologies into their business models and strategies. One of the key drivers of digital transformation is the growing demand for personalized customer experiences, which requires companies to adopt a customer-centric approach. Companies are now using digital technologies such as big data analytics, artificial intelligence, and machine learning to gain deep insights into customers' behavior and preferences. This enables them to provide personalized services and products to customers, thereby enhancing the overall customer experience.

Another key driver of digital transformation is the need to simplify business processes and improve operational efficiency. Farooqi et al. (2011) discuss how companies are now adopting digital technologies such as cloud computing, automation, and robotics to automate manual processes and reduce costs. This covers areas such as customer retention, customer service, risk assessment, and fraud detection. This enables them to focus on providing value-added services to customers and improving their overall business performance. The issue of data mining in CRM brings a new perspective on the application, opportunities, and challenges of digital transformation.

Conclusion:

In summary, digital transformation of traditional car companies based on CLM is a key area of focus for companies to remain competitive in the digital age. Companies that adopt a customer-centric approach and use digital technologies to enhance the customer experience are more likely to achieve long-term success. However, companies must also focus on simplifying business processes and improving operational efficiency to maximize the benefits of digital transformation.