eCommerce in the Auto Industry Fostering Increased Customer Satisfaction, Lower New Vehicle Prices
4 October 2000
eCommerce in the Auto Industry Fostering Increased Customer Satisfaction, Lower New Vehicle Prices
SAN DIEGO, Oct. 4 As various segments of the automotive
industry increase their utilization of e-commerce, the focus has been
increasingly on customer satisfaction. This emphasis on customer satisfaction
is a key trend being noted at the eAutoWorld conference being held here at the
San Diego Convention center through October 5.
Michael Jackson, CEO of AutoNation, noted that a new relationship with the
consumer was driving his company's online efforts. In his keynote address on
Tuesday, Jackson characterized the new relationship between dealers and
customers facilitated by the Internet with four elements:
* Real cars and real prices online
* Rapid response to consumer inquiries
* Dedicated, trained Internet sales guides
* A seamless transition from web to dealership
"Our research clearly shows that almost all customers who used the
Internet in some way as part of their last vehicle purchase were very happy
with the experience. They don't want to go back to the old way of buying a
new vehicle," said Jackson. "In addition, the Internet has ushered in a
another new age of cooperation between the dealers and manufacturers. Both
sides are finding better ways to work together to satisfy the customer."
Daron Gifford, head of Deloitte Consulting's automotive practice, told the
gathering that the automobile manufacturers are also using e-commerce and
Internet technology to refocus on customer satisfaction. According to
Gifford, the automakers are working toward an accelerated order-to-delivery
time, perhaps as low as five days.
In addition, Gifford said that the use of the Internet in procurement,
manufacturing and distribution could reduce the average selling price of a new
car or truck by more than $3,000.
"The Internet will enable carmakers in the U.S. and around the world to
more closely align the supply of new vehicles with the actual demand.
Reducing the amount of vehicles being held as inventory from their current 50-
70 day supply to, perhaps, a 15-20 day supply will save billions of dollars
per year," Gifford said.
The conference is being attended by more than 500 automotive, Internet and
eCommerce professionals. eAutoWorld has created this industry event for
automotive suppliers, dealership owners and personnel, aftermarket parts
suppliers, web enabled wireless communications and dot.coms in the automotive
space. For additional information contact 800-535-1812 or visit
http://www.eAutoWorld.com
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eMarketWorld builds physical and electronic marketplaces for vertical
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By combining content-rich conferences with transactional exchange floors,
eMarketWorld creates educational eBusiness marketplaces where executives from
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eMarketWorld will coordinate more than 50 conferences by the end of 2000,
including @d:tech and eHealthcareWorld. eMarketWorld is a partner company of
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eMarketWorld at 800-535-1812 or http://www.eMarketWorld.com .