As disruption redefines the relationship between businesses, suppliers and customers, there is increasing competition for direct access to consumers. Businesses need to understand who will be their future customer, and how to retain access to them.
Each stage of disruption represents a step on the journey to growth where there is an opportunity for organisations to take a lead. Click through each of these sections below to understand more.
Disruption is redefining relationships between market participants, their suppliers, and their customers. Understanding your future customer and deciding the role you want to play in their lives should be a critical part of your strategy.
Due to the emerging value chains, the breakdown of sector boundaries and the rise of aggregator business models within mobility, we expect increasing competition for direct access to the mobility consumer.
Shifts in consumer preferences are placing further pressure on incumbents who may not have the agility to quickly launch new products. For instance, as consumers move away from owning personal vehicles towards using on-demand mobility services, their direct relationship may shift away from a specific car brand to a vehicle-agnostic platform, such as Uber or Lyft.
In response, some organisations are creating joint propositions across the value chain to improve customer convenience and capture market share e.g. bundling insurance and servicing into a flexible vehicle subscription. Developing cross-sector partnerships and alliances quickly will be key to securing the necessary capabilities, suppliers and channels.
Companies can also make targeted plays at specific segments of new value chains where their capabilities give them a unique ‘right-to-play’ that may not be specifically customer facing.
These companies will need to be particularly aware of where value will be resilient in the future ecosystem and how they will work with the future ‘winners’ in the fight for the customer.
Key questions you may ask:
Identify the value chain segment(s) you want to play in, based on existing capabilities and analysis of future value pools. For example, do you want to be a direct provider of mobility services, or are you better placed to be a B2B fleet manager?
Understand the (future) customer better than anyone else , for example, by understanding the key value drivers of their purchases, current behaviours, and how these are likely to change in the future. Collecting and synthesising data from evolving channels will be critical. Create brilliant customer experiences that are designed around your understanding of the customer and what delights them.
Create a lasting connection with the customer, moving away from a transactional purchase to a long-standing relationship with greater lifetime value. For example, some OEMs are expected to move away from direct vehicle purchases to invest in lifestyle subscription-style memberships that provide an ‘always-live’ connection.
Be the single point of contact for the customer, by aggregating their requirements together. This could be through developing a marketplace platform or the bundling of several products together into a package that is most convenient for the consumer.
Strengthen your brand against potential disintermediation from competitors and aggregators. For example, despite intense competition in online price comparison websites for motor insurance, market leading brands have managed to survive by exclusively employing direct sales.
Link in with other consumer networks to leverage the consumer base of a partner. For example, electric vehicle charging companies could work together with OEMs to ensure that new electric vehicle owners are signed up to their network, providing a steady flow of new users that benefits both organisations.
Platforms & partnerships