Car data just keeps pouring in. An array of vehicle sensors on millions of new cars have been hitting the road for a few years now and are generating tons of owner and vehicle data. The sensors/data generators range from deep within the engine to vehicle control to cabin comfort and entertainment to vehicle proximity to satellite tracking. The latest in a constantly growing list of car data types: in-car package delivery from companies like Amazon.
What are OEMs doing with all this car data? Well, they would like to monetize it, just like Google and Facebook monetize the data they collect from their users. Conceptually, OEMs can charge suppliers, dealers and entertainment and service providers for services stemming from access to the driver, the vehicle, and the actual data being generated by car sensors.
The challenge is moving from concept to reality. OEMs must transition from “car data monetization has tremendous potential” to “here is how we plan to monetize our car data.”
One of the most important steps in monetizing car data is creating a value proposition for the customer. Once you have this, you can create value propositions for intermediaries in the value chain. A key advantage of taking this approach is that it gives the OEM more control over their destiny and the associated economics. Otherwise, if the OEM sits back and waits for others to innovate and find car data monetization opportunities, others will capture outsized portions of the resulting car data proceeds.
The Role of CRM 3.0
The process for creating verified customer and partner value propositions is summarized below. Since a wealth of car data already exists, the first and most dramatic opportunity for OEMs is to maximize the value of this incredible asset through analytics.
The problem with car data is its massive size and being able to determine which data can move the marketing needle. Not only does it cover data from car sensors; it also includes the vast stores of data OEMs have on how owners drive, plus this data can then be linked to how those buyers moved through their purchase and service journeys over time.
The good news is that CRM 3.0 can step up to the car data challenge.
- Previous CRM platforms required careful hard-wiring of data sources. The latest CRM 3.0 systems expedite much of this laborious “data plumbing” and enables us to spend less time manipulating data and more time generating insights.
- Analyses conducted by previous CRM systems required specification. CRM 3.0 systems take traditional data mining techniques and then add machine learning and AI to identify new, high-potential use cases.
Once use cases are identified, they can be explored and verified through jobs-to-be-done research, and economic benefits can be projected for the OEM and intermediaries required to complete the value delivery.
While CRM 3.0 can help OEMs accelerate their car data monetization efforts, these new systems also allow OEMs to bypass the slow, laborious, and incremental progression from CRM 1.0 to 2.0 to 3.0. By skipping straight to CRM 3.0, the entire martech stack can be updated to the latest standards and used to drive key legacy systems.
In the CRM 1.0 and 2.0 worlds, each component of the marketing stack ran independently from the others, even if they shared a common CRM 2.0 data warehouse. With CRM 3.0, the other marketing stack components can run more as “dumb terminals.” For example, the campaign management tool is used to do mailing, not to generate target markets and associated tactics. The advanced analytics in the CRM 3.0 platform does all of this and then feeds the final parameters to the campaign management system.
The automotive industry is under intense pressure. Industry sales are dropping, competitive disruptors are moving quickly, and OEMs are starting to think of themselves as mobility providers, not just vehicle manufacturers. OEMs can create new revenue sources with car data monetization, but they need to specify how their vast data stores can be used to add new value to consumers. CRM 3.0 is tailor-made for this opportunity and can be installed relatively quickly. Further, CRM 3.0 can be used to enhance the buyer’s retail experience as they move through their purchase and service journeys. This can help to revitalize the core business while extending into new data-based offerings.
SEE ALSO: Driving Toward CRM 3.0 in the Automotive Industry – Tom Colucci and Daniel Rubin
Daniel Rubin is Head of Analytics—Consumer Brands at Harte Hanks.