Forrester Research: Forrester Retail Insights Automotive First Look: Research & Event Highlights From Forrester

 07 Jan. 2004
Auto Retail Workshop 2004
We just published research about lean dealerships -- a study of the problems that dealers and OEMs face and best practices for solving them together. Want to find out more about making dealer-OEM collaboration work? Come to the 2004 Forrester Automotive Workshop "Bridging the OEM-Dealer Gap" later this year. Email Mark Bunger at markbunger@forrester.com for more details.


A Bit Cramped, But The Mileage Is Great
They say fuel cell vehicles are a decade away, but if you can compromise a lot on space, Edmund Scientifics can sell you one today. OK, it's a kit for kids. But what a great start for your young automotive engineers at home. Beats GTA on PS2.


Privacy, Telematics, And The X Internet
If you saw the spacey Lexus in "The Minority Report," you're already familiar with one dystopic privacy future. But dealers like JM Lexus that use Networkcar are taking steps to provide great service using telematics data and protect privacy. Read my colleague Christine Overby's research, The X Internet And Consumer Privacy, or see Navi Radjou speak about telematics in his VideoView on The X Internet And Business Profitability    .


The Body Shop
One way to sense demand accurately is to simply ask each customer what he wants -- a tactic that's working well for Scion and MINI. Talk about making lemons (having to wait to get your new car) into lemonade (getting blue stereo lighting to match your hair). Could this new twist on build-to-order (BTO) work for mainstream vehicles? Email me if you think so.


Dare We Say, Fun In 2004?
Unless your name's "MINI" or "Scion" you're probably happy to see 2003 in the rearview mirror. After a year dominated by incentive wars, F&I scandals, TREAD Act compliance, and other gray killjoys, in 2004 we're predicting that the industry will be able to refocus on the fun stuff -- cars and customers. (Remember them?)


Dealers Identify Points Of Pain Across The Dealership
Dealers Identify Points Of Pain Across The Dealership

Search
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Happy New Year!
To get the New Year off to a good start, climb down from the exercise bike for a second, and let's talk resolutions. Let me -- we're good friends, right? -- suggest a few resolutions that you probably already know you should be making:

1. I resolve to listen, in excruciating detail, to what carbuyers' demand signals are telling me. It's been more than a year since we wrote "Sensing Automotive Demand," and there is now little doubt that carbuyers' online behavior reveals their vehicle preferences and foreshadows their shopping activities. In the meantime, there's been an explosion of tools -- and research from my colleagues -- about analytics. Get started on this resolution by reading:
* Analytics Leads Web Site Technology Adoption
* The Future Of Data Mining -- Predictive Analytics
* Predictive Analytics Overcome Forecast Flops
* The Web Analytics To-Do List For 2004
* Web Analytics Draw Wider Attention In 2004


Match Interface To Customer Abilities 2. I resolve to remove the barriers between carbuyers and their goals on my site. We've already had to admit that auto sites ranked last in Forrester's Web site usability test. But we continue to help you find ways to improve. And honestly, auto's tough -- explaining a $30,000 machine with 15,000 rapidly moving parts is a bit more complicated than selling a cookbook. So check out my colleague John Dalton's must-read research specifically about configurators.

3. I resolve to stop abusing innocent dealers. (Dealers: I resolve to stop beating up on innocent OEMs). Dealer-OEM relationships need an overhaul, and both sides know it. We demonstrate in "Making Auto Retail Lean" that lean manufacturing principles can be -- and are already being -- successfully applied in auto retail. Moreover, lean manufacturing offers neutral ground where OEMs and dealers can win together. Funny side story: I was reading James P. Womack's book "Lean Thinking" beside a hotel pool last summer, and people thought it was a dieting book. "Dr. Womack? Oprah's on the line . . . "

Each of these areas -- demand sensing, user experience, and dealer-OEM integration -- will be getting due attention from Forrester in 2004. I hope our research will help you keep these resolutions (but if you need a trainer, call me). In closing, I'd like to ask you to propose some resolutions for Forrester's Auto research by emailing me: What can we do to be better in 2004?

Happy New Year! See you at the gym!



Mark Bünger
Senior Analyst, Automotive Research



Research Referenced In This Issue

Analytics Leads Web Site Technology Adoption (33130)
Best Practices For Search: Presenting The Results (33591)
Making Auto Retail Lean (32782)   
Online Configurators Need An Overhaul (33035)   
Predictive Analytics Overcome Forecast Flops (33642)
Sensing Automotive Demand (14586)
The Best And Worst Of Site Design, 2003 (17189)   
The Future Of Data Mining -- Predictive Analytics (33253)
The Web Analytics To-Do List For 2004 (33662)
The X Internet And Consumer Privacy (32780)   
Web Analytics Draw Wider Attention In 2004 (33634)
Which User Goals Drive Site Success? (33625)


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