A Conversation with Automotive Experts Continued, Advice and Real-World Use Cases

Read the first part of the interview here.

Let’s discuss After Sales. In our previous conversation, we discussed the why and the for whom, but we still need to discuss the how. I’d like to explore how brands are starting to integrate aftersales into their overarching portfolio of services and products. What business models and tactics are businesses using? What has been successful, and what hasn’t?

Let’s revisit shortly the concept of charging stations. They represent another crucial touchpoint for brands to connect with their customers, making it an important aspect of aftersales. Imagine a hub where, like the Audi Charging Hub, while your vehicle is charging, you can also get an express service inspection—a seamless, all-in-one experience. This kind of infrastructure is something people are really looking for, much like with electrification overall. Here is still a big potential to improve the entire customer experience and journey.

When we talk about After Sales in digital models, I often say that B2B2C is the new D2C. You’re not directly reaching the customer; instead, you have a network where the OEM (the first B) works with for example the dealer or independent workshop (the second B) to connect with the customer or B2B-customer, ex. Fleet Company (the C). This creates a triangle of interaction or potentially even more complex combinations. With the verticalization of the automotive industry, OEMs have the opportunity to bring in more partners, turning these digital models into triangles, squares, or even pentagons. This approach offers greater flexibility and scalability for creating more connected ecosystems, the transactional ecosystem.

Another trend that’s been around for a while but has yet to be cracked is integrating more automated predictive maintenance and remote diagnostics. An example is the telemetry on a truck pushing the message that the tread on the driver’s tires is low. This adds a lot of value and keeps vehicles on the road. 

But I’ve noticed it’s not yet seeing the traction that you would expect from the industry. So, what are the barriers keeping this vision from being fully realized? 

Building on your tire example, the ideal scenario would be this: First, a safety alert for the driver on their infotainment system that the tire is flat and becoming unsafe. Secondly, along with the alert, the driver receives three appointment options at their preferred dealership to get the tire changed or even have an at-home pick-up schedule offered. The driver picks a convenient time, and the appointment is automatically scheduled. All they need to do is drive to the dealership or home or any other location, get the tire replaced, and the driver hits the road again.

However, the SDV and its connected service initiatives are undergoing several key challenges. First, many automotive companies have multiple departments involved in the development of connected vehicle features: Aftersales, IT, R&D, and digitalization, just to name a few. To enable predictive maintenance, all of these departments must work together, which is often easier said than done. The more departments and people involved, the more questions on a valuable feature will come up—innovation starts in small steps. 

The vehicle is just the “frontend”, which means it shows the transactions on the infotainment screen of the vehicle. The music does not play in the frontend; instead the “backend” is the essential key factor for integrating a value-based customer experience within the vehicle. The ecosystem plays a huge role again because lighting upgrades or seat-heater subscriptions are not the most relevant Digital Products or Services that you might offer as an OEM. Ecosystem partners that bring real customer value and integrate natively in the vehicle backend could create new business models and new relevant revenue streams for the OEM and the ecosystem partner. 

Second, there’s the challenge of data protection. There are strict rules and regulations around how sensitive information like location and customer preferences can be used, which limits how you can handle this data. Challenges are solved if you play the game transparently.

Third, creating seamless communication between all parties is another obstacle. The last two years have shown me that the automotive industry, in general, is not embracing the change to deeply verticalize its own ecosystem. Legal burdens, positive business cases with aggressive ROIs, and other hurdles make many initiatives not executable enough.  

Lastly, getting the customer to take action presents its own challenges. What does the business model look like for directing customers to their favorite dealership? There are political considerations, such as whether the dealership should be compensated for the referral, etc. Ultimately, it’s the customer’s choice where they go, not the OEM’s, and that adds complexity to the communication and coordination process.

According to analysts, enterprise marketplaces, at least from a hype-cycle perspective, have entered the trough of disillusionment. But on the flip side, many organizations are saying that they want to expand their assortment and bring their dealer networks into a dealer portal to sell directly and have that relationship with customers. 

Is there a semantics issue with the word marketplace? Did ‘marketplace’ somehow get a bad rap?

When I was at Audi, we attempted to create a marketplace approach because there are so many services that could be leveraged within that model. But the same question kept coming up: What exactly is a marketplace? We realized we needed to clarify that concept. Most people immediately think of platforms like eBay, Amazon, or MercadoLibre in Latin America, but marketplaces come in many forms with different nuances.

That’s why I prefer to call it a “transactional ecosystem,” as mentioned before. In this model, you have ecosystem partners who aren’t just interacting with you as the operator—they can also interact with each other. It may sound complex when you say “transactional ecosystem,” and all players in this ecosystem can communicate, sell, buy, or collaborate with each other, but it actually allows for a sophisticated business model to operate in a relatively straightforward way.

So, yes, the challenge is largely a matter of semantics.

Where do you see the role of marketplace in the automotive industry? And how are players across the value chain getting involved and equipping themselves to participate?

Many OEMs and also a customer of mine in Latin America joined one of these marketplaces, MercadoLibre, sometimes referred to as the “Amazon of Brazil.” With over 200 million users, MercadoLibre is a massive ecosystem. You can set up your own store and sell items like spare parts or branded merchandise, paying high transaction fees and making a small margin—but this doesn’t fundamentally change your business or sales approach. It’s more about jumping on the train for quick, easy sales access on an additional channel without necessarily having the best business model behind it. Joining MercadoLibre is not a Digital Commerce strategy in and of itself. 

The real challenge is figuring out how to translate this approach into your own marketplace without overcomplicating things or losing profitability due to high transaction costs on such external marketplaces. It’s not about choosing one or the other—it can or even should be a combination. By going omnichannel, you’re ensuring you’re present where your customers are, whether it’s on an external platform or your own marketplace. And once you’ve done this, data transparency increases market insights than never before. You gain a competitive advantage and bring your network onboard to ensure you’ve enabled all members of your value chain to participate in this new ecosystem. 

Ready to transform your business? In a world where customer expectations are higher than ever and technological advancements are rapid, Spryker is the partner you need to unlock new avenues for growth and profitability so that your brand remains at the forefront of the automotive industry. 

It’s time to optimize costs, drive revenue, and enhance customer experiences so that you can respond quickly to market volatility and leapfrog your competition in the race to capture market share. Learn more about how you can start driving growth today while preparing for tomorrow.