Collaborating for Impact: Why Automakers Need Experiential Experts
The automotive market is undergoing a transformation, driven mainly by a change in consumer preferences, advances in technology and therefore increasing competition. Automakers face challenges in turning to electric with supply chain problems and the ever-expanding demand in the world of digital experience. In this saturated landscape, experiential is becoming the most powerful way to connect with customers and stand out amongst the crowd.
Current Challenges in the Automotive Market
Shift to Electric Vehicles: The transition to EVs was caused by a push for sustainability worldwide. However, many consumers are still unsure because of varying reasons like charging systems, range anxiety, and the higher upfront cost. This is mainly a fear of the unknown that automakers must address.
Digital Disruption: Online car shopping has forever changed the car-buying process. Customers now expect seamless online-to-offline transitions with virtual showrooms and test drives without contact. Traditional dealerships face pressure to adapt to avoid becoming outdated.
Loss of Brand Loyalty: With new competitors like Tesla and Rivian challenging legacy brands, brand loyalty is no longer promised. Younger consumers look for originality and sustainability over heritage. This forces traditional brands to rethink their marketing strategies.
Supply Chain and Inventory Issues: A global semiconductor shortage and other flow hurdles have caused delays in production and delivery. Some buyers wait months for their vehicles, so maintaining engagement is now key.
The Role of Experiential Marketing
Experiential marketing dissolves these challenges by educating, engaging, and exciting consumers. Here’s how experiential experts can drive impact in the world of auto:
Demystifying EVs: Tesla revolutionised EV adoption by educating people through experiential marketing. They use interactive showrooms where customers can familiarise themselves with the vehicles firsthand. Similarly, experiential activations like "EV test drive days" or pop-up charging stations in urban areas allow everyone and anyone to engage with EVs and reduce the concern over charging points.
Reinventing the Car-Buying Journey: Companies like BMW are merging the digital and physical worlds with AR-powered test drives. This offers customers a dynamic and convenient shopping experience. Virtual test drives also feeds back to the push for sustainability. Experiential experts can design touch points that embed online research with in-person contact which builds trust in the brand.
Building Emotional Investment: Porsche's event "Track Your Dream" allows buyers to follow their vehicle's production journey, deepening their loyalty to an emotional level. Collaborating with an experiential marketing agency enables brands to tell stories that relate to consumers on a personal level.
Keeping the Audience Engaged During Delays: During long waits, automakers can host events, like revealing upcoming models or even tours of factories. These examples not only keep buyers interested but also give a sense of exclusivity and loyalty.
Emphasising Sustainability: Experiential campaigns can highlight sustainability efforts. For instance, Volvo's climate-positive brand activations convey their commitment to green initiatives, which reassures the eco-conscious consumers.
The Collaborate Advantage
Understanding the intricate challenges automakers face is essential. Experiential experts have become the fundamental bridge for the gap between brands and their audiences, through storytelling and physically creating a customer journey. The automotive industry is at a crossroads, and the brands that thrive are those that invest in creating meaningful connections. With experiential being at the forefront, automakers will not only overcome their current challenges but also build a future defined by loyalty and impact.
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