Stand out

from the
crowd
B2B marketing trends 2024

onebite – the B2B demand

generation experts
Stand out from the crowd
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Contents
The importance of brand ....................................................................................3

Resonance, reach, and maximising content .....................................................4

Blend in-person and digital experiences ..........................................................5

Leveraging thought leaders and infuencers ....................................................6

The personalisation power of AI .........................................................................7

Conclusion...........................................................................................................8

In a challenging market, standing out from the crowd is crucial to winning

business and staying ahead of the competition.

B2B marketers everywhere will recognise that success often comes

down to the nest o margins and having a nger on the pulse o the
latest marketing trends is essential when planning for the future.

Our latest marketing trends report explores how businesses can

leverage these trends and stand out from the crowd in 2024.

2
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The
importance
of brand
Marketing teams have recently faced increased
pressure to do more with less. And many business
leaders have demanded a clear correlation
between marketing activity and business growth.
This approach, while understandable, has created
a focus on short-term metrics, such as lead
acquisition, often at the expense of overall brand
recognition and reputation.

An unwavering focus on brand building and

generating customer demand at the top of the sales
funnel enables organisations to remain top of mind
and build brand awareness across their respective
industries. When their prospects enter the buying
cycle, it’s easy for them to decide who they will buy
from—reliable brands that they already know and
trust. When consumers lose touch with a brand, or
worse, lose trust in it completely, they’re likely to turn
to a competitor.

There doesn’t need to be a binary choice between

brand building and lead generation. Ultimately,
brand building supports your sales team’s
conversations with prospects and helps convert
them into customers. Fortunately, it’s never too
late to rebalance brand building as part of your
marketing mix.

te ’s t o p
bi
tip
e
on

Take an honest look at your current marketing and your competitors. Identify your
.. .

current market share and what you can change in your marketing to make sure you have
consistent, positive brand recognition.

The importance of brand Resonance, reach, and Blend in-person and digital Leveraging thought leaders The personalisation
maximising content experiences and infuencers power of AI
Stand out from the crowd
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Resonance, reach, and

maximising content
The creative distribution of content will remain a powerful B2B marketing trend in 2024.

Know your audience

1 To optimise distribution and avoid wasted eort you must understand your audience.
What are their interests? What format do they want to consume? Where do they want to
consume it? What messages resonate?

Research is crucial. Assumptions about your audience can lead to insipid, uninspiring, and
irrelevant messaging. Commissioning research is ideal, but at least talk to existing customers
and chat with prospects at events. What challenges are they facing? Where do your products
and services solve their pain point? Why did they choose you in the rst place? This insight helps
create benetled messaging that provides value to your prospects.

2 Format and channels

Worldwide, the average person spends almost 7 hours a day looking at a screen1. The current
variety of content formats and distribution channels provides unprecedented opportunity
to reach your audience with powerful and relevant messages. From videos, live streaming,
podcasts, and webinars, to articles, whitepapers, infographics, and social soundbites.
Utilising multiple digital touchpoints can elevate your brand visibility and divert attention
from your competitors.

3 Maximising content
A piece of well-thought-out and well-produced content can be utilised in multiple ways across
numerous channels.

For example, you hold a great webinar attended by high-quality leads. Use the content of
the webinar to write a whitepaper; share blog articles around the topics discussed; create
infographics pulling out key data points; share snippets across your social media channels.
As well as reaching and engaging your audience in multiple ways, this approach maximises
budgets and helps showcase ROI to your C-suite.

te ’ s t o p
bi
tip
e
on

With everything you do in your marketing, ask the question

...

‘Does this solve a problem for my audience and if so,

* https://blog.hubspot.com/service/customer-acquisition-study
how and where else can I use this content?’

1. https://www.comparitech.com/tv-streaming/screen-time-statistics/

The importance of brand Resonance, reach, and Blend in-person and digital Leveraging thought leaders The personalisation
maximising content experiences and infuencers power of AI
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Blend in-person and digital

experiences
The legacy of the pandemic will continue to impact marketing trends in 2024. Physical, in-person only events, are
a thing of the past. Blending physical and digital interactive experiences via an omnichannel approach is crucial
if you are to stand out in a competitive landscape. This approach mitigates the risk of alienating prospects and
losing potential sales. According to Snap Consumer, almost 75% of the world’s population, and almost all
people who use social and communication applications, will be frequent users of AR by 20252.

How can this help your business stand out?

Two key considerations for your events should be:

Live streaming Virtual Reality (VR) and Augmented

Creates an immersive environment and Reality (AR)
helps attendees, both virtual and physical, Fantastic for demonstrating products
feel part of the experience. This helps and bringing them to life. This creates
prospects learn about your business and a memorable experience that is
products and builds trust in your brand. shareable and increases your visibility.

Augmented Reality (AR) for training

can create a memorable immersive
experience for your teams.

Internal communications can also be enhanced with these experiences. For example, using Augmented Reality
(AR) for training can create a memorable immersive experience for your teams. For businesses that have
adopted a hybrid approach to work, blended experiences are crucial to onboarding and retention o sta.

te ’ s t o p
bi
tip
e
on

.. .

When creating your marketing plan for 2024, consider how physical and digital
* https://blog.hubspot.com/service/customer-acquisition-study
elements complement and enhance each other – don’t just consider them in isolation.

2. https://forbusiness.snapchat.com/blog/augmentalityshift#:~:text=By%202025%2C%20nearly%2075%25%20of,will%20be%20frequent%20AR%20users.&text=Consumers%20
are%20striding%20ahead%20and,others%20and%20fuel%20self%2Dimprovement

The importance of brand Resonance, reach, and Blend in-person and digital Leveraging thought leaders The personalisation
maximising content experiences and infuencers power of AI
Stand out from the crowd
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Leveraging thought
leaders and infuencers
Thought leadership is a powerful internal and external communication tool. And this tool is being sharpened
by the increase in businesses working with thirdparty infuencers to ampliy their thought leadership.
This approach helps build brand authority, widens reach, and ensures you remain top of your
prospect’s mind once they enter the buying cycle.

We explore the importance of thought leadership and how to stand out

in one of our recent blogs, but in summary your content should:

Take a viewpoint Stand by it

And add value to your audience

Using infuencers in B2B marketing is a relatively new

approach, and this oers opportunity to get ahead
of the competition. According to a recent study,
94% o marketers believe infuencer marketing is a
successful strategy for B2B businesses. However,
only 24% o B2B businesses are using infuencers in
their overall business plan3.

With the growth of thought leadership, enhancing

your approach by creating authentic partnerships
with infuencers who align with your brand and values
is the natural next step for your marketing in 2024.

These activities can also be supported by user-

generated content. Commonplace in B2C
marketing for some time, user-generated content
is increasing across the B2B space and can provide
a bank of additional content, created by your
customers, that enhances your brand image, builds
trust, and furthers reach.

te ’ s t o p
bi Do your research beore building infuencer
tip
e
on

relationships, make sure they align to your brand

...

values and their content reaches your desired

audience. This channel should complement your
overall thought leadership strategy.

3. https://www.orbes.com/sites/orbestechcouncil/2023/04/17/theneedtoleverageinfuencermarketingin
b2b/?sh=e943c6f40f88

The importance of brand Resonance, reach, and Blend in-person and digital Leveraging thought leaders The personalisation
maximising content experiences and infuencers power of AI
Stand out from the crowd
Get in touch

The personalisation
power of AI
Nearly two thirds of marketers (64%) say AI will be very/critically important to success in
the next 12 months4.

Many marketers understand AI’s potential, but they don’t know how best to utilise it. AI’s breadth and capabilities
are huge, but there are some simple and eective ways you can apply it.

AI integration
Integrating AI into your marketing can support
engagement and create personalised
experiences throughout the customer journey. Take
time to plan your strategy, identify where AI should
(and shouldn’t) be used, and ensure it equips your
team with additional insights to rene your approach.

Integrating AI with your CRM creates a powerful

tool to analyse feedback, support interactions, and
empower your team to intervene when required.
Chatbots using natural language processing (NLP)
technology can respond to customer queries, give
real-time personalised assistance, and collect
valuable data to further your personalisation strategy.

Data collection and personalisation

Collection of third-party data is expected
to be phased out soon and in response,
companies are increasingly leaning towards rst
party data collection and insights. AI can help analyse
this data and create personalised experiences based
on an understanding of your customer requirements.
Finally, AI can take care of repetitive or administrative
tasks. Adding AI to your martech stack will free-up
time to focus on growing your brand, engaging with
your prospects, and driving commercial success for
your business.

te ’ s t o p
bi
tip
e
on

Take the time to set up a policy that makes it

.. .

clear to your team where they can use AI and

how they can use it.

4. https://www.marketingaiinstitute.com/blog/2023-
7 state-of-marketing-ai-report

The importance of brand Resonance, reach, and Blend in-person and digital Leveraging thought leaders The personalisation
maximising content experiences and infuencers power of AI
Conclusion
Marketing planning can be daunting. Economic uncertainty, fast-moving technology,
changing customer behaviours, and pressure to demonstrate ROI can add to this
challenge, but there are opportunities to stay ahead of the competition and make
your brand stand out.

Our key recommendations for 2024 are:

Research your audience before putting pen to paper

(your marketing plan or your content!)

Focus on creating a personalised, immersive, and omnichannel experience

Consider all your marketing activities and how you can repurpose material
to maximise its value across various channels

Identify the tools that can help your team focus on driving the commercial
success of your business.

I you would like to learn more about marketing trends or nd out about onebite and
how we have driven consistent, long-term demand generation and brand growth for
businesses like yours, we’d love to hear from you.

Our team of specialist B2B marketers can help you connect with your audience
and drive them to action. Whether you want to launch a new proposition, rene your
strategy to build competitive advantage, or amplify your brand to grow market share.

Get in touch

8
onebite.co.uk • hello@onebite.co.uk
The Essential Guide to B2B Marketing for Manufacturers

Introduction
Marketers for industrial and manufacturing companies are tasked with increasing brand awareness
and generating high quality leads for the sales team But many industrial marketers struggle to keep
up with the explosion of marketing channels, especially online, and manage marketing budgets that
remain largely static

This guide examines some of the challenges faced by industrial marketers in today’s economy and
offers advice on how to create a successful marketing plan with the right mix to help you:

1. Improve your online presence and attract more website trafc rom qualifed prospects.

2. Increase lead conversions and requests or quotes through your website, resulting in more
sales opportunities.

3. Improve lead data so the sales team can be more efcient and ollow up with the best-
qualifed leads.

4. Improve your marketing return on investment (ROI) with data that will show which marketing
eorts produce the most leads and sales.

We’ll also look at how inbound marketing is a better t or the long sales cycle o manuacturing
than traditional outbound marketing efforts and introduce marketing methods you can use to create
relevant, educational content, including the tools and tactics involved at each phase of the process

Ready to make your manuacturing business more competitive? Letʼs get started.

3
The Essential Guide to B2B Marketing for Manufacturers

The Buyer is in Control

Purchasing in the manufacturing industry is never an impulse buy Suppliers that sell to original
equipment manufacturers (OEMs) and other industrial buyers face long sales cycles with multiple
decision makers But the digital age has revolutionized buying habits in every industry

Until recently, vendors controlled access to product information Sales reps and distributors were
the gatekeepers of important content like product specs, technical data, and pricing that the buyer
needed early in their buying process, and they guarded that information closely To gain even basic
initial information, a buyer had to contact the rep or wait to attend the next trade show to see
and compare different products and vendors Of course this had advantages for the seller but was
inconvenient for the buyer

It comes as no surprise that today’s business-to-business (B2B) marketplace has changed dramatically,
presenting challenges for manufacturing marketers

For example, more competition Engineers and other technical professionals have access to more
resources than ever before The predominance of supplier websites and other online channels means
buyers don’t need to wait for a trade show or be interrupted by a cold call from a sales rep They get
the information they want online, whenever they want it, on whatever device they like Buyers, not
brands, control most of their own buying process – without input from a vendor

THE SHIFT FROM SELLER-CENTRIC TO BUYER-CENTRIC PROCESS

The rise of the buyer-centric process has given customers control their own buying journey
Consumers are rarely without their smartphones, searching online to nd the technical specications,
product comparisons, and pricing information they need to make a purchase – mostly without any
contact with a vendor sales rep

Internet technology has quickly evolved into a friendlier, easier user experience This has raised the
bar for B2B marketers to earn the attention of potential customers who expect personalization and
convenience everywhere and friction nowhere in their buying process

• Businesses need to catch up with increasing customer expectations While buyers get much of
their information from search engines, social channels, and online catalogs, companies struggle to
get discovered on digital channels

• Customers prefer to purchase from companies that make the buying process easy, yet businesses
create articial obstacles in the buying process, like gated content with long orms to get extra
information

• Customers expect a personalized customer service experience, but companies look at their
support queue and see a list of problems, not people

It’s essential for B2B marketers to rethink how to market their manufacturing company, sell their
products, and serve their customers Just a few years ago it may have been good enough for your
company website to be ndable in a web search. Today, your online content must be personalized
to the visitor’s needs and appear proactively in recommendations and targeted ads where your
prospects expect to see it
4
The Essential Guide to B2B Marketing for Manufacturers

COMPETITION IS INCREASING
With the vast array of digital channels, industrial engineers and other technical professionals have
more resources for discovery at their disposal than ever before This exposure to more suppliers levels
the playing eld, making it more challenging or industrial marketers to dierentiate their companies
from others based simply on the quality of their products and services

Customers favor simplicity Throughout history, people have developed tools and technology to make
life easier Consider, for example, the evolution of navigation Early explorers found their location
using a sextant to navigate by the stars. Then someone drew a map to make it easier to nd their
way from point A to point B Fast-forward – GPS speaks directions Soon self-driving cars will be
commonplace, making navigation an effortless task

Companies are redening their industries by making things easier or their customers.

5
The Essential Guide to B2B Marketing for Manufacturers

To succeed, your business cannot be simply one of an increasing number of choices, you must offer
additional value and convenience that the customer cannot nd elsewhere. While it’s good to be
helpful, it’s better for your company to be easy for your customers

Transactional customer service must become more tailored Before, it was good to ask what your
customer needed Today it is better to know, and proactively provide them with just the right
information that they need

6
The Essential Guide to B2B Marketing for Manufacturers

Inbound Marketing for Manufacturers

If the typical buying cycle for a manufacturing purchase is measured in years, an industrial buyer may
have already been in the market or months beore you even nd out they’re shopping. HubSpot
research indicates that B2B buyers today are 57% less dependent on salespeople during their
decision-making process than they were just a few years ago

This means that for nearly two thirds of their buying process, your customers are self-educating,
doing web searches, browsing company websites, and getting recommendations from colleagues and
industry experts on social networks and review sites They’re comparing you and your competitors,
learning technical specications, building requirements lists, narrowing their options, and orming
their opinions, all on their own, with minimal infuence rom you.

OUTBOUND MARKETING
Cold calls, direct mail, and trade show exhibits rely on interruption to catch the ideal prospect at just
the right time These methods depend either on coincidence or years of expensive effort building
top-of-mind awareness by showing up in front of the prospect again and again The buyer’s decision
to nally hire your company may have more to do with amiliarity than a solid expectation that you
can do the best job

INBOUND MARKETING
Attract qualied leads easier, more eciently, and more eectively. With an inbound marketing
strategy, your prospect comes looking for information that can help solve their problem when they’re
ready and is rewarded with the answers that you provide The buyer has visited your website, read
your expert content, and developed trust that you are an industry expert You’ve observed their
interest in specic content and have seen them exhibit behaviors that indicate they’re ready to buy.
And a well-qualied lead is easier to close.

Lead nurturing is made even more effective by sophisticated marketing automation and sales
Customer Relationship Management (CRM) software like HubSpot Intelligent nurturing campaigns
introduce new content to leads based on their behavior rather than blasting the same message to an
entire contact list Finally, a combination of lead scoring analytics and behavioral observations signals
when a lead is sales-ready and more open to an initial phone call

Every potential buyer expects to see marketing messages, but there’s always the danger that a slew
of irrelevant marketing content will be seen more as self-promotion than providing helpful solutions
The inbound approach to marketing and sales – offering helpful resources, rather than a sales pitch –
builds trust, establishes you as a thought leader, and solidies your company’s reputation and brand,
while leading buyers toward the ultimate goal: making an informed purchase

Inbound marketing provides a method of measuring the result of your marketing actions, using
website and customer data to inform marketing decisions, and prove ROI Typical inbound marketing
process involves targeted messages and tactics at each stage of the buyer’s journey

7
The Essential Guide to B2B Marketing for Manufacturers

The Buyer’s Journey

8
The Essential Guide to B2B Marketing for Manufacturers

How to Maximize Limited Marketing

Resources
As in many businesses, industrial marketers focus on three aspects of business growth:

1. Lead generation

2. Customer acquisition and retention

3. Customer service and satisfaction

In fact, 42% of industrial marketers listed customer acquisition as their primary marketing goal,
according to a 2017 survey by GlobalSpec

However, across the industry, manuacturers have learned to become more ecient. As a result,
marketing departments often lack marketing resources, budget, people, and time While generating
enough high quality sales leads is a priority, marketing budgets frequently do not keep pace as the
complexity of marketing increases

Technical professionals use more channels than ever throughout their buying process This presents
a challenge for marketers who must allocate limited resources across a diverse mix of marketing
channels and programs In an effort to cut expenses, the instinct might seem to be to bring marketing
activities in-house, stretching marketing staffs and budgets even further

For many manufacturing companies, working with a trusted marketing partner can provide substantial
value The right partner is an essential ally who can provide expert advice to help you get the most
out of your limited marketing budget A good agency will also execute marketing campaigns and
activities, like writing, design, and marketing automation to more eciently optimize your marketing
mix and free up internal resources for other efforts In addition, an experienced marketing agency will
prove their worth by measuring marketing results to demonstrate ROI

9
The Essential Guide to B2B Marketing for Manufacturers

How to Create the Right Marketing Mix

Technical proessionals use a wide variety o digital resources to nd suppliers, products and services.
Therefore, it is critical for suppliers and vendors to optimize their marketing mix to include both
push, or outbound marketing tactics, such as email, trade shows, and display advertising, and pull, or
inbound marketing methods such as online content, blogging, and the corporate website

Today’s industrial marketers are tasked with not only understanding the industry’s shift toward online
and content marketing, but also how to use these new tactics to effectively reach engineers It is
important to understand what content engineers consume, why they look or it, and how they nd it.

There are countless channels, media, and formats in which to market your business However a
successful marketing plan is an individual endeavor that involves some experimentation, tracking, and
measurement to gure out what works best or you. While this is by no means an exhaustive list, here
are several marketing tactics common to the industrial space

TRADE SHOWS
Trade shows and industry trades have been a staple of marketing for manufacturers for decades
Expos and trade shows offer a great opportunity to expose your brand to a niche audience and
connect face-to-face with existing customers, key customers, and prospective customers In fact, 88%
participate in trade shows to raise awareness of the company and its brand, according to SpinGo
Event Management

There’s more to displaying at a trade show than just popping up a background and hoping people
stop by your booth Whether you plan to attend the trade show as a spectator or as a presenter, here
are some things you can do before, during, and after a trade show to make your appearance more
valuable

PLAN CONNECTIONS
Setting goals for what you want out of the trade show can help maximize your time and budget most
effectively A clear understanding of your ideal buyer persona can help identify which visitors to your
booth you should focus on most

PRE TRADE SHOW OUTREACH

Create marketing content leading up to the trade show to target ideal prospects you know will be
attending and invite them to visit your booth Be sure to include your booth number in an email
marketing campaign Additionally, reach out to any current customers who might be attending to
schedule a face-to-face meeting while you’re both at the conference If you use CRM software like
HubSpot, include a link for the recipient to book time on your calendar

10
The Essential Guide to B2B Marketing for Manufacturers

ON-SITE TRADE SHOW MARKETING

We’ve all come home from trade shows with a bag full of pop sockets and pens While free swag
has its place as a conversation starter, it often attracts a wide range of people who are not your ideal
prospects Create an experience at your booth to give target customers a reason to visit and stick
around to hear your pitch

• Schedule live demonstrations or educational mini info sessions

• Have a tablet or laptop computer for visitors to subscribe to your blog or eNewsletter

• Offer premium swag in exchange for visitors’ name and email address

• Post fun photos of your booth visitors on your social channels and tag them and their company Be
sure to use the event hashtag

POST TRADE SHOW FOLLOW-UP

Perhaps the most important time to connect with your trade show contacts is after you’ve returned
home Weed through the stack of business cards you collected, import contact data into your CRM
software and segment your leads Of course you’ll follow up with hot leads differently that someone
who just stopped by for a free pen

Follow-up email messages should include a reminder that you met at the trade show Recap some
highlights from the show and display photos from the event You could produce a special eBook or
other valuable content offer exclusively for trade show contacts for download to further enhance their
experience

Remember, whether you’re attending as a spectator or as a presenter, the goal of your trade show
appearance is to generate leads Taking things one step further can make your booth stand out from
your competitor across the aisle

PUBLIC RELATIONS AND EARNED MEDIA

Earned media refers to references to your company by external media This may include a TV
news story that mentions your business or a quote from an employee in an industry journal Strictly
speaking, this also includes links back to your company website from an online article or mentions and
tags on social posts

Earned media enhances your brand by presenting your company as a trusted source and an industry
expert Online sources also demonstrate to Google and other search engines that your online content
is valuable, thereby beneting SEO.

Getting quoted as an expert for a positive news story rarely happens by chance Public relations is
a general term for the activity of gaining earned media To get started simply, add a section to your
company website for Company News If you manage your website using a content management
system (CMS) like Wordpress or HubSpot, you can set this up as a blog category Take note of

11
The Essential Guide to B2B Marketing for Manufacturers

anything of interest at your company to publish news releases on your website Extend the reach
of your news stories by posting highlights on your company’s social networks with links back to the
article with shortened, trackable URLs using Bit ly or HubSpot

Here are some activities that could make for good PR:

• New employee hires, promotions, or

• New products or updates

• Upcoming presentations, whitepapers, or conference attendance

• Advanced trainings or certications

Make a list of industry trade publications and reach out to the editors for topic ideas that they may be
looking for Trade journals often publish their editorial calendars in advance and are happy to share
information with potential content creators and advertisers

COMPANY WEBSITE
The industrial marketplace has changed The Internet gives consumers unlimited access to
information on an increasing number of online channels and web-connected devices It’s no longer
enough for a company’s website to be simply a digital brochure

Your website is your biggest marketing asset and is the centerpiece of all your marketing activities It
is oten the rst place people go when looking or more inormation on your products or services. It
is the place where we drive all o our marketing eorts and is oten the rst place prospects come to
look for information

Additionally, your website is also your best salesperson It’s been said that a prospect has already
nearly two-thirds through their buying cycle before ever contacting a sales rep Where are they
nding the inormation beore talking to someone? – Your website.

To stay competitive and achieve business growth goals, your website is the hub of your multi-channel
online presence using relevant content to attract prospects, along with marketing automation to
generate and nurture leads

12
The Essential Guide to B2B Marketing for Manufacturers

Before you get started on actually redesigning your website, or launching a new one, here are some
helpful tips to consider

1. Defne your goals. How much trac do you expect rom your new website? What other metrics,
such as pages viewed, trac sources, or bounce rate are important to you? How will you measure
these key performance indicators (KPIs)

2. Defne your brand. Other than your product, what is unique about your company? Is your
branding changing for this website redesign? What brand standards need to be followed?

3. Defne your competition. Who are your top three to ve competitors? How do they position
themselves? What are the top three keywords that your competitors’ websites rank for on search
engines?

4. Audit your assets. What is the most viewed page and content downloaded on your current
website? Which of your current website’s pages rank well on search engines? Not sure? Install
Google Analytics to nd out.

5. List any new assets. What new pages or content will you need to create?

6. Design. List websites that you really like and describe the elements that draw you to them Also
list websites and elements that you don’t like

7. Usability. Have you received questions or complaints from visitors about how to use your current
website? Is your website accessible for people with disabilities?

8. Technical details. What CMS do you plan to use? What features will you have on your new site,
such as a blog, calendar, photo gallery, maps, ecommerce, etc ? What domains will you use?

9. Content. Who will handle copywriting for your new site? Will you need new photography or
video production?

10. Structure and navigation. List the menu items you will have on your new website

Even with the best planning, a company website redesign project is a major undertaking Remember,
the primary motivation for redeveloping any website should be to improve business performance A
beautiul website, although intriguing and aesthetically pleasing, is secondary to one that drives trac
and generates leads

13
The Essential Guide to B2B Marketing for Manufacturers

CONTENT MARKETING
As industrial proessionals increasingly look online or work-related inormation, marketers are beeng
up their corporate website with more relevant content Blogs, videos, and downloadable white papers
show up in search results. This content attracts qualied website visitors and positions the content
creator as a trusted industry expert and thought leader

According to a study by Maryville University, 86% of marketers use content marketing as a regular
part of their strategy, whether they’re working for global conglomerates or small, local businesses
However, only 36% assess their content marketing expertise as mature or sophisticated

Here are 3 tips to improve your content marketing efforts:

1. Develop a content marketing strategy based on achieving specifc, measurable objectives

(Future blog: learn how to make SMART Goals)

2. Produce content or all stages o the industrial buy cycle and track where and how customers
access your content

3. Develop a content publishing calendar. Gain eciencies by repurposing content or use in
different formats across different channels For example, create a video using one of your blogs
as a script

VIDEO MARKETING
Video production might sound like an intimidating, lengthy, and expensive process In reality,
technology has made it easy to produce simple videos. Video production that once required a lm
crew and a truck full of equipment, can today be done on a smartphone, and online software like
YouTube and HubSpot make it easy to incorporate video into your marketing and sales process

While there is certainly a time and place for big video productions, here are three simple tips for
creating great video regardless of the budget:

1. Tell a story: All great content tells a compelling story Don’t wing it Write a script and use a
video storyboard to sketch out your visual scenes

2. Use good light: Even with the great low-light cameras on current smartphones, nothing is a
good substitute for good light Shoot outside or near a window for good quality natural light or
purchase an inexpensive LED light panel

3. Use good sound: If your video features a narrator, the built-in microphone on your smartphone
might be good enough for close-up shots but will sound distant on medium and full-length shots
and capture unwanted ambient noise Use an external lavalier or boom mic to capture better,
more consistent voice-overs

14
The Essential Guide to B2B Marketing for Manufacturers

EMAIL MARKETING
Your contact database is perhaps your most important marketing asset Email continues to be one of
the most effective marketing tactics to communicate with your contacts Why? Because email is the
one channel your audience accesses regularly

On any given day, your customer may or may not visit your website, blog, or Facebook page But with
few exceptions, customers check their email every day, if not multiple times a day – or multiple times
an hour

Email still matters, but subscribers have become more sophisticated Marketers for industrial and
manufacturing companies face increasing challenges connecting with potential customers

• Economics of Attention: Information abundance and attention scarcity make it harder than ever to
get buyer attention

• Opt-Out, Screen Out, Tune Out: Consumers don’t want to feel they are being marketed to, and
will nd ways to tune out unwanted communications

• The Cross-Channel Marketing Revolution: New communication channels, like social media and live
chat, mean email can no longer be a standalone channel

Therefore, the way you use email for marketing needs to change

It sounds silly, but do not use your personal or company email account to send your marketing emails
An experienced email service provider, like Constant Contact or HubSpot, will provide a central
database to capture and store your contact information Contact information can be sorted and
segmented based on various criteria to create highly targeted marketing contact lists

The starting point for your email marketing is your contact list An email address is the minimum
requirement, but the more you know about your contacts, the more information you’ll have available
to split your list up into smaller, more targeted segments For example if you ask for a zip code, you
could send a campaign to only the contacts in that zip code

Use a personalized greeting to make marketing messages relatable and increase open and click rates
You can customize your email message by adding the recipient’s name or other information to the
subject line or message

15
The Essential Guide to B2B Marketing for Manufacturers

THE 5 RULES OF EMAIL MARKETING

Buyers today are tech-savvy and wise to marketing Their email inboxes are full and they’re very good
at tuning out the marketing messages they don’t want In order for your email to get opened and
clicked, your email marketing must be:

1. Trusted - people must allow your message past their flter.

2. Relevant - deliver the right message to the right people at the right time.

3. Conversational – use a amiliar tone that speaks to subscribers one-to-one.

4. Coordinated - integrated customer experience across several channels.

5. Strategic - use metrics to measure the value o your email marketing.

Remember, the best email campaigns are not about you or what you want your customers to do
They’re about your subscribers and what they want

SOCIAL MEDIA MARKETING

Inbound marketing is all about creating and sharing content that your visitors, leads, and customers
will enjoy, and social media is a great platform to accomplish this Social media marketing should be
used to share information that’s not just about your business, but is also relevant to your industry and
would be truly helpful and delight your followers

With the sheer volume of content needed for the variety of social media channels, it can be a
challenge just to have something, anything, to post on a regular basis But avoid the shotgun
approach where the same message is posted on every social channel Social posts should be tailored
to the culture of each network

Facebook, Twitter, and LinkedIn are still the time-tested big three of social media publishing While
similar, each o these three platorms has their own specic tone:

• LinkedIn is professional, while Twitter is more fun, fast-paced, and informal

• Facebook is more casual than LinkedIn but provides opportunity for more media and characters
than Twitter

16
The Essential Guide to B2B Marketing for Manufacturers

GOAL-ORIENTED SOCIAL POSTING

Every social media post and campaign should be tied directly to a business goal in order to measure
success After all, how else will you know if your marketing is working without a benchmark to
measure it against?

These goals need to be SMART, that is, specic, measurable, attainable, realistic, and timely. A
general goal, like “Increase brand awareness,” is too vague to be achieved But “Gain 100 high-
quality leads through content oers like eBooks in second quarter,” is a specic goal. To accomplish
this, you may want to create an inbound lead fow so your social posts link to a blog post that’s
relevant to your content offer, and then link the reader to a landing page to download the eBook to
convert

• Persona-Oriented Social Posting

As with any other marketing activity, social media marketing should be targeted to your ideal
customer persona The type of content you create should appeal to your buyer personas and a
specic stage o their buyer’s journey.

• Best Times to Post on Facebook

The best time to post on Facebook is the early afternoon, ideally between 1 p m and 3 p m on
Thursdays and Fridays

• Best Times to Post on Twitter

The best time to post on Twitter for retweets is 5 p m The best times to post for maximizing click-
through rates are noon and 6 p m

• Best Times to Post on LinkedIn

The best time to post on LinkedIn to maximize clicks and shares is in the morning on Tuesday,
Wednesday, and Thursday

THE 10:4:1 RULE

Great social content resonates with your buyer personas and helps your company gain authority in its
eld without overtly selling your product. Your social posts should not be all about you.

A good rule of thumb is to follow the 10:4:1 rule Here’s what the ratio looks like:

• 10 posts should link to third-party articles, content on other people’s websites, or shared social
content that is interesting to your reader and relevant to your topic

• 4 posts should link to your company blog posts

• 1 post should link directly to a landing page

Like anything, mastering social media publishing takes practice Content is at the heart of your social
media marketing strategy Learning how to share that content through social publishing is a great skill
that can help you achieve your marketing and business growth goals

17
The Essential Guide to B2B Marketing for Manufacturers

Marketing Automation
A strong content marketing strategy consists of many moving parts:

• Search-optimized and mobile-responsive website

• Regular blogging and other content creation

• Social media marketing and social monitoring

• Email marketing

• Lead-capture forms and landing pages

• Marketing analytics and reporting

All of these disparate marketing activities must function together to produce optimal results

It’s possible to cobble together some sort o marketing workfow using blogging sotware like
WordPress to create a website and publish content, email marketing software like MailChimp,
postings to Facebook, Twitter, and LinkedIn, and an analytics software like Google Analytics But to
try to get some idea i any o it is working, many industrial marketers struggle to eciently integrate
these separate tools to carry out the process and report on results

Marketing automation software brings together all of these components into one functional,
integrated inbound marketing package Because it offers an all-in-one platform, marketing
automation software like HubSpot not only automates marketing activities, but because the contact
database is a core component of the platform, content can also be personalized to each individual
visitor based on their history or status

Here is an example of how the HubSpot Growth Stack can help streamline marketing automation
processes throughout the customer journey to connect with and report on a contact’s experience

18
The Essential Guide to B2B Marketing for Manufacturers

HUBSPOT MARKETING HUB

Create highly relevant personalized web pages, blogs, and marketing email messages that are more
likely to convert Because the contact database is integrated with the HubSpot CMS, you are able to
display specic content to certain visitors based on their activity. For example, display general content
to a rst-time visitor. But i a contact has visited your website several times and has viewed your
pricing page, you could display an offer for a free consultation or initiate a live chat

HUBSPOT SALES HUB

Track the customer journey in the HubSpot CRM Sales people can save time and become more
ecient by setting up sales sequences to automate a series o ollow-up emails to qualied leads.
Eliminate the back and forth of scheduling meetings by integrating calendars and allow visitors to
book a meeting at a time that works for them

HUBSPOT SERVICE HUB

Happy customers give glowing referrals For companies that pride themselves on a great customer
service, Service Hub automates the customer experience Create and track service tickets, provide a
searchable knowledge base of commonly requested information, and use chat bots to initiate easy
customer contact on your website

19
The Essential Guide to B2B Marketing for Manufacturers

Conclusion
The proliferation of online channels and the ease of access to information has produced a
marketplace where customers, not companies, control their buying journey In the face of this
competition, industrial marketers must allocate limited marketing budgets and resources across a
diverse mix of channels and programs Often, this means taking an inbound marketing approach,
using content marketing and digital channels to attract qualied visitors and convert more leads, and
marketing automation software to track engagement and prove results

20
The
futureof
automotive
Changing the way cars are
built, used, and sold in a
connected world

kpmg.com
Foreword
In the past few years, automakers and everyone in the automotive ecosystem—from component
manufacturers to design engineers to marketing and finance executives to investors, dealers,

Signals of change
and customers—have been confronted with massive change. In my 30 years in the industry, I’ve
never seen anything like it.

As this paper shows, pretty much everything is changing: In this paper, we look at how these changes create six
strategic imperatives for automakers:
How cars work. The shift to electric power trains
leaves traditional internal combustion engine (ICE) 1 Organize for the EV transition
automakers furiously pursuing electric vehicle (EV)
2 Rethink manufacturing, supply chains, and partners
strategies—and facing new competitors. Cars have
become connected, with processors that improve 3 Monetize the connected vehicle experience

Strategic imperatives
vehicle performance and provide a new kind of
4 Build out as-a-service models
experience—including driverless rides.
5 Create a seamless direct sales experience
How cars are built. The shift to EVs requires new ways
of building cars—with completely different components 6 Harness data to boost customer lifetime value
and technologies. Plants and processes optimized for
7 Finance mobility
ICE vehicles need to be revised, and new and different
partnerships are emerging. 8 Attract talent to the sector

How cars are used. New ownership and usage To fulfil these strategic imperatives, we believe that companies
models like ride hailing, ride sharing, and subscriptions will need to become “connected enterprises”—organizations
continue to gain traction, with vehicles used on an “as- that use data and digital technology to function more smoothly,
a-service” basis. develop innovative products, connect with customers and
suppliers, make rapid decisions with confidence, and give
How cars are sold. Consumers have been shopping
employees the tools to succeed. They will have to be trusted
for cars online for years. Now they want to complete

automotive enterprises
stewards of customer data and continue to develop driver-
all their other vehicle-related transactions online,

Building connected
assist technologies that save lives. In the final section of this
too. New EV players are skipping dealers and selling
paper, we discuss how automotive players can apply eight
direct—and ICE OEMs are keen to follow suit.
essential “connected capabilities” to make this happen.
How the industry is regulated. Policy and regulatory
It’s a lot of change and a lot of challenge. But change is also
changes are critical to EV transition. Countries and
opportunity. We know automotive leaders are up for the
states have set deadlines for ending ICE vehicle
challenge and are eager to pursue new opportunities. Enjoy
sales. The U.S. has made significant commitments
the ride—I know I shall.
to charging infrastructure. Tax incentives remain an
important factor for EV buyers.

Gary Silberg
Global Automotive Leader
KPMG International
Case studies

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 2
Keytakeaways

Signals of change
The EV transition is changing how automotive frms are organized. Increasingly, automotive companies are
reorganizing to manage the EV transition, through investments and partnerships—and recently by separating ICE and EV
businesses.

Manufacturing and supply chain operations are being reinvented. OEMs are adopting modular manufacturing—
including multi-use chassis design—and lightweight materials. They are also striving for supply chain resilience, sourcing
new battery materials and other key components closer to home.

Finding ways to monetize the connected vehicle experience. Supplying software, content updates, and components

Strategic imperatives
for the connected in-car experience can create new revenue streams.

Consumers are ready or a ully connected in-car experience. Consumers are increasingly enjoying personalized
infotainment, driving assistance and technical help.

Harnessing data for better performance and new revenue streams. Data on performance, safety, and design,
via multiple IoT sensors, enables new ways to make cars safer and more reliable. Usage data can also be used for
increasing customer lifetime value. But makers of connected vehicles also must guarantee data security and data
privacy.

Decarbonization is getting serious. New zero-carbon policies and fresh incentives will likely accelerate adoption

automotive enterprises
of EVs and the winding down of ICE models. Countries and U.S. states are setting deadlines for the end of ICE

Building connected
vehicle sales.

The dealer role continues to evolve. Car buyers are accustomed to shopping online and buying at dealerships. And EV
upstarts have adopted direct-to-consumer approaches. As alternative ownership and as-a-service models catch on, the
dealer role will change.

Case studies

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 3
What’s inside
05 11

Signals of change
Strategic
imperatives
Signals of
change

22

Strategic imperatives
18
Case
studies

Building
connected
automotive
enterprises

automotive enterprises
Building connected
Case studies

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 4
 Signalsof

Signals of change
change
Future success for automakers will be determined
by their ability to adapt to five categories of
change that require strategic responses and

Strategic imperatives
changes in business and operating models.

By acting on these new strategic imperatives

and becoming truly connected enterprises,
automakers can respond to customer demands,
manage supply chains and talent, and make
data-driven decisions.

automotive enterprises
Building connected
Case studies

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 5
Howautomobileswork
1 The switch to electric power trains 2 Towards a fully connected experience

Signals of change
The shift to EVs is accelerating. It is estimated that half of Connectivity is transforming the driving and ownership
automobiles sold in the U.S. in 2030 could be electric; Chinese experience. Data gathered from an array of onboard sensors
officials say that 70 percent of Chinese autos sold in 2030 will and processors, enable new maintenance, upgrades and
be electric. Globally, unit sales of EVs are expected to grow by customization, and insights for improving performance, safety,
12.8 percent annually from 2022 to 2034.1 and design.
This acceleration is driven by increased focus on the transition By 2028, it is forecast that over 70 percent of global sales
away by growing support for decarbonization, high fuel prices, will be connected.3 More than half (56 percent) of the OEMs
and government actions to encourage EV purchases and surveyed by KPMG are investing in connected services in
prohibit sales of ICE vehicles. However, there remain barriers vehicles or plan to within two years. Nearly a third view
to adoption, including high purchase prices, range anxiety, and technology-driven customer-experience enhancements as a
lengthy charging times. Strategies to reduce manufacturing key competitive differentiator.4

Strategic imperatives
costs include innovations like modular platform architectures,
Infotainment and other services are also seen as a source of
and in-house battery manufacturing.
recurring revenues. Manufacturers of connected vehicles will
Grid capacity also needs to rise significantly to satisfy EV also be challenged to assure consumers that the electronics
demand. In one study suggesting that national electricity that control their vehicles (eventually including autonomous
production would have to rise by 25 percent if the entire driving systems) are reliable and safe from cyber attacks.
population switched to EVs, requiring US$125 billion in grid Automakers must also be trusted not to misuse driver data
investment.2 and ensure data is safe from cyber-attacks.

Exhibit 1. Enhancing the customer experience is

Connected to hackers?
seen as the biggest game changer
A connected car sends and receives data via the
Question: “Which factor (related to connected cars/business
internet, which makes it as vulnerable (or invulnerable)
models) has the greatest potential to change the landscape for
the automotive industry?” (By type of OEM) to cyberattacks as any other connected device. In 2015,

automotive enterprises
Chrysler was forced to recall 1.4 million vehicles due to

Building connected
Top response: Adoption of a bug that could have enabled remote access to brakes
21%
in-vehicle connected and transmission. GM cars and trucks were found to
services (e.g., in-vehicle 17%
be vulnerable to remote interference that could have
transactions, messaging for 24% disabled brakes. Tesla’s Model S infotainment system
local businesses, critical
vehicle alerts) 30% carried similar weaknesses for four years.5 In 2021
BlackBerry software used for driver assistance and
Total Automotive OEM (both BEV & ICE) other functions was found to have a flaw that potentially
Automotive OEM (BEV only) Automotive OEM (ICE only)
exposed it to hackers.6 And global automotive supplier
Source: A commissioned study conducted by Forrester Consulting on behalf of Eberspaecher had to temporarily halt production in 2021
KPMG, May 2022 after a major ransomware attack.7 The cybersecurity
challenge will only grow as vehicles become more reliant
on data communications, including for autonomous
driving.
Case studies

1
Source: “Global Hybrid & Electric Vehicle Forecast,” News & Insights, LMC Automotive, 2022
2
Source: Will Englund, “Plug-in cars are the future. The grid isn’t ready,” The Washington Post, October 13, 2021
3
Source “Vehicle Connectivity is Surging, but Consumer Paid Subscription Share is in Sharp Decline,” ABI Research, April 13, 2022
4
Source: “Connected Enterprise Automotive Survey 2022,” a commissioned study conducted by Forrester Consulting on behalf of KPMG, May 2022
5
Source: “Cyber security best practices for modern vehicles,” Press Releases, National Highway Traffic Safety Administration, United States Department of
Transportation, September 7, 2022
6
Source: Manojna Maddipatla and Radhika Anilkumar, “BlackBerry Software Flaw Could Impact Cars, Medical Devices - U.S. Agencies,” Reuters, August 18, 2021
7
Source Catalin Cimpanu, “Workers sent home after ransomware attack on major automotive parts manufacturer,” The Record, October 27, 2021

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 6
Howautomobilesarebuilt
1 Modularizing for cost efficiency 4 Supply-chain challenges

Signals of change
Chassis modularization can dramatically cut costs, speed up Supply chains have suffered from component and raw material
production and reduce vehicle weight. Canoo, the U.S.-based shortages, COVID and the war in Ukraine.14 A shortage of
startup, has developed a modular EV “skateboard” chassis microchips and lithium (essential to batteries) reduced planned
designed to fit multiple body styles. Ford, GM, Volkswagen, EV production by almost 4 million in 2021, or approximately
and Kia have all announced platforms for their EV lineups.8 US$110 billion in sales.15, 16
UK-based Williams Advanced Engineering is developing
Overall global vehicle production (across all powertrains) was
EV platforms for high-performance “hypercars” as well as
down by almost 10 million in 2021, with Europe and Asia the
crossovers and sedans.”9
worst affected regions.17
Supply chain constraints may increase suppliers’ negotiating
2 New entrants shake up competition power and lead to higher prices for automakers—not helped

Strategic imperatives
by rising energy prices further squeezing margins. Just-in-time
Electric vehicle makers account for a quarter of all automotive manufacturing could be another casualty, with Toyota’s largest
startups10 and Rivian—with its electric trucks—Lucid, China’s supplier Denso, increasing its inventory levels from 38 to 50
Nio and Vietnam’s Vinfast are all making inroads.11 days in the past decade.18

3 A tilt towards Asia 5 Attracting digital talent

ASEAN light vehicle sales accelerated after the pandemic As automakers seek to win the innovation battle, and
lockdowns of 202012 and the EV market has grown even technology becomes ubiquitous, they are in a battle with
faster.13 These trends signal the strength of Asia’s OEMs, who other sectors for software engineers and other technologists,
have the technology and ambition to challenge traditional auto which is pushing up salaries and driving new recruitment and
companies’ global dominance. Consequently, many established employment tactics.
Western brands are expanding their Asia footprint, often in

automotive enterprises
tandem with emerging competitors.

Building connected
8
Source: Paul Lienert and Ben Klayman, “Ford reportedly launching two new dedicated EV platforms by 2025,” Reuters, May 25, 2021
9
Source: Jonathan Ramsey, “Williams Advanced Engineering reveals EVR electric hypercar platform,” 2004 - 2022 Autoblog News, September 9, 2022
10
Source: Sarwant Singh, “Over 2000 Auto Industry Start-Ups Are Disrupting The Industry And Stealing Investments,” Forbes, January 27, 2021
Case studies

11
Source: Paul A. Eisenstein, “Here are the electric vehicle startups vying for your attention this year,” NBC News, January 4, 2022
12
Source: “Global Light Vehicle Sales Update,” LMC Automotive, October 14, 2022
13
Source: “Global Hybrid & Electric Vehicle Forecast,” LMC Automotive, 2022
14
Source: “Autocrat auto costs,” Automotive News, March 14, 2022
15
Source: Jeanne Whalen, “Semiconductor shortage hammering automakers, costing billions in lost production and sales, ”The Washington Post, July 28, 2021
16
Source: Jed Graham, “Why A Lithium Battery Shortage May Wreck The Great EV Race,” Investor’s Business Daily, April 18, 2022
17
Source: Ilaria Grasso Macola, “Automotive production plunges as industry builds 10 million less cars,” City A.M., December 27, 2021
18
Source: Violeta Keckarovska, “Automotive industry shifts from JIT manufacturing,” Briefs, TI Insight, May 18, 2021

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 7
Howautomobilesareused
Mobility-as-a-service on the road to mainstream

Signals of change
Car ownership is unlikely to become a thing of the past, but Model 3 for a flat monthly fee,20 while Hyundai has a monthly
consumers are becoming more open-minded about mobility or annual subscription plan.21
services. KPMG’s global automotive research finds that
A recent study suggests that 25 percent of car buyers would
63 percent of OEMs are investing in, or plan to develop,
switch to subscriptions,22 while Frost & Sullivan forecasts that
alternative ownership models such as ride-sharing and peer-to-
more than 16 million new and used cars globally will be driven
peer “micro-sharing” within two years.19 Subscription services
on a subscription basis by 2025.23
are another growing trend: U.S.-based Autonomy offers a Tesla

Strategic imperatives
automotive enterprises
Building connected
Case studies

19
Source: “Connected Enterprise Automotive Survey 2022,” a commissioned study conducted by Forrester Consulting on behalf of KPMG, May 2022
20
Source: “Vehicle subscription services provider NextCar rebrands as Autonomy, launches with Tesla,” Retail, Automotive News, January 21, 2022
21
Source: Carsubscriptions.org
22
Source: Michelle Krebs and Rebecca Rydzewski, “Car Buyers Balk at Paying Monthly Fees for Features and Services,” Data Point, Cox Automotive, April 21, 2022
23
Source: Sarwant Singh,d “Your Next Car Could Be A Flexible Subscription Model,” Frost Perspective, Mobility: Automotive and Transportation, Frost & Sullivan,
June 4, 2018

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 8
Howautomobilesaresold
Dealer consolidation concentrates power—
1 The push for direct sales intensifies 2 but direct sales remain a threat

Signals of change
Pressure is rising on established automakers to create direct The surge in retail acquisitions is giving dealers greater
sales channels—upending the traditional dealer model, which purchasing power and potentially endangering automaker
has long prevailed and is protected in the U.S. by state laws. margins. It also provides a platform for dealers to compete
in the fast-growing charging market and build new revenue
Tesla has pioneered direct-to-consumer sales in the U.S. and
streams. Recent figures suggest that 2021 was a record year
other EV suppliers are following a similar strategy. Luxury EV
for M&A in dealerships, up by a quarter on 2020.30 However,
startup Lucid is fast expanding its direct sales footprint in the
direct sales by OEMs are challenging dealers’ traditional role,
U.S.24 and Ford says it wants to sell electric cars exclusively
potentially relegating them to service and delivery centers.
through direct channels at fixed prices.25 EV company
executives in our global automotive survey say that direct sales
have the greatest potential to transform the EV market.26

Strategic imperatives
But established players in the U.S. are constrained from
jumping into direct sales due to franchise and licensing laws
in about two-thirds of U.S. states, that prohibit or limit direct
sales. These laws are being challenged, particularly by EV
makers, but only 11 states permit any direct sales of new
cars.27 In Europe, where such restrictions don’t exist, Audi aims
to sell electric models directly to customers, with delivery and
service through traditional dealers.28
In the U.S. used car market, where state franchise laws
do not limit direct sales, platforms such as Carvana enable
customers to shop, buy and finance their vehicle purchase and
pick up the car at multi-story sites or have it delivered direct
to their home.29 Cazoo, Carvago and Vroom are pioneering the

automotive enterprises
European direct sales experience for second-hand automobiles,

Building connected
as are Uxin, Guazi and Souche in China.

24
Source: Lisa Martine Jenkins, “As EV Startups Enter the Market, They Say Dealerships — and a Decades-Old Legal Structure — Stand in Their Way,” Morning Consult,
Case studies

March 22, 2021

25
Source: Chris Randall, “Ford aims for direct sales model in the USA,” Automobile, Electric, June 7, 2022
26
Source: “Connected Enterprise Automotive Survey 2022,” a commissioned study conducted by Forrester Consulting on behalf of KPMG, July 2020
27
Source: Liam Denning, “Car Dealership Laws Aren’t Fit for the Electric Age,” Opinion, Articles, Bloomberg, January 5, 2022; Kirsty Hartman and Laura
Shields, “State Laws on Direct-Sales,” National Conference of State Legislatures, 2021
28
Source: Chris Randall, “Audi to switch to agency sales model in 2023,” Automobile, Electrive, July 1, 2021
29
Source: Kirsten Korosec, “Carvana acquires Adesa US auction business for $2.2B to jump-start used car sales,” Transportation, TechCrunch, February 25, 2022
30
Source: Jim Henry, “Dealership Acquisitions Bound for Record-Breaking 2021,” Dealers, WardsAuto, November 23, 2021

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 9
Howtheautomotive
businessisregulated

Signals of change
1 Accelerating the zero-emissions push 3 The bumpy road to autonomous driving

Significant and increasing regulation is forcing OEMs to According to a recent KPMG global auto executive survey,
accelerate their shift to EVs. More than 20 countries have 45 percent of automakers are investing in autonomous
already signaled a full phase-out of ICE car sales over technology or plan to do so within the next two years.39 VW
the coming decades, with the EU banning sales of new has plans for a self-driving taxi,40 and Toyota is launching
combustion-powered cars by 2035.31, 32 China has mandated an operating system that could handle autonomous driving
that, by 2030, 40 percent of all new cars sold must be electric,33 and which it will make available to other companies.41 For
and the US state of California is prohibiting sales of new ICE widespread deployment of autonomous vehicles, automakers

Strategic imperatives
cars by 2035.34 still need to demonstrate more reliable technology to win
regulatory approval. Amid reports of guidance-system failures,
consumer groups and unions have pushed regulators to
2 Incentives and government funding
withhold approval for autonomous vehicles on public roads.42,
43, 44
However, GM’s Cruise and Alphabet’s Waymo have both
The EV market has benefited enormously from incentives, but
won permits for passenger service in autonomous vehicles in
programs are continually evolving. In the U.S., for example,
California, but only with drivers onboard.45
after Tesla and GM sold 500,000 EVs, federal tax incentives for
consumers expired. Toyota, Nissan and Ford are closing in on
the 500,000 mark.35 However, the recently enacted Inflation
Reduction Act has extended incentives for EVs, albeit with price
and income caps.36 China is slashing subsidies on new energy
vehicles by 30 percent.37 But the EU has pledged US$20
billion to boost clean vehicle sales and create charging stations

automotive enterprises
and hydrogen filling facilities—in addition to subsidies and

Building connected
investments by individual member countries.38

31
Source: “EU lawmakers endorse ban on combustion-engine cars in 2035,” AP News, June 9, 2022
32
Source: “Here’s how EU legislation accelerates the EV revolution,” Blog, Virta, 2022
33
Source: Nancy W. Stauffer, “China’s transition to electric vehicles,” MIT Energy Initiative, MIT News, April 29, 2021
34
Source: Nadia Lopez, “California phases out new gas cars — so what’s next for electric cars?” Environment, Cal Matters, August 26, 2022
35
Source: Tim Plouff, “Push for tax credits comes off arrogant, 2021,” Letter to the Editor, Automotive News, May 31, 2021
36
Source: Sarah O’Brien, “Buying a car and want to go electric? Inflation Reduction Act extends $7,500 tax credit — but with price, income caps,” Personal Finance,
CNBC, August 10, 2022
37
Source: Reuters, “New energy vehicle subsidies to be reduced 30% in 2022,” China, Automotive News, December 31, 2021
38
Source: “Here’s how EU legislation accelerates the EV revolution,” Blog, Virta, May 30, 2022
Case studies

39
Source: “Connected Enterprise Automotive Survey 2022,” a commissioned study conducted by Forrester Consulting on behalf of KPMG, July 2022
40
Source: Nathan Eddy, “VW is planning a self-driving taxi, delivery van based on ID Buzz,” Automakers, Automotive News Europe, April 5, 2022
41
Source: Staff Reporter “Toyota to launch self-driving-capable operating system”, Articles, Automotive News, February 4, 2022
42
Source: Reuters and Alastair Talbot For Dailymail.com “Nearly 400 car crashes in the US within ten months were caused by driver-assistance technology,
including 273 Teslas operating in full self driving mode, bombshell report reveals,” News, Articles, Daily Mail, June 15, 2022
43
Source: Audrey Laforest, “NHTSA asks Tesla if it plans to issue recall after Autopilot update,” Regulation-Safety, Automotive News, October 13, 2021
44
Source: David Shepardson “Autonomous vehicles need stricter rules -U.S. safety group labor unions,” Business, Auto Transportation, Reuters, February 3, 2022
45
Source: David Shepardson, “California issues permits to Cruise, Waymo for autonomous vehicle service,” Technology, Reuters, March 4, 2022

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 10
 Strategic

Signals of change
imperatives
A combination of changing competitive dynamics,
evolving consumer expectations, economic
challenges, and regulatory changes are impacting

Strategic imperatives
the automotive landscape. Automakers,
technology companies, parts manufacturers,
dealers, energy companies, and financial services
organizations are all jostling to own the customer
interface and win brand loyalty as a mobility
provider. We see eight strategic imperatives to
address these challenges:

automotive enterprises
Building connected
Case studies

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 1 OrganizefortheEVtransition
The shift to EVs also has important implications for how auto to consumers and businesses. The division will include
manufacturing companies are organized. EVs and ICE vehicles Ultium, a joint venture with LG Energy Solutions announced
have different labor and capital requirements, different growth a year earlier, when GM said it would invest US$750 million
rates, and different rates of return. And the market values in charging infrastructure at truck stops and gas stations in
pure-play EV shares far more highly than shares of incumbent the U.S. and Canada by 2025.49 Products and services include

Signals of change
automakers. 46 battery packs, EV chargers, and software to help customers
optimize their vehicle charging and cope with electric grid
As a result, some automakers are separating their vehicle
disruptions.50
businesses into distinct segments like EV, ICE, and
commercial, with specialized manufacturing and marketing The GM-LG alliance is only one of many joint ventures that
centers of excellence. In March 2022 Ford announced plans have been created to share the cost of EV development. GM
to run its EV and ICE units as separate businesses.47 In has also teamed with ABB to produce fast chargers capable of
November, Renault announced plans to spin off its EV unit and 15- and 20-minute charges respectively.51 Ionity (a joint venture
form a joint venture for ICE engines and hybrid technology with involving BMW, Ford, Volkswagen, Mercedes-Benz, and
China’s Geely.48 Connected services businesses are also being Hyundai) and VW (in partnership with BP, Enel and Iberdrola)
separated to increase market value, boost profitability, and are also rolling out ultra-fast chargers.52 Honda is teaming up
achieve legal, and tax benefits. with GM to develop affordable EVs and mobility services.53, 54

Strategic imperatives
VW is partnering with Microsoft to strengthen its automated
The shift to EVs could also pull automakers into new
driving capabilities, and Ford and Google are collaborating
adjacencies. In October 2022, GM announced the formation
on enhanced cloud connectivity and AI-powered customer
of a new division, GM Energy, which will offer EV charging
experience.55
systems, solar panels, storage systems and related products

2 Rethinkmanufacturing,supplychains,andpartners
Traditional OEMs are rethinking their role in the automotive The shift to EVs—as well as the supply-chain problems that
value chain. As cars become “computers on wheels,” with have hampered production since the pandemic began—
electric powertrains, more and more of the value comes from compel automakers to rethink manufacturing footprints and
digital technology design and software. Manufacturing, on supply chains. Mercedes-Benz is shifting to cheaper (but less
the other hand is set to become modular; automakers will powerful) batteries for its smaller electric models, betting that

automotive enterprises
Building connected
design and fabricate fewer components in-house and may customers will accept the accompanying shorter ranges.56 GM
wind up acting increasingly as designers and assemblers, like is investing in low-cost lithium extraction in California to ensure
consumer electronics companies. This has implications for how supplies for its EV batteries,57 while Tesla has material-sourcing
capital is used by automotive brands. agreements around the world, including a long-term deal to
buy nickel from Vale’s Canadian mines.58

46
Even after dropping more than 40 percent during 2022, Tesla shares still traded at more than 30 times forward earnings vs. about six times for GM. Source:
Yahoo Finance
47
Source: Paul Lienert, Ben Klayman and David Shepardson, “Ford set to announce plans to run EV, ICE as separate businesses -sources,” Charged, Reuters,
March 2, 2022
48
Source: Nick Kostov, “Renault to Separate EV Unit in Sweeping Overhaul,” Wall Street Journal, November 8, 2022
49
Source: Dan Mihalascu, “GM Will Invest $750M In EV Charging Infrastructure Through 2025,” General Motors, News Inside EVs, October 7, 2021
50
Source: John Rosevear and Michael Wayland, “GM is launching a new business to connect homes and businesses with EV chargers, energy storage,” Autos, CNBC,
October 11, 2022
Case studies

51
Source: Reuters, “ABB launches world’s fastest EV charger,” Suppliers, Automotive News Europe, September 30, 2021
52
Source: Ryan Fisher, “Automakers Develop Charging Networks for Greater EV Cred,” Technology, Bloomberg News, 2022
53
Source: Hannah Lutz, “GM, Honda plan EV crossovers under $30,000 amid record high transaction prices,” Mobility Report, Automotive News, April 8, 2022
54
Source: Christian Wardlaw, “Honda and Sony to Build Electric Cars Starting in 2025,” Car News, Edmunds, March 7, 2022
55
Source: “KPMG US Automotive Monthly Health Monitor,” Industries, Automotive, KPMG Global, March 2022
56
Source: Bloomberg, “Mercedes bets entry-level EV buyers will accept shorter range,” Technology, Automotive News, October 27, 2021
57
Source: Hannah Lutz, “GM invests in Calif. lithium sourcing for EV batteries,” Suppliers, Automotive News, July 2, 2021
58
Source: Neil Hume, “Vale strikes nickel supply deal with Tesla,” Industrial metals, Financial Times, May 6, 2022

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 12
3D printing is also gaining momentum. A number of Automakers also rely on 3D printing to accelerate design and
automakers and component manufacturers are working with product development. GM, for example, used the technology
3D printing partners. VW has partnered with Siemens to to speed up development of the Hummer EV.61 and Subaru’s
produce 100,000 3-D printed components by 2025.59 Research new R&D center will enable cooperation with suppliers
institute Fraunhofer IAPT says 3D printing can cut costs of and academics, including 3D-printing and VR capabilities.
parts by as much as 80 percent.60 3D printing of spare parts at the dealership is seen as an
opportunity to cut inventory costs and provide faster service.62

Signals of change
3 Monetizetheconnectedvehicleexperience
In a recent study of European drivers, almost half say they driven extras.67 VW, Tesla, Toyota, and others offer over-the-air
would be willing to switch brands in order to get access to software updates and, in some cases, repairs,68 and BMW, in
new or innovative connected car features and services.63 partnership with software company Blitzz, enables video chat
Connected vehicle services offer a range of potential revenue roadside assistance.69
streams for OEMs. The cars they sell can be platforms for
B2B revenue opportunities include fleet management
selling various services, including maintenance and repair
technology and tax and expense management, and software
services based on connected-car sensor readings.

Strategic imperatives
upgrades, enabling fleet managers to track usage and
Stellantis has announced that, by 2030, it expects to earn performance and manage costs. Data from connected vehicles
US$20 billion annually through connected technology—with can also be monetized and sold to insurers, advertisers, and
a 40 percent gross margin.64 Ford has a similar ambition and other relevant users, so long as this fits within protection and
expects revenue from “always-on” relationships to also reach privacy laws.
US$20 billion per year.65 And GM anticipates annual software
It’s likely that various packages will emerge, containing
and services revenue opportunities in the $20 billion to $25
different levels of add-ons, and the option to trade up and
billion range, from a projected 30 million connected vehicles by
add or exclude services. Key to success will be the partners
the end of the decade.66
involved in supplying the connected services, who must be
In addition to creating a new source of revenue, automakers innovative and customer-oriented—there should be demand for
can strengthen their customer relationships through these genuinely superior services like enhanced satnav.
touch points. Connectivity also brings competition from
Delivering connected services is a big cultural change for
software providers who want to own the in-car customer
established automakers, who must encourage employees to
experience the way they do with PCs and phones.

automotive enterprises
adopt a customer-centric and customer lifetime value (CLV)

Building connected
Among the potential services are “infotainment” offerings mindset that stretches beyond making and delivering physical
such as navigation, music and video, shopping, and vehicle- vehicles, while also bringing in new people with software
to-vehicle communication. These services may be bought backgrounds and an as-a-service mindset. Another important
outright or on a subscription basis—although some consumers requirement for the connected-car customer experience will
have indicated a reluctance to paying extra for in-car, software- be taking utmost care to protect customer data.

58
Source: Joris Peels, “Fraunhofer Iapt Slashes Car Part Costs By 80% Using 3d Printing Technology,” 3D Printing, 3D Printing Research, Automotive 3D Printing,
Featured Stories, Metal 3D Printing. 3D Printing Industry, January 19, 2022
59
Source: Nathan Eddy, “VW starts testing 3D-printed structural parts,” Automakers, Automotive News Europe, July 18, 2021
60
Source: Hannah Lutz, “Hummer EV is the model for GM developing vehicles faster”, Manufacturing, Automotive News, October 4, 2021
61
Source: Hans Greimel, “Subaru steps up R&D to meet age of EVs,” Manufacturing, Automotive News, August 14, 2021
Case studies

62
Source: “Ready to connect? Consumer expectations towards connected cars,” Blog Post, Sitsi Market Research Services, February 4, 2020
63
Source: “Stellantis Long-Term Strategic Plan,” Investors, Events, Strategic Plan, Stellantis, March 1, 2022
64
Source: Mich Dearborn, “Accelerating The Transformation Of Ford+” News, Ford Media Center, Ford Motor Company, March 2, 2022
65
Source: David Leggett, “GM outlines business strategy and plans to 2030,” News, Just Auto, October 8, 2021
66
Source: Sam Mceachern, “Just 25 Percent Of Car Buyers Willing To Pay For Subscription Services,” Blog, GM Authority, April 21, 2022
67
Source: Nathan Eddy, “VW launches over-the-air software updates for electric ID family,” Automakers, Automotive News Europe, July 6, 2021
68
Source: Mark Elias, “Face-to-face roadside help available to BMW drivers,” Fixed Ops Journal, Automotive News, May 1, 2022

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 13
 4 Buildoutas-a-servicemodels
In the new as-a-service world, subscription models are set to
proliferate, with a range of options, including time- or mileage- Using data to increase customer lifetime value
based pricing, and comprehensive packages that include Automakers traditionally have focused marketing efforts
insurance and maintenance costs. Some OEMs will offer on vehicle sales, financing, parts, and warranties.
subscriptions to ride-sharing and/or mobility services, while Because various functions often worked in silos and

Signals of change
owners could also have the option to lend their vehicles to because dealers had the direct contact with buyers,
public ride-sharing services—possibly including autonomous automakers lacked a single view of the customer to
driving technology. help expand selling opportunities. The emergence of
For those customers not wishing to commit to a vehicle, micro- connected vehicles and different ownership models
ownership subscriptions are available on a monthly basis— changes that. Automakers can now more easily tap after-
especially for those cautiously considering an EV. Widening the sale revenue streams—including from used vehicles.
range of ownership models gives customers greater choice and A global automaker is pursuing a new strategy to use
potentially extends the brand to new groups of buyers. Within data from connected cars and new revenue streams to
this model, one of the big challenges for OEMs is retaining maximize customer lifetime value (CLV). As part of this
brand loyalty, which places an emphasis upon a seamless and effort, KPMG in Italy worked with the client to change its
convenient customer experience across all mobility services. marketing operating model, using customer relationship

Strategic imperatives
As OEMs contemplate these models, the ability to monetize software to get a comprehensive view of customers.
them via revenue streams, and build customer loyalty, is Using this data, the company created a CLV program to
paramount. There are a host of new entrants into the mobility measure and predict behavior, which was then rolled out
services market, and the challenge for automakers is to create across the entire organization.
and manage new partnerships with these players, while With this new visibility into customer behavior and
retaining customer loyalty. needs, the company is now in a position to improve
A recent report predicts a significant rise in car subscriptions, the customer experience at each touchpoint, maximize
with the market set to grow annually by more than 25 percent revenue streams, and offer new ownership options,
to surpass US$35 billion by 2029.70 But paying for services on such as subscriptions. This strategy can only succeed,
subscription is a relatively new trend, and one that customers however, if the vendor can be trusted to use customer
are still considering. Some subscription trials, notably by Audi data with discretion.
and BMW, have been suspended or abandoned. One hurdle
has been getting customers to pay monthly for a bundle of

automotive enterprises
services they believe should be part of the initial purchase.71

Building connected
Case studies

70
Source: Adroit Market Research, “With 25.8% CAGR, Vehicle Subscription Market Size to Surpass USD 35.83 billion by 2029 - Strategic Initiatives, Size,
Segment Analysis, Latest Trends, and Future Opportunities,” Yahoo Finance, August 15, 2022
71
Source: “Car Subscription Market 2021-2026,” Market Research Report, Mobility Foresights, January 2021

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 5 Createaseamlessdirectsalesexperience
Both traditional automakers and EV suppliers are seeking to and convenience, targeting appropriate segments who are
get closer to the customer via online shopping platforms and, open to new channels.
where possible, through direct sales. Automakers may also opt
For both OEMs and dealers, direct delivery to the customer
for a platform “agency” model where customers buy direct
is another priority, to enhance the purchasing experience. This

Signals of change
but vehicle fulfilment is through the dealer—which may also
calls for a digital platform and accompanying logistics that
offer additional services. Recent consolidation in the U.S. has
can manage the process seamlessly from order to receipt
led to the rise of the brand-agnostic digital mega-dealer, with
of vehicle. In some geographies, regulatory change may be
a complete customer experience encompassing online and
necessary to permit direct sales.
retail. These powerful dealer groups continue to grow through
acquisition and exert increasing influence.
Exhibit 2. Traditional automakers are most
In addition, consumer and, especially, commercial, and fleet
vehicles may be sold through an OEM/dealer network, or likely to expect big impacts from alternative
alternatively to software suppliers, who would provide custom ownership
software for vehicles used by electricians or plumbers, for Question: “Which factor (related to vehicle use/ownership)
example. has the greatest potential to change the landscape for the

Strategic imperatives
automotive industry?” (By type of OEM)
Shifting from a traditional dealership model to one where some
or all vehicles are bought directly from the manufacturer is a Top response: Shift from 23%
major change, both operationally and culturally. Dealers need outright purchase/long-term 26%
to be convinced of the value of becoming more of a delivery leasing to other unique vehicle
and servicing hub, rather than just the place where drivers buy use options (e.g., micro-share 34%
their cars. Financial incentives could be used to push dealers services, ride-sharing services) 17%
to adopt the new mode. Automakers could also reward dealers
that embrace the new approach by giving them priority access Total Automotive OEM (both BEV & ICE)
to high-margin, in-demand vehicles. Automotive OEM (BEV only) Automotive OEM (ICE only)

OEMs will also have to adapt their marketing to customers, Source: A commissioned study conducted by Forrester Consulting on behalf of
emphasizing an enhanced experience offering greater speed KPMG, May 2022

automotive enterprises
Building connected
Case studies

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 6 Harnessdatatoboostcustomerlifetimevalue
There is an increasing recognition that the initial sale is only
the start of the customer relationship, with a need to invest in Creating a frictionless customer experience
lifetime value. Aftermarket services are all about a heightened
customer experience, with remote, online services including A maker of luxury sports cars was launching a new
routine and predictive maintenance, and spare part orders, product that extended the brand to a different target

Signals of change
increasingly delivered either at home or at convenient vehicle audience, but the company feared that its retail
servicing hubs, where engineers have a full digital history experience would not meet customer expectations.
enabling more accurate decisions on issues like oil changes, There were particular concerns about inconsistent
repairs, and replacements. And with the rapid advances in processes across the global dealership network.
3D printing, parts can be available faster, and closer to the With a focus on customer-centricity, KPMG plotted
customer. Automakers could own the entire aftermarket a complete customer roadmap and created a new,
experience or outsource pieces to third parties. standardized process from first point-of-contact
A seamless customer experience does not just happen. Sales through to purchase, collection and after-sale. Our
and service teams need to work together more closely and customer experience dealer assessment tool helped
see themselves as contributing to customer lifetime value, us evaluate every dealership and come up with
with appropriate training, to ensure that service professionals customized improvements.

Strategic imperatives
own the customer relationship. By viewing the service team With a purchase experience that matches the brand
as a sales channel and creating targeted loyalty programs—like promise, the launch proved highly successful, helping
free vehicle servicing, or discounts off spare parts—customer the manufacturer increase its previous year’s sales
“stickiness” can increase. Subscription services can be a part by more than 50 percent and elevating its market
of this, offering packages of benefits. position.
According to KPMG’s global survey of automotive executives,
digitization of after-sale functions for EVs has the greatest
potential to change the landscape.72

Exhibit 3. Consumers are anticipating new modes of ownership

automotive enterprises
Question: “Which factor related to vehicle use ownership has the greatest potential to change the landscape for the automotive

Building connected
industry?” (By type of OEM)
35%
Top response: Changes in customer engagement consider-
37%
ations to accommodate new methods of ownership and use
27%
(e.g., micro-ownership, vehicle sharing) 36%

Top response: Shift from outright purchase/long-term leasing 23%

to other unique vehicle use options (e.g., micro-share services, 26%
34%
ride-sharing services)
17%

Total Automotive OEM (both BEV & ICE) Automotive OEM (BEV only) Automotive OEM (ICE only)

Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, May 2022
Case studies

72
Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, May 2022

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 7 Financingmobility 8 Attracttalenttothesector
With a rising need for financing in the automotive sector, As their businesses change, automakers struggle to attract
automakers have an opportunity to grow their captive finance and retain the talent they need to design and build connected,
businesses. They also risk losing finance business to banks or electric vehicles. Ford and GM have set up R&D and design
specialty lenders. shops in Silicon Valley and Ford has also poached leading
Apple engineering executive Doug Field, who had reportedly
Financing will remain a valuable source of revenue for dealers

Signals of change
headed a secret car project for the tech giant and was
and, increasingly, OEMs as they sell more vehicles online direct
previously at Tesla.73
to customers—and seek to become one-stop-shops for all the
services associated with a vehicle. Add to this financing for But automakers have struggled to compete for top talent. One
private and/or autonomous fleets, mobility services like ride way is to adopt Silicon Valley mindsets and ways of working.
sharing, and assets such as batteries and charging stations—for Both GM and Ford are offering greater flexibility and improved
both individuals and corporate clients. Consumers may also employee benefits, for example.74 But these organizations,
seek finance for connected services, on-demand in-vehicle which were built and managed to optimize production of ICE
functions, and car and battery insurance—on a subscription or vehicles, may need a broader cultural makeover to attract and
pay-as-you-go basis. retain the best people.
Other potential sources of revenue are fleet management Our global survey of automakers found that 87 percent of
services, vehicle insurance, extended warranty, and payment those that we classify as “future-focused”75 rated themselves

Strategic imperatives
processing—often made through the vehicle itself. So-called as “above average” in configuring their organization and
“balloon” payments are a growing trend, where consumers culture around customer centricity, agile working, and a digital
have a lower monthly repayment and a larger payment at the mindset. Also, according to our survey, enhancing customer
end of the loan period. Although this reduces the monthly and employee experience through digital transformation is the
cost of high-ticket items like batteries, there is a higher risk top strategic goal for auto executives.76
that customers won’t be able to pay off the significant final
instalment.
Exhibit 4. Automakers see the importance of
How can auto players extend the brand experience by improving digital capabilities
delivering a compelling customer experience via captive finance
that binds the customer and creates opportunities for financing Question: “Which (digital transformation-related) factor has
batteries, software, and other products and services? Part of the greatest potential to change the landscape for the
automotive industry?” (By type of OEM)
the answer lies in a frictionless approach to doing business,
via apps that integrate with partner systems, which may mean 20%

automotive enterprises
collaborating with partners on new systems architecture. Top response:

Building connected
Development of 28%
enhanced digital 13%
capabilities
16%
Total Automotive OEM (both BEV & ICE)
Automotive OEM (BEV only) Automotive OEM (ICE only)

Source: A commissioned study conducted by Forrester Consulting on behalf of

KPMG, May 2022

Case studies

73
Source: Kirsten Korosec, “Ford hires Apple executive who led its secret car project,” Transportation, TechCrunch, September 8, 2021
74
Source: Michael Martinez, “How Ford plans to woo top tech talent,” Executives, Automotive News, March 2, 2022
75
Source: “Connected Enterprise Automotive Study 2022,” a commissioned study conducted by Forrester Consulting on behalf of KPMG, May 2022; “Future-focused”
companies are those making near-term investments in trends aligned to automotive signals of change and scoring highly on a number of technology innovation
measure
76
Source: “Connected Enterprise Automotive Survey 2022,” a commissioned study conducted by Forrester Consulting on behalf of KPMG, May 2020

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 17
 Building

Signals of change
connected
automotive
enterprises

Strategic imperatives
automotive enterprises
Building connected
Case studies

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 18
Theeightcapabilitiesofthe
KPMGConnectedEnterprise

Signals of change
As we have seen in the previous chapters, automotive companies will need to move on many fronts to take full advantage
of the changes in the industry—and tackle the challenges. This will only happen if automakers learn to operate in new ways.
They must become more agile and flexible. Like their products, they need to be more connected, both internally and with
suppliers, partners, and customers. The KPMG Connected Enterprise model can help automotive organizations build the
capabilities they will need in future. These capabilities range from designing great user experiences for drivers of connected
cars to providing seamless transactions for acquiring cars (or signing up for a car as a service). The connected model can
help automakers and parts suppliers better integrate operations with partners. Data-driven decision making can help leaders
adapt to the changes in the competition, customer preferences, and technology that will keep coming.

Strategic imperatives
Insight-
Innovative Experience-
driven
products centricity by
strategies
and services design
and actions

Seamless Responsive
interactions
2x operations

automotive enterprises
Building connected
and and supply
commerce Impact* chain

Digitally- Integrated
Aligned and
enabled partner and
empowered
technology alliance
workforce
architecture ecosystem
Case studies

*Base: 1,299 professionals involved with customer strategy decisions. A commissioned study conducted by Forrester Consulting on behalf of KPMG, 2018. The
research was conducted on a sector-specific basis.

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 19
In the following table we show how the eight connected enterprise capabilities can be applied to the strategic imperatives
described above:

Exhibit 5. How connected capabilities apply to automakers

Insight driven strategies • Leverage customer lifetime value and voice of customer data to better
and actions understand and anticipate customer expectations across channels

Signals of change
• Apply CLV principles and segmentation to enhance aftermarket services
revenue
• Incorporate CLV into the mobility business model to drive recurring
revenue across different mobility touchpoints and build brand loyalty/
customer ownership
• Understand customer insights through their behavior and relationship with
brands
• Use (real-time) insights from analytics across the value chain to personalize
the customer journey and make faster, better-informed decisions

Strategic imperatives
Innovative products • Use a CLV lens to anticipate and respond to customer preferences, to
and services speed up services and expand choices
• Invest in traditional and new channels to market
• Develop a robust, easy-to-use connected platform, to link with new and
existing partners and enable new revenue streams
• Develop new services that satisfy shifting ownership trends, and help
customers manage changing costs of ownership/mobility, such as battery
replacement and connected services

Experience centricity by design • Work with internal customer-facing teams and external partners to deliver

automotive enterprises
a seamless, personalized, experience across mobility and connected

Building connected
services, via multiple distribution channels
• Offer tailored, timely offerings and easy-to-access products and services
• Develop a platform that integrates legacy systems with partner technology
platforms, including dealers
• Make aftermarket services easy to access, with convenient locations close
to the customer, and on-demand or virtual support
• Bring together OEMs and partners to forge a frictionless captive finance
experience for customers, adaptable to changing demands

Seamless interactions • Provide omnichannel engagement options across channels, fully aligned to
and commerce customer expectations
Case studies

• Create a fully aligned, integrated, digital-first customer experience, working

closely with mobility, connectivity and captive finance partners
• Integrate the connected experience into multiple ecosystems, with fast,
simple payment options

© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. 20
 Responsive operations and • Use realtime data to fine-tune production schedules
supply chain • Streamline dealer distribution by using hubs to pool inventory
• Collaborate with partners to drive efficiency through AI and automation—
and manage complex operations
• Proactively engage with suppliers and customer-facing teams/partners, to
focus on fast, responsive services and quick resolution of problems

Signals of change
• Gain strong control over tier 1 and tier 2 suppliers to ensure the right parts
arrive in the right place at the right time

Aligned and empowered • Align talent around common strategic goals to drive transformation
workforce • Embed a culture of innovation and agility alongside a growth mindset, to
foster innovation and entrepreneurialism
• Empower staff to use technology transformation to provide innovative new
mobility options, also exploring and working closely with new partnerships
• Shift the culture from the traditional “moving metal” mindset to one that is

Strategic imperatives
more focused on software-based solutions

Digitally enabled tech architecture • Transition from legacy platforms to new digital technology, to deliver
enhanced client experience, greater flexibility and reduced costs
• Deploy ”wrapper” solutions to build new experiences on core legacy
platforms, such as DMS and CRM, and integrate with new systems
and tools
• Create an ecosystem and architecture that lets third parties use the
connected vehicle platform

Integrated partner and • Continue to invest in existing partnerships, while educating partners on

automotive enterprises
alliance ecosystem emerging cross-channel engagement model

Building connected
• Extend licensing of 3D printing capabilities to new partners in locations
closer to customers—speeding up service, lowering prices and reducing
investment in inventory
• Work closely with partner mobility firms, to fulfil a shared
transportation vision
• Enable third parties to seamlessly provide services through the
connected platform
• Develop a platform that integrates legacy systems with partner’s
technology platforms, including dealers
Case studies

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 Case

Signals of change
studies

Strategic imperatives
automotive enterprises
Building connected
Case studies

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 1 Moresourcesofcustomerlifetime value
Global
The growing importance of connected services means that OEMs now get revenue streams throughout the customer lifetime—
including from used vehicle—and a global automaker wanted to maximize these opportunities to build both income and loyalty.

Signals of change
Traditionally, the client’s sales and marketing had focused on vehicle sales plus associated loans and warranties. Because various
organizational functions often worked in silos, the company lacked a single view of the customer.
KPMG in the U.S. worked with the client to change its marketing operating model, using customer relationship software to get
a more holistic view of customers. Using this data, we created a customer lifetime value (CLV) program to measure and predict
behavior, which was then rolled out across the entire organization. Equipped with a new level of visibility, the company is now in
a position to improve the customer experience at each touchpoint, and capture connected revenue streams beyond vehicle sales,
including subscription services, in-car purchases and new ownership and financing models.

Strategic imperatives
2 Agreatand consistentcustomerexperience
Europe
A sports car maker was keen to maintain its high-quality sales experience through the after-sales period, to build satisfaction and
create further selling opportunities. KPMG in the U.S. carried out a thorough assessment of both the dealer operations group and
the dealerships, discussing how to build a seamless experience and producing a roadmap to transform digital retail capabilities.
The shift to frictionless engagement has been pronounced, as interactions have been made simpler and more convenient for the
customer, with a highly digital experience supported by fast, attentive, and responsive services. Critically, these improvements
have been achieved across the dealer network, with a uniform aftersales experience regardless of geography. The client has seen

automotive enterprises
Building connected
a rise in customer loyalty and retention, as well as increased after-sale revenue.

Case studies

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Transformation never

Signals of change
stops. Neitherdowe.
At KPMG we believe that business Making a world of difference:

Strategic imperatives
transformation is too good an KPMG people can make all the
opportunity to miss. Combining the difference on your transformation
right tech and the best processes with journey. Together we can help you
people whose insight is as broad as to orient your business around the
it is deep, are essential ingredients customer, optimize functions for a
to successfully transform. KPMG has new era, manage enterprise risk and
worked at the heart of global businesses regulation for a safer future, rise to
for many decades, helping our clients a new level of value creation, and
realize the full potential of their people create an environment for managing
and technology and working together to ongoing change.

automotive enterprises
achieve real-world outcomes. Because

Building connected
when people and technology are in
harmony great things happen.

Case studies

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For more information, contact us:

Gary Silberg Rick Rose Todd Dubner

Global Automotive Head Principal, Advisory Principal, Advisory
415-539-9272 215 256 2759 917 692 2322
garysilberg@kpmg.com emrose@kpmg.com tdubner@kpmg.com

Yoshi Suganuma Robert Gear

Advisory Managing Director Director, Advisory
917 742 3673 630 570 0169
ysuganuma@kpmg.com rgear@kpmg.com

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