Last week, I came across an insightful report from Arthur D. Little, titled PRISM: Navigating the Road to Customer-Centricity in the Automotive Sector. Authored by Richard J. Parkin, Simon Vessey, and Dr. Philipp Seidel, the report struck a particular chord with me as it addresses the central tension facing automotive businesses today: balancing profitability with evolving customer expectations.
 
The automotive industry, long structured around vertically integrated sales models, must confront the complex reality that its traditional methods don’t align with modern customer needs. Historically, carmakers have relied on franchise dealerships to manage the end customer relationship, shaping the customer journey only from afar via incentives and standards. This arm’s-length approach has left many OEMs struggling to deliver the tailored, transparent experience that today’s customers expect.
 
Arthur D. Little’s 2024 study of over 16,000 customers across 25 countries underscores this point. Customers want transparency, flexibility, and a seamless blend of digital and physical interactions. While nearly all buyers still value the chance to test drive a car, a growing segment is comfortable with finalising transactions entirely online. The report identifies four customer personas — from “Traditional” buyers who want physical, in-person journeys, to “Pure Digital” enthusiasts who prefer fully digital experiences. Yet, a sizeable portion of buyers, dubbed “My Way,” create unique paths that merge physical and digital elements in non-linear ways.
 
What resonates here is the reminder that no single “right” approach exists. Success lies in recognising this diversity and building sales journeys that adapt to different customer personas, not forcing everyone down the same funnel.
 
The report also sheds light on where OEMs have fallen short. Despite heavy investments in digital showrooms and interactive tools, many of these assets feel clunky, laggy, or more focused on what OEMs want to show off than what customers want to see. Similarly, attempts at omnichannel retail have too often resulted in fragmented journeys, with data and experiences that don’t align between online and physical touchpoints. While agency models (where the OEM handles more of the sales process directly) have promise in theory, poor execution often just creates new frustrations for customers.
 
One of my key insights was that “there is no one-size-fits-all model.” Instead, global automotive brands must embrace regional nuances and customer-specific differences to deliver genuinely customer-centric experiences. A “my way” customer in India or the Middle East may have very different expectations from their counterpart in Europe or North America. Recognising and embracing these regional differences is crucial to building the trust and loyalty that will define future automotive success.
 
This push for customer-centricity isn’t just about sales figures; it’s about futureproofing entire business models. With the shift to electric vehicles (EVs) and the broader move from “metal to mobility,” recurring revenue streams and services will become increasingly vital. Optimised for one-time transactions, traditional distribution models must evolve to nurture longer-term relationships and service-based opportunities, such as vehicle-to-grid energy solutions.
 
As we look ahead, the lesson for anyone in the automotive or mobility space is clear: don’t mistake digital bells and whistles for customer-centricity. Instead, focus on the “cement” that binds together the digital and physical bricks of the journey—the thoughtful, consistent experience that truly puts the customer at the centre.
 
If you haven't yet, I highly recommend reading Arthur D. Little’s full report—it’s a masterclass in balancing operational priorities with customers' human needs. It’s a timely reminder for all of us, especially in an era of seismic shifts in the automotive sector.
 
Have a great week!