Bangkok--16 Dec--FleishmanHillard
Krungsri Auto, a leader in automotive finance under Bank of Ayudhya PCL, expects auto finance market growth to remain moderate, despite sluggish new car sales. With auto lenders putting more focus on customer empathy, Krungsri Auto identifies three key strategies on data, collaboration, and platform that will enable auto finance service providers to answer the lifestyle of today's automobile users and the future generation.
Mr. Pairote Cheunkrut, Head of Krungsri Auto Group, Bank of Ayudhya PCL, said, "Customers have always been the heart of our business. In 2011, we implemented a firm-wide strategy on Customer Experience, which was later reinforced with the Customer Engagement focus. Today, with increasing consumers' expectations, we need to build Customer Empathy by walking in the shoes and seeing the world through the perspectives of customers as well as automobile users."
To stay ahead in the age of digital disruption, Krungsri Auto pinpoints three central strategies that enhance the capability of auto finance services in meeting the lifestyle needs of automobile users, including Connected Data, Collaborative Service Offerings, and Co-creating Platform.
1. Connected Data
Data analytics is an immensely powerful tool that allows businesses to accurately understand customers' feelings and predict their needs. Advanced automobile innovation, namely connected cars, is a significant opportunity that can help brands gain in-depth information about vehicle usage. According to McKinsey, one in four cars being manufactured in 2020 will be connected to the internet. This technological advancement not only provides more pleasant driving experience through traffic reporting, navigation, and engine efficiency diagnosis system, but it also empowers brands to deliver more customized in-car services, such as vehicle maintenance appointments, restaurant reservation and entertainment content.
"Krungsri Auto continually collects and analyzes usage data of owned platforms to improve our services. We have recently simplified the process of Krungsri Auto PromptStart to create a smoother user journey, enabling them to check their credit appraisal on the mobile web with no documents. Within three weeks after the launch, we found the conversion rate jumped as much as 5 times," added Mr. Pairote.
2. Collaborative Service Offerings With increasingly competitive market landscape, organizations, both big and small, can no longer operate on their own. Partnerships have become a vital strategy in enhancing business capabilities and leveraging their expertise in providing better experiences for automobile users together. Mr. Pairote stated, "We constantly look for opportunities to expand our service offerings to serve the needs of different automobile users. Krungsri Auto has financial expertise; manufacturer brands and dealers are strong in automotive intelligence, while retails have great insights into consumer lifestyles. Collaborations between such organizations will definitely result in more comprehensive solutions for customers."
"Earlier this year, Krungsri Auto Broker has partnered with 12 leading insurers in offering digital motor insurance service with the unique budget-to-plan feature. The initiative has been highly successful, with over 1.36 million website visitors within five months after the launch. We believe the strong initial response will be a great foundation for the future growth of our business and our partners."
3. Co-creating Platform According to Boston Consulting Group, Bangkokians spend an average of one and a half hours on the road each day. With in-car experiences becoming a fertile ground for every brand, to own such space requires a remarkably efficient platform. "There is no one-size-fits-all strategy in unlocking the hearts and minds of consumers. For Krungsri Auto, we believe the most effective approach is the combination of building our own platform to directly engage with automobile users and combining various service offerings within one single place, from auto finance, vehicle-related, to lifestyle services. This focus on creating seamless experiences is the key goal of the creation of Krungsri Auto Ecosystem, our new business model, to be unveiled next year," explained Mr. Pairote.
"With customers at the heart of our business operations, we can no longer simply view our customers as car buyers and auto loan customers. We must understand them as automobile users and embed ourselves into their everyday moments. We believe that Customer Empathy is the strategy to fulfill such ambition as well as sustainably driving Krungsri Auto businesses forward," concluded Mr. Pairote.