Accessory Sales – The bridge between sales and service
by David Gorvett, MSX Commercial Director & GAE
OEMs produce a wide variety of car models, and the customization of these models drives profits for OEMs in new and certified used car segments. OEMs and dealer networks are gaining traction in the accessory sales market by increasing the number of digital touchpoint options for adding accessories at the point of sale − a market that is expected to grow significantly in the next five years. As a consequence, the demand for services designed for the virtual shopping world is also increasing. And easier, simpler processes encourage customers to select additional accessory packages during the transaction, resulting in a win-win situation.
What are the wins?
The OEM benefits from increased profits. The business can scale factory-fit options to fit the needs of the operation, driving market demand and using volume pricing to boost profit. The local dealer’s workshop wins when the customer selects the accessory package after the purchase of their new or certified used car, increasing the billable service hours for that workshop, additionally creating revenue for accessory upgrade and installation. When the consumer personalizes their vehicle with original manufacturer approved accessories, the installation is guaranteed to be safe and certified for vehicle use.
The manufacturer-approved accessories market is highly beneficial to OEMs globally. However, some customization options are more readily available in certain regions based on climate and geographic location. The profit margin and revenue potential strengthen local markets as well. The push for locally sourced accessories provides regional industry viability and cost saving in production lines. This is key when OEMs have enormous growth potential, especially when it comes to technology accessory upgrades. The integration of new wearable tech and seamless in-car connectivity with wireless capability will be expected by consumers in future.
Furthermore, the increasing demand for automotive technology upgrades and integration of smart devices creates an opportunity in the used car market, an important area for customization upgrades.
When a customer places an accessories order with the OEM, there is a certain level of confidence in that customization. Supporting the manufacturer is a choice, but consumers may be more likely to choose a manufacturer with a direct , digital channel offering services at the point of sale. A-Store is a digital product assisting OEMs and dealer networks to sell original parts direct to consumers while on the path to purchase and beyond. When a customer is making a decision through a digital portal on buying a new or older model car, the A-Store facilitates the buying process for them on behalf of the OEM. The digital platform informs the consumer of the optional accessories for their particular make and model of vehicle while providing accurate information on the options available. It even includes a shopping cart for completing the checkout process, all from the convenience of a digital application. The database also includes previously owned vehicle makes and models for up to five years with all options and upgrades from the original manufacturer’s accessories catalog. This used car segment is rapidly becoming essential for consumers wanting to customize used vehicle purchases, giving the OEM an option to boost revenue on older model cars.
Customer’s support innovation.
The accessories and customizable options market for new and used vehicles is showing astounding growth the auto buying process to be digital, including customization of accessories. OEMs must create product saturation in the personalization marketplace to remain competitive in the accessories market. Digital solutions provide additional touch points for manufacturers wanting to engage with the modern consumer while boosting their original accessories and becoming more profitable.