Why learning application will define the future of automotive retail

Why learning application will define the future of automotive retail

Five years ago, the biggest challenge for many automotive brands was deciding how to sell vehicles in a chip shortage/post COVID  market. Today, the challenge is different. New technologies, digital retail experiences, artificial intelligence, and changing customer expectations are creating new opportunities faster than ever before. The real question is no longer whether businesses can adapt. It is whether their people can adapt quickly enough.

Every new sales model depends on one critical factor: the capability of the workforce behind it. New strategies, platforms, and processes may create the blueprint for success, but they only deliver results when employees have the knowledge, confidence, and skills to bring them to life.

New sales models require new capabilities

The automotive customer journey continues to evolve. Customers research online, compare options across multiple channels, and expect seamless experiences regardless of whether they engage online, remotely, or face-to-face. MSX research into the car buying journey shows that digital touchpoints now influence more stages of the vehicle purchasing journey, with 73% of consumers saying the ability to move seamlessly between interaction points is either important or an outright deal breaker.¹

This shift is changing what organizations need from their workforce.

Today’s employees are expected to do much more than understand products and processes. They must communicate confidently across digital and physical channels, adapt to changing customer needs, navigate increasingly complex vehicle technologies, and deliver consistent customer experiences at every touchpoint.

At the same time, automotive brands are introducing new products, technologies, and retail strategies more frequently than ever before. For employers, the challenge is no longer simply delivering training. It is ensuring employees can apply new knowledge effectively in real-world situations.

The challenge is not learning. It is application.

Most organizations understand the importance of training. Significant investments are made every year in learning platforms, classroom sessions, online courses, and content development.

Yet many leaders continue to face the same question: Has the learning actually changed behaviors and performance?

Completing a course does not necessarily mean an employee can confidently apply new skills in a customer conversation. Passing an assessment does not always translate into better outcomes on the showroom floor. Knowledge alone is rarely enough to drive meaningful behavior change.

This challenge becomes even more significant when organizations are implementing new sales approaches or introducing new technologies. Employees may understand what is expected of them, but still lack the confidence, experience, or practical application needed to execute effectively.

As a result, many organizations find themselves facing a gap between learning and performance.

Why traditional learning models are no longer enough

Historically, learning has often been delivered as a series of events. Employees attend training, complete assigned courses, and then return to their day-to-day responsibilities. The problem is that true skill development happens through application, reinforcement, and practice.

The World Economic Forum’s Future of Jobs Report highlights the growing importance of continuous learning as workforce capabilities evolve alongside technology and changing business requirements.² Developing capability has proven to become an ongoing process rather than a one-time intervention.

For automotive organizations, this means learning strategies must evolve beyond content delivery and knowledge transfer.

Employees need opportunities to test their understanding, practice new behaviors, receive constructive feedback, and refine their approach over time. Learning must become more closely connected to everyday work and real-world performance.

The growing role of coaching in automotive retail

As sales models become more customer-centric, practice and coaching are taking on a more important role in workforce development.

While training can provide knowledge, repetition helps build confidence. This matters when serving well-informed customers. As automotive expert Ralph Kranz observes in MSX’s whitepaper: “The consumer can get a lot of information online, and those who walk into a dealership these days are almost better informed than salespeople.”¹ Whether an employee is learning a new sales process, discussing electric vehicle technology with customers, handling objections, or adapting to a new retail experience, practice plays a critical role in long-term success.

The most effective organizations recognize that people learn best when they can safely test new approaches before applying them with customers. This allows employees to develop confidence, identify areas for improvement, and strengthen skills before they have a direct impact on business performance.

Practice also helps create consistency. Across large dealer networks, rehearsal and coaching can help ensure employees are aligned around the same standards, processes, and customer experience expectations.  In an increasingly complex retail environment, organizations need structured ways to support ongoing development at scale.

What organizations should look for in modern learning solutions

As workforce requirements continue to evolve, organizations need learning solutions that do more than deliver content. They need solutions that help employees move from knowledge to execution to retention.

Effective capability development should enable employees to:

Most importantly, learning should be integrated into everyday work rather than existing as a separate activity.

The future of workforce development lies in helping employees continuously learn, practice, and improve as business needs evolve.

Turning learning into performance

This is where scalable coaching solutions can play an important role.

MSX developed MSX COACH to help organizations bridge the gap between learning, real-world performance and sustainment. Rather than focusing solely on knowledge transfer, the platform provides a structured environment where employees can practice business-critical conversations, receive feedback, and build confidence before applying their skills in customer-facing situations.

By creating opportunities for rehearsal, reinforcement, and continuous improvement, organizations can help employees move beyond simply understanding new concepts to confidently applying them in practice.

As automotive retail continues to evolve, this ability to turn learning into behavioral change and performance will become increasingly important.

At the same time, workforce capability extends beyond employee competence alone. Organizations also need support in areas such as customer experience transformation, operational excellence, sales performance improvement, technical readiness, and technology adoption. Alongside its learning solutions, MSX provides consultancy, performance improvement, and operational support services that help automotive organizations navigate today’s increasingly complex business environment.

If you’d like to learn more about how MSX helps automotive organizations turn learning into confident performance, contact us today to start the conversation.


Sources

  1. MSX International, Perfecting the Car Buying Journey: Virtual, Human, or the Best of Both Worlds?, June 2024.
  2. World Economic Forum, Future of Jobs Report.

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Lisa Rosenfeld

 

Global Solutions Director, MSX Learning

Round-images (3)

Lisa Rosenfeld

Global Solutions Director, MSX Learning

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Retail denial: Why automotive strategies are dying in the showroom

Retail denial: Why automotive strategies are dying in the showroom

Automotive retail is currently suffering from a dangerous disconnect. While many head offices are moving away from a single sales model in favor of flexible hybrid arrangements, a new gap is opening between strategy and reality.

These hybrid models are designed to find a perfect balance: OEMs can act as agents for high-value products to maintain brand control, while dealers keep their independence in other areas to stay responsive to their local markets. It sounds like the perfect compromise, but the execution is falling further behind. We are seeing an industry-wide “denial gap,” where the sheer complexity of managing these blended roles is quietly suffocating the very transformations designed to save the network.

We launched our nine-week Sales and Revenue Transformation campaign to move beyond theoretical discussions and uncover where the commercial journey is actually breaking down. By examining the transition to these new hybrid models and the resulting pressure points in retail and service, we aimed to identify the practical barriers that prevent MSX clients – both OEMs and dealer groups – from recovering lost revenue.

The feedback from over 500 automotive specialists, retail leaders, and commercial experts who participated in our research was clear: the industry doesn’t have a strategy problem. It has an execution crisis.

Across the campaign, the findings pointed to the same underlying issue. 47% of respondents identified consistent execution as the hardest part of managing a consolidating dealer network, while 52% said rules interpretation creates the greatest risk in complex incentive programs. In both cases, the challenge is clear: strategy only delivers value when people across the network can understand it, apply it, and act on it consistently.

Graph showing 47% struggle with consistent execution in automotive retail.

This is the point where high-level strategy often meets a dead end. A transformation only matters if it changes what happens between a salesperson and a customer, or a service advisor and a vehicle owner. If it doesn’t scale consistently across every market and every touchpoint, it isn’t transformation – it’s just paperwork.

Changing the sales model won’t fix a visibility problem

The industry is racing toward agency and hybrid models in search of control. But control requires clarity. Our research found that role clarity and network visibility were the primary concerns for 32% of respondents in these new models.

Graph showing 32% of respondents cite role clarity and network visibility concerns.
If a dealer doesn’t know where their responsibility ends and the OEM’s begins, the customer will be the first to find out. MSX CX Consultancy helps brands bridge this gap by redesigning journeys that actually function in a multi-channel world. To protect conversion at the digital stage, solutions like MSX E.COM Personal Landing Pages and MSX Consumer Engagement Solutions ensure that the customer doesn’t fall through the cracks of a disconnected handoff.

Scale is currently the enemy of consistency

As dealer groups consolidate, they gain massive scale – but they often lose grip on the “how.” When nearly half of the industry says consistency is their biggest headache, it proves that “bigger” isn’t “better” without a way to steer the ship.

You cannot manage a global network through a rear-view mirror. MSX ENGAGE provides the alignment necessary to keep large groups moving in unison, while APPRAISO turns static compliance into dynamic performance steering. If you can’t see the gap, you can’t close it.

Incentive complexity is an execution problem

Incentive schemes only steer behavior if the network understands them. Our research found that 52% of respondents identify rules interpretation as the greatest risk in complex programs, far outweighing concerns over audit readiness.

When rules are open to interpretation, inconsistency quickly erodes claims accuracy and partner trust. MSX Sales Incentive Audit program can support automotive brands in strengthening the governance, clarity, and audit trail behind incentive programs, helping ensure commercial activity is measured and rewarded with greater confidence.

Aftersales is where your revenue is leaking

While the industry obsesses over the “new car” sales model, the largest profit pool – aftersales – is under-managed. 34% of respondents identified service booking as the number one source of revenue leakage, outranking online leads and showroom follow-ups.

Graph showing 34% revenue leakage from service booking in automotive industry.

We are seeing a market where customers prioritize speed and ease over brand loyalty. If your booking journey is a barrier, your revenue is already gone. In the article Is convenience killing the automotive service industry?, we highlight that convenience is the new currency. MSX Mobile Service is a direct response to this, reclaiming capacity and utilization by meeting the customer where they are, rather than waiting for them to show up.

Data is noise if it doesn’t drive coaching

We are drowning in data but starving for insight. 30% of professionals told us that coaching impact and service performance are their biggest blind spots.

As we explored in Is the traditional KPI dead?, reporting what happened last month is no longer a management strategy. MSX Sales Performance uses diagnostics to uncover the why behind the numbers, ensuring that every intervention is targeted and measurable.

Stop training, start coaching

Perhaps the most telling finding was that 34% of respondents blame inconsistent coaching for stalling sales improvement, while 29% cited low adoption.

Graph showing coaching and adoption gap in automotive sales strategies.
The traditional “classroom” approach to retail improvement is failing. Change only happens when it is reinforced locally and daily. MSX COACH and our wider Learning Solutions move capability building out of the HR department and into the showroom flow, ensuring that strategy actually translates into behavior.

High stakes for high performance

The automotive retail landscape is being rebuilt. Whether the resulting structure is profitable or simply more complex depends entirely on your ability to close the gap between what you say you will do and what your network actually delivers. Transformation should not be a pilot program that never reaches scale; it should be the standard.

Your strategy is only as good as its last mile. If your transformation isn’t reaching the showroom floor, it isn’t delivering value.

Don’t let your strategy stall at the showroom door. Contact MSX to discuss how we can help you bridge the gap between strategy and a high-performing network.

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The profit lifecycle: Where automotive profit is really won

The profit lifecycle: Where automotive profit is really won

Stop looking for profit in the wrong places. Profit is often viewed as the result of financial performance. It appears in margin reports, return on sales figures, aftersales revenue, and year-end results. Those measures matter, but they only tell part of the story. They show the outcome, not how it was achieved.

The reality is that profit is created, protected, and sometimes lost long before it appears on a financial statement. It starts when a vehicle enters the market and continues through every customer interaction, service visit, repair, recall, and operational decision that follows.

Between market entry and aftersales, the sales journey also plays a critical role in profitability. Solutions such as E.COM Personal Landing Pages and APPRAISO help brands strengthen customer engagement, support retailer performance, and create value from the moment a vehicle becomes available.

The organizations that consistently outperform their competitors understand that profitability is not owned by one department. It is influenced by how effectively the entire business works together. Faster market entry. Better repair quality. Reduced vehicle downtime. Smarter customer engagement. More efficient recalls. Stronger technical support. These may be viewed as separate activities, but each plays a role in shaping commercial outcomes. The most successful automotive businesses are beginning to connect these dots. They are shifting their focus from measuring profit at the end of the journey to understanding how value is created at every stage of it. Because in today’s automotive industry, profit doesn’t simply appear in the numbers. It follows the vehicle. It begins before the vehicle reaches the customer.

Homologation is often treated as a compliance task. In reality, it affects launch timing, internal coordination, retailer readiness, and time to market. When approvals move smoothly and documentation is well managed, businesses protect commercial momentum. When they do not, delay becomes cost. That is one reason MSX Homologation Services matter from a profitability point of view, not only a regulatory one

Once the vehicle is in market, profit becomes even more operational.

A sale creates revenue. The ownership journey determines how much value is retained and grown. Service access, technical accuracy, convenience, recall execution, and customer communication all shape whether a customer stays loyal and whether the network runs efficiently. This is where many organizations still underestimate margin loss.

In Is convenience killing the automotive service industry?, MSX highlighted something the industry is feeling every day: convenience has become a real driver of customer retention. If customers cannot book quickly, get clear updates, or access flexible service options, the cost is not only dissatisfaction. It is missed revenue, weaker retention, and lower lifetime value.

Customer engagement shows the same pattern. A leading automotive brand improved call conversion by 18% and achieved a further 6% conversion uplift through WhatsApp by moving from static outreach to real-time, needs-based contact. Better timing. Better relevance. Better results. Read the full story  .

Inside the workshop, profit is shaped by speed and clarity.

When technicians spend too long searching for repair information, or support teams are buried in repeat queries, productivity falls and downtime rises. In validation work with a leading multinational manufacturer, the MSX AI Virtual Assistant reduced support tickets by 30% and improved response times by 15% by helping technicians access technical service bulletins, repair manuals, and diagnostic trouble codes faster. That is operational efficiency with a direct commercial effect.

Repair quality is another area where workshop performance shapes profitability in ways that are easy to overlook. Repeat repairs, inconsistent diagnosis, and poor repair order discipline all create cost: rework, warranty exposure, customer dissatisfaction, and avoidable operational expense. MSX Repair Quality Support addresses this through a structured, data-led program that helps OEMs and dealer networks improve first-time fix rates (FTFR), standardize repair execution, and prioritize intervention where it has the greatest impact. The results are measurable: up to a 5% improvement in first-time fix and up to a 20% productivity increase across the network.

The same is true for technical content. Documentation often sits in the background, but slow publishing cycles and fragmented authoring processes create friction across the network. pubFoundry helps improve content flow, consistency, and speed, which supports better service performance and more efficient knowledge sharing.

A wider shift is happening here too.

This shift is changing how automotive businesses think about performance. In Beyond the numbers and Is the traditional KPI dead?, MSX explored why historical KPIs alone are no longer enough. Organizations need better context, better prediction, and a clearer understanding of what is driving performance – not just what has already happened.

That shift matters because profit is easier to protect when organizations can see problems early and act before cost becomes visible.

Profit is easiest to lose when complexity increases.

Recalls also deserve a place in the profit conversation. Poorly managed recalls do more than add cost. They put pressure on capacity, frustrate customers, and weaken trust. MSX Recall Management helps coordinate scheduling, capacity, and customer contact so that recalls are completed more efficiently and with less disruption. For fleet operators and mobility providers, lifecycle risk makes the point even more clearly. In this customer success story: Increasing fleet reliability, MSX showed how a preventative maintenance model could help a logistics operator avoid up to $13 million in annual spend. That is what happens when data is used early enough to protect value before cost becomes visible.

So where is profit really created?

Across all of these examples, the message is consistent: Profit is shaped through operational decisions, customer experience, service efficiency, compliance readiness, technical support, and lifecycle management.

In other words, profit follows the vehicle. The organizations that understand the profit lifecycle will be better positioned to identify hidden margin loss, strengthen customer loyalty, and create sustainable performance at every stage of the journey.

The question is not whether profit is being won or lost. The question is where.

Which stage of the vehicle lifecycle has the greatest impact on profitability in your organization? Connect with us to continue the discussion.

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