“The Hateful 8”: The Automotive Industry’s Biggest Challenges – And How to Tackle Them

Customer loyalty starts long before the steering wheel

A strong customer relationship is built before the car ever hits the road. Companies that fail to use customer data effectively miss the mark on expectations – and lose valuable potential for loyalty, revenue, and referrals. In the automotive world, the customer journey is complex and shaped by multiple touchpoints: from the online configurator to purchase, through to the daily driving experience. Here’s why traditional loyalty approaches no longer work and how data-driven, personalized experiences make all the difference:

1. Data chaos: Connect customer data meaningfully

   Many automotive companies are collecting more data than ever, but using very little of it. Data from configurators, CRM systems, service records, or telematics often sit in isolated silos. This leads to fragmented customer views, missed potential, and inefficient processes. The solution: A smart Customer Data Platform (CDP) that consolidates, harmonises, and activates data across systems. This enables real-time, connected customer profiles – the foundation for relevant communication, automated services, and intelligent upselling.

    

2. One-size-fits-nobody

   Customers expect relevance and personal value. Generic campaigns don’t cut it and lead to lost attention, missed service bookings, and fewer conversions. Personalisation starts with understanding: Who are your users? What drives them? Where are they in their journey? AI-powered systems deliver answers. They analyze behavior, adapt content dynamically, and orchestrate cross-channel experiences – automated, scalable, and spot-on.

    

3. Post-purchase silence: Rethinking customer retention

   The purchase isn’t the end, it’s the beginning. But in many cases, communication stops after delivery, until the next service appointment or problem arises. This wastes huge potential. A data-driven lifecycle approach keeps the relationship alive. It uses triggers like mileage, contract duration, or usage behavior to generate relevant touchpoints: maintenance reminders, accessory offers, or subscription models. You stay present, without being intrusive.

    

4. Broken journeys: Build seamless omnichannel experiences

   Customer journeys often lack consistency. Between online configurators, dealership visits, and service centers, customers face media disruptions, duplicate data entry, and conflicting information. It’s frustrating. A well-integrated omnichannel approach connects systems, syncs data in real time. It ensures a consistent brand presence across all touchpoints – from digital showrooms to in-car interfaces and in-person contact. That builds trust and increases conversion.

    

   Technology should accelerate, not slow you down

   Fresh ideas for digital services abound, but outdated systems and rigid structures block their implementation. Legacy IT and hardware-driven vehicle architectures make innovation slow, expensive, and complex. To scale digital business models, companies need flexible platforms, modern software architectures, and a clear tech strategy. The following pain points show what needs to change:

    

5. Legacy IT blocks innovation

   Ideas are plenty, but legacy systems often block execution. Monolithic architectures hinder innovation, drive up costs, and frustrate development teams. The solution: Modular IT structures. Microservices, APIs, and cloud-native platforms lay the foundation for flexibility, shorter development cycles, and better scalability. Modernising IT isn’t optional anymore – it’s essential for innovation.

    

6. Software-defined vehicles (SDV): The key to future innovation

   The vision of the Software-Defined Vehicle (SDV) is already becoming reality. Still, many OEMs cling to hardware-centric vehicle logic. That blocks digital services like feature-on-demand, over-the-air updates, and personalised interfaces. What’s needed: Centralised control units, abstracted software layers, and digital twins. This new architecture enables continuous innovation, more flexibility, and new revenue streams, directly from the vehicle.

    

7. New mobility concepts: Rethink your business model

   The way people use mobility is changing. Ownership is becoming less relevant, while flexible, on-demand offerings like car subscriptions, sharing models, and Mobility-as-a-Service gain traction. Companies must redefine their role in the mobility ecosystem. Rather than just selling vehicles, they’re becoming providers of integrated mobility solutions: subscriptions, multimodal platforms, fleet tools, and partnerships with infrastructure providers. Digitisation is key to operating these services efficiently and profitably.

    

8. Artificial intelligence: big potential, little strategy

   While most companies recognize the potential of AI, many still lack a strategic framework, in-house expertise, or the data quality required to implement it. Without clear use cases, AI remains just a buzzword. How to start: With small, concrete pilots, e.g. customer service chatbots, predictive maintenance models, or smart inventory management. At the same time, companies must invest in data literacy, talent development, and enabling infrastructure. A centralised AI governance model ensures strategic alignment and scalability.

The good news: “The Hateful 8” are solvable – just not automatically

These eight pain points aren’t outliers. We see them daily in client projects and they represent the structural barriers faced by many OEMs, dealerships, and mobility providers. At the same time, they point to clear opportunities: for digital relevance, efficiency, and stronger customer relationships. Transformation doesn’t start with tech. It starts with clarity, prioritisation, and the willingness to break old patterns. You don’t have to fix everything at once, but you should know where to start and who can support you.

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