Customer centricity paves new paths for the car industry

by Julia Pott

There are a lot of moving parts in the automotive industry, and not just when it comes to the development of drive systems. Traditional car sales are rapidly being overtaken by new marketing concepts. Dealers and brands, particularly those focused on electromobility, are launching innovative concepts. In doing so, the headlights are fully focused on the needs of customers.

The electric car brand NIO, based in Shanghai, has an impressive innovation: the battery of the electric car can be exchanged at designated stations – take an empty battery out, put a full battery in. The swap only takes a few minutes, so drivers don't have to take long charging breaks on longer journeys. However, the network of these power swap stations is still being developed.

In the meantime, battery swapping is not the only idea with which the Shanghai brand wants to revolutionize the car market. It is also trying to turn traditional car sales on its head. It is doing so by putting sales on the back burner and relying on its own fan base instead. This community meets both digitally and in real life. Surpisingly, it likes to engage in activities that have nothing to do with cars.

Deniz David Schneller, Manager of the NIO House in Düsseldorf, explains the relevance of this new approach: "Community building is becoming more and more popular, and not just in the automotive industry. Building a brand community means more than just creating a customer base. And community building is what NIO does par excellence – we really are pioneers in this area."

This claim is pursued by a number of means. It starts with the fact that NIO House in Düsseldorf, for example, is located in the middle of the pedestrian zone. What seems paradoxical is part of a strategy: this major investment in such central, expensive spaces is made, says Schneller, so that the company is easily accessible to all potential customers. "And, of course, the aim is also to be seen in order to create a certain brand awareness."

Brand awareness is pursued by many means – and in a kind of roundabout way. In the NIO House, a café with seating and a sofa corner invite you to linger. Some people sit down at the table with their laptops and work while sampling the selection of drinks. Coworking spaces can be rented and there is a playroom for children – you almost forget that there are cars on the lower floor.

When asked whether the team won't hold it against people if they visit every day for months without ever being interested in buying a car, he assures them: "That's what we want! That's how community building works. Our guests then tell their friends that they came to work at NIO House, that there is a coworking lounge and a café. We have regular guests who come at least twice a week and bring more and more people with them."

When people get to know each other over a latte macchiato, play chess together and the children run around in the playroom, that's what NIO founder William Li wanted to create, says Schneller: a feel-good atmosphere for everyone. "We opened here six months ago," he reports, "and now an average of 2000 people come and go here every week."

Events are a key component of this strategy. "We host 30 events a month at NIO House in Düsseldorf! And if February only has 28 days, we still host 30 events." The events range from barista courses and art workshops to yoga and boxing fitness classes. There are also industry and music events.

"It's not just a way to create a community spirit, but to really build a community organically," explains Schneller. "You gain a fanbase and build trust in the brand."

Incidentally, the brand is not just about cars; NIO works with various designers to bring out lifestyle collections. These include fashion and accessories as well as games, decorative items and household goods.

Users can find out about events and the latest lifestyle products via the NIO app. Here they can also find e-charging stations, book rooms in NIO Houses, collect loyalty points and use them to pay for their drinks. Of course, users can also chat about the cars, leave reviews and report on their driving experiences. The interactive part of the app is structured like a social media channel: You can share, like and comment on posts.

This focus on the user also continues in the cars, by the way. The AI-based assistant "Nomi" is installed in NIO cars. The "Nomi Mate 2.0" version has a round display whose "eyes" turn towards the passenger in the car with whom the assistant is currently interacting. Passengers can use voice recognition to control the temperature or take a selfie, for example. NOMI also learns the preferences of the car owner and can adjust the seat and steering wheel position accordingly.

There are many pioneers who are venturing down new paths in retail, exploring the boundaries of traditional sales concepts. The further development of technologies, but above all creativity in interacting with potential customers, is driving this trend. The car trade is definitely a market worth keeping an eye on.