If you're leading customer experience (CX) operations in the automotive industry, you already know the drill: Economic and geopolitical turbulence makes the road ahead bumpier than ever. Prices are soaring, supply chains are still tangled, and customers are frustrated.
With so many uncertainties at play, brands must put customer care front and center to maintain loyalty across all tiers — from ultra-luxury shoppers to mainstream buyers.
Robust contact center operations and an amplified focus on the customer experience are vital.
Used car market in chaos
The wild fluctuations in the economy directly hit the used car market first. Rising interest rates and inflation have driven up prices, making affordable pre-owned vehicles harder to find. Inventory remains tight, putting pressure on both buyers and dealers. For OEMs and dealerships, this means customers are stuck in a frustrating cycle — paying more and struggling to find options that fit their budgets.
Wholesale used car prices rose 4.9% in the past year and analysts suggest we will see prices of pre-owned cars rise anywhere from $900 to $5,200. Foreign parts will be more expensive, driving up total cost of ownership for consumers. That’s a tough pill to swallow if your teenage son needs his own car for a summer job.
The takeaway? Customer service associates need to be prepared for heightened emotions and a flood of inquiries. Whether it’s financing questions, trade-in values, or inventory updates, brands must provide transparent and proactive communication to ease consumer stress.
Supply chain anxiety? Buckle up
The supply chain mess isn't going away any time soon. The automotive sector barely had time to recover from COVID-induced disruptions before new geopolitical conflicts and raw material shortages made things worse. The result? Delays in production and deliveries, frustrated buyers, and a whole lot of finger-pointing.
When a customer orders a car only to face unexpected delays, how your contact center handles the situation can make or break their loyalty. Proactive updates, realistic timelines, and alternative solutions are crucial. If brands don’t own the conversation, customers will turn elsewhere.
Proactive communications build trust
A reactive customer service strategy just won’t cut it in today’s environment. With extended wait times on vehicle deliveries and service appointments, brands must get ahead of customer frustrations before they escalate.
Understanding customer intents is a way to be proactive. One automotive company analyzed interactions and identified ways to generate $3.2 million in additional revenue while improving its coaching processes.
A key area where proactive communication is essential? Warranty claims and adjudication. Whether it’s a repair issue or a coverage dispute, customers don’t want to jump through hoops. Providing easy-to-access information and proactively offering solutions (think: automated notifications, self-service tools, and AI-powered chat assistance) makes all the difference. Percepta by TTEC, a specialized chapter in Automotive CX, can help identify the best opportunities to enhance and optimize your customer experience.
Cost containment without losing the human touch
CX teams will face two competing pressures:
- Workloads will rise. That means more inquiries, more complaints, more demands.
- Budgets will shrink. Everyone wants to cut costs. Do more with fewer resources.
Reducing staff sounds like a simple fix, but when it leads to poor customer service, brands pay a far higher price in the long run. The key is striking a balance — leveraging AI and automation to handle simple requests while keeping human associates available for complex issues. This isn't just about cost-cutting. It’s about protecting brand reputation.
The hard truth: Costs will keep climbing
No way around it: Unless tariffs disappear overnight (unlikely), prices will continue rising. That means every OEM and dealership will be looking to slash expenses. The best way forward? Digital transformation.
The real hidden cost isn’t the price of raw materials or tariffs. It’s customer churn due to bad experiences. Every dollar spent on CX optimization is an investment in customer retention. Prioritizing loyalty-building initiatives and quality customer service is what separates thriving brands from those struggling to adapt.
With the right tools and strategies, companies can strike the correct balance of efficiency to extract operational savings while enhancing the customer experience by introducing automation, where appropriate. Check out some smart RapidResponse CX maneuvers you can implement today.
Bottom line: Automotive brands must double down on contact center operations and proactive customer care. CX leaders have a tough job ahead, but by focusing on transparency, efficiency, and loyalty, they can turn uncertainty into an opportunity.
Is your team ready for the challenge?
