The $200 Million Customer Experience Gap: How Auto Brands Are Losing Big by Neglecting the Experience

Capgemini’s view of the Automotive Customer Experience

In today’s hyper-competitive automotive market, customer experience (CX) has become the new battleground.

Yet, many auto brands are falling short, risking not just customer satisfaction but significant revenue. A recent study by Capgemini reveals that mid-size automotive brands and dealers risk losing a staggering $145 million to $200 million annually due to poor customer experience.

Breaking Down the $200 Million Risk

This eye-opening figure stems from two primary sources:

1. Lost Potential Revenue: By enhancing CX, automotive brands and dealers could gain an average of $20 million to $70 million annually (assuming 500,000 vehicles sold in a year). This represents missed opportunities to upsell, cross-sell, and build long-term customer loyalty.
2. Customer Churn: If dissatisfied customers switch to other brands, it could lead to a loss of $125 million on average per year for a mid-size automotive brand or dealer.

The Current State of Automotive CX