What to expect from ‘The Greta Effect’ – how OEMs can boost their green credentials

What to expect from ‘The Greta Effect’ – how OEMs can boost their green credentials

Posted: by Stericycle on Mar 06, 2020

Two years ago, the idea of carbon offsetting and reducing personal emissions was still on the fringes of the mainstream. In the intervening time climate change has rocketed up the political agenda, from Extinction Rebellion to the global celebrity of Greta Thunberg. Research has found that more than half of young consumers have been inspired by Thunberg, which helps explain why carbon offsetting from individuals has risen by 156% in the last 24 months, with an 80% improvement from businesses during the same time.

For automotive manufacturers who are looking to appeal to younger consumers and position themselves as civic brands, one of the biggest focus areas has been making the transition away from petrol and diesel towards electric vehicles (EVs). Yet despite EV demand increasing significantly, combustion engine vehicles still form the vast bulk of the market – at the start of the last year there were 250 combustion cars for every one EV on the road.

With EVs still a tiny slice of the market, OEMs need to demonstrate that they are committed to tackling the climate crisis on all fronts. One of the most effective ways to do this is to show that they are offering greener alternatives throughout the lifecycle of a vehicle instead of just during the manufacturing process.

By making sure their aftercare processes are more environmentally friendly – for example by embracing circular economy principles and ensuring that worn out parts are recycled or reused wherever possible – OEMs can demonstrate shared values with their customer base, increasing both loyalty and ROI per customer.

However, doing so requires OEMs to dramatically improve their customer outreach and relations. Communications need to be tailored and targeted to avoid being seen as spam. This means deploying data cleansing, predictive analytics, and expert insights to understand which customers might need aftercare services and would be receptive to a more environmentally-focused message. Using such technology is proven to help manufacturers build better, longer-lasting relationships that translate into superior aftercare service sales. Many OEMs are already employing this technology and seeing substantial improvements in their customer relationships and ROI as a result.

At RPM we know that the aftersales market is constantly evolving because we do our research. You can read more about how consumers are influencing the automotive aftermarket in our RPM insights reports https://www.rpm-crm.com/aftermarket-insight. You will be surprised at how simple it can be to increase your aftercare sales.