OVERVIEW:
Our team was tasked with developing a new-to-the-world service that is original, desirable, and viable, as part of a 10-week class within the SCAD M.F.A. Service Design program. One sector that has been lacking in innovative ideas is New Car Dealers.
Through our research deep-dive, we gained three insights about this sector that drove our solution. First, car dealerships sport abysmal trust-levels. Second, the availability of customization is a big influencer in the purchase of new vehicles, even for those who don’t customize. Third, millennials place more value on experiences than they do on owning things.
Through these insights we realized the two issues that need to be addressed in order to foster new-car-sales: foster trust in dealerships and create a customized experience. Thus, we came up with our project concept Otto: a new-car provider that facilitates relationships instead of ownership.
OVERVIEW OF THE PROJECT:
To build a customized experience, Otto provides extreme personalization of cars: an array of modular components and an user interface the user interacts with emotionally by naming and giving a personality to the car. The matchmaking process begins with a personality quiz and video-game style online customization. Next, an Otto facilitator meets the customer to review their suggested matches. The customer then can choose a one-week trial period. Customers who decide to join the service finalize customization and are given the option of two “relationship packages” which differ in the frequency of included car alterations and maintenance service. The user ultimately deepens their relationship with the car by giving and receiving feedback from an adaptive UI and marking milestones by re-customizing aspects of the car.
CREATING THE SERVICE:
Our initial audit into new car dealers showed that users are handed off from the salesperson to the financing representative without celebrating the purchase decision. Also, salespeople are compensated by commission, which creates economic incentives that are at odds with the well-being of the customer. The current system of sales/deals at car dealerships stifles customization, because doing so increases the price and MSRP. Two additional sources of stress and uncertainty are maintenance not covered under warranty and reselling the car due to life changes. To solve these issues, we created three strategies. First, we revamped the compensation structure for salespeople, basing it on the customer’s willingness to recommend the salesperson. Second, we renamed the salespeople to “facilitators” and extended their role to become the customer’s single point of contact. Third, by offering memberships instead of ownership, Otto affords a fluid relationship with the service and assuages worries about life changes. Furthermore, the membership model greatly reduces the stress and financial uncertainty of repairs.
PROTOTYPING THE CONCEPT:
To understand the concepts pros and cons, the team interviewed various people that represented the personas created through the previous research of new car dealers. These interview gave great insight into where we should shift the target market, from the tech guru who would rather build their own cars themselves to the tech-savvy millennial market that are extremely interested in customization.
BRANDING THE CONCEPT:
By taking advantage of current trends, we’ve tackled several issues that hold back sales within the sector. We create value for the user by offering a completely personalized car and an experience delivery system designed to foster an environment of trust.
THE TEAM:
Bhavika Shah, Michael Buquet, Mark Hemphill, Monica Tisminesky
MY CONTRIBUTIONS:
Design/project manager and team lead, prototyping co-lead, service/strategy co-lead, graphics contributor.
