Advanced Technology and Luxury: Behind the Latest Lexus App

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Advanced Technology and Luxury: Behind the Latest Lexus App Automaker’s new mobile app ensures its vehicle delivery experience is as personalized to customers as its luxury cars are. Driving Change From the sight of the polished exterior to the can’t-miss new car smell, there’s nothing quite like the thrill of picking up a new car. Luxury automaker Lexus goes a step further. Its innovative Explore MyLexus app helps shape a vehicle delivery experience that embodies the company’s legendary customer service while also optimizing business processes. We partnered with Lexus to develop the app, which received positive feedback from dealer associates as it provided many new and needed key features and addressed important operational issues. Lexus established its reputation for quality and engineering with the introduction of its first model in 1989, the Lexus LS, and the accolades continue to roll in. In 2015, the car maker topped the J.D. Power Dependability Study in the U.S. for the fourth year in a row, 1 and U.S. News & World Report ranked the 2015 Lexus RC first of 14 upscale small luxury cars. 2 Lexus began its effort three years ago to reinforce its historically strong customer focus with digital technology. As its vehicles increasingly included state-of-the-art technology, Lexus dealerships need skilled associates to educate new owners on their vehicles’ technology, safety and comfort features. In March 2012, Lexus partnered with its dealers to launch two new certified dealership positions: The Lexus Delivery Specialist (LDS), who introduces customers to their new cars and reviews the vehicle’s features, and the Lexus Technology Specialist (LTS), who support guests after their purchase with additional technology coaching and problem solving when necessary. Previously, the automaker had also developed the Lexus Personalized Delivery (LPD) app for dealers, with the idea of contributing to a vehicle delivery experience that embodied the customer service, advanced technology and luxury on which Lexus has built its prestigious brand. However, the original LPD app fell short of extend- ing Lexus’s wow factor. For one thing, its content and navigation were limited, as the app combined all available vehicle features for all Lexus vehicles into one general list, and was not Vehicle Identi- fication Number (VIN) specific. It also omitted information on many features — an unacceptable shortcoming for a brand known for its “Pursuit of Perfection” — and the flat user interface and lack of intuitive user experience proved limited. There was also no customer version of the app. Further, the app lagged in performance and lacked the quality feel of Lexus vehicles. Cognizant Case Study cognizant case study | december 2015

Transcript of Advanced Technology and Luxury: Behind the Latest Lexus App

Page 1: Advanced Technology and Luxury: Behind the Latest Lexus App

Advanced Technology and Luxury: Behind the Latest Lexus AppAutomaker’s new mobile app ensures its vehicle delivery experience is as personalized to customers as its luxury cars are.

Driving Change From the sight of the polished exterior to the can’t-miss new car smell, there’s nothing quite like the thrill of picking up a new car.

Luxury automaker Lexus goes a step further. Its innovative Explore MyLexus app helps shape a vehicle delivery experience that embodies the company’s legendary customer service while also optimizing business processes. We partnered with Lexus to develop the app, which received positive feedback from dealer associates as it provided many new and needed key features and addressed important operational issues.

Lexus established its reputation for quality and engineering with the introduction of its first model in 1989, the Lexus LS, and the accolades continue to roll in. In 2015, the car maker topped the J.D. Power Dependability Study in the U.S. for the fourth year in a row,1 and U.S. News & World Report ranked the 2015 Lexus RC first of 14 upscale small luxury cars.2

Lexus began its effort three years ago to reinforce its historically strong customer focus with digital technology. As its vehicles increasingly included state-of-the-art technology, Lexus dealerships need skilled associates to educate new owners on their vehicles’ technology, safety and comfort

features. In March 2012, Lexus partnered with its dealers to launch two new certified dealership positions: The Lexus Delivery Specialist (LDS), who introduces customers to their new cars and reviews the vehicle’s features, and the Lexus Technology Specialist (LTS), who support guests after their purchase with additional technology coaching and problem solving when necessary.

Previously, the automaker had also developed the Lexus Personalized Delivery (LPD) app for dealers, with the idea of contributing to a vehicle delivery experience that embodied the customer service, advanced technology and luxury on which Lexus has built its prestigious brand.

However, the original LPD app fell short of extend-ing Lexus’s wow factor. For one thing, its content and navigation were limited, as the app combined all available vehicle features for all Lexus vehicles into one general list, and was not Vehicle Identi-fication Number (VIN) specific. It also omitted information on many features — an unacceptable shortcoming for a brand known for its “Pursuit of Perfection” — and the flat user interface and lack of intuitive user experience proved limited. There was also no customer version of the app. Further, the app lagged in performance and lacked the quality feel of Lexus vehicles.

Cognizant Case Study

cognizant case study | december 2015

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Partnering for a Better Delivery ExperienceLexus realized it needed a next-generation app with a customer experience that more closely matched its brand. The company also earmarked important business process improvements, par-ticularly for record-keeping related to vehicle delivery and dealer performance KPI’s.

We worked with Lexus as its preferred partner to help achieve this vision and generate tangible business results by delivering a totally redesigned and revamped app in just nine months (see Figure 1). Our work with Lexus encompassed the following:

• We quickly built prototypes of the Explore MyLexus app that included augmented reality capabilities, integration with social media and the ability to work with Apple Siri voice commands.

• We also worked on data visualization and developed a prototype for a user interface of the customer-facing application.

• Keeping in mind prior dealer tablet require-ments, we built the app for use on Apple-cen-tric devices only.

Our team accurately forecasted and mitigated the challenges the app would likely encounter as a result of the latest version of iOS and the com-plexities of Apple Store deployment. In addition, our in-depth knowledge of the related systems ensured real-time integration with vehicle infor-mation data, which became a critical factor in the app’s success.

Explore MyLexus provides dealers’ LDSs and LTSs with the flexibility they need to keep the delivery process running smoothly. Rather than feeling like an afterthought, the app is integral to the delivery process. Its adoption rate among dealers has improved as a result of the process improvements, such as the ability to set up guests in advance, and the use of VIN scanning to display only the features of the particular vehicle being delivered, enabling customized delivery templates for each vehicle model.

Explore MyLexus App: Opening Screen

Figure 1

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A New App Is BornSince its unveiling in January 2015, Explore MyLexus has been a success: Within six months of its introduction, dealership use increased sig-nificantly. In addition to its many features, the app lets dealerships upload customized content, which helps them speak directly to customers and transform them into brand advocates. Typically, the app is updated every two months, and its feature data is refreshed regularly.

Personalized service is at the heart of the app. Dealers configure the opening screen with each customer’s name and contact details. E-mails to new car buyers let them weigh in on the vehicle features they are most interested in so the app can be configured appropriately before delivery. For example, the app can take customers directly to the cruise control feature, while a longtime Lexus owner might prefer to skip the basics and go straight to the telematics features.

The process also ensures that delivery specialists are prepared for customers’ questions and even allows them to sequence the order in which they review the features with customers (see Figure 2).

In addition to customization, the app’s knowledge base is dynamic. To ensure the content accurately addresses customers’ questions, the app allows dealers to contribute information, expanding the knowledge base and creating a living document that can better serve Lexus customers.

In a world gone social, Lexus also made sure the app is Twitter- and Instagram-ready: Owners can post photos to the social network with the hashtag #Exploremylexus.

White-Glove Customer Service The app ensures that Lexus owners get the most out of their vehicles. It also treats new car buyers to the amenities they expect from a luxury brand. For example, to enter the 17 digits of their new car’s VIN, customers use the iPad’s built-in camera to quickly scan in the numbers and then pull up information specific to their vehicle.

The customer app also delivers details on safety, comfort and technology. Instead of tediously

thumbing through hefty manuals, customers can view video tours and tutorials of their new car’s interior, such as how the blind-spot indicator works while on the road (see Figure 3).

Exploring Speeds & Feeds

Interactive Learning

Figure 2

Figure 3

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Big-Picture Business Benefits Lexus has realized important business benefits with Explore MyLexus. For starters, the app has enhanced the delivery experience. Customers’ ability to pre-select features they want to explore during the delivery process provides a seamless link between vehicle models and feature avail-ability, smoothing the customer journey from browser to owner. Not only can dealer associates more accurately address vehicle features, but they can also suggest additional services and options to enhance the customer’s driving and ownership experience.

The customer-facing application also includes features that enable prospective buyers to make the purchasing decision from home:

• Use as a shopping tool that highlights key technology, safety, and interior and exterior features.

• Interactive brochures that bring the driving experience to life with information on usability, and operating nuances.

• A showcase of owner experiences that dem-onstrate how Lexus customers can personalize and enhance the driving experience through features such as automatic seat adjustments and climate control.

• Links to social media to encourage car shoppers to view photos and read posts of Lexus owner experiences.

The dealer version of the app addresses opera-tional issues related to vehicle delivery. For example, it integrates with a reporting site that tallies vehicles sold and tracks dealerships’ incentives.

Equally important are the improvements in customer satisfaction. The engagement fostered by the app during the vehicle delivery process helps deepen dealers’ customer relationships. Post-delivery customer survey scores consistently rate LDS/LTS delivery at 95% or higher, according to Lexus data, and in May 2015, it reached 97%. Happier buyers are a key metric: Satisfied customers are more apt to be loyal and to serve

Maximizing Value

Figure 4

Customers’ ability to pre-select features they want to explore during the delivery process provides a seamless link between vehicle models and feature availability, smoothing the customer journey from browser to owner.

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About CognizantCognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business pro-cess outsourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, tech-nology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 100 development and delivery centers worldwide and ap-proximately 219,300 employees as of September 30, 2015, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.

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Footnotes1 Trevor Collett, “2015 JD Power Dependability Study: Lexus On Top Again,” The Motor Report, March 1,

2015, http://www.themotorreport.com.au/60983/2015-jd-power-dependability-study-lexus-on-top-again.

2 “Lexus RC Review,” U.S. News & World Report, http://usnews.rankingsandreviews.com/cars-trucks/Lexus_RC/.

as brand advocates who influence purchase con-sideration — and drive sales over time.

Personalization has become the hallmark of the Lexus delivery process, and customer applica-tions are playing an increasingly important role, especially as more millennials move to the Lexus brand.

Looking AheadWe continue to partner with Lexus on best-in-class service for dealerships and customers. Plans for expanding the app are underway. As a younger generation of consumers become interested in owning a Lexus, we plan to collaborate on device- and platform-agnostic applications that address the needs of a wider audience.