Mobility sales:

A future-proof sales model

Cross-industry research suggests that mobility
has much to learn from other sectors
Table of Contents
The direct sales dilemma 3

About the research 4

The industries 6
Mobility 7
Consumer goods 8
Heavy machinery 9
Telecommunications 10
Insurance 11

Rising customer expectations 12

Finding a way forward for mobility players 14

1. A seamless, omnichannel customer experience is now a baseline requirement 14
2. B2C and B2B expectations are converging 16
3. Digital marketplaces are increasingly popular and require a strategic response 18
4. Pricing should be clear, systematic, and consistent 20
5. Direct sales align most closely with customer expectations— 22
and give companies more control

How mobility players can get started 24

In conclusion 26
The direct sales dilemma
It’s no secret that 24/7 digital connectivity and the revolution in
customer expectations it has unleashed are driving mobility
businesses toward direct sales.

Many carmakers have launched online stores and

taken steps to personalize their offerings. Some are
even piloting innovative digital sales formats. A few Five best practices to
are already selling directly online to the end consumer.
Volkswagen, for example, is rolling out a new IT future-proof mobility
infrastructure that would facilitate online sales at sales models
scale. While carmakers including Ford, Mitsubishi
Motors, and Hyundai in Europe, have partnered 1. A seamless, omnichannel
with sales-as-a-service providers and select dealer buying experience is now
groups, to open small, digitally enabled showrooms
in popular shopping areas that are seamlessly
a baseline customer
integrated with online stores and vice versa.1 expectation

Yet the mobility industry overall is still challenged 2. B2C and B2B expectations
to make direct sales work. The transformation entails are converging
significant financial and market risk: hefty upfront
investment and high annual operating costs. That’s 3. Digital marketplaces are
a tall order for many players, despite widespread
recognition of the urgent need for a truly consumer-
increasingly popular with
centric sales model, robust enough for the digital age. customers and require a
strategic response
The experiences of similarly disrupted industries offer
some valuable lessons. Recent research across five 4. Pricing should be clear,
industry sectors—mobility, consumer goods, heavy
systematic, and consistent
machinery, telecommunications, and insurance—has
identified five best practices that can help mobility
players overcome the direct sales dilemma and
5. Direct sales not only align
successfully future-proof their sales models. most closely with customer
expectations— they also
give companies more
control

Mobility sales: A future-proof sales model 3

About the research
We surveyed over 1,000 B2C and B2B customers as well as more than
750 salespeople from the UK, Germany, and France. We also talked to
top executives of established manufacturers and service providers
to augment our findings.

Our research combined the perspectives of:

B2C customers Salespeople
1,000+ customers who recently purchased a 750+ salespeople were asked about their
product or service for personal use from one of the understanding of customer needs, how they respond
selected industries. The sample provides a well-spread to them, and how well they think their current sales
distribution across age, gender, income, and other approach is preparing them for the future. Our sample
metrics to account for potential differences in needs provides a representative split across the different
and preferences. industries in scope.

B2B customers
300+ customers who recently bought a product
or service for business purposes, covering business
customers as well as purchasing managers.

Figure 1: Overview of consumer, business customer and salespeople survey sample

Insurance Heavy machinery Consumer goods

UK

Fashion Consumer
durables

Germany
Telecommunication Mobility

Passenger cars Recreational Motorcycles France

vehicles

Consumers and business customers Salespeople

Customer type Residence Customer group Sales model

B2C customers 77% Urban 52% Mainly in B2C sector 37% Currently in indirect sales model 70%
B2B customers 23% Suburban 24% Both B2B and B2C 33% Currently in direct sales model 30%
Rural 24% Mainly in B2B sector 30%

4
Executives and experts
Senior executives of established manufacturers and providers augment our findings.

Figure 2: Industry executives and experts interviewed for this study

Dr. Marc Güntermann

Timo Resch
Senior Director
VP Customer Brand Sales
Sales & After Sales Strategy
BMW M
Audi AG

Marcel Keller Sandy Scullion

Member of the Executive Board President
Vorwerk International & Co. KmG Powersports Group at BRP

Dr. Christine Knackfuss-Nikolic Tobias Seemann

SVP Digital Business & Transformation SVP Commercial Europe
Deutsche Telekom AG Adidas AG

Anja Stolz
Barbara-Maria Loth
CMO/Omnichannel Management
Global Head of Commercial
R+V Versicherung,
Excellence / Managing Director
Member of the Executive Board
Knauf Digital GmbH
R+V Direktversicherung

Antonio Nigro
SVP – Head of Commercial &
Regional Lead EMEA
Fossil Group Europe GmbH

Mobility sales: A future-proof sales model 5

The industries
In addition to mobility, we examined four other industries—consumer
goods, heavy machinery, telecommunications, and insurance—picked
because their sales strategies are also disrupted by rapidly changing
consumer and market demands and/or because they, too, have made
moves toward direct sales.

6
Mobility
We focused on three industry segments at different 36% of mobility customers are
points in the transformation from pure vehicle dissatisfied with current online
manufacturing to the provision of broader service
“bundles”: passenger carmakers, motorcycle
buying options.
manufacturers, and recreational vehicle makers
(quad bikes, water scooters, etc.). While all three
segments have a clear B2C focus, only passenger Sandy Scullion
carmakers have a significant B2B component. President
Powersports Group at BRP

Across the companies surveyed, indirect models

dominate sales strategies. Less than 20% of sales Fueled by customer expectations and
are currently made through direct channels. the dynamics of digitalization, we see an
opportunity to evolve our sales model focus
Mobility customers are moving online, but 36% are and support our network of dealers and
dissatisfied with current online buying options— distributors to shift toward consultative
more than in other industries. As many as one in three selling and servicing. Deepening our post-
customers was dissatisfied with the experience of sales service offering will provide BRP and
their latest purchase of a recreational vehicle. For our retail network with a competitive
passenger cars and motorcycles, one in four. Mobility advantage and propel us further.
customers also want better personalized offers and
more reliable delivery.

Mobility sales: A future-proof sales model 7

Consumer goods
Consumer goods customers in both the apparel and
consumer durables sub-sectors appreciate the range Tobias Seemann
of goods they can find online—considerably more SVP Commercial Europe
Adidas AG
than the industry average. When searching for product
information, one in every two customers goes straight
to a website. Just one in four visit a store. In both sub- Data is the new currency for success.
sectors, around 75% of sales are via indirect models Yet few truly focus on using it to solve key
and 25% via direct models. Of those companies already consumer use cases and most miss out on
using direct sales, two-thirds say their current sales the personalization opportunity. It’s all about
approach works well in meeting customer expectations. collecting and leveraging data to create value
Salespeople also recognize the advantages that direct for the consumer. Direct-to-consumer is
sales bring in tailoring product assortments and pivotal to leveraging data for growth. Building
protecting profitability in a low-margin business. a bridge to include wholesale partners as an
integral part of an ecosystem to win with
consumers is truly mastering it.
Two out of three salespeople that
use a direct sales model say their
current sales approach works well in
meeting customer expectations.

8
Heavy machinery
This industry consists primarily of large players that The complex nature of heavy machinery, coupled
sell almost entirely in a B2B context. Its customers are with the need for detailed in-person explanations and
moving towards online channels, but sales via online guidance at the offline point of sale, help explain why
channels are relatively rare. the sector lags. However, salespeople cite a lack of
customer data insights as the principal disadvantage
Even for initial product research, the use of digital of an indirect sales approach.
is below the cross-industry average. Less than half
of B2B customers surveyed use digital channels to
collect detailed product information. 45% of heavy machinery B2B
customers use online channels
to collect detailed product
information.

Mobility sales: A future-proof sales model 9

Telecommunications
Half of all telecommunications customers surveyed Sales teams are also much more likely to say online
were satisfied with their last purchase process. They channels are their primary revenue drivers (46% versus
are also typically more comfortable shopping online 16% for offline). A substantial majority (71%) said sales
than customers in other industries. Two in every three processes should be further digitalized and 61% said
consumer sales are now closed online (although this more sales would shift online.
drops to less than one in three for B2B sales).

Most companies use the direct sales approach, either 46% of salespeople say online
as a pure direct-to-consumer model or by incentivizing channels are their primary revenue
brokers and marketplaces to pass over prospects for
closing a sale.
drivers. Still, 71% see substantial
room to further digitalize sales
processes.

10
Insurance
While 39% of B2C insurance customers in our survey More human touch during the sales process is
were highly satisfied with their last purchase, this needed for higher-cost products with longer-term
drops to 22% for B2B buyers. commitments and financial impact, such as buying
and insuring fleet vehicles for a business.
The B2C customer journey in retail insurance markets,
especially regarding mass-market products like motor Lower-cost products and services, such as renting
vehicle insurance, are typically more advanced online. and insuring a car for a personal trip, are more
For example, three-quarters of customers use online easily distributed in digital channels. In consumer
price comparison platforms. The RoPo (research segments, 29% of revenues are generated in a purely
online, purchase offline) approach is still widespread online context.
in many markets, depending on factors like online
sales process maturity and customer preferences.
29% of insurance revenues are
However, online sales make up a low share of B2B generated in a purely online
sales in most markets and lines of business, as
customers primarily close deals offline.
context.

Mobility sales: A future-proof sales model 11

Rising customer expectations
The transformative effects of Across all five industries we investigated, nearly
half (49%) of customers now shop primarily online,
pervasive digital connectivity are versus fewer than a third (30%) who still shop
still playing out worldwide. But it’s primarily offline.

already clear that the trend is Our survey also confirms some of the key reasons
driving more and more customers why consumers are flocking to digital channels.
Principally, they cite the time savings, around-the-
online—and significantly raising clock availability, and lower prices that are typically
their expectations. offered online.

12
Figure 3: Online vs. offline along the customer journey
For each of the following steps of your purchase journey, did the step take place primarily online or offline?

Online

68% 68%
64% 65%
62% 60%
50% 50% 51%
48%
43%
36%

15% 13% 15% 21%

24% 19%
28%
36% 32% 33%
35%
42%

Gather basic Collect Compare Collect price Receive Sign contract

information detailed product with information offer or purchase
information other brands product

Offline
B2C B2B

They also mention the ease with which they can

conduct their own product research by, for example, Timo Resch
quickly comparing different products side by side. VP Customer Brand Sales
BMW M

Even so, across all five industries, only 39% of buyers

were satisfied with their last purchase process. Today’s classical sales approach is not
future-proof to meet the requirements for a
long-term beneficial relationship between the
49% of consumers now primarily customer, product, and brand. A digitalized
shop online—just 30% shop sales platform and the direct interaction
with the customer becomes increasingly
primarily offline. important. This will be essential for a
successful sales strategy of the future.

Figure 4: Customer satisfaction with specific aspects of the purchase process

Top 3 drivers of dissatisfaction

61%

39%
Lack of online Lack of sufficient Lack of adequate
purchase options product information product consultation

Customers Customers
that are highly that see room
satisfied for improvement

Mobility sales: A future-proof sales model 13

Finding a way forward
for mobility players
Our cross-industry research reveals
five best practices that mobility
players can leverage to tackle the
twin challenges of accelerating
digitalization and rising customer
expectations.

1. A seamless, omnichannel customer experience

is now a baseline requirement
While some customers have pivoted entirely to online
channels, a significant number still prefer offline Antonio Nigro
shopping. The largest number, however, see the SVP – Head of Commercial &
Regional Lead EMEA
benefits of both. Fossil Group Europe GmbH

Most customers clearly want seamless continuity

across all phases of the sales journey, including With increased digital penetration,
aftersales. They expect shopping experiences offline we have to re-invent our physical store
to be just as engaging as they are online. And they presence to create unique omnichannel
require the ability to switch channels easily, without experiences that ‘wow’ our consumers.
the hassles and headaches that still hinder the
shopping journey in many industries.

The implication is clear. Businesses that can facilitate

a truly engaging omnichannel experience can drive
sustained growth.

14
By harvesting data across all customer touchpoints,
they can generate deeper insights and thus more Barbara-Maria Loth
personalized content—a growing requirement in Global Head of Commercial
Excellence / Managing Director
all industries—as customer concerns about data Knauf Digital GmbH
sharing diminish. 84% of those interviewed for
our cross-industry study had no issue with data
sharing in principle, though they do typically expect Digitalization per se does not generate
either a monetary benefit or some other kind of new revenues for us. Only new products
reward in return. and services can do that. But taking
advantage of the means of digitalization
Mobility businesses recognize that their customers like automating services or applying
want better options for buying online. In fact, they see advanced analytics will enable us to
better online offers as one of the highest-potential better serve our customers on existing
improvements they could make, alongside providing and new touchpoints and ultimately more
more personalized offers. But launching online stores efficiently sell existing products.
or moving existing sales operations online, which
many mobility players have already done, are only
first steps.

Right now, carmakers are the front-runners in Motorcycle manufacturers are also starting to
responding to new customer needs, with many provide better experiences online, such as product
working on and some (especially greenfield players) configurators that can be forwarded to the nearest
already providing significantly better online dealer. The recreational vehicle segment, however,
experiences. is lagging. Here, most manufacturers still provide little
more than product information online, despite
Consider, for example, how easy it is to navigate customers actively searching for more.
Tesla’s online store. A small range of customization
options helps simplify choices and check-out is
completed in just two clicks. Polestar’s website,
similarly, seamlessly integrates online purchasing,
while also providing a live specialist chat function
and an engaging introductory video stressing the
sustainability message that defines the brand.

Benefits of online and offline channels as seen by customers across industries

Benefits of online channels Benefits of offline channels

“Touch and feel”

Saves time 40% 52%
oppurtunity

Contact person in
24/7 availability 39% 34%
case of any issues

Low prices 35% Personal relationship 30%

Ease of
34% Better consultation 27%
comparison

Option to buy some-

Fast delivery 31% 27%
thing on the way

Mobility sales: A future-proof sales model 15

2. B2C and B2B expectations are converging

Although cross-industry research reveals the Some of the best practices in that regard have
persistence of differences between B2B and B2C been developed in sectors like consumer goods,
buying experiences, especially when it comes to the half of whose customers already visit a website for
customer journey on digital channels (see “A lack of product information.
options?”, page 17), it also clearly shows that B2B
customers increasingly expect the same personalized, As demand for online buying grows, a clear shift to
frictionless sales interactions common in consumer cost-efficient digital channels should be on every
settings. mobility company’s agenda. It’s important to remember,
though, that online sales strategies should not be
We found that the fundamental drivers of a purchase driven solely by price—especially when it comes to
are largely the same, regardless of whether the boosting sales through new customer offers.
customer is buying for their personal use or for their
business. In all cases, price, quality, and performance This was a common strategy in telecommunications
are ranked highest (although B2C customers are but is now being revised. For instance, AldiTalk, the
typically more price sensitive than business buyers). telecommunications subsidiary of German retail giant
Aldi, frequently offers existing customers the same
Mobility businesses, including established players financial benefits as new customers.2
like Mercedes, BMW, Volvo, and Stellantis, and EV-only
OEMs like Tesla and Polestar, have launched online
initiatives targeting both B2C and B2B customers.
None, however, yet offers a fully-fledged online sales
solution that addresses both.

Figure 6: Main drivers of B2C and B2B customers’ purchase decisions

B2C customers B2B customers

71% 1 Price 1 54%

54% 2 Quality 2 44%

37% 3 Performance 3 37%

35% 4 Brand 6 31%

30% 5 Features 4 36%

28% 6 Availability 5 32%

17% 7 Service packages 7 22%

13% 8 Aesthetics 8 15%

16
Samsung, for example, offers its B2B
customers the same kind of online Dr. Christine Knackfuss-Nikolic
SVP Digital Business &
journey as its consumers, including a Transformation
Deutsche Telekom AG
one-stop online shop solution. In just one
click, business customers can browse
through a similar online offering with the A simple and easy to understand
product portfolio is one of the essential
possibility to view the prices with or
prerequisites for a smooth digital
without the value-added tax. Additional (eSales & eService) customer journey.
requirements (for bulk orders, for example)
can leverage a customer service capability.
B2B customers can also set up their own
accounts through which employees can Furthermore, when it comes to product discovery,
access personalized product offerings, two-thirds of B2C customers say they don’t primarily
including tailored product portfolios, look for specific brands, but rather for products and
services that best meet their needs.
prices, and campaigns. It’s a full digital
solution—even framework agreements This preference is true for B2B customers as well,
for price conditions are signed digitally. although in practice many business buyers are still
restricted by their employers’ procurement policies
to a predetermined set of partners or brands.

A lack of options?
In both B2C and B2B contexts, the purchase journey typically starts online with the customer gathering
basic product information and then tends to shift towards offline channels as the sale approaches.
In B2B, however, this shift is more pronounced.

Our research shows that online sales would comprise up to 30% of total B2B cross-industry sales
through to 2025. Typically, however, B2B buyers are less likely to use online channels across the board,
with many preferring them for researching products rather than closing deals. In insurance, for example,
where B2B customers’ needs can be complex, especially when it comes to claims, there’s a strong
preference for closing deals offline.

Even so, this apparent preference may simply be the result of a lack of digital options in many B2B
areas. In some industries digital sales channels are still relatively rare or unavailable (even for B2C
customers in cases like motorcycle sales). In others, online offers and promotions are geared towards
B2C, meaning B2B customers should resort to offline channels to benefit. Even where digital B2B
channels do exist, their immaturity and lack of functionality means many buyers are avoiding them.

Mobility sales: A future-proof sales model 17

3. Digital marketplaces are increasingly popular
and require a strategic response

Digital marketplaces—especially industry-specific

players like Carwow and price comparison platforms Marcel Keller
like Check24—pose a growing challenge for mobility Member of the Executive Board
Vorwerk International & Co. KmG
companies’ sales strategies.

For buyers, and especially younger buyers, these For us, there was never a discussion about
platforms offer convenient, transparent, user-friendly, going for growth via intermediaries or
and streamlined shopping experiences—hence our third-party providers, such as marketplaces
finding that 35% of customers across all industries or independent stores. If we were to
studied now purchase via marketplaces. dilute our unique direct selling model,
we would lose customer intimacy, the
Sellers can benefit too, of course. Marketplaces, after ability to shape pricing and much more.
all, offer a chance to boost brand exposure, audience Therefore, changing our distribution
reach, and sales volumes. But they also heighten model would mean eliminating a major
customer price sensitivity. And because they take a competitive advantage we built and
commission on every supported transaction, they honed over decades.
lower margins. Not surprisingly, the impact of third-
party platforms (intrabrand competition) is one
of the top three threats to current sales models
that mobility businesses identify.
And for some industries, the benefits that marketplaces
When should a business engage with a marketplace, offer outweigh the disadvantages. Most insurers, for
looking to exert influence by actively managing the example, are not worried about third-party platforms
relationship, and when should it choose to remain because they view them as an additional sales channel;
independent? just 14% of salespeople see them as a threat.

The latter option would inevitably restrict access to

certain customers; the almost 1.5 billion Europeans
who visit Amazon every month, for instance, are
hard to overlook.

Figure 7: Biggest threats that salespeople within the mobility sector see affecting their sales model
in the future

Competitors can offer better prices/services 25%

Governmental regulations increase our cost 23%

Third-party online platforms/marketplaces 21%

Other parties may enter the market ‚

16%
and take away a shareof my business

Competitors offer better quality 16%

18
However, if the customers are not within a company’s HUK-Coburg, the largest traditional
target segment, or alternative options exist for reaching
car insurance provider in Germany,
them, playing against the platforms, and remaining
independent is an option worthy of consideration. established a direct online sales channel
with its HUK24 subsidiary. HUK24 offers
Everything depends on the unique context and entry-level insurance packages that
objectives of each business. What is abundantly
customers can tailor to their requirements
clear is that marketplaces cannot be ignored. Their
presence puts additional competitive pressure on in a fully digital setting. Costs and prices
the entire value chain—manufacturers, service are kept lower by not offering personal
providers, wholesalers, agents, and retailers alike. consultation services: a direct approach
In telecommunications, every second salesperson
that offers a viable alternative to playing
surveyed cited third-party platforms as a threat.
That makes a clear and conscious strategic response the marketplace game. The German
to marketplaces a matter of company survival for market leader in price comparison sites,
many. And a few players have sought and found a Check24, attracts 10 times as many visitors.
middle ground.
But HUK24, which has clearly positioned
itself against a partnership, retains its
target audience with competitive offerings
at comparably lower premiums.

Mobility sales: A future-proof sales model 19

4. Pricing should be clear, systematic,
and consistent

The shift to online shopping has huge implications

for pricing in all the industries we investigated—largely Anja Stolz
because price comparison becomes so much easier CMO/Omnichannel Management
R+V Versicherung,
for customers. Member of the Executive Board
R+V Direktversicherung
More than 95% of telecommunications customers
say they compare offers at least occasionally, and The interaction of the channels depends
80% say they do so primarily online. Even in heavy on the existing quality and usage of data
machinery, where levels of online affinity are lower in a company. Data must help to better
than in telecommunications, salespeople are understand the customer’s situation and
accustomed to customers touting competitive offers needs to enable the business to deliver
from other manufacturers; more than 90% say this the right content to the right customer
is a regular occurrence. at the right time in the right channel.

In the mobility industry, where one in three salespeople

believe they cannot charge more for products without
losing sales, price negotiations are still common—but
they are not universally popular with customers. In Increasingly, customers across all industries
fact, 44% of those who negotiated a sale price told appear to prefer the speed, ease of mind, and lack
us they would have preferred a fixed price (while just of sales pressure that fixed prices offer. Just 30%
13% of those who paid a fixed price would have of telecommunications customers negotiate deals,
preferred to negotiate). for instance (marginally more for B2B). Our research
found that overall, only a third of customers (both B2C
and B2B) say they like to negotiate a price—though
20% of business customers and purchase managers
also say that their employer requires it.

Figure 8: Businesses across industries move from static to systematic price setting
Automated pricing Systematic� Intelligent pricing
Price setting is based on Prices calculated in real-time
automated processes, with based on multiple variables such
little price discrimination as demand, competition, and
between customers customers‘ individual willingness
to pay using rules or advanced
algorithms
Example 1
Automotive
Example 2
Consumer Goods

Customer Customer
unspecific specific

Rule-based
Minimum price discrimination Personalized pricing
based on static rules (e.g. prices Every single customer gets a
on weekends higher than on specific price to match their
weekdays) maximum willingness to pay
Static

20
Price, in any event, remains one of the key purchase We have detected a trend toward more systematic
drivers across all industries (four in five apparel and agile price-setting across industries, but the level
customers cite it as their top criterion, for example), of price differentiation acceptable to customers varies.
underscoring the critical importance of a clear pricing
approach based on two overarching dimensions: Consider the following examples:
• Mobility consumers have shown a strong preference
1. Level of price differentiation—general versus for fixed prices instead of individually negotiated
individual prices at dealerships. Passenger carmakers are
2. Frequency of price changes—static versus reacting to this by limiting dealers’ discount
systematic authority and by adapting prices based on
automated processes.
Using these two dimensions, four distinct strategy • While rule-based pricing (such as cost plus) has
archetypes can be distinguished. These are rule-based traditionally been the norm in the consumer goods
pricing, personalized pricing, automated pricing, and industry, we now observe a clear trend towards
intelligent pricing. intelligent pricing. Using advanced algorithms,
businesses set prices systematically and
Pricing strategies are, of course, strongly influenced automatically to reflect individual customers’
by sales models. The more centralized a sales model, willingness to pay.
the stronger a business’ ability to set prices based on
internal and external data, using advanced pricing Because online channels are usually non-assisted,
software. In a decentralized sales model, on the other options for price negotiation are rare. And that means
hand, intermediaries hinder the level of control a companies need to place even more emphasis on
business exercises over the end price. setting and communicating the right price across all
sales channels and across the entire sales journey—
a strategy that requires a solid pricing strategy for
each brand.

Mobility sales: A future-proof sales model 21

5. Direct sales align most closely with customer
expectations—and give companies more control

In their quest to find future-proof sales models, growing

numbers of mobility businesses are re-evaluating Dr. Marc Güntermann
their sales strategies. And the shift to direct sales, Senior Director
Sales & After Sales Strategy
which typically align more closely with customer Audi AG
needs and expectations as well as strengthening the
manufacturers’ own position, is gathering pace. In
fact, direct sales are rapidly emerging as the leading The switch from indirect to direct sales
sales model for the mobility industry. is not only prevalent in specific industries.
Diverse companies must decide if their
Tesla has had direct sales in place for a decade for current sales approach is future-proof
all models in the EU. More than 15 other auto brands, or not. Traditional manufacturers with
including big established players such as Mercedes- historically grown sales networks are
Benz, are expected to have direct sales in place for especially challenged to provide a
all model ranges in Europe by 2030. consistent customer journey, merging
online and offline. For those companies,
Other industries have recognized the advantages of the direct sales model is an opportunity
direct sales models for much longer. Insurers in many worth considering.
markets offer products direct to customers while
others leverage the agency model, integrating an
existing retail network within a multi-channel sales
model, thus preserving the personal touch many In short, direct-sales models, in both their agency and
insurance customers value. Other industries, including direct-to-consumer forms, not only meet customer
consumer goods players, are opting for the direct-to- needs better. They also offer manufacturers, providers,
consumer model, which involves no intermediaries retailers and other players full control over consumer
but requires substantial up-front investment. data and interactions, as well as the ability to set and
control prices centrally across all sales channels and
keep distribution costs to a minimum (see “Going
Adidas, for instance, wants to sell up to direct”, page 23).
50% of its volume direct-to-consumer by
2025. The sports retailer’s plan, dubbed
Own the Game, recognizes apparel
shoppers’ growing preference for dealing
directly with brands, and aims to boost
net sales by 8-10% annually and net
income by 16-18%. It will focus on
strategic partnerships and be fueled
by major investments in both marketing
and digital, including data analytics and
better in-store digital capabilities.3, 4

22
Going direct
The direct sales models that are becoming predominant across
industries take two basic forms::

1. The agency model 2. The direct-to-consumer model

Agents, who may be employees A manufacturer or service provider
or independent contractors and sells directly to an end customer,
are typically paid a percentage of through digital and/or physical
each sale, are the face of the brand— channels, with no intermediaries
facilitating product discovery, involved. All retail activities, risks,
offering detailed product knowledge and responsibilities, across all
and experience, handling channels, are in the hands of the
negotiations, closing sales, and manufacturer or service provider.
offering aftersales support.

Advantages Advantages
The agency model can preserve the geographic Manufacturers and service providers have a
reach of an existing retail network for physical direct relationship with the end customer, giving
product consultation as part of an omnichannel them first-hand data on who those customers
strategy. It also allows manufacturers and are, and what they want, expect, and need.
service providers to protect profitability through They can control and influence that relationship
better control over pricing and fixed commissions end-to-end, protecting the brand image,
for agents. In a genuine agency model, the building trust, and ensuring seamlessly
brand has full control over the transaction price, integrated customer journeys across all sales
although variants allow agents to give their own channels. They have full control over
discounts and control some aspects of the discounting and pricing strategies, enabling
offline customer journey. Crucially, manufacturers them to protect profitability while providing
and providers can acquire a direct relationship much more transparency and certainty.
with the end customer by integrating their and
their agents’ systems.
Drawbacks
Because the manufacturer or service provider
Drawbacks takes responsibility for the entire sales journey,
The principal disadvantage is the initial capital it should make significant investments in its
investment required in setting up integrated IT own retail network, including IT systems,
and logistics systems, although some costs logistics, property, and equipment. Customer-
(such as storage and equipment) may remain centricity becomes a key differentiator,
with agents. Some customers may also feel requiring the business to understand and
constrained by the fact that agents are respond to rapidly changing customer needs
authorized to sell products and services only and expectations, and delivering market-
from one manufacturer or provider. leading retail experiences.

Mobility sales: A future-proof sales model 23

How mobility players
can get started
Mobility businesses that follow these best practices can elevate their
chances of developing a future-proof sales strategy—but how should
they get started? In each case, three initial considerations are key.

24
To lay the groundwork for a seamless, To achieve clear, systematic,
omni-channel customer experience: and consistent pricing:
1. Ensure continuity for a better customer experience, 1. Meet the customer preference for fixed pricing by
with similar interfaces at point of sale and online limiting dealers’ pricing authority/negotiating power.
stores.
2. Set the technical foundation for automated pricing
2. Enhance customer reach with faster decision- by minimizing price discrimination between
making by offering fewer, simpler, more enjoyable individual customers.
vehicle configuration options.
3. Establish an intelligent, data-driven, and
3. Boost customer loyalty using robust data collection comprehensive price solution that captures how
and management across all touchpoints. much customers are willing to pay.

To make the most of converging To strengthen direct sales

B2C and B2B expectations: initiatives:
1. Enrich historical sales data with predictive customer 1. Bring all key stakeholders onboard.
data insights to get the 360-degree view you need
to understand customer needs and tailor 2. Start with a small, targeted, pilot project and
interactions. limited product portfolio, with a view to subsequent
scaling.
2. Make digital engagement truly end-to-end, with
personalized content and marketing campaigns, 3. Actively support agents in terms of both process
online configurators (when suitable) and continuous and IT tool use, well into the launch of the new
tracking of customer satisfaction. sales model.

3. Operate proactively, with tailor-made offerings to

increase cross-selling and upselling,
recommendation engines and personalized online
shopping.

There’s no one-size-fits-all solution

to the strategic challenge of digital
marketplaces, but consider the
following:
1. Are target customers active on such marketplaces
and if so, how many customers and what are they
looking for?

2. Is there a positive business case for engaging with

marketplaces versus not doing so? What would it
cost to engage versus going it alone?

3. What would be the impact on your competitiveness?

Would partnering with a marketplace cannibalize
other sales channels?

Mobility sales: A future-proof sales model 25

In conclusion
The ongoing digital revolution is reinforcing the mobility
industry’s transition to a direct sales model. The transformation
involves significant cost and risk and can be a daunting prospect
for many. But the experiences of other, similarly disrupted
industries offer both encouragement and a way forward.

Research across five industry sectors—mobility, consumer

goods, heavy machinery, telecommunications, and insurance—
and encompassing the views of customers, salespeople, industry
executives, and experts suggest that five best practices are
key to success:

1. A seamless, omnichannel buying experience is now

a baseline customer expectation
2. B2C and B2B expectations are converging
3. Digital marketplaces are increasingly popular with
customers and require a strategic response
4. Pricing should be clear, systematic, and consistent
5. Direct sales not only align most closely with customer
expectations—they also give companies more control

Mobility players that leverage these

lessons will be in pole position to
build a future-proof sales strategy—
and power ahead.

26
Authors About Accenture
Axel Schmidt Accenture is a global professional services company
Senior Managing Director with leading capabilities in digital, cloud and security.
Global Industry Sector Lead Automotive Combining unmatched experience and specialized
axel.schmidt@accenture.com skills across more than 40 industries, we offer
Strategy and Consulting, Technology and Operations
Johannes Trenka services and Accenture Song—all powered by the
Managing Director world’s largest network of Advanced Technology and
Lead CEO & Enterprise Strategy Intelligent Operations centers. Our 710,000 people
johannes.trenka@accenture.com deliver on the promise of technology and human
ingenuity every day, serving clients in more than
Jaqueline Koops 120 countries. We embrace the power of change
Functional Strategy Manager to create value and shared success for our clients,
CEO & Enterprise Strategy people, shareholders, partners and communities.
jaqueline.koops@accenture.com Visit us at www.accenture.com.

Ludwig Göbl
Functional Strategy Consultant
CEO & Enterprise Strategy
ludwig.goebl@accenture.com

The authors wish to thank:

Patrick Vollmer, Markus Zimmerman, Dr. Boris Maurer,
Keith McInerney, Lydia Aldejohann, Alexander Huber,
David Habib, Simon Roewer, Dr. Maximilian Holtgrave,
Dr. Marcus Demmelmair, Sven Petersen, Florian Keppler.

References
1 Accenture research
2 AldiTalk: https://www.computerbild.de/artikel/cb-News-Handy-
Aldi-Talk-2021-Tarife-29713893.html
3
Adidas: https://www.retaildive.com/news/adidas-aims-for-dtc-to-
be-50-of-sales-by-2025/596509/#:~:text=The%20company%20
plans% 20for%20direct,said%20During%20a%20virtual%20
presentation
4 Adidas: https://www.modernretail.co/retailers/how-adidas-is-
planning-for-dtc-to-make-up-50-of-its-revenue-by-2025/

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