Developing Digital Value Offerings in the Car Retailing Industry : A Customer-Centric Approach to innovation

Sammanfattning: The car retailing industry is currently undergoing a significant transformation. This transformation is due to the automotive industry switching from producing internal combustion engines vehicles to battery electric vehicles. The retailing industry need to transform, like the rest of the automotive industry, and their most essential asset is the customer relationship. This transformation is affecting several aspects of car retailing, with many revenue streams being diluted, or disappearing completely by the emergence of battery electric vehicles. The purpose of this thesis is to investigate current industry transformations and evaluate how car retailers can develop innovative value offerings to manage industry changes proactively. Results have emerged by examining theory connected to digital transformation, customer-centricity and dynamic capabilities, combined with 25 interviews with customers, industry stakeholders and internal personal at the case company, Börjessons Bil. These include that customer behaviors have changed immensely, that digitalization drives transparency and that retailers require new revenue streams within the service industries. Based on these results two value offering concepts were developed: - An internal loyalty program, based on customer lifetime value calculations, providing customers with perks and benefits, while giving Börjessons Bil strengthened relationships and more data. - A business to consumer subscription service, which bundles many services connected to mobility, such as tire switching and windscreen repairs, into one package deal. This concept will provide customers with a more effortless vehicle owning experience.