Electromobility is proving to be the catalyst for a new online way of selling machines. Mats Bredborg, Director Brand & Marketing Communications at Volvo CE, describes how ‘going digital’ is changing how OEMs interact with a new generation of customers.
A brand is not a static and monolithic entity but a constantly changing phenomenon, a process, not a thing; a dynamic event, not a static situation. The brand is a vehicle of a world in its own right filled with values that the brand, the company it represents and its loyal consumers all share.
Brand means trust.
This is especially true for construction equipment, as a passion for one name of machine can be a family affair, with several generations of contractor all buying into a single brand promise. But the relationship the customer has – and will have in the future – is destined to change, offering both opportunity and danger to the industry’s biggest names.
Technological innovation is also coming to the construction industry sales sector: especially for the new generation of electric compact machines – this analogue commerce world is turning digital.
The new digital market horizon
The sale of construction machinery online is not always the best formula. It may be useful for smaller, simpler compact electric machines that tend to be used less and require little maintenance, but it is an undesirable method for larger production machines that require a lot of interaction between customer and dealer.
Therefore, the dealer is not cut out of the sales loop, and will still be responsible for preparing, delivering and maintaining the machine over its working life. The back-end support stays the same, it’s the front-end sales process that is being digitized.
NEW AUDIENCES
Modern consumers are technology experts and increasingly interested in electrical solutions.The arrival of electromobility in construction equipment is proving to be the catalyst for change.They are so different they can be delivered to market in a different way.
Like with Tesla, the first customers for machines such as Volvo’s new ECR25 Electric compact excavator and L25 Electric compact wheel loader are early adopters who are interested in the technology – but also willing to engage in a new sales process
Cost Innovation
Prices come down over time. But there is a difference between price and cost. The Volvo Group is convinced that anyone who decides to buy a Volvo car does so knowing they are buying real, lasting benefits, and not just a new machine.
Vibrations are uncomfortable and potentially harmful as they can cause headaches, fatigue and back pain.So the new design of electric construction machines it was important to keep vibrations to a minimum. Exposure to noise is not only tiresome and annoying, in the long-term it can also affect health in a negative way. So Volvo engineering sets out to do something about it with zero noise electric construction machines and zero emission.
The premium price will make the whole sales process cheaper and more efficient: there won’t be a large sales organization to promote these machines, instead customers are expected to self-deliver through the online sales information.
No emissions mean they can be used indoors, and the fact they are silent means they can work later into the evening in cities and will not disturb the peace when doing gravedigging duties. There are lots of novel uses these machines can be put to and we are looking at the rental fleet to understand customer behaviour and learn the new uses these machines are put to.
Customer relationship
For relatively simple-to-specify machines like compact equipment, customers will commit to buying without any interaction with a human salesperson.
Volvo CE is therefore now equipped with an online pre-booking tool for electric machines. This is just a first step towards full e-commerce functionality. Clearly, online configurators that wrap machines, warranty packages, financing agreements, accessories and more must be developed, but the group’s commitment is guaranteed.
The combination of electromobility and e-commerce represents an extraordinary opportunity for the construction industry. The secret to success in this brave new world will be having a good digital relationship with the new generation of technology savvy consumers. The power of the brand is to feel that news, anything happens around a product deserves to be shared with the rest of the family.
The relationship between the dealer and the customer is part of that relationship, which is why Volvo will continue to provide transparency, service and support to its consumers.
Source: Volvo by Mats Bredborg
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