Video: Oracle on building and monetizing customer relationships

In this video from Telematics Munich 2013, Arturo Pereyra, senior director for marketing and business development at Oracle, speaks to TU's Jan Stojaspal about how OEMs are starting to use connected services, including customer relationship management (CRM), to understand and monetize their customers, and why they need to act fast.

According to Pereyra, the relationship between the OEM and the end user used to stop with the car leaving the dealer’s lot. Today, many OEMs are looking at connected services as a way to increase customer engagement and monetize the connected car post-sale.

This is “really critical” for the OEMs as the connected car ecosystem evolves and new players “like the Googles and the Apples of the world,” telecom service providers and value-added services providers attempt to build their own relationship with the driver and his passengers, Pereyra says. “So it’s really critical for the OEMs to be able to get at that foothold, understand what other services, behaviors and monetization opportunities exist within the whole driving experience,” he says.

Pereyra sees one opportunity in understanding the various microsegments. “There is no one car buyer,” he says. “There could be myself in a BMW convertible, then you have a whole family that’s in a minivan, then you have maybe the power commuter spending three or four hours a day in the car. Those are all different microsegements, and they all have different requirements and … needs.”

Over the next couple of years, Pereyra also expects a “huge explosion” in productivity solutions for the car, such as conferencing services and distance learning, and in solutions that tie the connected car with the connected home and the workplace.

But when it comes to OEMs using CRM to take a bigger part of the lucrative market in vehicle maintenance and spare parts, he only sees them as “having the potential to succeed.” “It’s just their business model hasn’t evolved around that yet,” he says.  

Jan Stojaspal is the executive editor of Telematics Update.

For all the latest telematics trends, check out Insurance Telematics Europe 2014 on May 6-7 in London, Telematics India and South Asia 2014 on May 28-29 in Bangalore, India, Insurance Telematics Canada 2014 on May 28-29 in Toronto, Telematics Detroit 2014 on June 4-5 in Novi, Michigan, Advanced Automotive Safety USA 2014 on July 8-9 in Novi, Michigan, Insurance Telematics USA 2014 on Sept. 3-4 in Chicago, and Telematics Munich 2014 on Nov. 10-11 in Munich, Germany.

For exclusive telematics business analysis and insight, check out TU’s reports: Insurance Telematics Report 2014, Connected Fleet Report 2014, The Automotive HMI Report 2013 and Telematics Connectivity Strategies Report 2013.