Driving Customer-Centric Innovation in the Automotive Sector: A Focus on the Consumer Duty Standard
In the ever-evolving automotive sector, meeting the changing demands of customers is crucial for success. Mike Todd, chief executive of Volkswagen Financial Services UK, emphasizes the importance of the Consumer Duty standard as a driving force for continual improvement in the industry.
The introduction of the Financial Conduct Authority’s Consumer Duty standard in the summer of 2023 marked a significant milestone for the UK’s financial services industry. This standard aims to enhance consumer protection and ensure that financial services firms prioritize delivering good outcomes for retail customers.
Consumer Duty serves as a reminder of the central importance of customers and encourages a renewed focus on customer satisfaction within the industry. It is not a one-time exercise but a continuous and evolving approach that must be integrated into the core strategies of businesses.
At VWFS, the ‘Customer Promise’ is at the forefront of their operations. This promise is to make mobility easy, simple, and transparent for every customer in every interaction. It guides how the company interacts with customers, designs processes, and develops products, ensuring a customer-centric approach across all aspects of the business.
Embedding the Customer Promise into daily operations is essential for meeting the expectations set by the Consumer Duty directive. Each department at VWFS has personalized the promise to align with their specific customer focus, driving a culture of service excellence and customer satisfaction.
In today’s automotive landscape, providing true choice to customers is key. Beyond traditional aspects like vehicle size and brand, customers now seek options for usership as well as ownership. Companies must innovate their products and services to meet these evolving needs while maintaining transparency, ease, and simplicity for customers.
The success of automotive brands will depend on their ability to marry product innovation with a service ethos that aligns with the Consumer Duty regulations. By prioritizing customer satisfaction and delivering on the promises made to consumers, companies can thrive in a competitive market.
As Mike Todd concludes, the Consumer Duty standard sets the direction for the industry, and it is the responsibility of all businesses to ensure that customer satisfaction remains the ultimate goal. By embracing a customer-centric approach and continually evolving to meet customer demands, companies can secure their position in the market and drive success in the automotive sector.