{"id":1551,"date":"2021-08-29T10:56:09","date_gmt":"2021-08-29T14:56:09","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2021\/08\/29\/how-a-century-old-brand-is-transforming-the-auto-industry\/"},"modified":"2021-08-29T10:56:09","modified_gmt":"2021-08-29T14:56:09","slug":"how-a-century-old-brand-is-transforming-the-auto-industry","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/how-a-century-old-brand-is-transforming-the-auto-industry\/1551\/","title":{"rendered":"How a Century-Old Brand is Transforming the Auto Industry"},"content":{"rendered":"\n

Before the pandemic, automakers were already facing massive disruption, including driverless cars, electric vehicles, and shared mobility. But COVID-19 dealt another blow: Automotive was one of the hardest hit sectors in 2020, especially in the U.S., where auto sales\u00a0sank by 15%<\/a>.<\/p>\n\n\n\n\n

In the midst of these unprecedented challenges, however, 118-year-old Ford Motor Company leaned in and began to reinvent itself.<\/blockquote>\n

As the virus accelerated, dealerships were forced to close their lots and shift to servicing and\u00a0selling cars online<\/a>, while larger supply chain concerns caused shortages in critical parts like microchips, which slowed vehicle production.<\/p>\n\n\n\n\n\n

In the midst of these unprecedented challenges, however, 118-year-old Ford Motor Company leaned in and began to reinvent itself. Under the leadership of two new executives \u2014 Jim Farley as CEO and Suzy Deering as global CMO \u2014 the company saw an opportunity for business transformation and started mapping out a strategy.<\/p>\n\n\n\n\n\n

Questioning everything, from its organizational structure to its customer experience, Ford made difficult decisions to put technology at the center of its business and get ahead of auto consumers\u2019 evolving needs.<\/p>\n\n\n\n\n\n

While still in the early stages of its journey, Ford has developed something of a blueprint for auto brands of the future. Recently, I spoke to Farley and Deering about the company\u2019s transformation strategy. They shared three key changes they\u2019re focused on.<\/p>\n\n\n\n\n

\n
\"graphic<\/figure>\n1. Reimagining what auto brands do<\/h2>\n

Business transformation has been a buzzword for decades, but for years, it wasn\u2019t an urgent reality for Ford. Then along came the pandemic, and its significance accelerated.<\/p>\n\n\n\n\n

We have to invest in electric architectures and build software know-how in the company. And we need to integrate that know-how in ways we’ve never had to before.<\/blockquote>\n

\u201cEvents of 2020 made it clear that modernization is required to be a sustainable company,\u201d explains Farley. A critical factor to modernizing has been disrupting its organizational model to aid the shift toward vehicle electrification and other digitally connected products. Since consumers expect more safety and convenience from automakers, the future of the auto industry will increasingly exist outside the doors of the vehicle.<\/p>\n\n\n\n\n\n

According to Farley, this has required Ford to \u201cunglue\u201d its organization to allow for a new way of being. \u201cThe biggest transformation for us is to a software services\u2013dominated company and brand,\u201d he explains. \u201cWe have to invest in electric architectures and build software know-how in the company. And we need to integrate that know-how in ways we\u2019ve never had to before.\u201d<\/p>\n\n\n\n\n\n

\"graphic<\/figure>\n\n

Such a fundamental pivot, Deering acknowledges, impacts company culture. \u201cWe have to make sure that we bring people along with us, and at the same time, give them the space to fail. There is strength in knowing that change is not going to be easy, but we\u2019re going to do it together, and we\u2019re going to look forward.\u201d<\/p>\n\n\n\n\n

2. Driving the connected car experience forward<\/h2>\n

By committing to look forward, the automaker is building on Henry Ford\u2019s original vision \u2014 that every American consumer can own a vehicle \u2014 by reimagining what vehicle ownership looks like. Through software and other technology, Ford is working to ensure that it\u2019s a fully connected, always-on experience.<\/p>\n\n\n\n\n

When we have the ability to update our products dynamically with software, the customer relationship is no longer episodic. It’s every day.<\/blockquote>\n

\u201cFor so long, cars have really been isolated from the rest of people\u2019s lives. We can change that by making them digital products,\u201d Farley explains. To facilitate this shift, Ford has tapped into\u00a0strategic partners like Google<\/a>\u00a0and is integrating software into its vehicles. Beginning in 2023, for example, millions of Ford and Lincoln models will be powered by the Android operating system, with Google apps and services built in.<\/p>\n\n\n\n\n\n

Beyond offering drivers more assistance and convenience, connected vehicles also give Ford the ability to deepen its customer relationships. \u201cWhen we have the ability to update our products dynamically with software, the customer relationship is no longer episodic. It\u2019s every day,\u201d says Farley.<\/p>\n\n\n\n\n

3. Transforming the customer relationship model<\/h2>\n

To deliver on its vision of an always-on customer experience, Ford is also evolving how it approaches relationship-building. While many automakers stick to a traditional acquisition model to attract consumers through ads and rebates, Ford is bringing customer relationships to the forefront by shifting to a loyalty-based model.<\/p>\n\n\n\n\n\n

\u201cAnother big transition for us as a company \u2014 and an industry \u2014 is to stop being obsessed with conquest and start putting all of our resources into taking care of the customers who already love the brand and own the product,\u201d Farley explains. \u201cThis is a model that is available because of the always-on nature of digital. Our products and services are now integrated.\u201d<\/p>\n\n\n\n\n

We want to know our customers well enough to meet their needs while they’re in the vehicle, while they’re outside the vehicle, and before they even think about buying a vehicle.<\/blockquote>\n

Gearing marketing efforts to meet people\u2019s ongoing needs in a more personalized way is critical to Ford\u2019s loyalty-based push, because, as Deering points out, \u201cThe customer expects us to know them.\u201d<\/p>\n\n\n\n\n\n

For Deering and her team, this means relying more than ever on first-party data and signals to create an ecosystem that nurtures deeper relationships. \u201cWe want to know our customers well enough to meet their needs while they\u2019re in the vehicle, while they\u2019re outside the vehicle, and before they even think about buying a vehicle from us,\u201d she explains.<\/p>\n\n\n\n\n\n

While Deering and Farley both readily admit that Ford\u2019s business transformation is a yearslong journey, they\u2019re committed to playing the long game and continuing to drive brand love and loyalty through the 21st century.<\/p>\n\n\n\n\n\n

\"headshot<\/figure>\n\n

Thomais Zaremba<\/strong><\/p>\n\n\n\n\n\n

Industry Director, Automotive at Google<\/p>\n\n\n\n\n\n

This perspective originally appeared on <\/em>Think With Google<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In the last year, the pandemic has forced businesses to rethink everything. Companies have scrambled to figure out how \u2014 and even whether \u2014 to move forward.<\/p>\n","protected":false},"author":7,"featured_media":1552,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[11],"topics":[2],"class_list":["post-1551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-google","topics-editorial"],"acf":[],"yoast_head":"\nHow a Century-Old Brand is Transforming the Auto Industry | AW360<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/advertisingweek.com\/aw360\/news\/how-a-century-old-brand-is-transforming-the-auto-industry\/1551\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How a Century-Old Brand is Transforming the Auto Industry\" \/>\n<meta property=\"og:description\" content=\"In the last year, the pandemic has forced businesses to rethink everything. 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