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1、Winning direct-to-consumer strategies for auto OEMs in ChinaNovember 2022 Getty ImagesEngaging with auto customers directly is becoming a make-or-break strategy for OEMsby Daniel Birke and Alexander WillIn many industries in China,especially technology and consumer goods,businesses are focusing on c

2、ustomer engagement as a key differentiator to address shifting consumer demands,and improve customer experience(CX).Whereas CX captures the overall impression consumers have of their journey with a company,including its products or services,customer engagement refers specifically to the interactions

3、 a company has with its customers.Personalized purchase recommendations and in-store community events are two typical examples.Over time,consistently excellent customer engagement enables brands to forge an emotional connection with their customers akin to a sports fans relationship with their team:

4、loyal and potentially outspoken in their support.This in turn elevates CX and drives higher revenues.Global leaders in the field as well as leading Chinese companies,delivered returns to shareholders over the past 10 years that were on average three times higher than competitors with weak or limited

5、 customer engagement(Exhibit 1).Successful companies raise CX and returns by focusing on customer engagement1S Su uc cc ce es ss sf fu ul l c co ommp pa an ni ie es s r ra ai is se e C CX X a an nd d r re et tu ur rn ns s b by y f fo oc cu us si in ng g o on nc cu us st to omme er re en ng ga ag ge

6、emme en nt tExhibit 11.NPS=Net Promoter Score:Total return for shareholders of listed companies Performance indexed to 2010.Source:McKinsey analysis;DataStream 2010-2020(Latest);Forrester NPS benchmark 2020 for CX Leaders&Laggards201020152021Market perspective:Positive relationship between Total Sha