We’re proud to announce that Perficient has been named a 2025 CRN IoT Innovator, a prestigious recognition that celebrates solution providers leading the way in delivering impactful Internet of Things (IoT) solutions in the enterprise market across industries. This honor underscores our commitment to helping clients bridge the gap between the physical and digital worlds through cutting-edge IoT strategies and technologies.

CRN’s annual IoT Innovators list highlights companies that are shaping the future of enterprise IoT, with solutions spanning connected field operations, AI-powered analytics, digital twins, and edge computing. In the article, the senior editor Dylan Martin remarked:

”Perficient is delivering transformative business outcomes for customers with its end-to-end IoT solutions. In the automotive industry, the St. Louis-based solution provider offers consulting services for the design and integration of advanced driver assist, autonomous, multi-cloud and software-defined vehicle capabilities.”

Perficient’s inclusion reflects our leadership in deploying transformative IoT solutions that drive measurable outcomes, especially in the automotive and manufacturing sectors where data and AI innovation is not just a goal, but a necessity.

Why Perficient Stands Out

In our recent study of nearly 700 consumers in the U.S., 61% of participants in the 29 – 44 year old age bracket responded that they’d want their vehicles to communicate and interact with their in-home devices. This overwhelmingly positive response to connected capabilities across the automotive and manufacturing market reveals a massive opportunity for enterprises to tap into new revenue streams and improved customer experiences.

Perficient is poised to support these enterprises as they continue to innovate in the IoT space. Our approach combines deep industry expertise, AI-first strategies, and robust engineering capabilities to help clients unlock new efficiencies, improve product quality, and deliver exceptional customer experiences.

Recently, Perficient launched:

• Proprietary research on the connected products market meant to inform strategy for organizations across industries delving into and innovating in the IoT space
• Several Strategic Positions on the latest industry innovations around connected products and vehicles, electrification, EV charging, and autonomous driving
• Solutions that utilize connected capabilities and telemetry data to improve customer experience and drive new revenue streams like Battery Passports

Further, Perficient was named a Major Player in the IDC MarketScape: Worldwide IT and Engineering Services for Software-Defined Vehicles 2025 Vendor Assessment (doc # US51813124, September 2025).

In automotive, we partner with 7 of the top 10 OEMs to modernize operations and accelerate innovation. Our IoT solutions support everything from connected vehicle platforms and advanced driver assistance systems (ADAS) to dealer service integration and mobility-as-a-service models. We help OEMs, suppliers, and dealers create seamless, personalized experiences for vehicle owners and passengers, while optimizing design, manufacturing, and service operations.

In the broader manufacturing market, our IoT offerings empower clients to build smart factories and resilient supply chains. From digital twins and collaborative robotics to predictive maintenance and connected shop floor monitoring, we enable manufacturers to gain real-time visibility into assets, reduce downtime, and improve quality assurance. Our solutions are designed to meet the demands of a rapidly evolving landscape shaped by 5G, sustainability goals, and workforce transformation.

An AI-First Future-Ready Partner

We’re a global, AI-first, digital consultancy with thousands of skilled strategists and technologists in the U.S., Latin America, India, Europe, and around the world. We’re transforming how the world’s most admired brands connect with customers and grow their business. As an AWS Advanced Service Partner, member of Microsoft’s 2025-2026 AI Inner Circle, and collaborative partner to AI innovators from Writer and Databricks to Salesforce, Perficient is uniquely positioned to deliver scalable, secure, and intelligent IoT solutions. Our strategic partnerships and technical depth allow us to stay ahead of emerging trends and deliver value that lasts.

Whether you’re an automotive OEM looking to redefine mobility or a manufacturer seeking to build smarter machines, Perficient is your trusted partner for IoT transformation.

Learn more about our industry recognitions and explore our AI in automotive or manufacturing expertise.

On the hundredth anniversary of its circulation, Automotive News launched a series on the technological innovations driving the shift to “software-defined vehicles” (SDVs). The articles explore the fragmented U.S. roadmap to software integration, intensifying global competition, OEM progress to date, and the uncertainties shaping automakers’ strategies. 

This coverage signals an evolution. As automakers race to redefine themselves as technology companies, the industry is grappling with how software will reshape value, competition, and consumer trust. 

Perficient’s Connected Products Research Provides Clarity 

At Perficient, our latest connected products research “Build a Powerful Connected Products Strategy” adds a critical layer of data to the SDV conversation: distinguishing not what automakers think matters most — but what consumers actually care about.

“OEMs are making strategic bets on software-defined vehicles, but consumers are weighing very different factors when making purchase decisions. The gap between those perspectives is significant — and closing it is critical,” said Justin Huckins, Director, Strategy, Automotive Industry Lead.  

This difference matters. OEMs navigating still-undefined SDV pathways need data-based consumer signals to guide product architecture, user experience, data governance, and connected services. Otherwise, they risk widening the gap between industry emphasis and end-user expectations. 

Four Key Insights: Where Automakers and Consumers Diverge 

Our research gathered perspectives from 1,307 respondents including consumers, OEMs, and manufacturers, surfacing a series of misalignments: 

1. Trust is the top consumer priority, but not for manufacturers. Only 22% of manufacturers flagged “trust” as a critical factor in adoption — yet consumers consistently rank it #1. 
2. Consumers don’t feel informed about data collection. Despite widespread anxiety about data privacy, only 19% of consumers feel fully aware of what their vehicles are collecting. 
3. Experience outweighs engineering. “Consumers are more worried about the experience than the engineering. OEMs often enter the connected space for internal reasons — field data, R&D — but buyers expect tangible value in everyday use,” said Kevin Espinosa, Director, Strategy, Manufacturing Industry Lead. 
4. Integration matters. 38% of consumers highlighted integration with other connected devices as a key feature. This points to expectations of seamless cross-device ecosystems — from vehicles to homes to mobile apps. 

Why this Research Matters in the Race to Software Defined Vehicles 

• Trust as a foundation: Software-defined vehicles amplify consumer concerns around data handling, privacy, and transparency.  “It’s alarming that manufacturers and their customers don’t value trust in the same way,” said Jim Hertzfeld, Area Vice President. Trust is no longer a secondary issue; it’s the foundation for adoption. 

• The global race, China’s edge & collaboration: As Automotive News highlights, China’s accelerated SDV progress creates global pressure. Collaborative development models will only succeed if OEMs align around consumer trust and clarity. 

• Roadmap clarity through consumer signals: With the SDV roadmap still fuzzy, consumer insights provide directional clarity on where to invest — from UX and subscriptions to data governance and operating models. “OEMs are looking to monetize, but customers are looking for better experiences. Whoever reconciles that disconnect first will lead the next wave of SDVs,” added Justin. 

Shaping SDV Strategies Around What Buyers Value 

As the SDV era accelerates — with new architectures, shared development models, and software updates over the air — aligning strategy with consumer expectations around transparency and privacy will be just as important as the technology itself.  

Leveraging our position as the global AI-first consultancy, Perficient partners with Fortune 2000 companies across industries—healthcare, financial services, manufacturing, and more—to digitize operations, modernize with cloud and AI, and unlock insights from connected data platforms. That cross-industry vantage point matters, because there are now more connected products in the world than people, and vehicles are becoming one of the most important nodes in this ecosystem. 

If you’re exploring how SDV strategies can be shaped by what buyers truly value, our research offers a tangible perspective. Download Build a Powerful Connected Products Strategy or schedule an interview with our industry leaders to discuss how consumer insights can inform your software defined vehicle strategy.

We’re proud to share that Perficient has been recognized by a leading global technology research and advisory firm for our deep expertise and impactful work in the automotive and mobility industry. This recognition underscores our commitment to helping automotive companies accelerate innovation, embrace digital transformation, and lead in a rapidly evolving market. 

As the automotive and mobility landscape undergoes a seismic shift—driven by electrification, software-defined vehicles, autonomous systems, and evolving consumer expectations—Perficient stands at the forefront, delivering strategic consulting and cutting-edge technology solutions across the value chain. 

“We’re honored that our clients place their trust in us to help them navigate complex transformations—from electrification and connected vehicles to next-gen retail experiences and mobility services.” said Justin Huckins, Automotive Industry Lead at Perficient.

Driving Innovation Across Key Automotive Domains 

Perficient’s recognition in the automotive and mobility space is a reflection of our long-standing commitment to helping clients not only adapt to change but lead it. Our work begins with a deep understanding of the industry’s unique challenges—whether it’s modernizing decades-old IT infrastructure, navigating the complexities of global supply chains, or reimagining the customer experience. We bring together cross-functional teams of strategists, engineers, designers, and technologists who understand the nuances of automotive and mobility and who are passionate about building what’s next. 

The Ownership Experience of Electric Vehicles 

Take, for example, our work in the electric vehicle (EV) space. As automakers strategize to meet electrification goals and face the challenges of a plateaued level of adoption, we’ve helped clients build the digital backbone needed to address the concerns their customers have voiced. We support EV ecosystems, from connected charging networks and predictive maintenance platforms to customer-facing mobile apps tied to subscription services that enhance the ownership experience. We’ve even developed the Battery Passport, which provides unprecedented transparency into an EV’s battery health and value. These aren’t just technology projects, they’re business transformations that require a holistic view of operations, customer engagement, and long-term scalability. 

Software-Defined Vehicles and Autonomous Capabilities 

In the realm of software-defined vehicles and autonomous systems, we’ve partnered with OEMs and Tier 1 suppliers to take advantage of vehicle telemetry data. We’ve developed cloud-native platforms that enable over-the-air updates, real-time data analytics, and AI-driven decision-making. These capabilities are critical as vehicles become more intelligent and connected, and as the line between automotive and tech continues to blur. This expertise not only lives in the automotive space, but across connected product markets that are continuing to become more integrated from wearables to smart home appliances and security systems. For more information, you can explore our connected products research in which we surveyed manufacturers and end users across market categories to reveal the most pressing concerns and greatest opportunities in the space.   

Automotive Retail and Aftermarket Parts 

We’re also deeply engaged in helping automotive retailers and aftermarket providers evolve. The traditional dealership model is being disrupted by digital retailing, direct-to-consumer sales, and new service expectations. Our teams have delivered solutions that integrate CRM, e-commerce, and service platforms to create seamless, personalized experiences, whether a customer is buying a car online or scheduling a repair through a mobile app. Notably, our generative AI solutions are transforming the way customers interact with a brand’s ecommerce site and drastically improving time spent on site and conversions. 

Take Your Organization from Vision to Value 

What sets Perficient apart is not just our technical expertise, but our ability to connect strategy with execution. We don’t just advise—we build, implement, and optimize. We achieve this with a global delivery model that ensures speed, quality, and cost efficiency. 

As the automotive and mobility industry continues to evolve, we remain committed to helping our clients stay ahead of the curve. This recognition from a leading analyst firm is a testament to the impact we’ve made and the innovation still to come. 

Explore our automotive industry expertise and schedule time to discuss your digital transformation with our experts. 

Perficient’s global colleagues share a commitment to excellence, grounded in the belief that our success is defined by the outcomes we achieve for our clients. Our focus on delivering exceptional results inspires us to leverage our expertise and foster innovation in every project. By deeply understanding our clients’ unique needs, we strive to create tailored solutions that not only meet expectations but consistently exceed them.  

This blog series celebrates Perficient’s recognition as a 2025 USA Today Top Workplace. In our last blog, we discussed how Perficient is Shattering Boundaries through our global delivery model and cutting-edge strategies. In the third installment of the series, we’re showcasing how our outcomes-driven approach strengthens client relationships, enhances our industry expertise, and harnesses data to foster success. Watch the video below to see how our colleagues passionately pursue results to accelerate growth for both our clients and our business. 

Engaging Clients and Exceeding Expectations 

Client success relies on understanding and trust. By cultivating genuine connections, we gain valuable insights into our clients’ challenges, allowing us to refine our strategies. Our team listens actively and approaches every project with empathy, crafting personalized solutions that address immediate needs while supporting long-term, scalable growth. We prioritize our clients’ objectives and always keep the end goal in mind, fostering lasting partnerships.  

“Relationships are the basis of everything we do. When we engage with a client, we’re often doing something that’s cutting edge, and it’s our job to build trust and collaboration. It’s important to get down to the root cause of a client’s concerns, determine what they’re scared of, and outline what their goals are to create the building blocks for long-term success.” – Gina Hart, Managing Director, Dallas 

READ MORE: Delighting the Client 

Perficient’s Cross-Industry Expertise Empowers Businesses with Agile Strategies 

Our client-first approach and pragmatism enable businesses to act swiftly and maintain a competitive edge in a rapidly evolving market. From enhancing customer relationships and increasing revenue to saving costs and leveraging technologies, our expertise transforms businesses and drives real results. With thousands of skilled strategists and technologists worldwide, we have the knowledge and industry experience to create end-to-end digital solutions that elevate the world’s biggest brands.  

“It’s something I talk about all the time—using the ability to measure what we’re doing to drive where we’re going and iterating rapidly. As the world changes around us, and as we observe and measure that change, we can feed that back into an experimental process. With speed and agility, we can change our approach to accomplish new things, try new approaches, and potentially create innovative new ways of doing business.” – Eric Walk, Principal, Digital Strategy

Our subject matter experts are at the forefront of digital change across various industries, sparking innovation through their thought leadership. Now, let’s explore some of the top industries we serve and how our expertise enhances client outcomes. 

Healthcare and Life Sciences  

Healthcare is our largest vertical, serving clients such as providers, plans, and health solution companies. Our healthcare and life sciences experts bring extensive knowledge that fosters strong collaboration with clients across the care ecosystem, as we partner to streamline operations, enhance patient experiences, and support better health outcomes. We are proud to have served the 10 largest health systems and the 10 largest health insurers in the U.S. Additionally, Modern Healthcare consistently recognizes Perficient as a top healthcare management consulting firm.  

In the healthcare industry, we have enhanced health system outreach by leveraging our expertise and platform-agnostic approach to drive large-scale personalized patient communications.  

• Client Challenge: A leading pediatric health system wanted to expand its community outreach and improve patient engagement, but its legacy CRM system lacked the scalability for growth and effective data management.
• Solution: We integrated Salesforce Health Cloud with the organization’s Marketing Cloud to create a centralized patient data platform, and we enhanced system functionality to optimize patient outreach and data management.  
• Outcome: This new multi-cloud system supports the organization’s long-term growth and outreach campaigns, streamlining workflows and enabling more targeted patient communications through improved data capabilities.

Our life sciences team is dedicated to supporting clients in the pharmaceutical, biotechnology, medical technology, and contract research organization sectors. With specialized expertise in patient journeys, medical devices, and artificial intelligence (AI), we focus on enhancing patient experiences and outcomes, accelerating software development, ensuring compliance in device delivery, and transforming the research and development process. As a result, we have driven innovative growth for 14 of the 20 largest pharmaceutical and biotechnology companies, as well as 14 of the 20 largest medical device firms.  

LEARN MORE: Intelligently Powering Digital Pathology Data and Workflows for Biosciences Imaging Leader 

Financial Services 

Alongside healthcare and life sciences, our experts spearhead innovation in the financial services industry, working with clients in banking, wealth and asset management, capital markets, and payments. Whether it’s navigating regulatory shifts, managing compliance, developing personalized experiences, or creating customer intelligence tools and data platforms, our solutions enable clients to enhance customer loyalty and trust, operational efficiency, and regulatory compliance.  

The largest financial institutions, including 18 of the 20 largest commercial banks and 16 of the 20 largest wealth management firms, have relied on us to create adaptable digital experiences that scale to evolving business needs and customer expectations.  

Perficient has helped financial services companies intelligently mine and optimize complex data for smarter insights and greater productivity.  

• Client Challenge: An independent investment management firm archived research information in PDF files and a central data warehouse, limiting data accessibility and efficiency. 
• Solution: We ingested the PDFs into the company’s Snowflake data cloud and built semantic models using Snowflake’s Cortex Analyst and Cortex Search GenAI tools to contextualize the data. We also optimized the data with large language models and created a user interface for queries. 
• Outcome: This AI-driven solution enhances productivity by mining information and generating contextually relevant natural language responses from a single data source, improving data confidence and accessibility.

READ MORE: Explore Perficient’s Client Success Stories 

Harnessing AI to Transform Client Outcomes and Achieve Operational Excellence 

To foster successful client outcomes, our team combines deep industry knowledge with relevant data to shape our strategy. In today’s dynamic landscape, AI is redefining the future of technology. With our cross-industry expertise, we empower clients to leverage AI for maximized value, improved operational efficiency, and accelerated growth. Perficient’s Generative AI Unlocked video series showcases AI’s cutting-edge capabilities and provides expert insights on its innovative impact across various sectors. In addition to our thought leadership, our award-winning AI practice offers tailored solutions that enhance user experience and boost productivity.

Manufacturing companies often encounter customer service challenges due to product complexity and the need for specialized assistance. Perficient has helped clients in this sector by integrating AI into their customer service touchpoints, enhancing efficiency and support. 

• Client Challenge: A multinational manufacturing conglomerate struggled with customer service, receiving about 2.5 million inbound service calls and emails annually that led to slow response times and high labor costs. It aimed to reduce contact volume by shifting customers to self-service options.  
• Solution: We leveraged our Envision Framework and Journey Science Methodology to develop a comprehensive roadmap. Next, we implemented Amazon Connect along with AWS AI and machine learning services to enhance customer service through a chatbot, virtual agent, and personalized automated email replies. The chatbot uses customer data and indexed knowledge bases for natural responses to customer inquiries, while the virtual agent utilizes product data, web content, and FAQs to suggest responses and next steps to resolve customer issues.  
• Outcome: Our multi-year strategy achieved $25 million in traceable annual cost savings, $61 million in projected revenue lift, and a 39% reduction in inbound customer service calls and emails.

In the automotive industry, we have applied AI to personal selling tactics to guide customers through the car buying journey.  

• Client Challenge: A leading automotive company aimed to differentiate itself by using an AI agent to deliver personalized vehicle recommendations tailored to customers’ specific needs.
• Solution: We developed and integrated a conversational virtual agent into the company’s website using the Google Vertex platform, which leverages thousands of data points to assist customers through the vehicle exploration process.
• Outcome: The client experienced a 28% increase in user engagement, with our solution driving 5,000 conversations per day, 76% more time spent on the site, and 171% more page views per visit.  

LEARN MORE: Accelerating Value with GenAI Innovation for Major Not-For-Profit Health Insurer 

Perficient’s obsession with outcomes fuels our commitment to client success. By building strong relationships, we develop customized solutions that go above and beyond their expectations. Our dedication to innovation and excellence enables us to adapt quickly and deliver meaningful results across diverse industries. Stay updated for the next blog in our series, where we’ll explore how Perficient is forging the future and making a difference in our communities.  

READY TO GROW YOUR CAREER?  

It’s no secret our success is because of our people. No matter the technology or time zone, our colleagues are committed to delivering innovative, end-to-end digital solutions for the world’s biggest brands, and we bring a collaborative spirit to every interaction. We’re always seeking the best and brightest to work with us. Join our team and experience a culture that challenges, champions, and celebrates our people.  

Visit our Careers page to see career opportunities and more!  

Go inside Life at Perficient and connect with us on LinkedIn, YouTube, X, Facebook, TikTok, and Instagram.  

The Evolving Landscape of Automotive QA 

In today’s automotive industry, QA is no longer an afterthought—it’s the foundation of everything we do. Vehicles have evolved far beyond simple machines into complex ecosystems of hardware, software, connectivity, and automation. With the rise of autonomous driving and electric vehicles, the intricacies of these systems have reached new heights, making quality assurance more critical than ever. 

This complexity has elevated the importance of QA. It’s not just about ensuring a car runs; it’s about preventing failures that could lead to catastrophic consequences on the road. It’s imperative that QA now touches every corner of the automotive industry, from manufacturing precision to validating autonomous driving algorithms and beyond. 

The Shift from Hardware to Software 

One of the big shifts happening in the industry is at the OEMs (Original Equipment Manufacturers). They’re going through a transformation from producing hardware to producing software. This transition amplifies the need for QA. As automotive companies become more like software companies, producing apps, connected products, and subscription services, QA becomes front and center. There’s almost nothing that we’re producing at Perficient, or the OEMs are producing themselves, where QA couldn’t add value. 

QA as a Proactive Force in Automotive Development 

The future of QA in the automotive industry is proactive rather than reactive. QA is evolving into a force that must catch and prevent issues at the design stage, rather than simply finding them later. As the industry embraces agile development and continuous integration, QA needs to be present from the concept phase through every iteration even more. 

This approach requires QA teams to work collaboratively, closely, and frequently with developers, designers, and manufacturers. As autonomous vehicles become more prevalent, QA is transforming into a blend of engineering and data science. Testing autonomous algorithms requires massive amounts of data, simulation, and machine learning, pushing QA teams to adapt and think like data scientists. 

Overcoming Challenges in Automotive QA 

One of the primary challenges many automotive leaders face is keeping pace with the complexity and speed of innovation. As vehicles become smarter and more connected, the number of potential failure points increases exponentially. To address these challenges, we need to embrace technology and rely heavily on automation and AI testing. The complexity of today’s vehicles is such that no human can anticipate all possible situations. We need specialized tools to help us identify and test a myriad of potential circumstances. 

Another significant challenge is the perception that QA is too time-consuming and expensive, especially when there’s pressure to get vehicles to market quickly. However, I always counter this view with a question: Can you afford not to invest in QA? Cutting corners on QA can lead to costly recalls, massive repairs, and damage to your brand, not to mention potential safety risks. 

While some may think that AI is making QA teams less important, the opposite is true. AI is leading the way in making testing faster and easier; QA ensures that AI systems are correctly implemented, safe, compliant, and continuously improving. 

Addressing Future Challenges 

To address future challenges in automotive QA, Perficient implements several key strategies: 

1. Early Involvement: QA teams are involved early in the development cycle, participating in design and conceptualization phases. 
2. Collaboration: There’s increased collaboration between developers, QA teams, and manufacturers to ensure seamless integration of software and hardware. 
3. Innovative Culture: Companies are fostering a culture of innovation, encouraging team members to constantly seek better ways of doing things. 
4. Talent Investment: There’s a growing focus on investing in talent and training teams to handle new and complex challenges. We bring top talent to support your organizational needs and meet your challenges head on. 
5. Cybersecurity Focus: With the increasing connectivity of vehicles, cybersecurity has become a new, critical aspect of QA. 

The Future of Automotive QA 

As the automotive industry continues to evolve, QA will play an increasingly vital role. The complexity of modern vehicles, the shift towards software-driven development, and the advent of autonomous and electric vehicles all underscore the importance of robust QA processes. 

This is one of those times in the automotive industry where we’re seeing tremendous change, with real winners and losers emerging. Success will depend on how well companies integrate towards becoming software companies, how well they’re able to move quickly and navigate this new space and put out world-class products that create great experiences for their consumers. QA is an essential part of that. 

In this new era of automotive development, QA is not just about finding bugs—it’s about ensuring excellence, earning consumer trust, and driving innovation in one of the world’s most dynamic industries. 

Perficient’s team of experienced QA professionals, led by industry veterans, can help you navigate these changes and implement cutting-edge QA strategies tailored to the automotive industry. Contact us today to learn how our automotive QA expertise can drive your success in the software-driven future of the automotive industry.  

Connected vehicles are no longer the future. They have become the present. This year, our team is conducting connected products research in which we are collecting insights from consumers, commercial end users, and manufacturers. The reason? Almost every manufacturer is working on providing connected products and solutions for both their consumers and their businesses operations. With that initiative comes challenges with leveraging huge volumes of data and questions about how companies can create revenue opportunities that still generate significant value for the consumer. 

Our research spans many industries, but I wanted to focus in on how connectivity is uniquely playing out in the automotive industry. This industry is on the brink of a technological revolution, and connected vehicles are at the forefront of this transformation. As the world becomes increasingly interconnected, the cars we drive are no exception. Today, cars are not only becoming sophisticated, but also becoming data centers on wheels. With advanced sensors and constant internet connectivity, connected cars can communicate with other vehicles, infrastructure, and even pedestrians. This interconnectivity promises to enhance safety, efficiency, and convenience. 

Explore Our Connected Vehicles Strategy Position

Will Promises of Value Outweigh Privacy Concerns? 

Proponents argue that connected vehicles will significantly reduce accidents through real-time data sharing and advanced driver assistance systems (ADAS). Imagine a world where traffic lights communicate with cars to optimize traffic flow, or where a vehicle can warn its driver of an impending collision long before it happens. The value of these interactions for drivers and their communities would be life-altering.  

However, this connectivity raises serious privacy concerns. With cars collecting vast amounts of data on our driving habits, locations, and even conversations, consumers are wondering who has access to this information and what is being done with it. For manufacturers, the questions must be asked: are consumers being fully educated on their data and how it is used? Are they getting value from their data being collected? Are consumers going to resist the full adoption of connected vehicles if they do not feel entirely comfortable with this transaction of privacy for value? 

Securing Consumer Data Is the Pathway to Adoption 

The whole question of data privacy is critically important. There are regulatory and compliance issues with data, and the impact goes way beyond the consumer and their vehicles. For OEMs, the goal must be bigger than just monetizing the data. The data must be leveraged for the consumer and provide value to them as well. The consumers need to get value from their data in terms of benefit to them, their fellow consumers, and the larger community.

The promise of connected vehicles is undeniably exciting, offering unprecedented safety, convenience, and efficiency. However, we must tread carefully. As we move towards this connected future, it is crucial that we address these challenges head-on, ensuring that the benefits of connected vehicles do not come at too high a cost for consumers.  

The future of the automotive industry is here, and it is connected. OEMs are busy getting ready for a connected future along with managing vast data opportunities and issues.  

Ready to connect? Reach out to discuss how our expertise in the automotive industry can help your brand forge the future of connected vehicles. 

There is an untapped potential for automotive loyalty programs, and we are living in an era where customer loyalty is more fleeting than ever. Until now, the relationship between OEMs and customers has been largely transactional. A customer buys a car, and the interaction ends there until the next purchase cycle—typically five to ten years later.

But in today’s competitive landscape, this model is no longer sufficient. Customers expect ongoing engagement and value from the brands they choose.

The way forward is to build innovative loyalty programs beyond the usual incentives to create genuine brand advocates. The power of loyalty programs has proven successful in other industries, from airlines to retail. They create a sense of belonging and reward customers for their repeat business. However, the automotive industry has been slow to adopt comprehensive loyalty programs.

This needs to change, and here’s why.

Why Does Loyalty Need to Change?

Three major desires of OEMs and customers are changing the face of automotive loyalty:

1. Increased Customer Retention – It’s significantly cheaper to retain an existing customer than to acquire a new one. Loyalty programs can keep customers engaged between purchases, ensuring they return when it’s time for a new vehicle.
2. Higher Lifetime Value – Loyal customers are likely to spend more over their lifetime, not just on vehicles but on related services such as maintenance, accessories, and upgrades.
3. Enhanced Customer Experience – A well-designed loyalty program can improve the overall customer experience, leading to higher satisfaction and positive word-of-mouth.

Crafting the Ultimate Loyalty Program

To create a successful automotive loyalty program, manufacturers need to think creatively and holistically. Here are key elements to consider:

1. Tiered Rewards Systems – A tiered system encourages customers to strive for higher levels of rewards. For example, a basic tier might offer discounts on services, while higher tiers could include exclusive access to new models, VIP events, or even free maintenance packages.
2. Personalized Experiences – Leverage data to understand customer preferences and tailor rewards accordingly. Personalization can range from targeted service reminders to custom offers based on driving habits and vehicle usage.
3. Integrated Ecosystems – Create an ecosystem where customers can earn and redeem points across various touchpoints—dealerships, service centers, online stores, and partner businesses. This integration makes the program more valuable and versatile.
4. Community Engagement – Build a community around your brand. Organize events, create online forums, and encourage social media engagement. Customers who feel part of a community are more likely to remain loyal.
5. Seamless Digital Experience – Ensure your loyalty program is accessible and easy to use via a mobile app and online portal. Customers should be able to track their points, redeem rewards, and access exclusive content with just a few clicks.

Several automakers are already pioneering in this space. For example, Tesla is known for its referral program, as it rewards customers who refer new buyers with exclusive perks including early access to new models and significant discounts. The BMW Loyalty Program also offers a range of benefits, from special financing rates to personalized gifts and invitations to exclusive events. Further, Hyundai Rewards allows customers to earn points for vehicle purchases, service visits, and even test drives, which can be redeemed for future purchases and services.

The Road Ahead

The future of automotive loyalty programs is bright, but it requires a shift in mindset. OEMs must move beyond the traditional sales cycle and invest in long-term relationships with their customers. By doing so, they can turn one-time buyers into lifelong brand advocates, driving sustained growth and market leadership.

By fostering deeper connections with customers and offering meaningful rewards, OEMs can ensure that their brands remain top-of-mind and top-of-choice. The journey to loyalty starts now. Are you ready to take the wheel?

The Perficient automotive team would love to hear your thoughts and help you to build out a world class loyalty program that gives you a sustainable competitive advantage in the marketplace.

The Marconi Automotive Museum in Southern California was the perfect backdrop for our roundtable event, during which we discussed the evolution of brand loyalty with leaders from several of the world’s most influential automobile manufacturers.  This is an important topic for the automotive and mobility industry, one that is front and center as emerging technology is creating new opportunities to improve customer experience and build stronger, more personal relationships with customers. With over $80M of exotic and rare automobiles surrounding us, the discussion felt even more special.   

Evolving Consumer Preferences and Emerging Tech

Today, OEMs spend billions of dollars building loyalty programs and thinking strategically about omnichannel customer experiences. All the hard work poured into that process can be undone if the dealership is still thinking in a transactional way.  At the same time, it’s important to remember that dealerships think in terms of transactions because of the way they are incentivized.   

We also discussed how consumers and their buying habits are changing.  Automotive purchasers no longer mainly consist of Baby Boomers and Gen X, but rather of Millennials and Gen Z. These younger generations have spent most, if not all, of their lives depending on computers and smartphones. A “Netflix” and “Amazon” effect is taking over consumer behavior, and the automotive industry will not be saved from the implications. These folks want a different experience built around their needs, not the outcomes of an incentive plan. 

The vehicles have also evolved, no longer differentiated by performance but by their software and connected capabilities.  

Brands Must Be Loyal to their Customers

I was pleased to find that the OEMs are building business cases and asking the right questions about how we can help the consumers.  Lasting relationships are two-way streets; we can no longer define brand loyalty as only a customer’s loyalty to the brand.  One of my favorite comments during the event from a major OEM was that we need to think not only about what the OEM wants for lifetime customer value and loyalty but also what our customers want and need. 

Solving the “Loyalty Dilemma” is an inflection point in automotive. What problems are we solving?  Are they the right problems? What is the generational impact of this solution?  Those are just some of the questions that over time we will answer.  Industry changes, consumer needs and preferences change, and it is time that all the players in the industry lock arms and address this challenge.  I love our clients who participate in the roundtables because they want to be changemakers in our industry. Sure the solution to lifetime customer value has ROI benefits for the OEM, but it also dramatically changes the relationship with their consumer.

At Perficient, automotive expertise helps clients achieve their goals, disrupt the industry, and accomplish things that give them a sustainable competitive advantage.  Let’s connect -I would love to continue the conversation and create something that helps improve your customers’ lives.

For the second year in a row, I spent an evening with my colleagues at the University of Michigan’s Ford Robotics Center in Ann Arbor to celebrate MRacing’s unveiling of this year’s EV. It did not disappoint – it was a beauty, designed with the look and feel of a Michigan football helmet, including the blue and maize figured prominently. I spoke to team members from all over the world, and I knew very quickly that these young men and women are the future leaders in engineering and robotics. They will be the ones who lead our great automotive industry into this new technological world.

One of the things I love most about working at Perficient is the passion to give back to our communities and support things that are way bigger than us. We are committed to not only serving our clients, but also serving the whole automotive industry. Last year, we sponsored eight schools around the country who were giving young automotive engineers the opportunity to build their own vehicles and compete all around the world. The program, named “Electrifying the Future of Automotive,” was so successful that, this year, we decided to not only continue but expand our program to include thirteen schools, some of which were international.

The University of Michigan is a fantastic school that is near to my home and place of work, so it was a no-brainer for me to revisit this year. There is nothing that fills my heart more than talking to these young folks on the University of Michigan Formula SAE team – they are all managing components of the vehicle and program, learning much more than just about the engineering of the vehicles. Each year, the team elects a captain as well as leaders for all the different areas of running the program and building the vehicle. More than anything, though, it is amazing to see how this program fosters their ability to function as a team. They are learning to work together without the silos and weight of industry history, which, at times, inflict the larger automotive industry. Rather, they see the endless possibilities of the future.

This unveiling is one of my favorite events to attend for the year. I love talking about the future of automotive with the people who will one day be leading the industry. For me, it is a chance to brainstorm about sustainability and customer experiences and recognize that, even with vastly more distractions around, automotive enthusiasm is still a massive cultural phenomenon.

As I was heading back to my car to drive home, I turned back for one last look at the Michigan team – a team of young people whose bright future and talents will take us very far. I felt an intense pride that the Perficient leadership is so supportive of our automotive practice and partnering with the universities who are participating in Formula SAE. We can support the future of automotive with more than just our innovative solutions to serve our clients. These thirteen sponsorships serve the future leaders, thinkers, and doers in the automotive industry and creating generational change.

A sustainable competitive advantage in the automotive industry starts with building a foundation for the future, and that’s the Perficient automotive speciality.

In this episode of “What If? So What?” Jim sits down with Keith Tomatore, a seasoned automotive industry veteran and leader of Perficient’s automotive practice. Together, they embark on a journey into the electrifying future of the automotive industry.

Keith shares his unique journey from his start at Swiss Army Brands to spearheading digital transformation in the automotive industry, emphasizing the importance of customer connection and innovative thinking. The conversation covers the driving forces behind automotive electrification, the state of the industry, and the significant impacts on OEMs, suppliers, dealers, and consumers alike.

With a special focus on Perficient’s comprehensive study around electrification, Keith unveils startling geographic disparities, evolving consumer behaviors, and strategic insights for stakeholders navigating this shift.

For more insights on automotive electrification visit: Automotive Electrification / Perficient

Connect with Keith “KT” Tomatore

Connect with Jim Hertzfeld, Area Vice President of Strategy

Listen now on your favorite podcast platform or visit our website.

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Meet our Guest

Keith Tomatore, Global Automotive Lead

Connect with Keith “KT” Tomatore

Connect with Keith “KT” Tomatore

Meet the Host

Jim Hertzfeld is Area Vice President, Strategy for Perficient. For over two decades, he has worked with clients to convert market insights into real-world digital products and customer experiences that actually grow their business.

More than just a strategist, Jim is a pragmatic rebel known for challenging the conventional and turning grand visions into actionable steps. His candid demeanor, sprinkled with a dose of cynical optimism, shapes a narrative that challenges and inspires listeners.

Connect with Jim:

LinkedIn | Perficient

When we conducted our electric vehicle customer journey research last year, we confirmed a commonly held belief in the United States: most people aren’t happy with their dealership experiences, specifically as it relates to aggressive sales tactics. Automotive customers desire experiences and service centers that meet their needs, listen to their concerns, and provide a comfortable environment to explore vehicles at their own pace. OEMs are putting a greater emphasis on the customer experience, whether online or at the dealership, than ever before, but are we thinking about this priority the right way?

No longer are demographics of automotive shoppers dominated by the Baby Boomers and Generation X folks. The largest group of shoppers are now Millennials and Generation Z, both of which had access to computers, handheld devices, and subscriptions services for a significant part of their lives. However, when I think of an iconic experience that has touched a majority of these shoppers and changed their expectations for all other experiences, I think of Apple and the experience at their stores.

The Apple Store Difference

I remember walking in a mall and comparing the Microsoft store to the Apple store. What a huge difference in customer experience. Microsoft was a typical mall store, which had nothing really wrong with it, but it held no candle to Apple’s stores.

The Apple store is an experience where customers would not only transact to get products and services, but also engage with the products and staff. The staff was extremely educated about all the products, and their job was to guide customers to experience the products and learn more about them, focusing less on the aggressive sales tactics that many other stores implemented. As a result, people actually made plans to go to the Apple store to hang out, play with the latest products, take classes, and even have personal meetings with the “Apple Geniuses.”  As my wife is shopping at the mall, I have often found myself spending time at the Genius Bar learning new features on my iPhone, iPad, Apple Watch, or Mac computer.

What If Dealerships Were Like Genius Bars?

So, here’s my question to everyone who thinks dealerships must be only focused on selling vehicles or driving traffic to service centers: Is there not another option? What if automotive dealerships were more like the Genius Bars at the Apple stores, and people looked forward to visiting rather than dreading a whole day of browsing options, negotiating, and paperwork? I think of my mother-in-law, who has bought three brand new vehicles — an Aston Martin, BMW, and recently an Audi — only to immediately return all three because she could not understand the technology in the vehicles.

It’s true that vehicles will only get more complex with time, and there will be many benefits to these new features, but a critical component that we fail to consider is how customers will be able to learn all this technology. Especially since most drivers keep their vehicles for a few years, the technology will have changed so much by the time they begin shopping for a new one.

Customers need accessible and beginner-friendly ways to explore new vehicle technology and feel confident about driving a new car off the lot. There should be resources available on how to use the dashboard, connected products, subscription services, and even software updates. All OEMs should have a mobile app if they do not already, and all OEMs should be working with dealers to make sure that their customers understand how to get the most out of their vehicles using that app. Imagine a future in which folks are booking classes at the dealership, playing with new products, and getting sneak previews of upcoming products and the latest technology.

The Evolution of Loyalty Requires a New CX Approach

The saleswomen at my local Ford dealership spent over an hour with me on my new Edge just to explain how to use the dashboard. Her commitment to creating a great experience has made my wife and I loyal to her dealership, and we buy all our vehicles from that location. Even better, we send our friends and family to this dealership.

I am suggesting that dealerships change their approach to customers by looking beyond service and delivery centers as the only means to lifetime value. They must considering becoming a lot more like Genius Bars, and OEMs should invest in this future for their dealers as well.

Enabling dealers to become showrooms staffed with educators, such as with dashboard screen simulators that teach customers about how to leverage the great technology within vehicles, is the key to long-lasting loyalty and increased revenue. Consumers who understand connected products will spend more money on subscriptions and will be more likely to keep coming back for purchases, from vehicles to aftermarket parts, as well as servicing.

The Genius Bar approach is not an earth-shattering idea, but rather a strategy that aligns the brand with the new technology it sells and the modern consumer it sells to. If done correctly, the increased loyalty will help OEMs and their dealers better understand their customer base, providing more guidance for future product releases.

At Perficient, our automotive experts are ready to help you create a great customer experience, both online and at your dealerships. Whether you need a workshop to develop an approach or a capability assessment for the technology you’ll need, we have the industry knowledge and the technological expertise to build a sustainable competitive advantage for your brand. Together, we can develop your consumer lifetime value and increase loyalty.

Tap into our automotive industry expertise.

It’s best to learn from our past in order to prepare for the future. As part of that practice, let’s review what happened in the last quarter of 2023 for the automotive industry, and make some predictions on what we can expect for 2024.

Gas Prices at the Close of Q4, 2023:

Hawaii               $4.68                               National Average     $3.07

California          $4.62                               Florida                       $3.12

Washington      $4.04                              Pennsylvania            $3.35

Oklahoma         $2.59                               Virginia                     $2.93

Arkansas           $2.63                               Texas.                        $2.68

My prediction: Oil prices will be back on the rise as global demand for crude rebounds driven by China’s emergence from COVID lockdown – further swayed by a worsening of the Russia-Ukraine war.  The US is taking some oil off the market by refilling our strategic petroleum reserves.

The Purchasing Managers Index (PMI)

Manufacturing PMI: The Purchasing Managers Index (PMI) is a major economic indicator derived from the monthly survey of Private Sector Companies – and measures the change in economic activity in the manufacturing sector.

• PMI>50.00 points = Expansion
• PMI<50.00 points = Contraction
• The PMI in the U.S. was 47.90 points in December 2023, down from 49.40 points in November 2023.

Automotive Economic Factors

• For the U.S. Auto Market – “Normalcy” will sum up 2024 per Cox Automotive
• Slow growth ahead, but better than a recession
• Vehicle supply is back, favoring consumers, and placing downward pressure on prices
• In 2024, we officially bid farewell to the Sellers’ Market
• The EV Market in 2024 will be the “Year of More” – More models, more incentives, more discounting, more advertising, and more sales muscle

Electric Vehicle Sales

EV Sales: 4^th Quarter sales were up only slightly from the 3^rd Quarter, but year-over-year growth was 46% pushing total sales to 1.1 million units.  EV’s share of retail sales is 7.4% of the market.

Here are the top EV States:

State                                                              EV Share of Retail Sales

California                                                     21.1%

Washington                                                15.4%

New Jersey                                                  10.3%

Nation                                                           7.4%

Connecticut                                                6.6%

Texas                                                              5.4%

New York                                                      4.7%

Pennsylvania                                               4.1%

Michigan                                                      3.1%

Ohio                                                              3.0%

• EV Status: More models, more choices, more sales, 37 new models in 2024, 34 new models in 2025
• EV Inventory: The day’s supply is well above the industry average. EV inventory increased by 92% in 2023. This is a 113 days’ supply as of 12/31/2023. ICE days supply is 69 days.
• EV Transaction Prices: Started off in January 2023 at $20,000-$25,000 higher than ICE.
• As of December 31, 2023, EV average price is $50,736 and ICE average price is $48,759. This is driven by supply inventory, higher incentives, and competition.
• EV Leasing: Expected to rise further in 2024 – Treasury announced that leased EVs not assembled in North America can receive the IRS tax credits.

Today’s Fastest Growing Competitor

BYD (Build Your Dreams) sold 525,409 electric vehicles in the 4^th Quarter of 2023 vs Tesla who sold 484,507 in the same quarter.  In the full year of 2023, Tesla sales are 1.8 million electric vehicles vs 1.57 million units for BYD. However, BYD also sold 1.44 million hybrids.

BYD was founded in 1995 as a battery maker for cell phones. It also sells hybrid gas/electric cars and forecasts to sell 3.6 million total vehicles this year.

A few BYD highlights:

• BYD has outsold VW, formerly the best-selling brand in China
• BYD has Warren Buffet Berkshire Hathaway backing
• Berkshire Hathaway took a 10% stake in BYD in 2008 for $232 million. By December 2009 this investment was worth $1 billion
• BYD is now in Europe and Southeast Asia, and is already the top EV seller in Australia, Sweden, Thailand, and Israel
• Not in the US yet for cars, but BYD has become one of the largest electric bus and truck manufacturers, a segment with an easier entry point than passenger vehicles
• US/China relations are so tense that BYD executives said the US Consumer vehicle market is effectively off-limits for now
• China companies are great copiers – first car was in 2005 and looked identical to the Toyota Corolla except for the badge – they called it the F3

BYD avoids expensive investments in automation and hires thousands of workers to handle simple processes. They typically bring in employees on short-term contracts, replacing them to avoid wage increases. Some of BYD’s lowest level factory floor workers are paid $750 a month, compared to $1,000 a month at the Tesla Shanghai plant.  They make almost all the parts for the vehicles in-house with few suppliers.  They could sell the F3 for $8,000 or half the cost of the Toyota Corolla.

The EV market and economy have slowed, and there were fewer government incentives. BYD sold 21% fewer vehicles in 2019. In 2020, they came out with a 375-mile range battery – and the total car costs $30,000-$40,000 less than a Tesla S with a similar range. Its global sales quadruples from 2020-2022. BYD is China’s top seller of EVs and plug-in hybrids. China’s market is 33% full EV and plug-in hybrid. BYD’s big push has been electric buses in the US, UK, and Japan over the past decade, and they are also building plants with more automation.

What’s the Next Bottleneck?

Over the last 24 months, chip availability used in vehicle production has been a major issue.  Elon Musk thinks of vehicles as computers on wheels – all controlled by chips. It was chips in 2022-2023 that caused a slowdown, but in 2024-2025, it could be graphite. China’s new restriction on exports of graphite – a key material for electric vehicle batteries – is casting uncertainty on US EV battery production. China, effective December 1, 2023, requires export permits for certain graphite products for use in EV batteries.

Graphite is the main component in lithium-ion batteries and accounts for more mass than lithium, cobalt, manganese, and other materials used in the cathode and elsewhere in the battery. The US needs a million tons per year – the current capacity is zero in North America.

General Automotive Highlights

• 2024 North America – Car, Truck, SUV of the Year Award
  • Car: Toyota Prius/Prius Prime
  • Truck: Ford F-Series Super Duty Pick-ups
  • SUV: Kia EV9
• Demand for EVs continued to climb, but at a slower pace than expected. Ford, GM, and others postponed or cut back investment in anticipation of a more gradual transition into an electric future
• Lithia is the number 1 Automotive group based in the US – they’ve expanded in the UK with the purchase of Jardine Motors and the Pendragon Group
• Hyundai – Amazon to sell new vehicles through Amazon’s website. Where will this go? What OEMs will follow?

Stay In Touch With the Latest In Automotive

Perficient’s automotive expertise runs broad and deep in the industry, covering the top priorities, biggest concerns, and most pressing needs of dealer groups, OEMs, suppliers, and other automotive companies. We stay in touch with the present and always keep an eye on the future, making us the best partner for your path to success. Learn more about our automotive expertise and bring us in on the conversation to accelerate your innovation.