Advanced Technology and Luxury: Behind the Latest

Cognizant Case Study
Advanced Technology and Luxury:
Behind the Latest Lexus App
Automaker’s new mobile app ensures its vehicle delivery experience
is as personalized to customers as its luxury cars are.
Driving Change
From the sight of the polished exterior to the
can’t-miss new car smell, there’s nothing quite
like the thrill of picking up a new car.
Luxury automaker Lexus goes a step further. Its
innovative Explore MyLexus app helps shape a
vehicle delivery experience that embodies the
company’s legendary customer service while also
optimizing business processes. We partnered
with Lexus to develop the app, which received
positive feedback from dealer associates as it
provided many new and needed key features and
addressed important operational issues.
Lexus established its reputation for quality and
engineering with the introduction of its first model
in 1989, the Lexus LS, and the accolades continue to
roll in. In 2015, the car maker topped the J.D. Power
Dependability Study in the U.S. for the fourth year
in a row,1 and U.S. News & World Report ranked the
2015 Lexus RC first of 14 upscale small luxury cars.2
Lexus began its effort three years ago to reinforce
its historically strong customer focus with digital
technology. As its vehicles increasingly included
state-of-the-art technology, Lexus dealerships
need skilled associates to educate new owners
on their vehicles’ technology, safety and comfort
cognizant case study | december 2015
features. In March 2012, Lexus partnered with its
dealers to launch two new certified dealership
positions: The Lexus Delivery Specialist (LDS),
who introduces customers to their new cars and
reviews the vehicle’s features, and the Lexus
Technology Specialist (LTS), who support guests
after their purchase with additional technology
coaching and problem solving when necessary.
Previously, the automaker had also developed the
Lexus Personalized Delivery (LPD) app for dealers,
with the idea of contributing to a vehicle delivery
experience that embodied the customer service,
advanced technology and luxury on which Lexus
has built its prestigious brand.
However, the original LPD app fell short of extending Lexus’s wow factor. For one thing, its content
and navigation were limited, as the app combined
all available vehicle features for all Lexus vehicles
into one general list, and was not Vehicle Identification Number (VIN) specific. It also omitted
information on many features — an unacceptable
shortcoming for a brand known for its “Pursuit of
Perfection” — and the flat user interface and lack of
intuitive user experience proved limited. There was
also no customer version of the app. Further, the
app lagged in performance and lacked the quality
feel of Lexus vehicles.
Partnering for a Better Delivery
Experience
Lexus realized it needed a next-generation app
with a customer experience that more closely
matched its brand. The company also earmarked
important business process improvements, particularly for record-keeping related to vehicle
delivery and dealer performance KPI’s.
We worked with Lexus as its preferred partner
to help achieve this vision and generate tangible
business results by delivering a totally redesigned
and revamped app in just nine months (see Figure
1). Our work with Lexus encompassed the following:
• We
quickly built prototypes of the Explore
MyLexus app that included augmented reality
capabilities, integration with social media
and the ability to work with Apple Siri voice
commands.
• We
also worked on data visualization and
developed a prototype for a user interface of
the customer-facing application.
• Keeping
in mind prior dealer tablet requirements, we built the app for use on Apple-centric devices only.
Our team accurately forecasted and mitigated
the challenges the app would likely encounter as
a result of the latest version of iOS and the complexities of Apple Store deployment. In addition,
our in-depth knowledge of the related systems
ensured real-time integration with vehicle information data, which became a critical factor in the
app’s success.
Explore MyLexus provides dealers’ LDSs and
LTSs with the flexibility they need to keep the
delivery process running smoothly. Rather than
feeling like an afterthought, the app is integral
to the delivery process. Its adoption rate among
dealers has improved as a result of the process
improvements, such as the ability to set up
guests in advance, and the use of VIN scanning to
display only the features of the particular vehicle
being delivered, enabling customized delivery
templates for each vehicle model.
Explore MyLexus App: Opening Screen
Figure 1
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2
A New App Is Born
Since its unveiling in January 2015, Explore
MyLexus has been a success: Within six months
of its introduction, dealership use increased significantly. In addition to its many features, the
app lets dealerships upload customized content,
which helps them speak directly to customers and
transform them into brand advocates. Typically,
the app is updated every two months, and its
feature data is refreshed regularly.
thumbing through hefty manuals, customers can
view video tours and tutorials of their new car’s
interior, such as how the blind-spot indicator
works while on the road (see Figure 3).
Exploring Speeds & Feeds
Personalized service is at the heart of the app.
Dealers configure the opening screen with each
customer’s name and contact details. E-mails to
new car buyers let them weigh in on the vehicle
features they are most interested in so the app
can be configured appropriately before delivery.
For example, the app can take customers directly
to the cruise control feature, while a longtime
Lexus owner might prefer to skip the basics and
go straight to the telematics features.
The process also ensures that delivery specialists
are prepared for customers’ questions and even
allows them to sequence the order in which they
review the features with customers (see Figure 2).
In addition to customization, the app’s knowledge
base is dynamic. To ensure the content accurately
addresses customers’ questions, the app allows
dealers to contribute information, expanding the
knowledge base and creating a living document
that can better serve Lexus customers.
Figure 2
Interactive Learning
In a world gone social, Lexus also made sure
the app is Twitter- and Instagram-ready: Owners
can post photos to the social network with the
hashtag #Exploremylexus.
White-Glove Customer Service
The app ensures that Lexus owners get the
most out of their vehicles. It also treats new car
buyers to the amenities they expect from a luxury
brand. For example, to enter the 17 digits of their
new car’s VIN, customers use the iPad’s built-in
camera to quickly scan in the numbers and then
pull up information specific to their vehicle.
The customer app also delivers details on safety,
comfort and technology. Instead of tediously
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Figure 3
3
Maximizing Value
Figure 4
Big-Picture Business Benefits
Lexus has realized important business benefits
with Explore MyLexus. For starters, the app has
enhanced the delivery experience. Customers’
ability to pre-select features they want to explore
during the delivery process provides a seamless
link between vehicle models and feature availability, smoothing the customer journey from
browser to owner. Not only can dealer associates
more accurately address vehicle features, but they
can also suggest additional services and options
to enhance the customer’s driving and ownership
experience.
The customer-facing application also includes
features that enable prospective buyers to make
the purchasing decision from home:
• Use
as a shopping tool that highlights key
technology, safety, and interior and exterior
features.
• Interactive
brochures that bring the driving
experience to life with information on usability,
and operating nuances.
• A showcase of owner experiences that dem-
onstrate how Lexus customers can personalize
and enhance the driving experience through
features such as automatic seat adjustments
and climate control.
cognizant 20-20 insights
• Links
to social media to encourage car
shoppers to view photos and read posts of
Lexus owner experiences.
The dealer version of
tional issues related
example, it integrates
tallies vehicles sold
incentives.
the app addresses operato vehicle delivery. For
with a reporting site that
and tracks dealerships’
Customers’ ability to pre-select
features they want to explore
during the delivery process
provides a seamless link between
vehicle models and feature
availability, smoothing the customer
journey from browser to owner.
Equally important are the improvements in
customer satisfaction. The engagement fostered
by the app during the vehicle delivery process
helps deepen dealers’ customer relationships.
Post-delivery customer survey scores consistently
rate LDS/LTS delivery at 95% or higher, according
to Lexus data, and in May 2015, it reached 97%.
Happier buyers are a key metric: Satisfied
customers are more apt to be loyal and to serve
4
as brand advocates who influence purchase consideration — and drive sales over time.
Personalization has become the hallmark of the
Lexus delivery process, and customer applications are playing an increasingly important role,
especially as more millennials move to the Lexus
brand.
Looking Ahead
We continue to partner with Lexus on best-inclass service for dealerships and customers. Plans
for expanding the app are underway. As a younger
generation of consumers become interested in
owning a Lexus, we plan to collaborate on deviceand platform-agnostic applications that address
the needs of a wider audience.
Footnotes
1
2
Trevor Collett, “2015 JD Power Dependability Study: Lexus On Top Again,” The Motor Report, March 1,
2015, http://www.themotorreport.com.au/60983/2015-jd-power-dependability-study-lexus-on-top-again.
“Lexus RC Review,” U.S. News & World Report, http://usnews.rankingsandreviews.com/cars-trucks/
Lexus_RC/.
About Cognizant
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process outsourcing services, dedicated to helping the world’s leading companies build stronger businesses.
Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce
that embodies the future of work. With over 100 development and delivery centers worldwide and approximately 219,300 employees as of September 30, 2015, Cognizant is a member of the NASDAQ-100,
the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and
fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.
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