*This is in partnership with BQ Prime BrandStudio
Hero MotoCorp became the largest two-wheeler manufacturer (by unit sales) more than two decades ago, and has maintained pole position ever since, with over 100 million customers today. But the global auto major is busy reinventing itself for the future. Because smart companies always try to stay one step ahead. The sector itself is ripe for transformation. According to Manish Gupta, Managing Director and Chief Product Officer, Accenture in India, “Transformation has been long overdue in this particular industry. In other sectors such as consumer goods, retail and also life sciences to some extent, a massive transformation has already taken place.
Like all other businesses and industries, the pandemic has brought disruption, but Hero MotoCorp has leveraged that disruption to drive change that builds resilience and agility. As customers went digital during the pandemic, Hero MotoCorp transitioned from a traditional dealer-centric model to an omnichannel model. Shopping behavior has changed during the pandemic, as have customer expectations, and Hero MotoCorp has stayed ahead of the change. The two-wheeler segment is also where EVs have had a significant impact in India and the manufacturing giant is differentiating its traditional products while remaining ready to embrace the future which includes electric.
Reema Jain, Chief Information & Digital Officer, Hero MotoCorp, shared how Hero MotoCorp leverages analytics, AI and machine learning in collaboration with Accenture to reach new customers, stay on top of industry trends sector and achieve its global ambitions, while transforming its supply chain.
Customer experience is key
With innovation at the core of its philosophy, Jain explained that Hero MotoCorp continuously works to improve customer acquisition and retention strategies by identifying the right digital interventions based on changing customer aspirations.
The industry in which Hero MotoCorp operates today is no longer divided into physical and digital worlds, but into a “phygital” world where customers move seamlessly between platforms when interacting with businesses. As the pandemic has shifted buying behavior digital, internal company research found that 74% of two-wheeler buyers are influenced online. This meant that the company had to provide the right information to potential customers before they even reached the showroom and met the product specialists.
“We have segmented well when it comes to the marketing technology stack. For example, if the customer is looking for a practical bike for everyday use, such as the HF Deluxe or the Splendor, we highlight the practical features of the bike, such as like seat length, mileage, an EMI calculator, etc. But if millennials are looking at the high-end segment, and a bike like our Xpulse 200T, which is all about off-road experiences, our content talks about the challenges of biking while ground, the exclusive Buyer Membership Club and the Hero Experience Center that we recently launched,” says Jain. And while 74% of all two-wheeler buyers are digitally influenced, she thinks the figure is closer to 99% for millennials.
Ultimately, Hero MotoCorp’s new approach leads to increased visits and better conversions at dealerships, and also helps build the loyalty journey. Of his GoodLife program To engage with customers on the app and at physical gas stations, Hero MotoCorp creates key interventions to build customer loyalty with the right digital nudges.
Customer data platform
The customer data platform is at the heart of all these initiatives. “This platform will bring together our offline and online data and create a single 360-degree view of the customer, which helps us deliver the right message to the right segment and through the right channel. This will further help us improve the rate conversion,” Jain added. It should be noted that with over 100 million customers across different economic strata and regions in India, Hero MotoCorp has access to a massive amount of first-party customer data, perhaps second only to telecommunications operators.
With a connected platform and high-quality data generated, Hero MotoCorp will not only be able to better serve customers and drive sales growth, but also use this data to provide insights to R&D engineers working on product improvements.
Supply Chain Transformation
With the supply chain at the heart of modern manufacturing and essential to controlling cost and complexity, Hero MotoCorp is also collaborating with Accenture on supply chain transformation.
“We want our supply chain to be very, very responsive. We want decision making to be much faster in our supply chain and this can only be made possible if we have strong analytics capabilities that will help our management team track the performance of the overall ecosystem and to make quick decisions,” says Jain.
“For example, we are implementing simultaneous demand and supply planning, which should enable scenario-based planning, which will help us achieve our financial goals. Machine learning will provide our supply chain users with recommendations on how to handle particular situations, such as changes in material planning and scheduling in response to new customer orders. It will also help us improve the introduction and phase-out of models with minimal impact on inventory obsolescence,” she added.
Commenting on the digital transformation journey that is driving Hero MotoCorp forward, Manish Gupta added, “At Accenture, we are excited to partner with Hero MotoCorp and be part of their growth journey. This transformation will also lay the foundation for the industry as Hero MotoCorp is the market leader not only in India but also globally. »