Here is A Quick Summary of All the Key Learnings at the Ford China Customer Day

Ford Consumer Insights 

Keywords: Trade-in Purchases, Middle-aged Men, Passion for Driving, Mid-to-Large Vehicles

The Chinese automotive market has transitioned from a growth market to a stock market, with trade-in customers becoming a key target demographic for automakers. It's encouraging to note that Ford brand's trade-in rate is significantly higher than the market average for same-brand trade-ins.

Doesn't it remind you of Ford China CEO Sam Wu's advice: "Don't try to please everyone – just focus on our strengths, and make those who like Ford love it even more!"

Most Ford users are middle-aged men who love traveling, the outdoor lifestyle, and driving, aligning perfectly with Ford's brand positioning as "The Outdoor Enthusiast."

In the eyes of Ford users, space and vehicle power are the greatest product advantages. With more FHEV models being launched, these products also cater those consumers concerned about fuel consumption.

Lincoln Consumer Insights

Keywords: Low-key, Mature, Family-oriented

In recent years, the average age of Lincoln users has aligned with the industry average, with the majority of customers being family users. There has also been rapid growth among ordinary employees and professionals.

The reasons for Lincoln users' purchases have also shifted, with space, power, configuration, and interior design becoming the most attractive factors. Meanwhile, new car discounts from other brands and fuel economy are the main reasons for rejection; of course, pricing strategy considerations are also at play here.

As more NEVs enter the luxury car sector, consumers are less likely to blindly worship brands. Instead, they value the price-to-quality ratio, making it essential for Lincoln to enhance product power and the practical benefits brought by the brand as it focuses on the NEV track.

Off-road Consumer Study

China’s body-on-frame SUV market has experienced several years of decline, with current sales roughly equal to those in 2017. However, the market structure has quietly shifted, with Chinese local brands rapidly emerging and the demand for vehicle modifications becoming increasingly diverse and continually evolving.

Keywords: Appearance, Performance, Comfort

Male consumers dominate the off-road vehicle market, with appearance being a critical factor.  Even if the vehicle is purely used for city commuting, it must look unique.

Based on the frequency and intensity of off-road activities, consumers can be categorized into non-off-road users, light off-road, and moderate to heavy off-road users. Even if they never go off-road, they will not settle for paper tigers – they require their vehicles to possess genuine off-road capabilities. Interior comfort remains a primary concern for the mainstream group. As off-road activities increase in frequency and difficulty, their comfort requirements relax, while performance demands heighten. Brand power and community building are also crucial in this niche market.

Customer Changes Seen In Market Research Learnings

The Global Customer Insights team shared some interesting observations from their consumer surveying activities. In recent years, consumers' attitudes toward success, family roles, social circles, careers, and technological innovation have changed significantly.

These changes are also reflected in car purchase decisions, with the decision-making process noticeably shortened. There is a greater emphasis on personalized experiences, with a stronger demand for vehicles to extend beyond basic functions and become an extension of their lifestyle.

Changes in consumer behavior, such as attaining a sense of internal satisfaction, work-life balance, personal growth, and the desire for shared experiences, align with Ford's image as an advocate for freedom. The traditional strengths of SUV products align with Ford's new brand proposition "Unleash FUN, Wild at Heart," which perfectly embodies this connection.

How CNPS Enhances Customer Experience Through CNPS

The CNPS (Corporate Net Promotor Score) system is a key indicator measuring customer willingness to recommend the brand’s products, covering the full lifecycle of the car-buying experience.

The user experience team sends monthly questionnaires to owners with different car ownership durations to gather extensive real user feedback. For users with lower intention to recommend the brand, further investigation is conducted to determine areas that need improvement. User feedback, whether text, voice, or video, is classified using AI technology and directed to specific product development or sales service teams as insights for improvement.

CNPS helps teams identify and resolve critical issues in products, sales, and services, enhancing the customer experience for existing models as well as guiding future model development, thereby improving user satisfaction and loyalty on an ongoing basis.

Who Is Still Buying ICE Vehicles

In the first nine months of 2024, the penetration rate of NEVs reached 45.5%, including a period of three consecutive months when it surpassed 50%. However, since 2023, range-extended electric vehicles have become the market’s main growth driver, accounting for 77% of the increase in NEVs this year, reaching 1.78 million units.

Where are the opportunities for ICE?

Keywords: Extreme Cold / High Altitude / Wide-Open Spaces, Pre-1985 Consumers, High-income Groups, Style Over Conformity, Weighing Trade-offs, Reliability

Mr. Xu emphasized that Ford should actively explore markets and consumer needs where ICE have natural advantages, such as in extreme cold, high altitude, and wide-open spaces. People over 40, especially those in middle and senior management positions, also have a strong preference for ICEs.

He also said that ICEs should adhere to their "classic" design style and avoid blindly following the "minimalist" and "individualistic" designs of NEVs, and strive to maintain a product experience that does not require drastic changes to user habits.

ICEs should also showcase their unique characteristics in terms of quality and luxury. For intelligent-related features, it's essential to prioritize a refined experience rather than following trends that focus on large screens. The focus should be on enhancing Smartphone projection, improving navigation experiences, continuously focusing on safety and quality, and thoroughly exploring the potential of the ICE modification market.

NEV Quality Insights

Cai Ming, the chief analyst at J.D. Power, shared information on NEV quality and consumer insights. He said that when it comes to product power, quality determines the lower limits, while allure determines the upper limits.

In terms of ICEs, mainstream global brands have, for the first time in three years, outperformed luxury cars in PP100 (problems per 100 vehicles).

In recent research, a fascinating trend emerged: the enhanced experience brought by innovation does not necessarily correlate with quality. Especially among NEV manufacturers, the competitive stacking of features and different materials has diminished consumer attraction while increasing the number of problems, intensifying the severity of homogenized competition.

Meanwhile, the race among brands to stack more features shows that user perception of the benefits of such features varies significantly. Money should therefore be spent wisely, ensuring consumers find the features useful and convenient – that is the most important focus.

Moreover, overall quality complaints are accelerating in the industry, with a significant increase in design defect issues. Major complaints raised against global brands are related to in-car systems. There has also been a noticeable rise in NEV-specific problems, with driver assistance and infotainment systems experiencing the highest volume of quality issues. In the long term, the quality gap between new energy independent brands and global brands appears to be widening.

Meanwhile, the CKS Team's experience space delved into hidden consumer motivations and needs, enabling product development that better resonates with consumers.

Many employees were surprised after completing the team’s tests, exclaiming, "I didn't realize my subconscious was like this!" – echoing Lincoln China President Jeff Jia's philosophy: "A brand should not tell consumers who they are, but help consumers show who they want to become."