The automotive industry is facing a decline in sales, leading to an increase in price wars and variable monetary expenditure to support dealers. Despite massive investments in marketing and sales activities, OEMs are only achieving 40% of customer spending. However, there is potential for growth by unlocking the hidden value of the customer through dynamic pricing and bundling. Arthur D. Little has identified four pillars to achieve this, including transaction price optimization and value-based bundling, which can generate 5-6% revenue growth and 4-5% profit increase. To benefit from this approach, OEMs must be prepared to transform their marketing and sales functions.
