FordPass; Revolutionizing Business with Digital Transformation

# How Ford Motor Company Leveraged Data and Analytics to Transform Its Customer Experience

Ford Motor Company is one of the world's largest automakers, producing and selling vehicles in six continents. Founded in 1903, Ford has a rich history of innovation and leadership in the automotive industry. However, in recent years, Ford faced increasing competition from new entrants, changing customer preferences, and disruptive technologies. To stay ahead of the curve, Ford embarked on a digital transformation journey to become a customer-centric, data-driven, and agile organization.

Ford recognized that the traditional way of selling cars was no longer sufficient to meet the evolving needs and expectations of its customers. Customers wanted more personalized, convenient, and seamless experiences across their entire journey, from research to purchase to service. Ford also realized that it had to leverage the vast amount of data it collected from its vehicles, dealers, and customers to gain insights and optimize its operations. However, Ford lacked the capabilities and culture to effectively use data and analytics to drive its decision-making and innovation.

Ford decided to invest in building a data and analytics platform that would enable it to collect, integrate, analyze, and act on data from various sources and touchpoints. The platform, called FordPass, aimed to provide a holistic view of the customer and deliver value-added services and features. Some of the key components of FordPass included:

- A mobile app that allowed customers to access vehicle information, remote features, rewards, parking, and mobility options.

- A cloud-based service that connected Ford vehicles to the internet and enabled over-the-air updates, diagnostics, and predictive maintenance.

- A network of FordPass Guides who provided personalized assistance and support to customers via phone, chat, or email.

- A loyalty program that rewarded customers for their engagement and loyalty with Ford and its partners.

- A data lake that stored and processed data from various sources, such as vehicles, dealers, customers, and third parties.

- A data warehouse that organized and structured data for reporting and analysis.

- A data science team that applied advanced analytics and machine learning techniques to generate insights and recommendations.

Ford also implemented a cultural and organizational change to foster a data-driven mindset and empower its employees to use data and analytics to improve their performance and customer satisfaction. Some of the initiatives included:

- Establishing a data governance framework that defined the roles, responsibilities, and standards for data quality, security, and privacy.

- Creating a data literacy program that trained and educated employees on how to access, understand, and use data and analytics tools.

- Forming cross-functional teams that collaborated and experimented with data and analytics to solve business problems and create new solutions.

Ford's digital transformation resulted in significant improvements in its customer experience and business outcomes. Some of the key results included:

- Increased customer engagement and retention: FordPass app users spent 37% more time on the app than non-users, and had a 92% retention rate after six months2. FordPass also increased customer loyalty and advocacy, as measured by the Net Promoter Score (NPS).

- Enhanced customer satisfaction and convenience: FordPass app users reported higher satisfaction with their vehicle and dealer service, and appreciated the convenience and ease of use of the app features. FordPass also reduced customer friction and frustration, such as finding and paying for parking, or scheduling and receiving service.

- Improved operational efficiency and profitability: FordPass enabled Ford to reduce its costs and increase its revenues by optimizing its inventory, pricing, and marketing strategies based on data and analytics. FordPass also generated new revenue streams from its partners and service providers, such as parking operators, insurance companies, and mobility providers.

Ford's digital transformation journey taught several valuable lessons that can be applied to other organizations seeking to revolutionize their business with digital transformation. Some of the key lessons learned included:

- Start with the customer: Ford focused on understanding and meeting the needs and expectations of its customers, and designed its digital transformation around enhancing the customer experience. Ford also involved its customers in the development and testing of its digital solutions, and solicited their feedback and suggestions for improvement.

- Build a data and analytics platform: Ford invested in building a robust and scalable data and analytics platform that enabled it to collect, integrate, analyze, and act on data from various sources and touchpoints. Ford also ensured that its data and analytics platform was secure, compliant, and reliable, and followed the best practices for data governance and management.

- Foster a data-driven culture: Ford implemented a cultural and organizational change to instill a data-driven mindset and empower its employees to use data and analytics to drive their decision-making and innovation. Ford also created a data literacy program and a data science team to train and support its employees in using data and analytics tools and techniques.