CONFERENCE REPORT
Consumers at the core of a successful 2024
The BVRLA’s Industry Outlook Conference set delegates up for a busy festive period, wrapping up 2023 and looking forward to 2024. By Toby Poston, BVRLA director of corporate affairs
CONFERENCE REPORT
Consumers at the core of a successful 2024
The BVRLA’s Industry Outlook Conference set delegates up for a busy festive period, wrapping up 2023 and looking forward to 2024. By Toby Poston, BVRLA director of corporate affairs
Keep customers happy was a consistent thread through every session of the recent BVRLA Industry Outlook conference, which took place at the British Motor Museum. That fact ultimately comes as no surprise in a service-led sector such as vehicle rental and leasing, especially in a year that has seen a dramatic rewriting of the regulations that protect consumers. Good customer outcomes underpin everything. The collective confidence to deliver them has created a buoyant mood going into 2024.
Indeed, the tone was set by BVRLA chief executive, Gerry Keaney in his opening address. He spoke of the association’s role as the radar for the sector. Only by having a complete picture of what is coming down the tracks can the industry navigate the issues of today and meet customer needs effectively, he said. Having successfully handled the introduction of consumer duty, shifted net zero deadlines and ever-moving political goalposts, we enter the new year with firm foundations.
That introduction was built on in political and regulatory outlook updates from Thomas McLennan and Shashi Maharaj of the BVRLA. With a general election due in 2024, McLennan spoke of what the association is doing to land the key asks of the fleet sector with all parties, as well as what BVRLA members can do to get involved. Maharaj then took delegates through what consumer duty means for firms at an operational level and how it needs to be an ongoing process, not simply a tick-box exercise.
Rounding off the session was an update from Ben Horn of Omnevue, who presented the headline findings of an ESG audit of BVRLA members. The results highlighted the areas in which the sector is ahead of ESG reporting and where it needs to put more focus. Indicative benchmarks showed the current lie of the land, with more operators and supply chain partners expected to place greater value on robust ESG data in the coming months.
In fact, the Industry Outlook report shows that nearly a third of BVRLA members cite ESG and carbon reporting at the biggest compliance challenge for 2024, only behind consumer duty (38%). The wider findings of the report were explored by an executive panel including Alan Olivier-Smith (Avis Budget Group), Alfonso Martinez (ALD Automotive | LeasePlan UK), Gareth Jones (Radius Vehicle Solutions), Michelle Miles (Prohire), Paul Parkinson (Synergy Automotive) and Per Voegerl (URG). The panel of rental and leasing leaders looked at expectations for 2024, technological advances and strategic priorities.
“Only by having a complete picture of what is coming down the tracks can the industry navigate the issues of today and meet customer needs effectively”
Ben Horn, commercial lead and ESG specialist at Omnevue, delivered an ESG update
As with the findings of the report, the outlook from the panel was broadly positive, with many reasons to be optimistic. Those reasons were not without caveat though. Turbulent used values and an uncertain political picture threaten to check any progress and are being watched by the panellists – and many others – with great interest.
Reflecting the diversity of the BVRLA members in attendance, and the varying needs of their fleet and retail customers, the conference offered two sets of breakout sessions to delve further into the report’s findings.
Respective sessions on the Rental Roadmap and Leasing Lowdown ran in tandem. Each offered a line-up of experts to share valuable insights and real-world recommendations. For rental attendees, the United Rental Group-hosted session discussed how, where, and when to go electric, and how to thrive in the evolving landscape.
Next door, a leasing panel considered what the ZEV mandate will mean for vehicle supply, how products like salary sacrifice are expected to grow further, and how connected vehicles are changing fleet management and customer relationships.
After lunch, a second pair of breakouts gave delegates the choice between masterclasses on keeping vehicles on the road and how to keep customers happy. As maintenance costs soar and availability of parts dwindles, the Roadworthy Resilience panel – chaired by Vincent St Claire (Fleet Assist) – considered how to reduce vehicle downtime in 2024. Ultimately, the solutions fall under the three key categories of planning, communication, and analysis.
Meanwhile, Rachael Jones (Auto Trader) chaired a panel that talked delegates through the entire customer journey, unpacking the opportunities for success and pitfalls to avoid. From the initial discussion of a customer’s needs, through delivery, in-contract management, and ultimate vehicle return, there are scores of touchpoints that need careful navigation to keep customers satisfied and more likely to remain loyal. The panel discussed how data, AI, and personal experience all come together to enhance that experience.
Closing the conference were two sessions that were poles apart in their design but fully aligned in their purpose. BVRLA trainer Karen Morton ran an interactive workshop on how to remain resilient and focus on identifying opportunities for 2024. The workshop saw delegates working in small teams to tackle a host of opportunities. Once again, the value of positive customer experiences came to the fore, regardless of the topic.
Rachael Jones, director of automotive finance at Auto Trader, chaired a panel at the event
Sunday Times economic editor, David Smith was at the event to speak about resilience and the opportunities for 2024. After the drastic shifts in the economy over the last 12-18 months, a period of relative stability could be seen. According to Smith, that stability is more likely to see the UK economy find its feet, as opposed to driving major leaps forward. While the threat of recession could be ‘touch and go’ in the coming months, a more positive picture is being predicted for the automotive sector specifically. This is thanks to changes to business investment incentives and a greater focus on improving the UK’s electric vehicle charging infrastructure.
Smith also looked ahead to the potential impacts of a busy year for elections in 2024. Citizens of the UK and USA are both due to visit the ballot box next year, the results of which could see the economic landscape shift further.
Those closing remarks brought into stark focus the fact that there is no such thing as ‘business as usual’. The political landscape seems faster moving than ever, which in turn influences ebbs and flows, or the more extreme peaks and troughs, in the economy. Those external factors will always impact BVRLA members and the fleet industry, often forcing their hand without much word of warning. The Industry Outlook report also shows the factors that embellish the picture further. Industry regulation, corporate strategies and sustainability targets all come together to inform product offerings, investment plans, and internal processes. Further evolution of each is expected in 2024, standing still is not seen as an option.
Among that consistent change, the Industry Outlook conference highlighted two constants on which we can always rely. The sector will always innovate to keep pace with market needs, and it will do so by forever putting the customer at the heart of everything.
