toyota digital transformation case study

Toyota Motor Corp. (Toyota) is a manufacturer of automobiles. It designs, manufactures, assembles and sells minivans, passenger cars, sport-utility vehicles, recreational and commercial vehicles including trucks and related parts and accessories. The company also manufactures and finances Toyota vehicles to its dealers and customers for the purchase or lease.

The company also extends its businesses into the fields of housing, financial services, telecommunications, and information technology. Toyota operates manufacturing facilities in several cities across Europe, North America, Asia-Pacific, Latin America, Africa, and Middle East. It also operates research and development operations across China, the US, and Japan

This report provides insight into TMC's digital technology activities, including its digital transformation strategies, its accelerators, incubators, and other innovation programs, its technology initiatives, venture arm, investments, acquisitions and its estimated ICT budget.

• Toyota leverages several digital technologies to implement its digital transformation strategies. It is majorly focused on autonomous vehicles and has produced a range of advanced electric vehicles.
• Toyota AI Ventures along with Toyota Research Institute (TRI) launched The Call for Innovation initiative to promote innovations around robotics technology. It emphasizes on technological ascent in the areas of automation, connected vehicles, shared automobile and electric vehicles.

Reasons to Buy

• Gain insights into TMC's digital transformation strategies.
• Gain insights into its technology themes under focus.
• Gain insights into its various product launches, partnerships, investments, and acquisitions.

Key Topics Covered:

• Digital Transformation Strategy
• Accelerator/Incubator & Other Innovation Programs
• Technology Focus
• Technology Initiatives
• Toyota AI Ventures
• Venture Arm Investments
• Other Investments
• Partnership, Acquisition Network Map
• ICT Budgets Contracts
• Key Executives
• About the Publisher

A selection of companies mentioned in this report includes

• Symbio Robotics
• The Weather Company
• automotiveMastermind

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Toyota on AWS

Toyota Motor Corporation (Toyota) is a global automotive industry leader committed to developing the safest and most responsible ways of moving people. It manufactures vehicles in 27 countries across regions, markets the company’s products in over 170 countries, and employs nearly 350,000 people globally. Building on Amazon Web Services (AWS), Toyota innovates across its business from keeping track of vehicle journeys from manufacturing to dealership, to leveraging the Toyota Connected data lake to detect vehicle defects and improve product quality for customers.

Toyota's Cloud Journey on AWS

• Data Solutions

Using data solutions built for AWS cloud infrastructure to enhance scale and reduce costs

• Business Applications

Building innovative applications on AWS to delight customers

• Enterprise Transformation

Cloud migration to accelerate digital transformation and realize greater business value

• Continuous Innovation

Ongoing improvements to support enterprise transformation

Toyota Connected Uses AWS to Respond in Seconds to Driver Emergencies

Toyota Connected is Toyota's data services division that uses AWS to process large amounts of vehicle data to help respond to drivers in emergencies. AWS services such as Amazon Bedrock help Toyota developers to access generative AI to create new driver experiences. As Toyota's Brian Kursar and Ashley Parks discuss, using AWS helps Toyota Connected solve data challenges creatively and increase safety and faster call center action for customers.

Watch the video »

Enhancing Customer Safety by Leveraging the Scalable, Secure, and Cost-Optimized Toyota Connected Data Lake

Toyota has made “connected cars” a core priority as part of its broader transformation from an auto company to a mobility company. In recent years, Toyota and its affiliate technology and big data company, Toyota Connected , have developed an array of new technologies to provide connected services that enhance customer safety and the vehicle ownership experience. To make this vision a reality, Toyota Connected’s Mobility Team embarked on building a near real-time “Toyota Connected Data Lake” on AWS. The serverless data lake uses Amazon Simple Storage Solution (Amazon S3) as its primary data store.

Read the blog »

Toyota Connected Optimizes EMR Costs and Improves Resiliency of Batch Jobs

At Toyota Connected, data ingested from millions of connected vehicles is stored in the petabyte-scale Toyota Connected data lake with Amazon S3, Amazon EMR , interactive SQL queries, and machine learning (ML) applications using open-source analytics frameworks, such as Apache Spark . Amazon EMR is used to curate datasets and make them available for analytics and ML. For these large datasets, Toyota Connected strives to find the right balance between cost, performance, and resiliency. Learn how it designed the architecture for batch jobs using AWS. 

Toyota Connected and AWS Design and Deliver Collision Assistance Application

Toyota Connected North America (TC) is a technology and big data company that partners with Toyota Motor Corporation and Toyota Motor North America to develop products that aim to improve the driving experience for Toyota and Lexus owners. Together, TC and AWS engineers designed, built, and delivered their new Collision Assistance product, which debuted in early August 2021. In the aftermath of an accident, Collision Assistance offers Toyota and Lexus drivers instructions to help them navigate a post-collision situation, including documenting the accident, filing an insurance claim, and transitioning to the repair process. The solution was built on a serverless architecture on AWS.

Read the blog post »

Toyota Builds Shared Mobility Platform on AWS

Imagine being tasked with collecting, analyzing, and securing data from hundreds of sources around the world, in multiple cloud and on-premises environments. In this re:Invent 2019 presentation, Brian Kursar, chief technology officer (CTO) of Toyota Motor North America and Toyota Connected North America , discusses how Toyota created a secure, cloud-native solution on AWS to analyze billions of messages per day, using AWS Key Management Service (AWS KMS) encryption to provide granular access and keep corporate assets secure with data segregation.

Building a Development Platform to Support Secure Application Deployment Using Backstage and AWS

As Toyota Motor North America (TMNA) matured its cloud development strategy, its manual application deployment process was creating bottlenecks. TMNA built a new internal development platform on AWS called Chofer using Backstage, an open-source framework for building developer portals open sourced by Spotify. Its team of developers has adopted over 40 different AWS services, helping the company modernize its applications and save money and developer time while facilitating faster, more secure application deployments at scale..

Read the Amazon ECS case study »

Reimagining Mobility with Toyota Connected

In 2018, Toyota began its transition from an automotive to a mobility services business, redefining value for the customer. Through its Toyota Mobility Services Platform, Toyota Connected can offer personalized, localized, and predictive data to enhance the driving experience. By using AWS solutions, Toyota Connected could handle the scale without a major cost increase. The company chose a serverless computing architecture, which increases agility, provides flexibility to scale, and lowers costs by 70–80 percent.

Read the case study »

The data is being collected to build data services for customers that really drive satisfaction and provide new capabilities around safety and convenience.”

Mahadevan Krishnan Principal Architect, Toyota Connected

How the AWS Cloud Helps Cars Along the Journey from Creation to Customer

A new car’s journey begins long before a driver takes it out on the open road for the first time. Within its vehicle data warehouse (VDW), global manufacturer  Toyota North America  can follow each vehicle’s origin story, from manufacturing plants to dealerships around the world. Using a next-generation data lake built on AWS using Amazon S3 , AWS Glue , and Amazon Redshift —and developed by  Infosys Cobalt —Toyota North America can collect and analyze data from different manufacturing plants. The cloud-based insights solution helps Toyota North America monitor the story of every vehicle’s creation, make supply chain decisions, and deliver better customer service.

About Toyota

Founded in 1937 and headquartered in Japan, Toyota Motor Corporation (Toyota) is one of the largest automobile manufacturers in the world, producing about 10 million vehicles per year.

Hear inspiring customer innovation stories from AWS re:Invent

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Home > Innovation  >  Advanced Technology

Toyota Creates New Digital Transformation & Mobility Pillar

Zack Hicks takes on new role as Chief Digital Officer

PLANO, Texas ( March 12 , 2018 )  – Vehicle connectivity, electrification, new forms of mobility and mobility services, and autonomous driving technologies are driving new opportunities for Toyota Motor North America (TMNA).

With an eye on enabling agility and scale, TMNA is creating a new Digital Transformation & Mobility pillar, which will be led by newly appointed Chief Digital Officer Zack Hicks. Hicks will report directly to TMNA CEO Jim Lentz. Hicks also will continue in his role as president and CEO of Toyota Connected.

Effective  April 2 , functions reporting to Digital Transformation & Mobility will include:

• Information Services, led in the interim by TMNA Chief Information Officer Zack Hicks • Connected Technologies, led by Vice President Steve Basra • Future Mobility Business Group, led by Group Vice President Chris Tinto

The teams will focus on areas such as shared mobility, connectivity services and over-the-air feature upgrades to identify new business models and future opportunities.

“Digital Transformation & Mobility brings together three integrated teams who can focus on new business innovation, voice-of-customer excellence and digital product development,” Hicks said.

“As Toyota transitions from a traditional car company into a global mobility company, we are focused on how we can better suit our customers’ needs now and in the future,” said TMNA CEO Jim Lentz. “Bringing these mobility functions together under Zack’s leadership gives us the ability to collaborate in unprecedented new ways.”

Toyota Connected Norteamérica forma alianza con Avis Budget Group para mejorar la experiencia de alquiler de autos del cliente

About Toyota  Toyota (NYSE:TM) has been a part of the cultural fabric in the U.S. and North America for 60 years, and is committed to advancing sustainable, next-generation mobility through our Toyota and Lexus brands. During that time, Toyota has created a tremendous value chain as our teams have contributed to world-class design, engineering, and assembly of more than 36 million cars and trucks in North America, where we operate 14 manufacturing plants (10 in the U.S.) and directly employ more than 47,000 people (more than 37,000 in the U.S.).  Our 1,800 North American dealerships (nearly 1,500 in the U.S.) sold more than 2.7 million cars and trucks (2.4 million in the U.S.) in 2017 – and about 87 percent of all Toyota vehicles sold over the past 15 years are still on the road today.

Toyota partners with community, civic, academic, and governmental organizations to address our society’s most pressing mobility challenges. We share company resources and extensive know-how to support non-profits to help expand their ability to assist more people move more places. For more information about Toyota, visit  www.toyotanewsroom.com .

About Toyota Connected, Inc. Based in  Plano, Texas , Toyota Connected North America (TC) was established in 2016 to drive Toyota’s global efforts for an intelligent mobile society. With big data collected from vehicles and analyzed on a cloud platform, TCI humanizes the driving experience by freeing customers from the tyranny of technology via seamless and contextual services, elevating the customer experience while benefitting dealers, distributors, and partners. Analyzing traffic patterns, driver behavior and connecting drivers with infrastructure and other information is only part of TCI’s work that will open new services and products to keep the car as a beloved companion.

Eric Booth 469-292-5290 [email protected]

Karen Nielsen 469-865-2659 [email protected]

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Toyota transforms IT service desk with gen AI

To help promote insourcing and quality control, Toyota Motor North America is leveraging generative AI for HR and IT service desk requests.

“One of my bold bets is I want to eliminate our traditional service desk by 2025,” says Jason Ballard, IT executive and general manager for infrastructure and operations services at Toyota Motor North America.

Ballard is also the technology executive responsible for both the company’s battery electric vehicle (BEV) platform as it shifts to electrification, and its digital platform engineering and architecture organization, and he counts on conversational AI and generative AI as major components to transform HR and IT service requests.

He’s also a big believer in the agile DevOps concept of “shifting left” when it comes to technology — performing testing and evaluation early in the development process, generally before code is written — and “shifting right” when it concerns talent, where his vision for eliminating Toyota’s service desk is an example. It’s not about getting rid of positions, however, but “insourcing” technical talent by developing team members to fill more valuable roles.

“At the outset, it sounds like we’re cutting jobs, but really, the focus is shifting right with the talent,” he says. “A level-one technician’s job is kind of repetitive and I think most people who are in those roles want to get to level two or three. What we’re focused on is how we can up-level, upskill, those team members and move them into higher-value jobs, while at the same time push more automation across the enterprise.”

Toyota is an early mover when it comes to generative AI, with roots in its robotic process automation (RPA) efforts. In 2014, Toyota Motor North America operated separate headquarters for sales and manufacturing, but in 2015, under the mantra, “One Toyota,” the company brought them together in Plano, Texas.

“As you can imagine, there were a lot of varying systems that were used to run the enterprise for those separate team members,” Ballard says. “We were very focused on getting to a common technology stack so our team members could be more efficient.”

As part of that effort, Ballard brought RPA on board in 2017, saving more than 150,000 recurring hours of staff work in the first year, he says. The RPA initiative made it clear there was more IT could do to help automate and optimize processes. Then in 2020, Ballard took leadership of the digital platform engineering team with an eye on the IT service desk.

“I wanted to change the way our team members engaged with our IT service desk; that was my initial focus,” he says. “I wanted the ability to invoke a conversation and get to a fast resolution so our team members and I could get back to the important work at hand.”

Centralizing help

In 2021, Ballard’s team partnered with AI platform specialist Moveworks to create a central place for Toyota’s 45,000-plus employees in North America to turn for help at work. Dubbed AgentAsk, the service offers employees a ChatGPT-like experience that takes into account enterprise requirements, including permissions, integrations, security, privacy, and more.

In the past year, Ballard says AgentAsk has resolved nearly 70,000 issues and accelerated the resolution of about 100,000 more. He notes that the service now allows the company’s service desks to focus on important accelerated tickets such as hardware requests and software approvals, rather than password resets and account unlocks; each month, AgentAsk resolves about 458 tickets of the former and 164 tickets of the latter.

AgentAsk’s mean time to repair (MTTR) is 11.4 minutes, compared with an industry average of three days. The service has given employees and agents back more than 70,000 hours of productivity in the past year alone, according to the company. On average, AgentAsk is offsetting the work of about 25 level-one service technicians each week, Ballard says.

By way of example, Ballard notes that in the past, he’d spend a lot of time digging around in various enterprise systems trying to figure out how many outstanding approvals he had to deal with.

“Now I can just go to AgentAsk through Microsoft Teams and ask what approvals I have outstanding,” he says. “I can do that in a matter of seconds versus spending a lot of time digging into and logging onto each particular platform.”

Because AgentAsk was the first use of generative AI technology at Toyota, Ballard’s team built a strong partnership with the company’s cybersecurity organization to help it deal with any security considerations. In the end, implementing the technology was fairly seamless and within days, he says, the team was able to integrate AgentAsk with Teams and make it available to other team members.

“The challenge was not so much from the technology perspective but from the people perspective: the organizational change management, mindset, education, and awareness that you now have this solution at your fingertips,” he says.

Spread the word

So far, somewhere between 75% and 80% of the company’s employees have used AgentAsk to solve a problem, says Ballard, whose goal now is for every employee to use the service on a daily basis. The team promotes AgentAsk across Toyota’s digital signage, reminding employees of what the service can do, and every month they send employees gentle nudges telling them what AgentAsk can do for them.

While password resets and account unlocks are a good start, Ballard has grander ideas for the technology, like drafting a comparison of dental policy options for discussion. Employees have already begun intuitively asking questions that span finance, legal, travel and expenses, and more.

Based on several years of experience with generative AI, Ballard offers IT leaders seeking to get their arms around the technology a few pieces of advice.

First off, IT leaders should know the business problem and opportunity before adding another technology product to the stack. By starting small with scope and team size to prove out an initial hypothesis, CIOs can take a “crawl, walk, run approach,” validating the value delivered from the new solution and bringing the organization along.

“Never underestimate organizational change management,” Ballard stresses, adding that IT leaders should work backward from employees and structure deployment of the technology in collections that consider the end-to-end nature of the work being performed, rather than simply pursue whatever use case is presented.

And most importantly, declare a bold bet that’s forward looking. “Always keep the team’s efforts aligned to the objectives,” he says.

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Thor Olavsrud covers data analytics, business intelligence, and data science for CIO.com. He resides in New York.

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Toyota Motor Corporation – Digital Transformation Strategies

All the vital news, analysis, and commentary curated by our industry experts.

Published: June 20, 2023 Report Code: GDDT0675ES-ST

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Table of Contents

Toyota digital transformation strategies report overview.

Toyota uses emerging technologies as a part of its digital transformation strategies. The annual ICT spending of Toyota was estimated at $7.8 billion in 2022. A major share of this spending is earmarked for acquiring software, hardware, and ICT services from vendors. Toyota designs, manufactures, and sells passenger cars, buses, minivans, trucks, specialty cars, recreational and sport-utility vehicles. It provides financing to dealers and customers for purchase or lease of vehicles. The company is also involved in housing, financial services, telecommunications, and information technology businesses. Toyota’s financial services include retail leasing, retail financing, insurance, and wholesale financing. It operates across the Americas, Europe, Africa, Asia Pacific, and the Middle East.

The Toyota Digital Transformation Strategies report will act as a reference point to understand a company/competitor’s digital strategy. It will also help in understanding the digital preparedness of the company against its peers. Information included in these reports are sourced from a mix of our very own internal database and authentic secondary research links such as company’s annual report, presentations, press releases etc. The report covers overview of the company, its digital transformation strategies, technology focus areas, technology initiatives, technology introductions, partnerships, investment, acquisitions, ICT spending among others.

Digital Transformation Strategies

Toyota is emphasizing on accelerating digital growth and serve clients better. It is investing in emerging technologies to maintain its segment operations. Toyota leverages several digital technologies to implement its digital transformation strategies. It is majorly focused on autonomous vehicles and has produced a range of advanced electric vehicles. Over the years, Toyota has been using a wide range of digital solutions to transform its business operations. It also established strategic partnerships with several technology firms to drive innovation.

To gain more insights on digital transformation strategies and initiatives of Toyota, download a free report sample

Toyota Technology Theme Focus

Toyota Motor Corporation is utilizing number of emerging technologies including artificial intelligence, big data, cloud, blockchain and batteries, among others to enhance operational efficiency and product offerings.

Toyota Technology Focus

Toyota Technology Initiatives

Toyota has been involved in several strategic technology partnerships and collaborations, technology developments and roll outs over the past few years. For instance, Toyota expanded its partnership with Google Cloud to bring together Toyota and Lexus next-generation audio multimedia systems and Google Cloud’s AI-based speech services. Customers can now experience the results of partnership in latest generation Toyota Audio Multimedia and Lexus Interface infotainment systems, including in 2023 models like the Toyota Corolla family, Tundra and Sequoia and Lexus NX, RX and all-electric RZ.

For more insights on other technology initiatives of Toyota, download a free report sample

Toyota ICT Spend by Function

• Communications
• Data center
• Application
• End-user computing
• Service desk

Toyota ICT Spend by Function, 2022

For more insights on ICT spending by function, download a free report sample

Toyota ICT Spend by Channel

• Internal development and maintenance
• Technology vendors (direct)
• Local resellers
• ICT services providers/Consulting firms
• Specialist outsourcers
• Systems integrators

Toyota ICT Spend by Channel, 2022

For more insights on ICT spending by channel, download a free report sample

Toyota External ICT Spend by Segment

• ICT services
• Software (including Cloud SaaS)
• Hardware (including Cloud Iaas)
• Network and communications

Toyota External ICT Spend by Segment, 2022

For more insights on external ICT spending by segment, download a free report sample

This report provides:

• Insight into Toyota’s technology activities.
• Insights of its digital transformation strategies and technology center & innovation program.
• Overview of technology initiatives covering product launches, partnerships, investments, and acquisitions.
• Insights on each technology initiative including technology theme, objective, and benefits.
• Details of estimated ICT budgets and major ICT contracts.

Reasons to Buy

• Gain insights into Toyota’s technology operations.
• Gain insights into its technology strategies and innovation initiatives.
• Gain insights into its technology themes under focus.
• Gain insights into its various product launches, partnerships, investments, and acquisitions.

Overview                                                                                              

– Brief information about the company, its business divisions, and its financials

Digital Transformation Strategy                                                      

– A summary of key digital strategies/implementation efforts of the company

Accelerators, Incubators, and Other Innovation Programs      

– D iscusses the company’s key strategic units, innovation labs, incubation and accelerator programs dedicated to technology innovation

Technology Focus                                                                                  

– Lists the technology themes pertinent to the industry the company operates in and highlights the themes adopted by the company

Technology Initiatives                                                                        

– Discussion about all the technology introductions & partnerships the company has entered

Venture Arm: Toyota Ventures                                                       

– Brief information about the Company’s Ventures and it’s the key decision makers

Investment                                                                                           

– Brief discussion about the investments made by the company to acquire new technologies

Acquisitions                                                                                         

– Brief discussion about the acquisitions by the company

Partnership, Investment & Acquisition Network Map             

– A bird’s eye view of all the partnerships/investments/acquisitions that the company has made in the last 3-5 years

ICT Budget and Contracts                                                                

– The company’s ICT budget segregated into hardware, software, and managed IT services

Key Executives                                                                                      

– Lists key executives and Digital Transformation Executives of the company, typically the key decision makers/influencers

Frequently asked questions

The annual ICT spending of Toyota was estimated at $7.8 billion in 2022.

Communications was the leading ICT spending category by function for Toyota in 2022.

Internal development and maintenance was the leading ICT spending category by channel for Toyota in 2022.

Software (including cloud SaaS) was the leading ICT spending category by segment for Toyota in 2022.

The key technological theme in focus for Toyota are artificial intelligence, big data, cloud, IoT, and robotics.

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What Really Makes Toyota’s Production System Resilient

• Willy C. Shih

“Just-in-time” only works as part of a comprehensive suite of strategies.

Toyota has fared better than many of its competitors in riding out the supply chain disruptions of recent years. But focusing on how Toyota had stockpiled semiconductors and the problems of other manufacturers, some observers jumped to the conclusion that the era of the vaunted Toyota Production System was over. Not the case, say Toyota executives. TPS is alive and well and is a key reason Toyota has outperformed rivals.

The supply chain disruptions triggered by the Covid-19 pandemic caused major headaches for manufacturers around the world. Nowhere was this felt more acutely than in the auto industry, which faced severe shortages of semiconductor chips and other components. This led many people to argue that just-in-time and lean production methods were dead and being superseded by “just-in-case” stocking of more inventory.

• Willy C. Shih is a Baker Foundation Professor of Management Practice at Harvard Business School.

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How Skit.ai is Transforming the U.S. ARM Industry with Scalable Conversational Voice AI Solutions

Verint and eventus solutions group partner to deliver digital-first engagement solutions worldwide, making the most of salesforce with a cpq platform, sugarcrm recognized in the gartner emerging tech: tech innovators for intelligent crm applications report, skit.ai wins bronze stevie at international business awards for best business technology solution in ai, what is all the hype about hyper-personalization and how to use it for b2b growth hacking, streamlining aml compliance with the help of digital kyc solutions, skit.ai offers best-in-class conversational voice ai solutions to address contact center crisis, guidde to empower start-ups by making knowledge sharing accessible with new program, cloudshare announces salesforce integration with eye on customer retention, cxbuzz interview with miika mäkitalo, ceo at happyornot, cxbuzz interview with dorit sher, ceo of experity, cxbuzz interview with dan sahar, ceo and co-founder at guidde, cxbuzz interview with shirley campbell, customer experience director at payoneer, recency and volume in online reviews: cxbuzz interview with powerreviews, “driving” digital transformation: how the largest toyota dealership in ecuador pushed digital initiatives forward at unprecedented speed.

Shopping for a car isn’t what it used to be. Especially during the pandemic when visiting a dealership in-person and test driving a car wasn’t an option. Many shoppers had to embrace the digital experience out of sheer necessity. However, in today’s digital age, it is just part of doing good business and those dealers that are embracing digitizing the sales process are seeing remarkable results. This has been the case for Casabaca Toyota.

Founded more than 60 years ago by three brothers, Casabaca Toyota is family-owned and is the largest dealership in Ecuador with over 500 employees across nine dealerships. Like the cars it sells, Casabaca sets the standard for others, constantly innovating and bringing change to an industry that’s remained mostly static in the region.

Casabaca was ready for a digital transformation that would enable representatives to sell smarter, while serving its customers with richer, more connected experiences.

Digital Transformation Holds Many Opportunities for Growth

At Casabaca, we recognized that data was our most important asset. Just five years ago, the dealership’s sales process relied on paper, phone calls, and manual workflows to create leads. By implementing a customer relationship management (CRM) platform, we were able to digitize these processes to conduct simple activities such as collecting data and sending invoices. But eventually, the sales team wanted access to more analytics to understand how many times a buyer had visited a dealership, which products/services were offered to them, how long they were in the dealership, or if they scheduled a test drive or meeting.

As Casabaca’s CRM Manager, my team engaged in a readoption of our CRM platform, using it to house all of the company’s important data, making it easy for sales reps to find what they need.  Yet, Casabaca’s sales process was still largely reactive, waiting on new customers to visit a dealership at their leisure and selling to them on the spot. And because Casabaca’s call center wasn’t yet integrated with CRM, reps only had visibility of buyers that physically visited the store. When a prospective customer did call in, reps could only tell sales that someone was coming into the store, but not what the shopper was interested in, whether someone had already spoken to them, or if their interest was from an ad or elsewhere. All buyers were treated the same regardless.

The pandemic changed all this, as public places were closed, and companies were forced to conduct business digitally. To stay afloat, Casabaca needed a way to interact with car buyers online, especially when they couldn’t visit the dealership in-person. Using the data we already had housed in our CRM system, we knew we could build deeper customer relationships with better tracking, nurturing, personalized content, and lead scoring.  We were sitting on a data goldmine, but we didn’t know how to use it.

A Digital Foundation to Blaze New Trails

Casabaca’s CRM team worked closely with its marketing team to boost online presence and traffic by connecting the website to the CRM and more closely tracking the data collected. The team also worked hard to implement a digital sales funnel of online leads at the beginning of 2021, combining it with the existing physical sales funnel to capture and monitor opportunities from all sources.

Casabaca previously didn’t have any information on a prospect visiting the dealership for the first time, however, the digital sales funnel now allows representatives to track where a new lead is coming from. Whether leads come from the website, advertisement, or other channel, sales can better understand what the prospect is looking for and even gather some preliminary information, taking the guesswork out of selling.

Casabaca also implemented Zoom meetings and live web chat to engage with interested parties virtually. Though Casabaca was initially skeptical about conducting video calls and financing discussions over Zoom, our customers have loved seeing the brand’s changes and new digital presence.

Under the digital sales process, Casabaca is now able to capture information once, instead of asking customers multiple times. Not only does this provide a better sales experience for customers, but it makes reps more efficient, saving time from digging for data or rekeying information. And with the data collected, reps can have more personalized conversations with prospects, moving through the sales cycle quicker.

A Digital Way Forward

With the ability to talk to buyers in advance before meeting them in-store and scheduling meetings during the pandemic, Casabaca was able to sell almost its entire inventory by the end of 2021. And since implementing the digital sales funnel in June 2021, the dealership now converts 3 percent more leads, while creating loyal customers that keep coming back.

With digital processing, Casabaca has been able to expand sales opportunities to outlying areas such as the Amazon and coastal region, helping Casabaca achieve its goal to become a leader in the South American automotive market. The dealership is even willing to drive test models two to three hours to buyers’ homes, demonstrating a commitment to adapting to customers’ changing needs. The service is especially helpful to people with disabilities, an audience Casabaca takes special care to serve with tax-exempt vehicles.

Still, digital engagement has been about more than improving business results for Casabaca. It has also allowed the company to better serve the community in its time of need. Though automobile leasing isn’t typically practiced in Ecuador, Casabaca developed a program to allow customers to trade in their cars for a lesser value model and receive the cash difference to use as needed. Customers responded strongly to communications about the program, taking advantage of the opportunity to refinance their cars while still keeping one to drive.

In addition, Casabaca launched a new appraisal system to address an underserved market: used cars. Ecuador’s used car market is very informal and is not regulated; resources used in the U.S. such as the Kelley Blue Book or CarMax simply don’t exist. As a result, buying and selling used cars is mostly done through bartering. Casabaca created a model leveraging its own historical data (how much they pay/sell for used cars) and built its own system. With Casabaca’s appraisal system, users can give appraisals, take pictures, and render an initial offer, all from within the CRM. As a result, Casabaca has generated a 70 percent increase in the number of cars appraised and increased conversion rate from offer-to-buy by 5 percent in the first two months of implementation.

Letting the CRM Platform Do the Work

Through digital transformation, Casabaca has pioneered a new standard for customer experience. As a result, Casabaca came back stronger from the pandemic and aspires to continue achieving long-term growth. Integrating new technologies and processes into the CRM platform remains integral to Casabaca’s strategy to innovate through digital initiatives that will enhance the sales process and customer experience.

This article is brought to you by Alison Izurieta, CRM manager at Casabaca Toyota:

Alison Izurieta was born and raised in Ecuador. She is a Northeastern University class of 2016 graduate who majored in Business Administration with an emphasis in Finance and Management. Since 2019 she has been working for Casabaca Toyota as CRM Manager focusing on leveraging technology to improve the automotive sales process. As an aspiring product manager and avid soccer fan you can catch her and her team filling out the World Cup bracket and rooting for the Ecuadorian team.

About the author

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Toyota Digital Transformation Case Study

Toyota Motor Corporation conducts business in the automotive industry. It sells its vehicles in approximately 190 countries and regions. Its markets for its automobiles are North America, Europe, and Asia.

THE CHALLENGE WITH TOYOTA

No matter what your company size, there are a great deal of pros and cons when prioritizing one communication channel over another. Digital Delane was commissioned to examine the relationship between Toyota’s global website to shift the branding initiatives to social media social media exclusively.

After a discovery session with Toyota, we began mapping the framework and conducted a thorough examination of their vast network of social channels and websites. Once we collected the information and data, we then began prepping the document.