We Are Looking At 30% Surge In Consumer Engagement Through Lexus Life Program: Naveen Soni
As Lexus India marks its seventh year in the luxury automotive market and concurrently celebrates the seventh edition of the Lexus Design Award India, Naveen Soni, President, Lexus India spoke to BW Marketing World exclusively. He touched upon various aspects of Lexus India's strategy, from maintaining exclusiveness in marketing to embracing sustainability, supporting design initiatives, and navigating the changing landscape of the automotive industry.
Soni highlighted Lexus India's unique approach to maintaining exclusivity by prioritising customer experience over sheer sales numbers. “The focus is not just on selling cars but on creating lifelong fans of the Lexus brand,” he remarked. Soni emphasised the philosophy of taking care of existing customers, treating them as cherished consumers, and providing a personalised experience stating, “We take care of our guests in a homogeneous way, giving each and everybody a personalised experience and then growing from there to a bigger market size.”
Celebrating Design & Sustainability
Discussing the flagship event, Lexus Design Awards India (LDAI), Soni outlined the brand's commitment to design and sustainability. He emphasised Lexus's recognition for intricate detailing and craftsmanship in building vehicles. Despite having a strong presence in electric and hybrid vehicles, the Lexus Design Award India is positioned independently to champion design and recognise young talents working on solutions for societal issues. He stated, "LDAI is about promoting design and designers. It is basically about promoting good design, promoting good designers, whether young or old."
The focus extends beyond the aesthetics of the automotive industry to a broader perspective, where design serves as a powerful tool for enhancing the environments we inhabit. Lexus India aims to recognise and support these visionary designers, providing them with an enriching experience that transcends conceptualisation and extends to the realisation of final products. The awards, now in their seventh year, aim to promote and recognise designers, irrespective of their association with Lexus products.
Soni shed light on Lexus India's roadmap for sustainable mobility, particularly in the context of the rising popularity of electric and hybrid vehicles. Currently, the brand focuses on self-charging hybrid electric vehicles, aligning with the current business and infrastructure environment. He shared, "Globally we have taken a mandate of producing all Lexus vehicles as battery electric vehicles." However, while disclosing Lexus's commitment to manufacturing exclusively all-electric vehicles by 2035 on a global scale, Soni emphasised the brand's current perspective. According to him, Lexus currently perceives self-charging hybrid electric vehicles as fulfilling a critical role in environmental preservation, fuel conservation, and meeting the power and fuel efficiency demands set by both consumers and governmental standards. The brand's approach underscores the belief that, in the current landscape, these hybrid vehicles effectively balance ecological considerations with performance expectations.
Luxury Lifestyle Partnerships
The discussion moved beyond automobiles to Lexus's collaborations in the realm of sports and luxury lifestyle. He delved into Lexus's multifaceted engagement strategy, positioning the brand as more than a luxury mobility provider. He positioned understanding the diverse interests of Lexus customers and positioning the brand as a luxury lifestyle partner. He said, “We just don't want to be known as a luxury mobility company. We'd like to be known as a luxury lifestyle partner in order to establish that fact.”
The Lexus Life program, allocating 40 per cent of marketing spends, offers privileges and experiences to enhance the connection between the brand and its customers. He shared that the company has endeavoured to actively foster the engagement of its consumers in these programs. The objective of these initiatives is to bring our consumers closer to the Lexus brand. Through these activities, we aim to cultivate a stronger bond with our guests, ultimately fortifying the connection between them and the Lexus brand.
Soni delved into the significance of experiential marketing, citing it as a key trend for the coming years. The Lexus Life program, focused on existing customers, aims to deepen the bond with consumers. Through personalised and targeted activities, Lexus seeks to turn customers into quasi-brand ambassadors, fostering a sustainable and cost-effective growth strategy. "The route is, first, consolidate your base and then grow with these guest recommendations", he remarked on strategies to strengthen the bond with their consumers.
Technology, AI & Immersive Experiences
Regarding marketing strategies, Soni discussed the blend of traditional and digital media, with a significant focus on experiential marketing. He highlighted the increasing role of technology, AI, and immersive experiences in tailoring messaging to individual preferences. He commented, “It is going to be more and more lifelike. It is going to be more like real. And it will not be just simple messaging.” Lexus aims to use these tools to provide a more personalised and engaging experience to its customers.
Soni shared that commencing with a referral percentage of 9 per cent in total sales, we have witnessed a substantial increase, currently standing at approximately 18 to 19 per cent. We anticipate that, propelled by the robust Lexus Life program, this figure may ascend to 30 per cent. This not only signifies a rise in the proportion of consumers engaged through the referral program but also underscores the cost-effectiveness of this targeted approach. Our focused initiatives ensure that participants align with their specific interests, fostering a deeper connection between the company and the guest, essentially transforming them into quasi-brand ambassadors. As emphasised from the outset, our strategy revolves around consolidating our base and subsequently expanding through these consumer recommendations, an approach we believe is the most sustainable pathway to growth.
Addressing The Real Connection
Addressing economic uncertainties, Soni stressed the importance of taking care of existing customers as an insurance policy for brand resilience. Addressing the same, he said, “Once your guests bought your vehicle in the past, they are strong advocates of your brand, then from a business continuity point of view, you would not face the large vagaries of the economic uncertainties."
By building strong advocates for the brand, Lexus aims to mitigate the impact of economic fluctuations and ensure business continuity.
Looking ahead, Soni discussed the brand's plans to leverage technology, including AI and ML tools, to personalise messaging and experiences for individual customers. He accentuated, “We would like to deepen our bonds and relationship with our guests, whether it is through experiential marketing activities, immersive marketing activities, or reaching out to them at the right time for the right things. These are things along with using tools of AI and ML for these would be the way forward.”
The goal is to enhance engagement and provide a more immersive and relevant connection with the Lexus brand.
Looking at the current edition of Lexus Design Awards India, Soni expressed satisfaction with the increasing number and quality of entries. The professional category witnessed a significant rise, indicating a higher desirability index. With an esteemed jury elevating design concepts, Lexus anticipates the awards to become a pinnacle in the design fraternity.
In closing, Soni shared insights into the future trends of the industry, emphasising the importance of maintaining fundamental business philosophies. While explaining Lexus India’s strategy to stay relevant, Soni asserted, “In our language, we call it PDCA (Plan, Do, Check, Act). Those business cycles that we evolve to reflect on what went right and what did not go as per our expectations, and then modify the business plan for the next cycle.” He highlighted the need for continuous evolution, adapting to changing technologies and staying focused on customer needs as the key to sustained growth.
