IBM has helped Audi UK enhance its digital customer experience by redesigning the Audi UK website. Online sales inquiries increased by 59% in the UK last year, despite a 30% industry decline in new car sales in the UK.
IBM (IBM) applied its IBM Garage Methodology, an end-to-end model for accelerating digital transformation across organizations, to help Audi UK tailor its customers’ online experience to their key incentives for buying a car.
The COVID-19 pandemic has changed the way people shop for vehicles as dealerships had to close and in-person operations were limited. Since 90% of Audi UK’s car purchases start online, the contactless digital experience has become vital.
IBM transformed Audi UK’s mobile and desktop shopping experience by building a cloud-based platform supported by Adobe Analytics to provide actionable marketing insights.
Antony Roberts, Head of Digital at Audi UK, said, “In a matter of 12 months, our leads have grown exponentially and our sales conversions have improved…Through our collaboration with IBM, Audi UK now has the most effective cloud-based online platform across the entire VW Group, building a smarter experience for customers interacting with our brand.” (See IBM stock analysis on TipRanks)
BMO Capital analyst Keith Bachman reiterated his Hold rating on IBM three months ago and set his price target at $138. This implies upside potential of around 9% from current levels.
Bachman believes that IBM has been taking the right steps to create shareholder value, but that patience will be required as the underlying business remains weak. He also argues that IBM has limited capital for acquisitions and sees “no near-term catalysts.”
Consensus among analysts is a Moderate Buy based on 2 Buys and 4 Holds. The average price target of $144.33 suggests upside potential of around 14% over the next 12 months.
TipRanks’ Smart Score on IBM is a perfect 10, which indicates a strong chance of beating the market.
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