Dealerships can do a better job educating their buyers about connectivity options in their new vehicles, found a new study called “The Driver’s Mindset: Connectivity and Connectedness,” published by LexisNexis Risk Solutions this week. Though connectedness is “mainstream to most consumers’ lives,” this is not reflected in the uptake numbers of connectivity services in their cars, and much of the reason comes down to education and awareness.
Insights from more than 2,000 U.S.-based connected car owners highlight the opportunities for automakers to “further engage with their customers, create new and used vehicle brand loyalists, and realize the return on investment for connected vehicle technology.”
“Our study shows that automakers are at a confluence,” said Dave Nemtuda, head of OEM product, U.S. connected car, LexisNexis Risk Solutions. “While automakers face increasing competitive pressure to offer the best vehicle ownership experience, there still seems to be lower consumer activation and conversion rates within connectivity programs, despite the benefits.”
According to Nemtuda, the automotive industry can take action on the following insights to improve the customer experience, educate consumers on the benefits of connected services and help achieve connectivity-related business objectives.
Low activation rates of a connected services free trial are related to lack of awareness and opportunity to enrol, rather than lack of interest. Two-thirds (66 per cent) of survey respondents were not aware of connected services before purchasing/leasing their new or used connected car and over half (57 per cent) were not offered a Connected Services free trial at the dealership. Our study findings suggest activation rates of a free trial would be higher if car buyers were offered the opportunity: Eight out of ten (81 per cent) car buyers offered a free trial enrolled and nearly half (45 per cent) converted to a paid subscription after their free trial ended.
Consumers need to be educated on the benefits of connected services. Almost one-fifth (19 per cent) of consumers indicated they did not enrol in a free trial of connected services offered at the dealership. The top reason, mentioned by the majority (63 per cent) of the respondents, was that they did not see the benefit or the value of connected services.
Automakers shouldn’t rule out used car buyers. Buyers of new vehicles are twice as likely to be offered a free trial than buyers of used cars, even though the technology is available and accessible. 83 per cent of used connected car owners, which comprised about a quarter of the respondents, remain untapped and serve as potential connected services clients.
Automakers can help consumers take advantage of their driving behaviour data. 67% of the respondents said they were aware that connected vehicles can capture and transmit telematics data, which can potentially be used to obtain insurance discounts. Only 22 per cent, however, have used their data for insurance discounts.
“Now is the time for automakers to advance their customer journeys and develop a comprehensive customer experience strategy using the advanced data and analytics available today, or face losing to the competition in a challenging market,” said Greg Ross, connected car practice lead, motormindz. “Consumers are telling us they are open to the engagement that connectivity provides and, in many cases, they expect it.”
