Connectivity Issues Still Challenge Automakers & Dealers


The Situation:

There remain a number of hurdles to overcome before the connected car becomes the seamless experience automakers, dealers and consumers seek.

Issues that Affect Automakers and Their Dealers:

Dealership customer databases takes on new importance in the process of collected data that will influence connectivity and the value to consumers.

Agreement is yet to be reached on the dominant consumer charging model. This reflects the concern that consumers have a level of acceptance regarding payment for mobile services that will be difficult to change without a paradigm shift in the quality of experience, as indicated by the following:

  • 19.7% of respondents felt that monthly contracts would be accepted by consumers in return for telematics services however…
  • 33.9% of respondents also felt that the cost of the connected car should be included in the overall price of the vehicle as standard.
  • 22.6% of those surveyed believed that a pay-per-use model would become the norm.
  • 9.2% of industry experts feel that a single payment would define the customer charging model

BMW Offers a Telematics Success Story:

BMW has implemented in its telematics systems since 2007. The telematics system is in constant co

How the consumer experiences the end result of this communication is up to the ability of the dealership to react. However the company insists it is delivering reduced maintenance costs for users as a result.

Despite offering both reduced outlay to the consumer and cost efficiencies to the OEM, BMW intends to continue charging a one-off cost for telematics but insists that the customer will enjoy savings during the life of their vehicle ownership.

Actionables Dealer Managers Need to Address Today:

  • Telematics provides a unique opportunity to create completely new touchpoints between OEM, dealerships and customers.
  • Applications that focus on the car’s performance and driver experience can be collected and then fed back to the OEM or the dealer who can then proactively manage servicing and maintenance needs.
  • This means your Customer Relationship Management software must be highly sophisticated and state-of-the-art.

Dealers need to read the report in its entirety to under more about what is needed down the road – since using Telematics to integrate the OEM, the dealer network and the customer more closely will require a significant reinvestment in bringing legacy systems up to date with connectivity.