We’re excited to announce our new automotive report: The Hidden Urgency of Connecting the Unconnected Auto Owner. We wanted to understand the value of connected customers to automakers. What we found was a stark difference across a number of critical brand metrics. Connected customers are the most loyal, the most engaged, and the best targets for monetization programs. These findings make it clear that automakers need to connect the unconnected customers as fast as possible.
For example, the report uncovers that 87% of connected vehicle owners plan to purchase the same brand again, compared to just 23% of unconnected customers. Connected customers also have a higher NPS, are more likely to service their vehicle at certified service centers, and are more likely to purchase insurance from their OEM.
The challenge for automakers is that connected car adoption isn’t fast enough. Today, 85-90% of automakers’ customers are unconnected. The average turnover for a vehicle is 10-12 years. Analysts project that connected cars will make up just 48% of the U.S. fleet by 2030.
The risk for automakers is that their unconnected customers will purchase a connected vehicle from another brand. With the increased brand loyalty and other metrics associated with connected vehicles, it will be more difficult than ever to win that customer back.
So how can automakers connect the unconnected today, increase their brand loyalty and engagement, and ensure they don’t go to the competition?
Our new report finds that smartphone apps can bridge the gap. Customers who have their vehicle’s app behave like connected customers. App customers are over 80% more loyal to their brand than non-app customers. They’re also more likely to service their vehicle at a certified repair center and buy auto insurance from their automaker.
The challenge here is that automakers need to find a “must-have” feature to drive app adoption among unconnected customers. Today, 88% of connected customers have their vehicle’s app. They use it to access connected vehicle features, get maintenance reminders, and track fuel and oil levels. Just 3% of unconnected customers have their vehicle’s app.
Our report shows that peace of mind could be that “must-have” feature: 56% of unconnected customers would download their vehicle’s app to get car crash detection and emergency response. Here’s how it could work: When a customer gets into a car crash, the app detects it and alerts trained responders, who dispatch emergency services to the scene.
For automakers, this peace of mind fueled by car crash detection could be the difference between connecting the unconnected today and seeing unconnected customers leave for the competition tomorrow.
To learn more about how connectivity affects automotive brand metrics and what automakers can do about it, check out the full report here.
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