Driving Profits: How European automakers can harness the potential of connected-vehicle technology

The rise of the smart city, and how connected vehicles can fit in

The increasing pressure on urban infrastructure (particularly as it relates to transportation) has given rise to smart cities. Fully integrating vehicles into these smart cities requires imaginative measures from the government and the automotive and energy industries. Leveraging data and technology can maximise efficiencies across this new energy landscape – including traffic management of connected vehicles – ultimately helping urban environments to become more practical, sustainable, secure and livable for all community members.

Europe, however, has unique technical challenges that make rapid adoption of connected technology as a means to increase service revenue more daunting. Among the technical hurdles to overcome is the sheer diversity of languages, regulations and technology systems scattered across the region. This multifaceted landscape substantially increases the requirements for crafting and sustaining a large enough software infrastructure capable of efficiently collecting and delivering timely service leads to both consumers and retailers.

Tap into service alerts to build both customer trust and service revenue — how connected vehicles fit in

Modern vehicles are designed to provide ongoing information about the status of key elements from the day of delivery. These messages are conveniently relayed to owners through email or specialized apps. This arrangement should ideally result in a triple-win scenario, benefitting not only vehicle owners but also retailers and automakers. Owners gain a heightened sense of control and trust through the enhanced visibility into the health of their vehicles.

For automakers and retailers, these advantageous services help establish a vital and continuous line of communication with their customers, nurturing a relationship that goes beyond the point of sale. Additionally, service alerts provide invaluable information about the status of crucial vehicle conditions that empowers both automakers and retailers to achieve the ultimate objective of direct marketing: reaching the right customer, at the right time, with the right message.

The possibility to continue building relationships and keep owners engaged cannot be overstated in light of the expected reduction of service visits associated with EVs. Leveraging telematics to take immediate action, however, really comes into play through service alerts. Owners who willingly share their vehicle’s service data when it detects mechanical or safety issues provide retailers with a valuable advantage in addressing these concerns promptly.

Retailers who have an owner’s permission can proactively reach out to them during service-alert events to let their customers know they’re aware and concerned about:

• Maintaining their safety and flagging immediate issues that require attention
• The health and optimal performance of their vehicle, empowering proactive attention
• Improving convenience by offering to schedule the necessary maintenance and/or repairs on their vehicle
• Maximizing vehicle and equipment life through preventative maintenance