As consumers’ reliance on connectivity continues to evolve, there has been an increasing pressure from the competition to create and offer the best vehicle ownership experience. While automakers have been using connectivity to engage and stay in touch with their customers, and connected services and features have become more mainstream, there still seems to be lower activation and conversion rates within connectivity programs. Remarkably, the low rates are related to lack of awareness and opportunity to enroll, rather than lack of interest, our survey reveals.
Two-thirds (66%) of the respondents were not aware of connected services’ availability before purchasing or leasing their new or used connected car, and over half (57%) were not offered a connected services free trial at the dealership.
Our study findings suggest activation rates would be higher if car buyers were offered the opportunity: Eight out of ten (81%) consumers who were offered a free trial accepted it, and nearly half (45%) of them converted to a paid subscription after their free trial ended.
Among those who were not offered a free trial at the dealership, seven out of ten (71%) indicated they would have been very/somewhat interested in enrolling, had they been presented with the opportunity (Figure 1).
We investigated the reasons why nearly one-fifth (19%) of consumers did not enroll in a free trial of connected services when offered by the dealer. Results were surprising. The top reason, mentioned by the majority (63%) of the respondents, was that they did not see the benefit or the value of connected services. Lack of knowledge about the benefits of activating a free trial is causing consumers to not fully optimize the features and services made available in the vehicle (Figure 2).
Automakers are making a large investment in the technology and connected features in their vehicles. The opportunity to capitalize on the investment, and ultimately maximize the benefits consumers can receive by utilizing the value-add services available, is wasted if vehicle owners are not activating and engaging with those features simply because they don’t understand the value.
We further explored the results on connected services activation rates by looking separately at the experiences for new and used vehicles.
There is a large pool of untapped customers to engage with a free trial offer and potentially increase connected services activation rates and conversions to a paid subscription. Moreover, opportunities in the used car parc will continue to grow and eventually will exceed the ones in new cars, since the annual turnover of connected vehicles is much higher than the sales of brand-new connected cars.
Generating awareness for connectivity programs and creating a consistent dealer enrollment process is not trivial and can be quite time consuming and expensive. Nevertheless, if a dealer does not offer a free trial for connected services, there are further opportunities to re-engage vehicle owners with trial offers.
According to our survey, among car buyers who enrolled in a free connected services trial, nearly one-fifth (17%) did so after they left the dealer. Of those, the overwhelming majority (78%) were able to complete it without returning to the store. Consumers also indicated that an easier and smoother process could impact their willingness to enroll in a free trial.
When automakers do reach out to customers after they have left the dealership to offer them a free connected services trial, it is important to focus on two basic aspects: to provide a seamless activation process and ensuring the identity of the customer is correct when verifying vehicle ownership.
The information entered during the purchase transaction can be used in the connected services enrollment process by employing prefill services. Contact information, such as phone numbers, email addresses, and date of birth, along with vehicle identification numbers (VINs), can be pre-populated on any digital or web-based forms.
Consumers only need to enter a minimal amount of information, such as first and last name and address, to enable their identity verification. Once their identity is verified, consumers will simply confirm the data attributes presented to them. Prefill solutions not only streamline the onboarding and activation process but also replaces repeated manual input, which can take time and create friction, as information can be entered incorrectly — and ultimately affect activation rates.
How Can Automakers Increase Connected Service Enrollment Rates Outside of the Dealer Interaction?
Automakers can help consumers by prefilling connected services activation forms. Fatigue at the dealership, manual errors, and inaccurate information can create friction later in the enrollment and activation process. LexisNexis Risk Solutions is developing a data prefill solution to help automakers simplify the registration and account set up process by pre-populating web-based forms with more accurate information that can be validated by the end consumer. Prefilling or pre-populating information can help reduce errors and manual processing while also improving the customer experience. The ability to digitally verify and authenticate car owners’ identities to activate and deliver connected services provides a great opportunity for automakers to transition from traditional offline processes towards more efficient digital methods — saving time, freeing resources, and most importantly, improving the customer experience. LexisNexis® Identity Solutions for Automakers Our suite of identity verification and authentication tools can enable a digital activation process, which can help consumers engage quickly in a free trial outside of the dealership. They help automakers create the seamless digital experience that customers want and expect.
Your customers no longer compare you just to your direct competition. You are being compared to the best service they have ever received — from any company or any person."
