In a surprising turn of events, a recent survey has shattered the belief that car buyers are strongly opposed to in-car connected service subscriptions.
According to an article published on carscoops.com, S&P Global Mobility conducted a global consumer study involving nearly 8,000 participants, and the results are eye-opening.
Contrary to common beliefs, 82% of the respondents who experienced a free trial or existing subscription on a 2016 model year or newer vehicle expressed their willingness to consider obtaining subscription-based services in their future new vehicle purchases.
This discovery showcases the potential demand for such services once customers have experienced them firsthand.
According to S&P Global Mobility, the key lies in exposing consumers to in-vehicle services, proving that in-vehicle exposure is more effective in driving demand, satisfaction, and retention with these services and brands compared to mere education on subscription programs.
The survey also delved into the likelihood of subscription renewals, and the results are promising. The vast majority of respondents who were exposed to a subscription service, either through a free trial or by opting for it, expressed a strong inclination towards renewing. Furthermore, an overwhelming 85% stated they would recommend these services to their friends.
Certain subscription services and features proved more appealing to consumers than others. Enhanced navigation and driver-assist systems topped the desirability list, along with popular safety features. On the other hand, consumers showed less interest in splurging on subscriptions for commonplace features like heated seats and heated steering wheels, as offered by some manufacturers.
Fewer than 30% of respondents were willing to pay for these features through monthly subscriptions.
S&P Global Mobility’s senior technical research analyst, Yanina Mills, believes that consumers are drawn to the idea of subscriptions because they provide access to innovative features and technology they may not have experienced in their previous vehicles.
In conclusion, the survey’s findings challenge the notion that in-car connected services face widespread rejection among car buyers. It appears that once customers have a taste of these offerings, they become more open to embracing them in their future driving experiences.
The automotive industry may need to shift its perception and embrace the growing potential of in-car connected services to cater to the evolving demands of modern consumers.