Toyota Connected, the automaker's global data hub focused on expanding mobility services and connected-car growth (Photo Credit: Toyota)

Connected cars are not just a new development for consumers. They also bring new challenges and new opportunities to our dealerships. 3 Birds has spent a great deal of time studying the “Connected Car World” to understand the implications for dealership marketing for progressive dealerships.

Connected cars are not just connected to the OEM, but can be connected to the dealership. This means a better experience and a more loyal consumer.

Soon, every car will be connected

A 2014 McKinsey & Company report defines a connected car as “a vehicle able to optimize its own operation and maintenance as well as the convenience and comfort of passengers using onboard sensors and Internet connectivity.” We are fast approaching a time when every vehicle will be transmitting a variety of very interesting data via the internet, including:

  • Driving habits – including mileage, speed, travel patterns, and more
  • Vehicle location – including streaming video in real time
  • Vehicle health – including operating performance and real-time mechanical condition

Soon, every vehicle owner and/or driver will have an app or multiple apps that are connected in real time to their vehicle. This persistent connection between customer and vehicle enables the vehicle to push operating alerts that have very high potential customer value, including:

  • Maintenance needed – that syncs with OEM- or customer-selected preventative maintenance
  • Mechanical faults – systems that are not working according to specifications and may require repair
  • Driving tips – that help drivers change behavior to better optimize insurance rates, fuel economy, and other factors
  • Traffic – tips and alternative routes based on vehicle location and/or GPS or expected path
  • Weather – conditions and alerts based on the vehicle location and/or GPS or expected path

Some of the systems and applications that are on the market today also provide additional services, subscriptions, functions, and alerts to consumers to encourage selection and usage. These functions are not directly from the vehicle, but rather are included to make vehicle ownership more enjoyable.  They include:

  • GPS Navigation – for directions
  • Discounts – from participating merchants
  • Ownership – service bulletins, open recalls, maintenance schedules

The growth in development and utilization is being driven by several different constituencies who have different agendas.  But what should the dealer agenda be?

The dealer opportunity

Connected car technology advances represent potential pitfalls for customer satisfaction without the appropriate education. In the 2017 J.D. Power Vehicle Dependability Study, problems with Audio/Communication/Entertainment/Navigation (ACEN) technology topped the list of consumer complaints for the second year in a row. Problems with Bluetooth pairing/connectivity and built-in voice recognition were the most-reported issues.

Dealerships should play the key role in consumer education. Before and especially after the sale, conduct consumer workshops not just showing how to use features, but how to incorporate them into daily life. Integrate “how-to” content in monthly email newsletters as well as on dedicated space on the dealership website. Deliver custom email campaign streams to those consumers who express interest in connected car technology to help advance their usage, which in turn drives loyalty and satisfaction. 

Looking ahead

In addition to usability issues, upcoming connected technologies will raise issues of privacy and use of consumer data. Vehicles that communicate and send data to other vehicles (V2V) or to “everything” (V2X) can reduce collisions and road fatalities or maximize productivity in fleet scenarios, but dealers need to be prepared to address concerns around how manufacturers and third-parties will be using this information.

How long before OEM-connected cars communicate service needs, bulletins, recalls, and maintenance directly to the car from the OEM? How long before the OEM offers consumers the full network of possible service locations along with their unique offers?  How do you differentiate your dealership and build loyalty in this future world?

At 3 Birds, we see the future of service communication beyond the reminder notice and the “win-back” campaign.  Integration of service, technology, and driving habits into monthly newsletters means that you know who wants what, when, and has what interest.  These campaigns spark consumer engagement and that data triggers new communication streams and offers which strengthen the link to your dealership.

Dealerships can’t just do the same old direct mail dumps with stale coupons. Progressive dealers in a connected world must use content, actual behavioral data, and custom communication intervals to reach consumers who will get the “old stuff” a new way.

Don’t be tempted to cede this space to your OEM or the third-party servicers. With 3 Birds, your dealership has all the tools to win in a connected car world.