Electric vehicle sales continue to rise and therefore the reality of the next phase of our customers’ automotive requirements is upon us. At the end of June 2024, there were more than 1.14 million fully electric vehicles on the roads in the UK (source: Zap Maps).
The impact on the industry is already being keenly felt with fluctuating, hard to predict used valuations, as the first EVs start to come back in as part-exchanges. The growth of leasing deals are taking advantage of low benefit in-kind taxation with subscription and salary sacrifice becoming new options for consumers.
It stands to be the biggest challenge that the industry has ever faced, with so many unknown factors; the speed of technology growth, the requirement for in-depth training, infrastructure at sites – the list of challenges goes on and on.
With any challenge though comes an opportunity. A requirement for thinking outside the box in order to look for those opportunities is pretty much non-negotiable as this in turn will limit the impact of the change.
The department where that impact will be felt the most is in aftersales. With less moving parts than traditional ICE vehicles, the potential impact on revenue in aftersales is clear to see; less opportunity to service; less requirement for parts with the service; less opportunity for upsell for things like oil top-ups and brakes etc. The picture can therefore be mistaken for looking quite bleak.
So, what is the answer when it comes to protection of that revenue I hear you ask? The key here will be contact strategy and customer retention, right through to the ownership of their first electric vehicle. Keeping the vehicle park as full as possible by nullifying the threat of alternative brands and the endless options when it comes to EV ownership. Ensuring high levels of service contract penetration now and having a “best in class” contact strategy are key to ensuring you’re by your customers’ side when they make the leap of faith.
At this point, this is where the ‘thinking outside of the box’ comes in. More regular servicing through the vehicle data telling you what is needed in order to increase the number of touch points is one way. Data packages being upsold to enhance the driver experience and replace lost revenue is another. Educational events replacing the traditional sales events would surely be welcomed by prospective and current EV owners, after all, this is relatively new territory for them too. Whichever way you go, the key is to have a strategy in place that rips up the traditional rule book and replaces it with one that thinks differently.
However, behind that strategy is the age-old basics of a contact strategy that ensures every touch point you have with your customers is carried out properly in the right medium and at a time that the customers want and not necessarily when your business currently dictates.
The landscape is changing. What changes have you made to go with it? What more can you do to embrace it? What are you doing now to protect the customers of the future? How focused are you on your current upsell process in order to maximise this revenue whilst you still can?
These are all questions that we are happy to help you answer. At Connectivity.CX, we pride ourselves on staying at the forefront of industry change by providing bespoke technology and services to help keep our customers right there at the front with us.
Change is coming. Don’t fall behind.
