An Automotive Minute [S2|E40] Connectivity with Mark Boyadjis
An Automotive Minute [S2|E40] Connectivity with Mark Boyadjis
There is a clear focus on new revenue sources in the automotive industry, as mobility, electrification, autonomy, and connectivity continue to democratize for a post-COVID world.
Connected services are one way automakers can grow revenues, yet many still see it as a cost, not a profit center. In many cases, automakers see paltry renewal rates from 15-30% post trial, which is neither sustainable nor profitable.
In a recent S&P Global study, six premium brands in the US market were evaluated and indexed, investigating the intersection of consumer opinions and competitive metrics on connected features.
Tesla and Cadillac indexed above the average, whereas BMW, Audi, Mercedes and Genesis indexed below. These results illustrate that the top two brands have a deeper integration of connected services across their organizations that drive higher customer satisfaction and revenues.
As the industry works to recover the sales and revenue levels it enjoyed before the pandemic, those with a structural focus on connected services will find a competitive advantage amongst the market.
I’m Mark Boyadjis, with an S&P Global Minute.
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