Survey Claims Some Buyers Are Eager To Pay Subscriptions For Features In Their Cars
Image: BMW
Whether you like it or not, subscription-based vehicle features are coming. Make no mistake, its a horrible idea to have to pay to unlock a feature that has already been built into your vehicle. But automakers are in the business to make money and they don’t care. Luckily though you don’t necessarily have to open your wallet for these features. But according to one survey, people are willing to open their wallets for these features as Automotive News reports.
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A study conducted by S&P Global Mobility surveyed almost 8,000 participants. A subset of those 8,000 —4,500— had already used a trial period or experienced an existing subscription on a vehicle from 2016 or newer. Over 82 percent of these people said that they would “definitely or probably consider purchasing subscription-based services on a future new vehicle purchase.” A big chunk of those with existing subscriptions said they’d renew with another 85 percent saying they’d tell their friends and family about the service.
The high number of those open to subscriptions may surprise some. But it all really comes down to exposure as S&P’s senior technical research analyst Yanina Mills explained. “Consumers are welcoming to the idea of subscriptions, because it gives them exposure to features or technology that they may not have had in the past.” But this exposure means that its on automakers and dealers to educate and inform consumers about these. Good luck with that.
The trick for automakers, according to S&P Global Mobility, is getting consumers exposed in the first place. More than 1 in 4 respondents said they either did not know that connected services were available or the dealership did not offer them.
This also may work out to be a win for GM, who’s faced backlash over its decision to eliminate Apple CarPlay and Android Auto in future EVs for its own native UI. If the company can create a great a new technology experience, it may win over customers enough to get them to open their wallets. But we all know it’s really more about collecting customer data as S&P points out.
…given that 89% of current connected-services subscribers resubscribe anyway, the potential modest increase in subscriptions isn’t the primary reason for GM going native. GM sees an opportunity in consumer usage data.
GM cannot get consumers’ usage data from the infotainment system if users only connect via third party apps like Apple CarPlay and Android Auto. Having this data on their own will become one of the competitive advantages for OEMs.
But in the end it’s really about people seeing that they’re getting something of value. Data from the survey shows people don’t want to pay for things that they won’t use often. They’re also willing to subscribe to safety features; just 30 percent of respondents said they’d be willing to subscribe to comfort features like heated seats.
