LIVONIA, Mich., July 23, 2024 (GLOBE NEWSWIRE) -- Among new-vehicle buyers, brand loyalty and satisfaction are high, with more than eight in ten (84%) indicating they are very likely to purchase their next vehicle from the same brand as their current vehicle. Dealer loyalty, on the other hand, is lagging, with only 67% of buyers saying they would be likely to transact with the same dealer.
As increasing numbers of new-car buyers purchase a battery electric vehicle (BEV), opportunities to reimagine the dealer experience through maintenance subscriptions, mobile scheduling and education could pave the way to change this dynamic and create positive and enduring relationships between dealers and BEV owners. That’s according to the latest findings from the 2024 EVForward® Aftersales DeepDive study by Escalent, a top data analytics and advisory firm that provides strategic counsel to most of the world’s leading automotive companies. Drawing insights from the largest, most comprehensive study of the next generation of BEV buyers, this report explores how dealerships can adapt their model of aftercare to prepare for a future with higher levels of BEV ownership.
“As vehicle shoppers increasingly gravitate toward BEVs, we’ve heard concerns from dealers that their business model, which relies heavily on servicing vehicles, will be under threat,” said KC Boyce, a vice president in the Automotive & Mobility and Energy practices at Escalent. “The data in this report indicate the opposite. BEV owners want to feel that the dealer is on their team from the point of sale onward. While the dealer-owner relationship will evolve, dealers still have a crucial part to play in supporting BEV owners and facilitating the care of their vehicles throughout the ownership experience.”
Building confidence in vehicle ownership is always important, but BEV shoppers are particularly concerned with protecting their purchases. Among all powertrains, new-car buyers stated that owning a BEV outside the warranty period would be the most worrying and more than eight in ten (82%) said their vehicle’s warranty is a vital aspect of their purchase decision. Offering extended warranties for BEVs is one key area where dealers can support prospective buyers while expanding an existing revenue stream.
Dealers can also foster trust and long-term affinity by providing counsel at the point of sale and throughout the lifetime of BEV ownership. More than 80% of new-vehicle buyers said that having the dealer review proper care and maintenance would be very important in a BEV purchase. However, only 62% reported that their dealer talked them through the proper care and maintenance of their current vehicle. This presents an opportunity for dealers to proactively educate consumers on their vehicle’s service schedule, with 65% of new-car buyers saying they would be very likely to return for service if the dealer did so.
On this front, subscription models could offer dealers a novel avenue for customer retention and loyalty. The majority of EV Intenders—consumers who are more than 15 times more likely to purchase a BEV than the average new-car buyer, according to Escalent’s research—indicated they would be interested in a subscription plan with the dealer to cover routine BEV maintenance, with brake replacement (82%) and tire replacement (84%) proving the most popular options.
Scheduling service via a mobile app also emerged as a promising way to elevate the customer experience. Thus far, Tesla has dominated in this arena, but Escalent’s research suggests that service scheduling via mobile could be a value-add for many BEV shoppers. Approximately two-thirds (65%) of all new-car buyers—and 82% of EV Intenders—said they would be interested in scheduling vehicle service at a dealership directly from an automaker’s mobile app. As the recent CDK Global cyberattack showed, however, automakers and dealers need to be mindful of security and resilience to ensure that threat actors don’t disrupt consumers’ digital experience.
While vehicle shoppers value the convenience of mobile scheduling and maintenance subscription services, they are still hungry for personal touchpoints. Consumers view dealers as a trusted point of contact for questions and concerns about their vehicles, even after the sale is complete. More than half (56%) of new-vehicle buyers said they would prefer to learn about new BEV features at their dealership, cementing the dealer as a key source of education for vehicle owners.
Dealers may even consider expanding on this role in the future. Almost 70% of EV Intenders and 48% of EV owners stated they would be very interested in taking a course covering topics such as maximizing EV range and battery life.
“BEVs are reshaping consumer behavior, prompting vehicle owners to embrace new habits for scheduling and servicing,” said Ben Lundin, Automotive & Mobility insights director at Escalent. “That makes it the ideal time for dealerships to reimagine their model in a way that anticipates the needs and desires of BEV owners. To maintain a central position within the BEV ecosystem, dealers must provide programs and resources that encourage buyers to return over the course of their vehicle’s lifetime, positioning the dealership as the natural choice for future purchases.”
About the 2024 EVForward® Aftersales DeepDive
This EVForward DeepDive was conducted among a US sample of 1,221 respondents—with 104 EV Owner, 319 EV Intender, 421 EV Open and 377 EV Resistant respondents as identified by Escalent’s algorithm—from February 5 to 15, 2024. These respondents are a subset of the EVForward database, a global sample of more than 50,000 new-vehicle buyers age 18 to 80, weighted by age, gender, race and location to match the demographics of the new-vehicle buyer population and by vehicle segment to match current vehicle sales. The sample for this research comes from an opt-in online panel. As such, any reported margins of error or significance tests are estimated and rely on the same statistical assumptions as data collected from a random probability sample. Escalent will supply the exact wording of any survey question upon request.
About Escalent
Escalent is an award-winning data analytics and advisory firm specializing in industries facing disruption and business transformation. As catalysts of progress for more than 40 years, we accelerate growth by creating a seamless flow between primary, secondary, syndicated, and internal business data, providing consulting and advisory services from insights through implementation. We are 2,000 team members strong, following the acquisition of C Space and Hall & Partners in April 2023. Escalent is headquartered in Livonia, Michigan, with locations across the US and in Australia, Canada, China, India, Ireland, the Philippines, Singapore, South Africa, UAE, and the UK. Visit escalent.co to see how we are helping shape the brands that are reshaping the world.
CONTACT: Kim Eberhardt
248.417.2460
keberhardt@identitypr.com
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/b921cd00-03bc-4224-b7b7-db24ea0d535b
https://www.globenewswire.com/NewsRoom/AttachmentNg/e9b1b484-b653-466f-9ee6-827797d103f3
