We all know the statistics – Gartner predicts that there will be 250 million connected cars on the road by 2020. That means one in every three cars on the road will be connected. By then digital diagnostics, infotainment channels and enhanced navigation systems are expected to constitute a $270 billion industry, up from $47 billion today.
The connected car has arrived. We have about a year before the novelty of a new car arriving with Wi-Fi and integrated telematics wears off. We have maybe 18 months before over-the-air updates, mileage-based insurance and semi-autonomous highway navigation become mainstream.
And like practically every industry around the world, the automotive sector is currently in the midst of a broad, systemic shift from transactional sales to recurring subscription services. Companies are finding that real shareholder value lies in actively growing and developing a devoted base of drivers, not simply moving units.
So far most of the media attention has been placed on competing platforms and applications, but that’s missing the broader picture. Functionality and connectivity is the easy part. The real question is whether the industry is ready to shift from transactions to services.
Is the connected car industry ready for ongoing customer relationships? Is it ready to compete against the likes of Google and Apple? Does it have the tools to truly own the contemporary automotive experience, the way Spotify owns today’s music listening experience?
Here are six important questions I dare you to consider when thinking serious about pursuing a connected car strategy that places the driver squarely in the center of their business model.
"Are you selling to the vehicle or the driver?" Rich Becker
"Are you treating your dealerships like check-out counters or genius bars?" Rich Becker
"Are you being smart about your drivers’ wallets?" Rich Becker
"Do you understand what kind of driver you’re talking to?" Rich Becker
"When your driver shifts gears, will you be ready to shift as well?" Rich Becker
"Are you ready to race against Silicon Valley?" Rich Becker