In today's challenging economic climate, drivers are rightly looking for better value and more personalised experiences when searching for a new car. This creates both a challenge and an opportunity for dealerships: particularly with the growing popularity of leasing among British drivers, writes Kevin Cohen, vice president of direct-to-device strategy, Viasat.
Direct-to-device (D2D) technology – which enables vehicles to seamlessly switch between cellular and satellite networks to ensure always-on connectivity – offers a way for dealerships to meet these evolving demands.
The innovation could help re-imagine the dealership experience, providing the data needed to personalise the leasing journey and build long-lasting customer relationships as a result.
EY's Mobility Consumer Index further reinforces the opportunity, highlighting the need for dealerships to improve their control of customer data to optimise operational costs and efficiencies, a critical advantage in this challenging macroeconomic climate.
Highly reliable connectivity underpins the collection of real time data via D2D technology, but even in the UK there are significant coverage black spots to be filled, particularly in rural areas.
This is where satellite-enabled D2D technology comes in. The new connectivity technology, driven by new 3GPP network standards, is allowing everyday devices like vehicles and phones to connect to both satellite and cellular networks without the need for large, dedicated satellite terminals. By providing continuous connectivity to drivers regardless of location, car dealerships can effectively leverage D2D technologies to enhance customer service, build trust, and ensure both vehicle and business operations run as efficiently as possible.
Why dealerships can benefit from technology
In 2024, 8-in-10 consumers stated that they are more likely to purchase when businesses offer personalised experiences. Seamless personalisation is the name of the game.
There is great opportunity for such personalisation in the after-sales market in particular. Once buyers have purchased their vehicle, it is critical that dealers are proactive in managing the ongoing customer relationship.
Having real time data on the health of the customer’s vehicle can open up conversations about maintenance before drivers even realise they need it, providing added value to the customer over the long term.
Personalised insurance promotions, tailored to individual driver behaviours and vehicle usage, represent another exciting avenue for growth for the market. By leveraging data insights, dealerships and rental companies can offer customised insurance options, fostering stronger driver relationships and increasing customer lifetime value.
With a quarter of new drivers looking to buy cars directly from manufacturers or third-party websites, dealers will need this data driven approach to stay competitive in an increasingly saturated market.
Shifting gears: Predictive maintenance drives dealership transformation
As the automotive industry adopts integrated D2D SIMs within vehicle antennas primarily to enable enhanced connected car safety, it presents a parallel opportunity for dealerships to implement advanced predictive maintenance strategies in their business models.
Supercharging car dealerships with always-on satellite connectivity enables them to detect vehicle issues via sensor alerts in real-time. This enhances the driver's experience by moving the onus from the driver to the dealership to detect and rectify problems while simultaneously opening new revenue streams for dealers.
Offering connectivity-powered issue alerts helps drivers feel safe and comfortable on the road, which can be a powerful selling tool. Dealers could use D2D to upsell a range of premium add-on services in the after sales department to consumers willing to go the extra mile to avoid breakdowns and broader performance issues.
The ability to continuously collect vehicle data also unlocks significant improvements in operational efficiencies for dealerships. Imagine a future where dealerships can remotely diagnose and resolve minor issues in real-time, pre-empting costly repairs and maximising vehicle uptime. This proactive approach saves both time and money, streamlining the maintenance process for both the dealership and the customer.
The constant data stream enabled by D2D also fuels more accurate predictions of potential problems in specific car models. Dealerships can leverage this knowledge to make smarter inventory investment decisions, optimising their stock based on anticipated maintenance needs and potential reliability issues. Furthermore, predictive maintenance allows for more efficient resource allocation, ensuring that parts and technicians are available when and where they are needed most.
How the future of the dealerships could look
The future of car dealerships is being rewritten by the power of predictive analytics and enhanced driver support services, facilitated by satellite-powered D2D technologies. This data-driven transformation promises not only new revenue streams and operational efficiencies, but a fundamental shift in how dealerships operate and interact with customers to foster trust and build longer term relationships.
However, the benefits of this data-driven future extend beyond dealerships, contributing to a safer driving environment for everyone. Continuous vehicle monitoring through D2D connectivity enables proactive detection of potential safety issues, reducing the number of vehicles with problems on the road.
While further industry collaboration will be needed to achieve this reality, positively, we are already moving closer to it with Viasat’s recent induction into the 5G Automotive Association (5GAA) to help the auto industry expand satellite-enabled vehicle communications technology for autonomous transport systems.
In an era of economic uncertainty and heightened customer expectations, D2D connectivity offers dealerships a powerful tool for delivering value and building loyalty. By leveraging data insights to personalise the customer journey, from tailored insurance offerings to proactive maintenance alerts, dealerships can create a more seamless and satisfying ownership experience.
Ultimately, D2D empowers dealerships to not just meet, but exceed, the evolving demands of today's drivers.
Kevin Cohen is vice president of direct-to-device strategy, Viasat
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