Automakers Are Thinking About Connectivity All Wrong

Automakers are trying to use vehicle connectivity to layer in subscriptions instead of using it to build a relationship with their customers. Engagement will remain hopelessly low until they change strategy.

Somehow (likely the result of millions of dollars worth of presentations from consultants) automakers got it in their head that the best thing about connected cars was going to be the ability to sell subscriptions to drivers for everything in the car. This blended well with the new concept of Software Defined Vehicles and their dreams of getting some sweet, juicy software margins.

Instead, customers are rejecting the approach. Last year customer backlash led BMW to drop their plan for heated seat subscriptions and almost daily tweets like the one pictured below pop up across social media.

In public perception cars have always had a connection to freedom, and adding layers of subscriptions is at odds with that. Automakers must embrace the idea that they are creating a connection, a relationship, with car and driver that goes beyond the transactional.

The connection between driver, car, and company should be enriched over time, not used for singular promotions. By creating a digital identity for each vehicle, drivers will build up their own history of ownership, including the drives and milestones they achieve. Each step in their journey is a step in the relationship with their vehicle and the companies and services they interact with.

Opening up third party access to vehicle data and connectivity is a critical part in strengthening the relationship. Users are going to use these apps and services no matter what, and supporting users in digital freedom — using their data and connectivity throughout the internet — is in line with the original spirit of freedom vehicles have long embodied.

This comes back to the first principles. Is your technology increasing the options, choice, capabilities, fun, or freedom of your users or restricting it?