Navigation, backup cameras, phone pairing—these are just some of the features in modern vehicles that many drivers now take for granted. Car companies likely wouldn’t have much luck getting people to pay for them (just ask BMW how its attempt to charge a subscription fee for heated seats went). What consumers are willing to pay for in the age of in-vehicle digital connectivity is a multibillion-dollar question for an industry chasing new revenue opportunities. A recent report from Escalent claims automakers are “missing the mark” on their quest to roll out connected vehicle services that consumers will pony up for—and offers some clues about how they can hit their targets. “Real-world success has been limited, with many automakers struggling to translate this growing interest into a viable business model,” K.C. Boyce, a VP in Escalent’s automotive and mobility and energy industry practices, said in a statement. “Consumer pushback and delayed rollouts of vehicle subscription service offerings in the market today point to a disconnect between what’s being offered, what customers actually value, and what they are willing to pay for—underscoring the need for automakers to realign their strategies.” Keep reading here.—JG |