Many consumer IoT companies have struggled to monetize their offerings as effectively as their industrial IoT peers, but some have found the exception. Take connected cars, for example, which are powering nearly half of global consumer IoT revenue. That revenue isn’t just flowing from in-vehicle infotainment features that deliver on improved driver experiences. Automakers are now personalizing the driving experience by giving drivers access to premium services, apps, subscriptions and more in-car and on the web.
Here are three learnings from how leading automotive OEMs have successfully bridged connected devices to drive new revenue streams from IoT:
Turning data into actionable insights
Every connected car generates a treasure trove of data, giving auto manufacturers unprecedented access to user behavior, telematics feedback and environmental data. By collecting and storing all possible usage and sensor-based data for future processing, auto manufacturers can apply analytics to build better products.
Imagine a dashboard that helps product engineers understand driver usage behavior, or gives insight into wear tracking data from a component manufacturer. With big data analytics, manufacturers can glean insights that provide tangible value to both operations and customer service. Based on this knowledge, new products will be created and existing ones will be improved. Products and services that enable rich experiences for drivers and passengers through wireless updates or streamlines the OEM’s operations will get market traction.
Bringing together customers and suppliers
Creating a dedicated place for customers and suppliers to come together allows auto manufacturers to retain customers and establish new revenue streams long after the initial vehicle purchase. For OEMs, this place is an ecosystem, made up of hardware, software, firmware, content and service providers. However, OEMs need to provide a wireless, secure, branded user experience to monetize this ecosystem.
Deploying a trusted commerce platform lets OEMs test a range of flexible business models from one-time purchase, fractional ownership and pay-per-use (such as Car2Go) to bundles or subscriptions (such as satellite radio or Audi on Demand). With this platform, OEMs can easily offer trials, premium upgrades and feature add-ons to customers, who can discover products and services and have them delivered remotely to their cars. Additionally, the OEM can share sales revenue and reconcile cost sharing with partners.
Providing real-life use cases
Tesla recently averted a costly dealership repair of nearly 30,000 vehicles that had an issue with a charging plug software bug with an over-the-air update. Using predictive maintenance data, OEMs can proactively replace “bad” car parts — a win for them, the car dealer and the driver.
Predictive maintenance uses sensor data generated by the vehicle to determine a defect. The OEM can then shut down that sensor and replace the part as needed. When this happens, like in Tesla’s case, the information can be forwarded to a cloud service which interfaces to find a dealer, and after reaching out to the driver using an app on the vehicle head unit, mobile device or portal schedules the service and orders the required parts.
This scenario ultimately ties the traditional servicing model of vehicles to IoT, enabling intuitive servicing and customer retention.
When considering the capabilities of a connected car, the market will drive IoT monetization. Improving customer service, driver experience and vehicle performance/adaptability through IoT adds ongoing value to connected cars, provided the OEM uses the power of data analytics, a central platform for drivers and developers, and a commerce solution to drive new business models and enhance traditional ones.
All IoT Agenda network contributors are responsible for the content and accuracy of their posts. Opinions are of the writers and do not necessarily convey the thoughts of IoT Agenda.