Jasper Wireless: "A new realm of responsibility"

Jasper Wireless: "A new realm of responsibility"

Telematics has the potential to revolutionize the automotive industry in the same way that smartphones have revolutionized the telecoms industry.

According to reports by ABI Research, a surge in innovation is expected to see factory-installed telematics systems leap from 10 percent, as recorded in 2010, to more than 62 percent by 2016.

By offering installed telematics systems, car manufacturers create a new communications channel to their customers and, in doing so, create an opportunity to optimize customer loyalty and buy-in through CRM upgrades and providing a more personalized service.

In order to realize this potential, operators and car manufacturers must first address how to encourage consumer uptake and monetize new products and services offered.

One of the biggest inhibitors to the success of the connected car continues to be the business model, or lack thereof.

What will consumers pay for?

What will they expect for free? 

Will they subscribe or simply buy on-demand? 

How can service providers increase the customer lifetime value?

Cross-industry examples

It’s easy to look to traditional mobile phone subscriptions—a flat fee every month, committed for one to two years—as a model.

However, consumers also struggle with subscription fatigue, and re-subscription rates for telematics services leave a lot to be desired.

One could also look to the tangential industry of entertainment to see the new brand of consumer demand: Apple’s micro-transactions. 

Apple has capitalized on the on-demand entertainment market to drive small, but frequent ‘impulse’ buys; the result is several billion pounds worth of £0.99 transactions.

On-demand, micro-transactions have quickly become an important new retail model for the consumption of services and entertainment. 

But servicing this model takes a new breed of tools and technologies. In order to offer immediate access to content, such as music, video and location-based informative services, OEMs and service providers must be equipped to process and bill for a multitude of small payments, often from a multitude of currencies.

The power of partnership

By partnering with Connected Device platform providers, OEMs and service providers can harness the necessary intelligence required for the nuances of micro-transaction provisioning. 

The most lucrative areas expected to see growth are in vehicle diagnostics and control, which allow drivers to access important information about what is going on under the hood and adjust in-car settings, and information and mobile commerce services.

By embedding a modem within the vehicle, OEMs create a synergy between the vehicle’s on-board diagnostics and interfaces and the consumer application, thereby allowing OEMs and operators to capitalize on the successful application store model to accelerate time-to-market of new telematics applications, and increase revenue and the average customer lifecycle through micro transactions.

Information services, such as location based services, open the door to a number of marketing opportunities as organizations look to partner with OEMs and operators to take advantage of ‘presence’ based services.

In the form of m-Commerce, telematics can be beneficial to both businesses and customers alike. The technology can be used to provide hotel, air or train reservations and logistics services.

The importance of service

In becoming service providers, telematics OEMs open the door to a new realm of responsibility.

Failure to respond to consumer frustration or dissatisfaction could have a detrimental effect on the brand.

Providing value added services means opening a communications channel and OEMs must consider the active role necessary to support and service this new channel.

For example, with OEM telematics solutions such as BMW’s ConnectedDrive—which connects consumers to their vehicle through a range of mobility, including in-vehicle internet access and remote diagnostics—BMW owners see BMW as the service provider responsible for their connected Assist services. 

BMW must manage all aspects of service delivery, technical support, subscription management, provisioning and more.

This is where technology partners enter the equation. By partnering with M2M platform providers, operators and their customers can enable global connectivity to encourage business across borders and around the world.

Technology partners can eliminate the business complexity associated with monitoring and servicing new devices in real-time, ensuring OEM telematics offerings are equipped with the intelligence, provisioning and support necessary to service the demanding consumer market. 

 


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