Nevertheless, consumers aren’t willing to pay for features that have long been commonplace, like heated seats
https://www.carscoops.com/author/bradcarscoops-com/
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by Brad Anderson
3 hours ago
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A recent survey has revealed that consumers are more than happy to subscribe to in-car connected services once they experience them, contrasting a commonly-held belief that most car buyers and owners are strongly opposed to such subscriptions.
In a recent global consumer study of nearly 8,000 people, S&P Global Mobility found that of the 4,500 respondents who had experienced a free trial or an existing subscription on a 2016 model year or newer vehicle, 82% of them would definitely or probably consider obtaining subscription-based services on a future new vehicle purchase.
S&P Global Mobility believes that the best way for car manufacturers to convince consumers to pay for subscription services is to first expose them to such services. Indeed, it found that in-vehicle exposure is better than educating buyers about subscription programs “for growing demand and fostering satisfaction and retention with these services and brands.”
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Read: GM To Add Around 50 “Value-Added” Services To Vehicles By 2026 In Subscription Push
Of the respondents who have been exposed to a subscription service, perhaps through a free trial or by paying for it, the vast majority said they would likely renew. Additionally, 85% said they would recommend the services to friends.
There are some subscription services and features that consumers are more willing to pay for than others. For example, enhanced navigation and driver-assist systems top the desirability list. Safety features are also popular. Consumers are not so willing to splurge on subscriptions for in-feature vehicles that have long been commonplace, like heated seats and a heated steering wheel, as offered by BMW through a subscription. The survey found that fewer than 30% of people are willing to pay for heated seats or a heated steering wheel through a monthly subscription.
“Consumers are welcoming to the idea of subscriptions because it gives them exposure to features or technology that they may not have had in the past,” S&P Global Mobility senior technical research analyst Yanina Mills said.
