General

81% of consumers sign up for a free trial when it’s offered

81% of consumers sign up for a free trial when it's offered

U.S. consumers want to hear from their automakers about connected services, recalls, warranties, insurance discounts and other benefits, according to a new LexisNexis® Risk Solutions study, “The Driver’s Mindset: Connectivity and Connectedness,” published July 26.

Insights from more than 2,000 US-based connected car owners highlight the opportunities for automakers to engage more with their customers, create loyalists for new and used car brands, and realize a return on investment for connected vehicle technology.

“Our research shows that automakers are at a crossroads. While automakers face increasing competitive pressure to provide the best vehicle ownership experience, and connectivity is mainstream in many aspects of consumers’ lives, there still seem to be lower consumer activation and conversion rates within Connectivity programs, despite the benefits,” said Dave Nemtuda, head of OEM product, US Connected Car, LexisNexis Risk Solutions. “The automotive industry can take action based on these insights to improve the customer experience, educate consumers about the benefits of connected services, and help achieve connectivity-related business goals.”

Highlights of the Connected Car study:

Low activation rates of a free trial of connected services are related to a lack of awareness and ability to sign up, rather than a lack of interest. Two-thirds (66%) of survey respondents were not aware of connected services before purchasing/leasing their new or used connected car and over half (57%) were not offered a free trial of Connected Services at the dealership .

Our research results suggest that free trial activation rates would be higher if car buyers were given the opportunity: eight out of 10 (81%) car buyers offered a free trial and nearly half (45%) switched to a paid subscription after their free trial ended.

Of those who have not offered a free trial of connected services at the dealership, seven in 10 (71%) say they would have been very/somewhat interested in signing up if it had been offered.

Consumers should be informed about the benefits of connected services. Nearly one-fifth (19%) of consumers said they had not signed up for a free trial of connected services offered at the dealership. The main reason, cited by the majority (63%) of respondents, was that they did not see the benefit or value of connected services.

The benefits of connected services that are not realized can be…

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