As digital disruption reshapes the automotive industry, traditional dealerships are adapting. Direct-to-device (D2D) connectivity, which seamlessly links vehicles to satellite and cellular networks, is unlocking new business models. From predictive maintenance to personalised aftersales services, this data-driven approach could be key to securing their long-term viability.
With online vehicle sales on the rise, traditional dealerships are facing increasing competition. Faced with an easy-to-use digital industry, one might assume dealerships would be on the decline. The reality, however, is more nuanced. Despite online increases, in fact, more than half (54%) of consumers say they would purchase a new vehicle from a dealership if it offers their preferred experience – even if it isn’t the lowest price. When it comes to cars, then, the human touch is clearly still relied upon. As a result personalisation in the buying journey can help set dealerships apart.
Direct-to-device (D2D) – a technology enabling vehicles to seamlessly connect to both cellular and satellite networks – holds huge potential for this. Connected cars are already revolutionising the customer experience, enhancing the driver’s journey via real-time traffic updates, and weather warnings and ensuring rapid emergency response where needed.
By unlocking ubiquitous coverage and enabling resilient connectivity, D2D provides a game-changing solution for dealerships eager to transform customer experience and unlock new revenue streams. Through continuous data collection via D2D, dealerships can gather key insights into individual driver and vehicle behaviour, placing personalisation at the core of their business model.
Harnessing these insights, dealerships can diversify service offerings and drive new income channels, opening opportunities in the after-sales market with tailored add-ons for specific customers. What’s more, dealerships can bolster operational efficiency when maintaining and investing in stock, using data to drive predictive maintenance.
Reliable connectivity is essential for always-on monitoring and data collection, yet gaps in cellular connectivity persist across the UK. This is why satellite-enabled D2D technology is crucial, ensuring dealerships and the vehicles they sell are constantly connected regardless of location. By keeping vehicles connected, dealerships can enhance customer experience, propel profits and bolster business operations.
Data-driven insights enhance customer experiences
Given that 73% of consumers now expect automotive providers to match their specific needs, expectations for dealerships to offer personalised customer experiences are growing.
Although daunting, this growing demand for a more personalised journey and ongoing customer support unlocks new business opportunities, particularly when maintaining a lasting customer relationship once the vehicle has been purchased. By staying connected to cars after they’ve been bought, dealerships can enhance their offerings with add-ons and premium packages.
Vehicle data collection provides new insight into specific driver behaviours and vehicle usage. Using these insights, dealerships could, for example, customise insurance options. Specialising premiums to individual customers not only adds value for the driver, thus building customer loyalty, but provides a whole new avenue in which dealerships can generate income via connected data streams.
Where vehicles remain connected to the dealership hub, dealerships can detect issues remotely and send alerts in real time. This optimises the driver’s safety and comfort on the roads and opens a powerful selling opportunity for dealers. Here, dealerships can offer enhanced services for consumers willing to go the extra mile to avoid breakdowns and broader performance issues.
These new business opportunities rely on stable, reliable connectivity, and D2D technology helps dealers to both build these add-ons into their offerings and ensure monitoring services operate efficiently regardless of the driver’s location.
Connectivity, profits for dealers
As the automotive industry adopts integrated D2D SIMs within vehicle antennas primarily to enable enhanced connected car safety, it presents a parallel opportunity for dealerships to implement advanced predictive maintenance strategies in their business models.
Supercharging car dealerships with always-on satellite connectivity could enable them to detect vehicle issues via sensor alerts in real time. This empowers the dealership to detect and mitigate problems as soon as they come about whilst reducing the need for cautionary vehicle checkups, enhancing the driver’s experience and bolstering safety on the roads.
Over time, car dealerships can also collect long-term insights into the vehicle models offered and purchased by their customers. This provides an overview of recurring problems experienced by specific models, enabling dealers to make informed inventory investments based on predictive maintenance requirements, ensuring their stock delivers the highest returns possible.
What’s more, anticipating issues with specific parts of the vehicle ensures dealerships keep on top of resource requirements, so such parts can be repaired and replaced as and when required.
The ability to continuously collect vehicle data also unlocks significant improvements in operational efficiencies for dealerships. Imagine a future where dealerships can remotely diagnose and resolve minor issues in real time, preempting costly repairs and maximising vehicle uptime. This proactive approach saves both time and money, streamlining the maintenance process for both the dealership and the customer.
A safer and more efficient dealership
The future of car dealerships could be rewritten by the power of predictive analytics and enhanced driver support services, facilitated by satellite-powered D2D technologies. This data-driven transformation promises not only new revenue streams and operational efficiencies, but a fundamental shift in how dealerships operate and interact with customers to foster trust and build longer-term relationships.
However, the benefits of this data-driven future extend beyond dealerships, contributing to a safer driving environment for everyone. Continuous vehicle monitoring through D2D connectivity enables proactive detection of potential safety issues, reducing the number of vehicles with problems on the road.
While further industry collaboration will be needed to achieve this reality, positively, we are already moving closer to it with Viasat’s recent induction into the 5G Automotive Association (5GAA) to help the auto industry expand satellite-enabled vehicle communications technology for autonomous transport systems.
By leveraging real-time data insights, dealerships can personalise the entire customer journey: from purchase to proactive maintenance. Alongside enhanced customer satisfaction and safety, D2D can empower dealerships to unlock a range of new service offerings, whilst optimising operations and inventory management; generating new revenue streams and driving business output. Faced with cost-pushed consumers and growing competition, this unique, customer-centric approach will advance dealership success and create a safer driving environment for all.
Damian Lewis is Market Development Manager at Viasat Enterprise, a global communications company based in the US specialising in satellite internet and connectivity.
