FORWARD

Staying connected in the aftermarket
Still, connected cars offer manufacturers an important avenue
for developing stronger, longer-lasting ties to customers.
“Manufacturers have a reasonable chance of generating
revenue from an owner during the duration of a vehicle’s full
warranty, a window of about 3 to 5 years. Once that period
ends, things change,” Fangmann says. Owners soon begin
making greater use of aftermarket service and independent
parts providers.
Compounding the problem is the fact that cars are staying on
the road longer, with the average age of vehicle registrations
creeping up to 11 years. An IHS Market study found that in 2016
the average age of light vehicles reached 11.6 years old, up from
9.6 years in 2002.
Connected cars alter that equation by offering manufacturers
an effective way to stay in touch with vehicle owners over a
vehicle’s entire life cycle. Manufacturers would have a much
greater chance of maintaining service revenue and a stronger
brand-building channel to drive repeat sales. And that
always-on connectivity can help automakers notify drivers
about recalls and address security threats more effectively
by issuing over-the-air software updates to critical systems.
Not too late for older models
The number of new vehicles shipping with telematics systems
accounts for only a small percentage of vehicles on the road
today. For vehicles that predate the connected car revolution,
CSC offers hardware, services and an online platform that can
collect and report performance data from a car’s controller
area network (CAN) bus port, used for diagnostics.
Data is displayed in a dashboard on a variety of mobile
devices for the driver, owner or fleet manager, as well as the
manufacturer. “Car makers, rental agencies and enterprise
fleet managers have the opportunity to bring millions of
vehicles online,” Fangmann says.
Despite the challenges in ramping up quickly, automakers
need to continue to push ahead with connected capabilities,
as competitors who already understand the value of large
data pools are nipping at their heels. A few well-known Silicon
Valley enterprises with large connected customer bases, such
as Google, have been experimenting with their own mobility
services and connection technologies.
“These companies are making rapid progress, and they’ve
already connected customers,” Fangmann says.
“This could allow them to become the
owners of the connected car space
before manufacturers realize
they’ve been overtaken.”
DALE COYNER is a writer with CSC’s
digital marketing team.
8 FORWARD: A CSC MAGAZINE