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LexisNexis survey: 76% of vehicle owners who didn’t enroll in subscription post-trial didn’t see value in connected services

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Market Trends | Technology
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Recently released findings from a 2023 survey of vehicle owners by LexisNexis Risk Solutions show that, of respondents who were offered a free connected services trial but didn’t enroll, 76% declined a trial due to a perceived lack of benefit or value.

The results also show that nearly half of owners enrolled in connected services use OEM apps weekly.

In July 2023, LexisNexis surveyed nearly 2,300 U.S. vehicle owners who purchased or leased a used car model year 2013 or newer from a private party or independent dealership in the last three years. According to a whitepaper that sums up the survey results, the objective was to uncover and map potential opportunities to enhance the vehicle ownership experience by better understanding used vehicle owners’ expectations.

LexisNexis notes that the U.S. car parc has changed dramatically since 2017 when connected cars comprised 6% of the fleet. By 2023, that had jumped to nearly 31%. LexisNexis forecasts that by 2027, 49% of the car parc will be connected.

“Our research reveals a 96% awareness rate of these branded apps among vehicle owners enrolled in connected services trials or subscriptions,” the whitepaper states. “However, less than 50% of users engage with their manufacturer-provided app weekly.

“Nearly nine out of 10 new vehicle owners surveyed are aware of newer vehicles being available with connected and/or smart features. Our research also shows that consumers who purchase new vehicles or model year 2021-2023 have the highest level of awareness while those who purchase used vehicles or model year 2017-2020 are not far behind.”

LexisNexis suggests OEMs do the following to amp up the use of connected services:

    • Make it simple for vehicle owners by reducing friction from the customer experience.
    • Provide ongoing education for dealers.
    • Encourage consistent dealer execution.
    • Use digital tools in internal processes.
    • Reinforce confidence through additional verification and authentication processes.

Nearly 65% said they would feel more confident about providing their personal information if automakers had additional verification steps in their online processes.

A March report from the Future of Privacy Forum (FPF) explains how safeguarding driver privacy and data protection is critical to ensuring widespread acceptance of new vehicle safety technologies.

Privacy implications of vehicle safety systems explored by FPF include advanced driver assistance systems (ADAS) and driver monitoring systems (DMS) as well as impairment detection technologies.

FPF provided core recommendations for public and private entities that develop and enforce the technologies. Data from an Automotive Coalition for Traffic Safety survey on attitudes toward vehicle safety systems, while prioritizing privacy, is also included in the report. The survey results informed the recommendations.

The survey found that many individuals value advanced vehicle safety technologies, but worry about the privacy risks, accuracy of the technology, cost, and data transfers to third parties. Respondents also said they generally trust carmakers’ data practices more than online companies and the government. However, they worry about vehicle systems that collect information about occupant behaviors, which according to a 2023 Mozilla study is becoming increasingly invasive.

According to Mozilla research, popular global brands — including Mercedes-Benz, Nissan, BMW, Ford, Toyota, Tesla, Kia, and Subaru — can collect deeply personal data such as sexual activity, immigration status, race, facial expressions, weight, health and genetic information, and where you drive. All of the 25 automakers researchers reviewed received failing marks for consumer privacy.

Images

Featured image credit: HappyKids/iStock

Graph created and provided by LexisNexis Risk Solutions

More information

GM, OnStar, and LexisNexis deny sharing personal data, telematics without customer permission

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