Dealers are set to benefit from a valuable new revenue stream from the unlocking of telematics data generated by new cars.
Telematics have been a standard feature of cars for decades but recent developments with the rollout of connected cars, harnessing the power of the internet, have transformed the richness and timeliness of data.
This is good news for dealers who will be in a position to offer Usage Based Insurance (UBI) at the point of sale and a new opportunity to stay in touch with customers beyond the transaction.
Carmakers are now seeing how they can engage with customers by offering new secure services, starting with usage-based insurance offered by retailers as part of the sale process. It makes sense when you consider insurance is the second biggest cost in car ownership.
This is the next logical step to the usage-based insurance offers which are currently largely restricted to young drivers buying entry-level cars fitted with black boxes.
Connected car technology does away with the need for plug-in devices and will enable a new set of customers to cherry pick the best cover with OEMs providing a conduit to panels of insurance providers.
But that’s just the first step in how connected car technology will help redefine the relationship between dealers, carmakers and customers.
Using remote diagnostics dealers will be able to troubleshoot problems for customers as they occur.
Recalls could be better planned and managed with owners very much on the loop. Also, through the better understanding of actual usage, dealers will be able to use in-vehicle targeted marketing to promote new and used cars and their latest campaigns.
What seemed futuristic just a few years ago is now a reality and we’re working with carmakers around the world to deliver telematics-based solutions to help dealers improve their retention rates.
Graham Gordon is director of global telematics at LexisNexis Risk Solutions