To EV or not to EV, the CX is the question
A series of reflections regarding the current Electrical Vehicle (EV) customer buying cycle and how Customer Experience (CX) plays a critical role in its adoption.
Overall, there are many expectations around EVs. Only in Europe, the estimated number of EVs (Battery electric + Plug-in hybrid electric) for 2030 is estimated to be around 29 million, which will represent roughly 31% of sales.
However, the Automotive Industry market was hit hard by the COVID-19 pandemic, and as of Q1 2021, it has not yet managed to reverse the ongoing sales rise in place by 2019-beginning of 2020. Expectations are that pre-pandemic levels will be achieved in 2–3 years, by 2023–24. However, reaching the expectations will take many efforts from the whole EV ecosystem; and the overall customer experience should be one of the priority efforts.
There is much to be done, but before I jump into a list of ideas on how to improve CX within the customer buying cycle, it is crucial to understand all the players, AKA The Ecosystem, involved in the EV universe. This will help us identify the current pain points that EV buyers and users have and find possible solutions to increase EV adoption.
The EV ecosystem is larger and more complex than you may think
The image below gives a high-level view of all the interactions and roles of the different members of the EV Ecosystem.
The complexity of this ecosystem not only relies on the introduction of the EV charger (manufacturer, retailers, installers) but also the energy and utility (E&U) players, who are not necessarily the same as with fuel vehicles, as well as the, somewhat-newcomers, EV mobility service providers.
Even if not every key player within the EV ecosystem has direct interaction with the customers, they play a crucial part in ensuring a great customer experience.
As of today, there is a long way to go regarding the end-to-end purchase experience related to EVs, AKA the customer buying cycle, at least in Spain (where I currently live).
Moreover, even if some car manufactures / dealerships have managed to provide a top-notch customer experience pre and during purchase, the solutions available for EVs after purchase are minimal and can make anyone considering buying an EV think twice about it.
So, what are the inconvenience that current potential and current EV owners face and how could CX help to improve EV adoption and overall experience?
The EV customer buying cycle, in general, has the same phases as a fuel vehicle cycle, but the EV customer has to go through a more steep learning curve during the initial phases.
The fuel engine as we know it has been around almost 100 years; therefore, even if some new gimmicks have been introduced to the fuel-vehicles (GPS navigation, cruise control, self-driving, onboard diagnostics, collision avoidance technology, infotainment system, etc.), how a fuel-powered engine works, has remained mostly the same.
In those initial phases of awareness and consideration, potential EV buyers have to go through a big load of research on top of the usual comparison and information gathering that goes together with big-ticket purchases such as buying a car. Understanding how an EV works, the charger complex situation (public vs. private, slow vs. fast, etc.), the autonomy of each EV, the government incentives, the maintenance required, etc. are obstacles that not every customer is willing to go through. Moreover, not having a single, trusted, and easy-to-follow information source is a stressor for customers in these initial phases.
How could the CX be better?
Centralizing information will not be enough; the whole EV ecosystem should go one step further and provide a smooth experience of information gathering supported by technology such as CRM engine, personalization, AI, etc.
Buying an EV entails more than just buying an EV
The struggle of the customers for information continues in the intent and purchase phase. Since the EV providers (Dealers/Manufacturers) are different ones than the charger providers ( At least in Spain, the offer of public chargers are limited; therefore, acquiring at home/private chargers are an innate part of the EV purchase consideration), the effort that the customer has to go through is considerably greater than when buying a fuel vehicle.
The customer has to face two separate purchase journeys, one for the vehicle and one for the at-home charger, which is a risk because the customer could fall back to the fuel vehicle at any point just because the effort to get an EV is double.
The image below illustrates how the EV intent+purchase journey is disconnected from the electric charger journey, which results in losing contact with the customer in moments of truth and possible lost deals by interest change in products, services, and even models.
How could the CX be better?
A combined Journey for Automotive and EV Ecosystem Products and Services is the way to go.
Lead customers could have the entire evaluation, purchasing, financing, installation, and delivery process of purchasing an EV and a charger in a single experience.
As seen in the image below, with only one journey, the customer experience is simplified and more efficient. This journey could be achieved through collaboration; several E&U and Chargers Manufacturers companies can make their products and services available to several car distributors and dealers through a common Cloud platform based on predefined services containing the communication patterns between the two ecosystems.
After purchase dilemma: Where do I charge my EV?
Public chargers in Europe are not equally distributed, as seen in the image. Countries such as UK, Netherlands, Germany, Sweden, Austria, and Denmark have reasonably denser public charge points than some southern and central European countries.
One could argue that there are more public chargers in northern Europe because there are more EVs in that area. However, the lack of public chargers does play a role in purchasing an EV.
The attractiveness of having any vehicle is to have mobility and having the freedom to travel. Not having public chargers available in longer journeys, combined with the limited autonomy available in EVs, makes the purchase of EVs less appealing.
It is worth mentioning that ecosystem members, mostly E&U, are already taking advantage of the upcoming European funds destined for EV development and will invest in developing public charges in highways/roads in the near future. However, the whole EV ecosystem should look for options to sustainably increase public charges’ availability and thus improve the overall experience of having an EV.
How could the CX be better?
Actively involve retailers in the public charger equation. Retailers located within and between cities have an opportunity to offer a more well-rounded service to their customers (and potential customers).
Why should retailers be involved in public charging:
- + income
It gives the customer more time to buy, increasing customer spending
New sources of income through direct sales of charging or advertising via charging infrastructure - + fidelity
It makes life easier for EV users
Demonstrates brand values (be green mentality)
Moreover, it gives a chance to retailers to immerse themselves within the EV ecosystem resulting in attractive opportunities:
Partnerships: Entering into the ecosystem of electric mobility opens the opportunity to generate productive alliances with various agents and institutions.
Omnichannel: By offering EV owners the opportunity to charge in the car parks, communication channels are opened with them.
The screens of the cars and the charging centers become another gateway o give visibility to the retailers’ offers and services.
Personalization: Having access to customers through mobility platforms allows retailers to personalize and make their communications more relevant.
However, for retailers to succeed in this endeavor, CX must be impeccable in a pay&go model. The customer should not feel that charging their EV will entail having multiple apps, multiple requests to register or become store members.
Charging in retail stores should be quick and easy to make sure they return to the retailer to charge their EV.
As mentioned at the begging of this article, there is an opportunity to make the EV purchase cycle more attractive than what it is now. Given the current climate crisis and several public and private incentives related to EV adoption, the moment to act is now.
IBM can help any company strategize and jump to more environmentally friendly, client-centric, and cost-effective solutions. Here are some examples of our work related to this article:
- Customer Experience Consulting
- The future of automotive commerce
- Data sharing across transport ecosystems
If you are interested in finding out how IBM can help you, feel free to get in contact with us here
Unsure what to read next? Check out these articles related to environment and mobility authored by other IBMers
If you found this post helpful, have any feedback, or have more ideas regarding the CX impact in the EV adoption, feel free to comment or reach out!
Follow us at Beyond Strategy for more stories from IBMers blending strategy, innovation, and technology in their daily jobs.
Stay Safe!
