Consumer spending via connected car platforms is expected to reach $265 billion by 2023. To capture a bigger slice of the in-vehicle commerce market, original equipment manufacturers (OEMs) and their captives must create truly customer-centric experiences.
Historically, OEMs have personalized the in-vehicle experience with features like the ability to dial-in seat settings and set individual climate controls. But it’s time to rethink the slate of possibilities to enable in-vehicle, low-touch payments for gas stations, parking garages, quick-service restaurants and the like.
OEMs aren’t just competing within the auto industry—tech giants are already in the market with inexpensive, customer-centric solutions. The time for concepts, pilots and experiments is over. It's now time for OEMs to focus on capturing and maximizing customer lifetime value through connected commerce, with their auto finance captives as the enablers.
Business models to enable in-vehicle commerce
What business models can OEMs and their captives use to transform the vehicle into a payments platform? There are two to consider:
Key capabilities can smooth the road ahead
To seize the opportunities in the connected commerce market, OEMs and their captives should assess and invest in a few key areas. Regardless of the business model chosen, these areas will affect their ability to service the market. OEMs pursuing the proprietary model will need all of these capabilities. Those adopting the licensing model can offload some capabilities to their partners and focus instead on security and data and analytics.
Mastering in-vehicle commerce can help automakers stay in the driver’s seat of mobility. At Accenture, we work with our OEM and auto finance clients to optimize business models for the future. Register to read our report—or reach out to our authors for more information.