Did you know that a connected car operating for a couple of hours per day can generate up to 4TB of data? Now imagine the aggregate data from the millions of cars that manufacturers release every year.
The significant amount of car data accessible from the connected car generates an unrivaled opportunity for optimized auto products and services. Consequently, this means more revenue. The increasing car data analytics investments emanate from an ability to use actionable insights from the data to provide added value for automakers and their dealers.
While collecting and analyzing car data is expensive, the return on investment can be substantial for virtually every segment of operations.
The Amazing Opportunity
Repositories of carmakers worldwide hold a large amount of data. Failure to exploit these stores amounts to a lost opportunity to provide value-added services to customers. A McKinsey report shows that the global car data monetization revenue could reach at least USD 450 billion in 2030. The cyber security market is also growing steadily, with a market analysis predicting the value to be much higher in 2025 than the 2018 figure of USD 1.44 billion.
Looking at these developments, we are convinced that offering data-driven services to automotive customers is worthwhile. Modern cars come with tens of sensors that collect usage, fuel consumption, speed, and other forms of data. Data from connected cars can help discover crucial patterns and prevent issues from escalating.
Industries are using analytics to enhance quality management and customer satisfaction cost-effectively. Predictive analysis and forecasting methods are helping minimize product recalls in the automotive industry.
As IBM reiterates, companies use prescriptive analytics to study customer buying patterns. Similar to retail and banking, the automotive industry can now use advanced analytics to offer customized services.
Evolve: Apply Car Data Analytics
How can the car industry stick out and be seen to be offering the best service to customers? The secret is in delivering products and services that are unavailable from the competitors. These are services and products that the customer needs. In other words, auto manufacturers need to focus on offering added-value services.
Car data analytics can benefit the customer and help expand your brand. It is a wide area that encompasses predictive quality analytics, customer behavior analytics, supply chain analytics, and marketing mix analytics.
Since the volume and diversity of car data is ever-increasing, analytics focused on customer acquisition and retention can mean the difference between your brand and the rest. If you are looking to develop actionable insights for the long-term success of your business, apply car data analytics.
If you use analytics correctly for an improved customer experience, your marketing campaigns can improve, and your offers can be more targeted. Most importantly, analytics help make informed business decisions, hence increased profits.
What would you do with car data analytics that shows how incentives affect a specific car model in a particular continent for a particular customer category? Together with other planning tools, these analytics can improve planning, particularly in having a finite marketing budget.
Quality management among carmakers has been put into question in recent years with product recalls hitting the headlines. Tougher regulations and modern communication are not helping matters. Apart from the administration and repair costs that follow, reputation damage emanating from recalls can be devastating to a business. It is therefore not surprising that car manufacturers are applying car data analytics in recall management.
In short, here are some services that car data analytics can unlock:
- Customized route optimization
- Predictive maintenance
- Mobility as a Service (MaaS)
- Geo-fencing solutions
Partnership for an Easier Journey
Deriving business value from car data can be technically challenging for an OEM unless they leverage companies experienced in artificial intelligence technology. If a car manufacturing company decided to do it alone, it would need to build an AI software from scratch. Further, they would need to employ the best machine learning experts. To avoid the obvious challenges this method presents, automotive companies partner with dedicated machine learning companies to offer added value services from data analytics.
The connected car is an intricate ecosystem comprising different players dealing with data for ads, analytics, and so forth. Most of these data exchanges are non monetary. Given that the resulting value propositions and business models are highly diverse, you should evaluate every customer engagement and partnership on an individual basis.
The Next Step
It is clear to us at Net4Things that mobility data analytics is valuable for car owners and carmakers have an important role to play. To take full advantage of their prime position, automakers must set their priorities right. We are doubtful they can succeed in developing value-added services based on big data without partnerships.
Regardless of whether they form partnerships with tech companies or decide to gain expertise through their startups, you can look forward to a lot of activity in this segment. Net4Things is here to enhance your value proposition with advanced mobility solutions. Contact us today to improve your data analytics with actionable insights.