With sales of electric vehicles (EVs) to private individuals slowing, how are automotive OEMs going to achieve the target of EVs contributing 22% of annual sales this year? What are the chances of hitting 80% zero emission new cars in 2030?
Amelia Iredale, Manager, Electrification and Sustainability, MHP Consulting UK and Andrew Whitehouse, Mobility and Immersive Experience, MHP Consulting UK explain why OEMs need to create a 360-customer view and leverage driver personas to provide messaging and offers tailored to reflect how EVs can easily fit into their lifestyle.
EV driver personas
The early adopter segment has embraced EVs but the rest of the market is proving slow to shift from traditional driving behaviours. While sales to the fleet markets are plugging the gap for now, OEMs need to create a journey and proposition that attracts other customer personas to make the change sooner rather than later.
Consumers have different attitudes to EVs and nuanced reasons for not making the change from ICE vehicles. Barriers include day-to-day range anxiety and charge times, expenditure fears relating to price, depreciation and battery life, as well as environmental concerns regarding a vehicle’s lifecycle management, including battery disposal. To attract the next wave of drivers to embrace EVs, it is vital for OEMs to understand and appeal to the different needs of ‘enthusiasts’, ‘considerers’, ‘persuadable’ and ‘sceptics’.
Positive messaging
Education is a core component of the consumer journey, not least because so many of these concerns can be easily addressed. Charging is a key example: the Society of Motor Manufacturers and Traders advises the UK will require 2.3 million charging points in the UK by 2030. In June 2024, the number of public charge points was just 64,000 – although that is an increase of 46% in a year, and the new government has pledged to support an acceleration in infrastructure investment, via the largest upgrade to the national transmission infrastructure in a generation.
Traditional fuel stations are also actively being switched to charging stations, with brands joining forces with retailers to create a ‘charging destination’. Charge points are becoming more open, with OEMs such as Tesla opening points to other brands to improve accessibility. Plus, the Public Charge Point Regulation coming into force in November 2024 will introduce standardised pricing models, contactless payment and enforce high levels of reliability, all of which should improve consumer perception of the public charging infrastructure.
Innovative subscription charging technologies are also overcoming the lack of private charging options for those living in flats or terraced housing by using charging vans to provide on-street charging overnight. Some automotive OEMs are also considering the value of creating these flexible services, to add support to the public charging infrastructure and boost customer confidence. On-demand mobility services, including vehicle subscription and car rental, are also helping to alleviate customer concerns regarding the EV driving experience by providing customers with a chance to drive an EV without having to make any financial commitment or lifestyle change.
Joined up customer journey
In addition to improving customer education, OEMs need to look closely at the way different customer personas behave when considering the acquisition of a new vehicle. While a minority of individuals are happy to conduct the entire process online, from research to purchase, the majority expect a blended experience. They will research online but they want a test drive and a chance to discuss the vehicle in person. As such, the dealer network remains a core part of the process: they are familiar, accessible and, for many consumers, the first contact for sales and servicing requirements.
The shift to agency model embraced by OEMs for EV sales has, in some cases, undermined the relationship with dealers. If new EV targets are to be achieved, the onus is now on OEMs to leverage 360-degree insight into customer and prospect data, an approach that will also require stronger collaboration with the dealer network to ensure everyone is working together throughout the customer journey. While OEMs have new insight from connected car data, dealers also hold invaluable information about customer behaviour, from servicing routines and typical mileage to car replacement history. Using this consolidated customer view effectively will allow OEMs and dealers to curate relevant offers that entice different personas into the EV world.
Conclusion
As infrastructure improves and customers adapt to new driving behaviours, the transition to EVs will occur. Over the next few years, more and more consumers will find themselves behind the wheel of an EV courtesy car while their ICE vehicle is being serviced or repaired, providing a chance to overcome concerns such as range anxiety and live charging. OEMs and dealers can leverage customer persona information to ensure the ‘considerers’ persona group gain access to EV courtesy cars ahead of ‘persuadable’ and ‘sceptics’ to maximise the conversion opportunity.
OEMs have the chance to accelerate the change in driver behaviour, leveraging customer insight both to improve education and awareness and deliver a relevant, joined up experience. Irrespective of whether a customer comes into the sales pipeline via the OEM’s website or walks into a dealership, a comprehensive data strategy that combines all data sources to build the 360-degree customer view will be core to the successful conversion of ICE drivers to EV.
About the authors:
Andrew Whitehouse leads Mobility and Immersive Experience at MHP Consulting UK. With experience from previous roles at Jaguar Land Rover and Volkswagen Financial Services, he specialises in mobility innovations, including car-sharing and subscription services, shaping customer-focused mobility strategies.
Amelia Iredale is Manager of Electrification and Sustainability at MHP Consulting UK. Previously, she held key roles at Volkswagen Group UK, managing products for ŠKODA and overseeing Brexit business readiness. Amelia’s work focuses on digital transformation and supporting the automotive industry’s transition to sustainable future mobility solutions.
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