Are Your Customers Experiencing Subscription Fatigue?
While subscription models for features like advanced driver-assistance systems and infotainment upgrades generate recurring revenue for OEMs and dealerships while also substantially multiplying the sell-price in the event of an acquisition, many customers report frustration with what they see as unnecessary or excessive costs.
This “subscription fatigue” could negatively impact customer loyalty and dealership F&I sales, said Maria Wieser, senior business developer for Zeekr Technology. “We’re seeing a trend where people don’t want to subscribe to so many things.”
To combat this, dealerships are encouraged to focus on transparency, bundle essential services into value-added packages, offer tiered subscription models if you do offer them, and communicate the long-term benefits of subscription features. Balancing revenue generation with customer satisfaction will be key as the industry continues to embrace this model.
