Digital Services Drive Revenue

The automotive industry is facing pressure to find new revenue sources, and digital services are emerging as a key area of focus. However, OEMs are struggling to offer compelling digital services that resonate with customers. As the report states, "Subscription features like heated seats, premium audio systems, remote engine start and parking assist often fail to resonate with customers. Why would they want to continue paying for features in a car they already own?" This highlights the need for OEMs to shift their focus from simply adding technological features to understanding and addressing actual customer needs. This challenge is further compounded by the fact that car development is increasingly driven by software engineers who may prioritize technical capabilities over customer-centric design. This disconnect between engineering and customer needs creates a gap that OEMs must address to successfully monetize digital services. Philip Beil, Publicis Sapient's Transportation & Mobility Lead for Europe and APAC, notes, "You have to integrate digital services in a way that creates a service ecosystem that is maximizing consumer value in a frictionless way. Bringing standalone services to market is really difficult and often doesn't create the right level of perceived value add." This emphasizes the importance of a holistic approach to digital service development, focusing on seamless integration and value creation for the customer.