We need consumers to trust the OEMs, retailers and the charge point installation if we are going to revolutionise mobility
The e-mobility revolution is well underway, with the UK as one of the global leaders in the transition from internal combustion engines to electric drivetrains. The Climate Change Committee estimates that there will be 18 million EVs in the UK by 2030 and in March 2022, the Office for Budget Responsibility increased its forecasts for the share of EVs to 59% in 2026-27, up from 29% in its October 2021 outlook. This would put the UK on a similar path witnessed in Norway six years ago, which now has over 90% EV penetration.
However, there are some fundamental issues that are affecting the transition. Firstly, if you look at the complex automotive supply chain, it is facing pressure on all sides due to rising costs and the availability of nickel, copper, platinum group metals, aluminum and steel products. This affects the ability to produce vehicles and charge points that will enable the electric vehicle transition. These supply side issues are an impediment to the electrification of the UK car parc.
How a customer feels is another major barrier to entry and we believe that technology to improve the customer journey will result in a greater penetration of EVs in the UK. Technology and software will enable dealers to track customer satisfaction, resulting in a better understanding of why a customer is buying or not buying an EV.
We need consumers to trust the OEMs, retailers and the charge point installation if we are going to revolutionise mobility in the UK.
It is Jumptech’s belief that the solution to these issues is investment in technology. So how can the automotive sector build trust with consumers ?
Well, we aren’t involved in the manufacturing and retailing of electric vehicles, but we believe we, and others, can use technology to ensure the customer experience is in line with the brand of vehicle they are purchasing.
We provide software as a service that enables OEMs and dealers to control the customer journey from when they enter a dealership to acquire an electric vehicle through to a charge point being installed at their property. This is a hugely significant shift in motor retailing in the UK as the model shifts towards an agency model. Software that enables retailers to track the progress of a charge point installation will enable sales staff to have visibility and answers for customer queries, it will allow retailers to manage the performance of their installer partner and should engender customer loyalty as a quality performance is handled from start to finish by the vehicle brand.
We have seen over the last few years that a positive customer journey is a crucial factor in the e- mobility revolution. Previously dealers handed over the keys, with half a tank of fuel and some rubber mats and they had a happy customer. This is not the case anymore. Retailers need to be investing in technology so they can manage the customer journey. After all, installing at home charge points involves complex work that changes the appearance of a property, it also links the charge point to the OEM, in the eyes of the consumer, so they are effectively responsible for the performance of the charge point as well as the vehicle. This is why a joined up process between charge point manufacturer and installer is crucial. Brands will not be forgiven if this is not done properly. Poor customer reviews of a brand’s performance during the sale of a vehicle has a knock on effect resulting in delays in future customer purchasing decisions, ultimately this could result in a delay in the roll-out of electric vehicles.
Furthermore, who is to blame when a charge point, in someone’s home, doesn’t work? Technology is needed to enable OEMs to see why it isn’t working, who installed it and when it was installed. That way they can resolve the issue and maintain the customer relationship. Currently this does not exist resulting in dissatisfaction amongst consumers.
Technology can work with all automotive brands to extend their brand experience beyond the showroom. The brand can control the survey a property, providing a quote and most importantly managing the waiting time between order, and installation of the charge point. This will help drive efficiencies in service, resulting in cost savings and a vastly improved customer experience. We have already seen that if this approach is not taken customers will be left dissatisfied with the brand, even if they are happy with the car itself.
Uniformity through technology will also enable OEMs to understand and manage the regulations in each jurisdiction that they operate. This is going to be a huge operational headache for dealers on only a small part of their service offering. We believe that by utilising specially developed, intelligent software, OEMs will be better able to deliver for their customers.
So, the issues for the industry are evident, but in our view the solutions are also clear. Investment in technology to enable charging infrastructure to be installed will increase consumer confidence in EVs, therefore driving sales, enabling the UK to transition to a net zero economy. Where do we see the industry going and what does the industry need to succeed?
Well, the industry, in the short term, will continue to require significant investment at all levels to enable entrepreneurial businesses, such as Jumptech, to deliver rapid technological improvements.
We have already seen over the past few months a number of charge point businesses, recommended by OEMs, struggle or go out of business, due to the worsening economic conditions. This is a problem for the retailers of electric vehicles. We believe that investment in technology will enable OEMs to manage their suppliers more efficiently, enabling them to delight their customers. Automotive businesses need to define and control the process and then be able to track and monitor performance against strict service level agreements in order to protect their brands.
We also want to see the UK Government continuing to drive the transition to EVs. They can play a huge part in the UK’s route to net zero. As we wean ourselves of traditional fossil fuels and electrify the grid we are going to need home energy storage, and car batteries, with purpose built, intelligent technology to deliver bi-directional charging, and we will need legislation to accelerate this. Alongside this, as an industry we are also going to need access to talent, engineers of all kinds to develop software and hardware to generate efficiencies and reduce costs for consumers. We should all be encouraging the best talent in the UK to join the automotive sector.
At Jumptech we see ourselves as part of the future of next generation mobility. We see ourselves as an enabler of the energy transition and part of the solution to the net zero economy. We want our software to enable OEMs and retailers to manage the customer journey, so they don’t risk losing brand loyalty, built up over many years, through poor service. We want our software to inspire others to invest in technology. It is not an us versus them market, we all need to succeed if we are going to achieve a successful mobility revolution.
