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Dealers Can Connect With Consumers by Overcoming Tech Concerns
J.D. Power reports apps and connectivity stymie both ICE and EV drivers.
3 Min Read
Safety apps are high on consumers’ favorites lists.Getty Images
Dealers commonly point out all the applications and connectivity installed on new cars. But a recent study by J.D. Power shows that may be a major mistake that can sink sales.
Connectivity-related issues remain a major hurdle for manufacturers’ mobile apps for internal-combustion engines, according to the J.D. Power 2024 U.S. OEM ICE App Report.
“That’s why it’s beneficial for manufacturers to continue addressing performance gaps and ensuring competitiveness in the market,” says Violet Allmandinger, mobile apps lead at J.D. Power. “Automakers have made improvements in-app features, improved response times and fixed connectivity gaps but, to improve customer satisfaction, they need to deliver core features that perform reliably.”
But What About Dealers?
Sales and F&I staff need to note that one-third (32%) of ICE owners responding to the survey say they experienced app connectivity issues. That’s up from 2023, when the number was 29%. Slow app connections, whether occasionally, frequently or constantly, were experienced by 61% of respondents.
And it’s not just ICE auto owners who are dismayed by apps and connectivity.
A separate 2024 study by J.D. Power showed 38% of EV owners reported a connection problem. The breakdown between Tesla and non-Tesla EV owners surveyed in 2024 by J.D. Power was significant. While 40% of non-Tesla EV owners say they experienced a connection problem – down from 44% a year ago – 35% of Tesla owners say they experienced a connection-related problem – up from 30% in 2023 and 20% in 2022. J.D. Power says the trend may suggest increasing app usage is straining Tesla’s app network capacity.
Moving Consumers Ahead
Dealers can help car buyers move past bad experiences and app fears. As WardsAuto reports, salespeople should stress some points in new autos, including blindspot warnings and other apps that directly address safety concerns. Dealers also can stress how manufacturers have improved vehicle systems.
Another way to get around a sticking point: Show customers who might have privacy concerns how to opt out of data sharing, an operation often buried in settings and menus.
J.D. Power lists other consumer likes and dislikes that salespeople may want to keep in mind when talking with consumers:
High demand for security features: A notable 83% of respondents expressed a desire for apps to include vehicle camera viewing and security warnings, highlighting a significant gap in current offerings.
Low interest in in-app vehicle marketplaces: While 27% of apps include a marketplace feature, 72% of respondents said they do not want it. This highlights the need for manufacturers to focus on more practical and widely desired functionalities.
Vehicle status updates still lag: Many apps fail to deliver timely updates for vehicle locks, windows and doors, but 92% of owners say they want to be able to check their vehicle status. This topic remains a point of frustration throughout the industry.
Feature limitations and cost concerns drive disengagement: Among owners who discontinued using their brand’s app, 25% cited a lack of desired capabilities and 45% said they don’t need the app. When asked what would encourage them to return, 25% identified pricing as a key aspect for continued usage across the industry.
Gap between importance and satisfaction in app performance: Among the key performance indicators (KPIs), owners rated the importance of navigating through the app as 7.5 (on a 10-point scale). Still, satisfaction with the KPI is just 6.5. Additionally, speed of the app – specifically the execution of remote controls and status functions – is 7.4 but satisfaction with the KPI is 6.2, revealing critical areas for improvement.
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