Retail sales of electric vehicles in India grew 41% year-on-year to 109,283 units in April 2023 from 77,493 units in April 2022, a cause for celebration. Due to the worldwide trend towards eco-friendly transportation options, the use of EVs in India has increased dramatically in recent years. As the market expands, and as is the case with any product-based marketing, various factors influence the purchasing choices of customers. The customer experience (CEV) of an electric vehicle is a key component that has a large impact on value.
Let’s understand CEV
Steve Jobs once said, “You have to start with customer experience and work back toward technology, not the other way around.” CEV covers all aspects of the overall customer experience while shopping, including seller expertise, store environment and experience, pricing options and strategy, customer expertise and post-purchase services. Any auto brand should give priority to CEV as it has a significant impact on the trend of electric vehicles. The following list of important elements affecting CEV includes each.
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vendor knowledge
An important factor in purchasing choices, customer perception and decision-making can be greatly influenced by the expertise of the seller of the electric automobile. Potential customers are assured of a knowledgeable salesperson who can answer questions and provide accurate details about EV technology, charging infrastructure and government incentives.
Ignorance or misinformation may discourage customers from considering electric vehicles. As the saying goes, it takes months to find a customer, but only seconds to lose one. According to a US study, having a good experience with a knowledgeable salesman increases the likelihood of buying an electric vehicle by 20%.
Store the ambience and feel
Since humans are visual creatures, the ambiance of a wonderful store clearly affects how customers perceive it. Consumer perception and buying decisions are significantly influenced by the environment and experience provided by EV dealerships and showrooms. An engaging atmosphere is created by a clean, well-kept showroom with interactive displays, test-drive possibilities, and instructional resources. When customers can actually experience the benefits and convenience of electric vehicles, they become more invested and engaged in the brand. Furthermore, creating a comfortable and friendly environment fosters trust and improves the overall consumer experience.
Pricing Options and Strategy: Making Electric Vehicles Accessible
Pricing plays an important role in driving the adoption of electric vehicles. While the initial purchase cost of an electric vehicle is often higher than that of a conventional vehicle, attractive pricing options and incentive offers can have a significant impact on consumer behavior. Strategies such as competitive pricing, subsidies, tax credits and leasing options can make electric vehicles more affordable and attractive to a wider customer base.
For example, Norway’s successful EV adoption is partly attributed to a wide range of financial incentives, resulting in electric vehicles accounting for more than 60% of new car sales in the country. The top 3 states with the largest EV subsidies in India are Delhi, Haryana and Maharashtra.
customer knowledge
Empowering informed decision making and increasing customer knowledge about electric vehicles is critical to dispel common misconceptions and encourage informed decision making. Providing educational resources, hosting workshops, and offering comprehensive online content on the benefits of electric vehicles, charging infrastructure, range, and maintenance can empower potential buyers. Increasing awareness and understanding of electric vehicle technology can reduce concerns related to range, charging access and overall performance.
after sales service
For a country like India, after-sales service plays a major part in building brand reputation and ensuring customer satisfaction. Availability of reliable after-sales services is an important factor in long-term loyalty. Electric vehicle owners value access to charging infrastructure, efficient maintenance services and quick support. Countries such as the Netherlands and Germany have established extensive charging networks, allowing EV owners to easily recharge their vehicles.
India is working towards building a robust EV eco-system to meet the growing demands. Timely servicing, prompt resolution of issues and proactive communication contribute to an overall positive customer experience. A satisfied customer is more likely to recommend electric vehicles to others and become a brand advocate.
In the United States, Tesla’s direct sales approach, combined with a seamless customer experience, has contributed to its success in the electric vehicle market. In India, the role of CEV is gaining prominence as the country embraces electric mobility. With the government’s push towards electric vehicles and the availability of financial incentives, CEVs have become important to encourage adoption.
Factors such as knowledgeable sales staff, transparent pricing and hassle-free purchase process are major influencers in consumers’ decision to buy an electric vehicle. As the electric vehicle market continues to expand, the role of CEVs will become even more important.
This article has been written by Dr. Darshan Rana, Chairman & MD, Rana Group. All views are personal.