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| GartnerG2 Research Finds Automakers Misevaluating the True Value of Vehicle-Based Telematics Services |
| Telematics Yield Highest Return as CRM Tool, Not Short-Term Revenue Builder |
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STAMFORD, Conn., September 24, 2001 - In a research report released today, GartnerG2, a research service from Gartner, Inc. (NYSE: IT and ITB), advises automakers to shift their focus regarding telematics from a short-term revenue opportunity to a critical customer relationship management (CRM) tool.
GartnerG2 states that telematics will provide return on investment in the form of improved customer satisfaction and acquisition, ultimately resulting in increased market share. According to the GartnerG2 report "Telematics Services: An Audience Builder, Not a Quick Buck," investment in these applications will provide significant long-term results in a competitive auto market, while delay due to limited profit expectation will allow competitors to gain a lead in customer focus. GartnerG2 findings show that remote vehicle diagnostics and personalized, location-based services are the telematics applications that will most meet consumer demand. According to a survey of a representative sample of online households that own a vehicle*, nearly 90 percent of consumers place high importance on maintaining a vehicle and getting extended warranty coverage from automakers. More than half of the respondents see it as a hassle to get their vehicle serviced, and one-third are willing to pay someone else to take away the stress related to getting a car serviced. The survey also revealed that personalized, location-based point-of-interest services are important to 55 percent of consumers. "The true value of telematics for automakers and telematics services providers is the potential to create a unique customer relationship management strategy," said Thilo Koslowski, GartnerG2 senior analyst. "Remote vehicle diagnostics will be the most successful type of telematics application to exploit CRM opportunities in the short term. Substantial revenue from telematics services can only be realized if the industry begins to develop location-specific, personalized telematics packages that center on customer preferences and 'learn' from the customer's behavior." "Unfortunately, consumers often don't fully understand the capabilities of available and future telematics applications such as remote vehicle diagnostics," Koslowski said. "Therefore, the strategic industry players should direct their energies toward informative marketing initiatives that can be combined with existing promotional campaigns to improve consumer knowledge. Only in doing so will automotive companies be able to take full advantage of this excellent opportunity." GartnerG2 is a new research service from Gartner that helps business strategists guide and grow their businesses. For more information, visit http://www.gartnerg2.com. About Gartner, Inc. Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions are Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenue of $855 million. For more information, visit www.gartner.com. *In the second quarter of 2001, GartnerG2 surveyed a representative sample of online households that own a vehicle. Respondents were 1,024 adults, age 18 years and older. |
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Contact: Mike McCabe Middleberg Euro RSCG 212-699-2752 mikem@middleberg.com |
Danielle Westling Gartner, Inc. 203-316-6754 danielle.westling@gartner.com |
