Exclusive: Role of Customer Experience Value (CEV) On The Purchase Of Electric Vehicles

The retail sales of electric vehicles in India increased by 41% YOY to 109,283 units in April 2023 from 77,493 units in April 2022, which was cause for celebration. Due to the worldwide trend towards environmentally friendly transportation options, the use of EVs in India has increased dramatically in recent years. As the market expands and is the case with any product-based marketing, different factors affect customers' purchasing choices. The value of an electric vehicle's customer experience (CEV) is one important component that has a big impact.

Let’s understand CEV

Steve Jobs once said, "You've got to start with the customer experience and work back towards the technology, not the other way around." CEV includes all aspects of the whole experience a customer gets while making a purchase, including salesperson expertise, store ambiance and experience, price alternatives and strategy, customer expertise, and post-purchase services. Any auto brand must prioritise CEV since it has a significant influence on the uptake of electric vehicles. The following list of important elements that affect CEV includes each one.

Salesperson Knowledge

A significant factor in purchasing choices, the perception and decision-making of customers can be greatly influenced by the salesperson's expertise of electric automobiles. Prospective customers get trust from a knowledgeable salesman who can answer questions and provide precise details regarding EV technology, charging infrastructure, and government incentives.

Customers may be discouraged from considering electric vehicles due to ignorance or inaccurate information. It takes months to find a customer, but only seconds to lose them, as the saying goes. According to a US study, having a good experience with an informed salesman increases the likelihood of buying an electric vehicle by 20%.

Store Ambience and Experience

Since humans are visual beings, a wonderful store atmosphere obviously affects how customers perceive it. Consumer impression and purchasing decisions are significantly shaped by the environment and experience provided by EV dealerships and showrooms. An inviting environment is created by a clean, well-kept showroom with interactive displays, test-drive chances, and instructional resources. When customers can actually experience the advantages and features of electric vehicles, they become more invested in and connected to the brand. Furthermore, creating a cosy and friendly environment encourages trust and improves the whole consumer experience.

Pricing Options and Strategy: Making Electric Vehicles Accessible

Pricing plays a pivotal role in the adoption of electric vehicles. While the initial purchase cost of an electric vehicle is often higher than that of a conventional vehicle, offering attractive pricing options and incentives can significantly impact consumer behaviour. Strategies such as competitive pricing, subsidies, tax credits, and leasing options can make electric vehicles more affordable and appealing to a wider customer base.

For instance, Norway's successful EV adoption is partially attributed to a comprehensive range of financial incentives, resulting in electric vehicles accounting for over 60% of new car sales in the country. The top 3 states with the biggest EV subsidies in India are Delhi, Haryana and Maharashtra.

Customer Knowledge

Empowering informed decision-making and enhancing customer knowledge about electric vehicles is vital to overcome common misconceptions and encourage informed decision-making. Providing educational resources, hosting workshops, and offering comprehensive online content on the benefits, charging infrastructure, range, and maintenance of electric vehicles can empower potential buyers. Increased awareness and understanding of electric vehicle technology can alleviate concerns related to range anxiety, charging accessibility, and overall performance.

After-Sales Services

For a country like India, the after sales service takes a large chunk in building the brand reputation and ensuring customer satisfaction. The availability of reliable after-sales services is a critical factor inlong-term loyalty. Electric vehicle owners value access to charging infrastructure, efficient maintenance services, and prompt support. Countries like the Netherlands and Germany have established extensive charging networks, allowing EV owners to easily recharge their vehicles.

India is gearing towards building a robust EV eco-system to meet the growing demands. Timely servicing, quick 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, coupled 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, CEV becomes crucial for encouraging adoption.

Factors such as knowledgeable sales staff, transparent pricing, and a hassle-free buying process are key influencers in consumers' decision to purchase electric vehicles. As the electric vehicle market continues to expand, the role of CEV will become all the more important.

This article is authored by Dr. Darshan Rana, Chairman & MD, Rana Group. All views are personal.