Author: Michelin
In the era of intelligence, the relationship between users and car companies seems to have been brought closer. Buying a car is no longer a “one-time deal”. The charging problem of new energy vehicles after purchasing a car, numerous OTA upgrades of intelligent vehicles, and the services provided by brand apps have achieved a closer connection between users and car companies.
However, as we know, “service is a double-edged sword.” Comfortable services can give users a sense of identification with the brand when using a car, while, on the other hand, it may cause new anxieties.
Recently, at the Chengdu Auto Show, we had an exclusive interview with Fang Xizhi, Vice President of After-sales Service of Volvo Cars Greater China Sales, to see what post-sale anxieties users have in the era of intelligent vehicles and how car companies deal with them.
Five charging scenes to relieve energy supplement anxiety
When it comes to new energy vehicles, it is inevitable to think of the term “energy supplement anxiety.” Previously, Volvo clearly stated that in the next 18 months, four pure electric vehicles will debut, and in 2023, it will transform into a pure electric luxury brand. As the proportion of electric vehicles increases, charging is an unavoidable problem for both users and car companies.
“Volvo will not forget its customers in the era of electrification, and will invest in new vehicle models while preparing for the layout of charging networks,” Fang Xizhi responded to Volvo’s layout of the charging network.
For the charging problem, we often see three solutions: home charging piles satisfy daily charging needs, but not every family has the conditions to install them; self-built charging networks can provide faster, exclusive, and better charging experiences, but the speed of the layout of self-built charging networks is limited. The public charging piles are large and dense, but the charging speed and experience are not ideal.
Whether it is a private charging pile, a self-built charging pile, or a public pile, it is almost impossible to cover all the daily charging needs of a new energy vehicle in a single way. Where there is demand, there is user anxiety about energy supplement.
To this end, Volvo proposed the slogan “Charge everywhere, charge well as you please” last year, dividing the charging needs of new energy vehicles into five scenes and implementing charging in specific scenes.
For users who have the conditions to install private charging piles, Volvo provides free home charging piles and installation services for plug-in hybrid models. Next year, Volvo will also launch a brand-exclusive charging pile to further enhance the experience in appearance, function, and safety.For large-scale public charging piles, unstable user experience is almost a common problem. In the process of using public charging piles, it is inevitable to encounter problems such as no available charging piles, inability to use normally, inability to unlock the parking lock, or even occupied parking spots even though the charging pile is idle, etc.
To solve this problem, Volvo has cooperated with public charging pile operators, including State Grid, Techrules, and Star Charge, to connect the data of public charging piles to its own app. Users can view the current status of charging piles in real-time on the app, provide feedback on charging problems, and get timely solutions, which can improve the user experience of public charging piles as much as possible.
In terms of its own-brand charging, Volvo, similar to other luxury car brands, has deployed branded charging stations in underground parking lots of airports and large shopping malls. Currently, Volvo’s first airport-branded charging station has been launched at the P7 parking lot of Shanghai Hongqiao Airport.
Unlike traditional branded charging, Volvo provides users with online free parking reservation via its app, and users can also enjoy free charging and free coffee services during offline parking. The Volvo Car App backend automatically issues free parking vouchers for branded charging stations to new energy vehicle owners every month, which solves the problem of parking and charging for owners on business trips.
In addition, for the scenario of vehicle maintenance and repair, Volvo has equipped its main dealers with DC fast charging piles to provide high-speed charging services. For users who urgently need charging, they can book an emergency charging service at home via the app. The charging personnel can help users find a charging pile or directly charge their cars to ensure that the battery level reaches 90% after three hours, which eliminates the worry of running out of power in emergency situations.
These five scenarios of home charging, public charging, travel charging and parking needs, high-speed charging for maintenance and repair, and emergency charging assistance almost cover all possible charging scenarios for a new energy vehicle. When the charging needs are met, range anxiety will naturally be relieved.
How to reduce the cost of repair?
There has always been an urban legend about Volvo on the Internet: If you disassemble and sell the parts of your Volvo which needs repair, you can probably buy six Volvo cars again with the money you get.
This joke originated from a data of part-over-hauling ratio from years ago. The so-called “part-over-hauling ratio” refers to the ratio of the price of parts to the price of the entire vehicle, and the higher the value, the higher the repair cost. Although that data has been several years ago since it was released and users can only experience the importance of the part-over-hauling ratio during a major over-hauling, this statement still left an impression on many people. Therefore, how to remove the label of “expensive repair” has also been the thing Volvo has been doing for years.
In the users’ mind, the repair cost of a car can be roughly divided into two categories: one is the cost of parts during the repair, and the other is the cost generated by repeatedly repairing the common parts. In order to reduce the burden of repair cost, Volvo has made two preparations.
On the one hand, since 2019, Volvo has continuously optimized the prices of its parts.”Volvo optimizes parts prices continuously without sacrificing quality as a prerequisite, without an obsession with localization or changing suppliers.” Said Fang Xizhi in response to Volvo’s move to “reduce the burden” of after-sales maintenance.
In the past three years, Volvo has reduced the prices of more than 131,000 parts across over a thousand product categories, with a reduction rate averaging at 19%, including vulnerable parts such as spark plugs, batteries, and brake pads, with more than 8,000 parts having a reduction rate exceeding 50%. This equates to a 20% discount on repair costs from the source.
In terms of considering the burden index of the most commonly used parts, maintenance, and mechanical repairs, Volvo’s move is not small. In 2020, Volvo’s burden index was reduced to around 21%, which was five to six percentage points lower than its competitors; by 2021, the burden index was further reduced by one or two percentage points.
On the other hand, while reducing parts prices, Volvo also further reduced repair costs through service projects such as “Lifetime Parts Warranty.” The so-called “Lifetime Parts Warranty” means that after a user has paid for one repair at any Volvo 4S dealership, the part will be under warranty for life. No additional fees or so-called extended warranties are required, and not just small parts but also major components such as the engine, headlights, and steering assembly are included in the warranty.
According to data provided by Volvo, this service has saved an average of 4,300 yuan per customer over the past two years, and prevented burdens caused by repeatedly repairing stubborn problems or replacing parts.
Online + Offline Interaction: Improving Service Experience Through Digitization
For today’s cars, apps are almost indispensable for car owners, whether it is to remotely control the vehicle or to make appointments for online service or maintenance.
The after-sales services provided by Volvo’s app are currently related to practical car maintenance. Online and offline services are integrated, and a quick car maintenance appointment can be made via the app. To address the pain points of busy daily life, conflicts between work hours and 4S stores’ business hours, and difficulties in arranging maintenance times, dealers now offer after-sales service until 8 pm… These services, combined with the aforementioned “Lifetime Parts Warranty,” make up Volvo’s six major service commitments.
In the future, online and offline services will be further linked, becoming more transparent and real-time. For example, by the end of this year, Volvo will launch virtual workshop services. After a vehicle is sent for maintenance and repair, users can check the progress of the repairs on the App through the cameras inside the dealership and on the workstations, and directly communicate any issues through the App. This way, they can understand the condition of their vehicle’s repairs from home with peace of mind.
Other similar digital services include the “Exclusive ride replacement car” and the “24/7 Guardian” function that can be called with just one click.
Finally
We often talk about “user-centric businesses”, which not only means soliciting user feedback during product design or offline events in the App, but also considerate of the actual needs of users’ daily use of their vehicle: will they be anxious about the inability to charge their vehicle? Will they worry about the high cost of maintenance and repair? Can they respond to user needs in a timely manner when assistance is most needed?
As the automotive market becomes increasingly competitive, research and development, technology, and product strength are hard indicators that guide users in choosing a brand and a product; the user experience and services that a brand brings to them are intangible soft power that enhances brand stickiness and loyalty.
The sense of security that a car brings to users comes not only from the passive and active safety technology when driving, but also from the service provider’s commitment and conviction.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.