Americans car buyers are more than willing to pay for add-on features for apps and monthly subscriptions like Netflix. But monthly fees — known as “features-on-demand” (FoD) — are now to a dealership near you.
Apps, pay-on-demand, service-on-demand and other SaaS offering where by consumers are connected to the internet and cloud in a dizzying number of ways, is a norm now.
And in most cases, Americans aren’t too happy about purchasing add-ons, or additional features especially if the cost is more than reasonable.
Can Automakers Revolutionizing Auto Sales through Features-on-Demand?
Automakers have in fact included subscription fees in their financial models to justify future revenue and profits for the business over the years.
They expect to earn about $30 billion a year within 10 years.
Wall Street analysts and investors are counting on these additional dollars beefing up the bottom line in future quarters and thus boosting share price.
The question is, how can automakers make these feature on demand services palatable to more owners and will consumer pay for additional features?
Toyota’s practice of offering features-on-demand services for a limited time for free, which other automakers do as well, is a way to soften the blow and let customers see if they really need the service.
