Introducing the Automotive EPM
The automotive industry has made significant strides in the movement toward offering enhanced Experiences Per Mile (EPM) over the past several years. While mechanical performance and exterior looks were key considerations in evaluating a car in the past, buyers now have found a new way to measure the value of their vehicles: assessing the experiences delivered by the car. Automotive experts across the industry are watching customers prioritize finding new ways to bridge their worlds inside and outside the car purely through the connectivity-focused technologies that are elevating the in-cabin experience.
SBD Automotive recently collaborated with the EPM Advisory Council to release a new report which explores the value of creating a new experience-based metric for the automotive industry. In contrast to the currently accepted methods of measurement which focus on satisfaction and quality of features and functions inside the vehicle, the report aimed to create an alternative and actionable metric to measure a vehicle based on its ability to provide the customer with more fulfilling Experiences Per Mile. This initial “Exploratory Study” was conducted with Premium and Mainstream Compact SUV owners.
Said SBD Automotive Chief Commercial Officer and EPM Co-Director Jeffrey Hannah, “While the industry is going through explosive change and technology adoption, the question now becomes are these changes all for the better? Drivers and passengers are the ultimate ‘judge and jury’ of the next-generation mobility experience and are eager (and willing) to render their verdict. For most, their votes are only counted every 5-6 years when they shop for their next vehicle. If automakers and partners have the ability to enhance the consumer experience on a daily basis, then why wait? Creating an EPM metric at scale can enable a real-time experience feedback loop centered around key trip types and their underlying mobility goals and expectations. Unpacking and testing the key ingredients of an Automotive EPM Index and measuring them is a huge first step in that vision.”
The council developed a new EPM Index, a rating system that differentiates across trip types and various vehicle models. This key metric could assist customers in making vehicle purchasing decisions by allowing them to compare individual vehicles based on how well they may help meet their various trip needs. Just how would the EPM Index serve customers in the real world? Imagine shopping for a car, either online or at the dealership, and asking to review vehicles with the highest EPM Index rating for “Excursions,” which could be appealing to customers who often enjoy getting on the open road with family and friends. To summarize, the EPM Index could be a new metric that would help guide consumers in their very important decision of buying or acquiring a new vehicle. To read the study, download below.