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From the consumer standpoint, how does this solution work?
Delphi has the hardware and communication platform design, and ATT picks up the raw data from Delphi, and creates the user interfaces (whether those are for driver, the shop or the rest of aftermarket). We do all of the Web interfaces and Web design.
We grab information from various databases, including from the Delphi telematics device, from Delphi's repair information, and other third-party databases, and we create the user experience. We communicate with the vehicle owner three ways: text notifications, e-mail notifications, and each user/driver gets their own Web portal, where all of the information and the dashboard controls are located.
What are the biggest obstacles for telematics adoption in the aftermarket?
One of the things we have working for us is that the OEs have established what telematics is for the consumer. They may not know it's called telematics, but they know those solutions. We don't have to identify what we do. One of the biggest hurdles has always been the business model, but we think we've solved that with the model we've laid out. It's a matter of getting the aftermarket to embrace it, and to go on the offense.
If you look at what the OEs are doing, they are evolving at an incredible pace. The re-sign-up rate for telematics after the first year is also skyrocketing.
What lessons can the aftermarket take from the OE telematics experience, particularly the struggles many of those companies experienced early on?
They struggled from not having enough content or capability for the consumer. They were too stagnant for too long. They've gotten past that. The big players are positioning their telematics solutions as a user experience, and giving the user the ability to a manage their vehicle's needs and monitor their driving habits. By doing so, they've been able to raise the bar and have the consumer take rate go that much higher.
How are smart phones affecting this market?
Smart phones are the tool of choice for the general public. They access everything via a smart phone. So whatever we do as the aftermarket moves forward, we have to have smart phone capabilities. We've built that into our solution for that very reason.
What are the next steps for the Delphi/ATT solution?
Our roadmap goes out months ahead with all of the features we can roll out, thanks to the phenomenal job Delphi has done with building this hardware. As those features roll out, they will become part of the experience for existing users, too. It will not be a stagnant solution. It will have a dynamic, growing feature list. The consumer take rate is really centered around driver behavior and monitoring capabilities, and being able to monitor childrens' vehicles or company fleet vehicles. They like and want the car care capabilities, but the take rate is really focused on those monitoring functions. We've combined both in one solution. Car care helps even the playing field for the aftermarket with the OEs, and the drivers get that user experience, and the ability to control and monitor their vehicles.
The bottom line is, OEs have been subsidizing telematics for ten years, because they know it gives them a competitive advantage. What we've done is given the aftermarket a way to offer these same solutions under whatever model they see fit to.
