Understanding Electric Vehicle Buyers

In response to concerns about climate change and emissions, the Government of Canada has announced that all new vehicle sales in Canada will be zero-emission by 2035. This is a major step forward for the electric vehicle industry, and it’s sure to help make vehicles more affordable.

The era of affluent tech enthusiasts as the primary owners of electric vehicles (EVs) is behind us. The time for the broader market to embrace EVs is beginning to happen now. This will be driven by several factors including affordability, tax incentives, inventory, quality, reliability, serviceability, and general acceptance. Now is the time to reach out to and educate all consumers, no matter where they are on the adoption curve, from those who are ready to buy today, to those who may still be several years away from buying their first EV, and all the others in between. There are benefits to nurturing relationships with all. For customers who have yet to express an interest in EVs, you might just win when they are ready to make the transition.

As the total cost of EV ownership declines, consumers’ interest increases. The volatility of the price of gas is a contributing factor. With greater availability and vehicle type, EVs are becoming more affordable. More manufacturers are producing more affordable EVs, for example, Tesla’s Model 3 and Model Y, the Nissan Leaf, Volkswagen’s ID.4 and ID.Buzz, the Ford F-150, Rivian’s R1T, Hyundai, Kia, and GM’s selection of SUVs, and all of the other vehicles currently in pre-production. While prices are not yet comparable to those for a fossil fuel vehicle, also known as an internal combustion engine (ICE), the prices will continue to decrease as materials become more available. Maintenance costs for electric vehicles tend to be less - no more oil changes. According to AAA’s 2021 Your Driving Costs Report, the annual operating cost of an EV ($1,704) is less than half of the annual operating cost of an ICE vehicle ($4,422).

Electric Vehicle Consumers:

According to Acxiom’s Navigating the Electric Vehicle Curve Ahead report, EV consumers fall into one of the following groups, each of which should be marketed to in a targeted manner:

Tech enthusiasts - communicate why new brands of EVs are better than the ones they currently drive.

Visionaries - build trust among those ready to adopt EVs.

Leading pragmatists - demonstrate how EVs can lower the cost of living without impacting convenience.

Trailing pragmatists - educate about EVs so they feel comfortable and confident about making the switch when ready to purchase.

Conservatives and skeptics - engage by educating on how EVs could improve their lives,  and build trust and confidence in the technology.

Source: Acxiom.com - Electric Vehicle Adoption in the United States

It’s also important to retain customer relationships after they buy their EV. You have the opportunity to create a positive customer experience surrounding the entire ownership experience, and that can help drive brand loyalty as well as create other opportunities to generate revenue such as that derived from charging, or from subscription services such as infotainment, GPS, etc.

While the migration from ICE vehicles to EVs has begun, it will take several years before EVs become truly mainstream. As the EV market share grows with more affordable models becoming available, competition among brands will increase. Engage people now wherever they fall on their EV adoption journey. Use the media channels that appeal to your audience. Use messaging that focuses on the facts that may persuade them that now is the time to move to EVs.

As mentioned in Acxiom’s report, the better the ability automotive storytellers have to create engagement that takes into account which demographic people fall into, the media channels they prefer, and the core objectives of campaigns targeting those people, the better the chance you have of winning the hearts and minds of people considering the purchase of an EV. Success can also lead to unlocking new areas of revenue generation unique to EVs and result in significant contributions to customer lifetime value.