Defining the target market and value proposition for a car subscription product is a must for success. These elements are the foundation of your service and help you understand who your product is for and what it offers. Without a clear understanding of these factors, it can be tough to attract and retain subscribers, and your product may struggle to stand out in a growing competitive market.
However, by carefully considering the target market and value proposition of your car subscription product, and by finding a niche, you can create a service that meets the needs and preferences of your customers and offers a strong value proposition. This can quickly help you attract and retain more subscribers and differentiate your product from competitors.
Car subscription products are becoming more popular as consumers look for flexible and convenient transportation options. Small to medium sized automotive businesses and fleet owners now have a great opportunity to enter the market early and build the car subscription brands of the future. To do that effectively, they will need to carefully consider the target market and value proposition of their service to be successful.
By understanding the needs and preferences of your target customer and offering a range of vehicles and subscription options that meet these needs, you can create a service that stands out in the market and attracts and retains subscribers.
In this article, we'll explore three key factors to consider when defining the target market and value proposition of a car subscription product. By considering these factors, any small to medium sized fleet owner can create a successful and sustainable car subscription service that meets the needs of their customers and sets them up for success in this growing market.
If you want to create a successful car subscription product, it's key to have a good understanding of what your customers are looking for. This includes things like the type of cars they prefer, how long they want their subscriptions to be, and any extra services or features they're interested in. Without this understanding, it can be tough to create a product that meets the right needs and preferences of your target market.
To get a handle on this, it's a good idea to do some market research and gather feedback from potential customers. This could include surveying people in your target market, as well as testing out different product features and pricing options to see what works. It's also worth keeping an eye on market trends and getting insights from industry experts to help inform your decisions.
By taking the time to research and gather feedback, you can get a good understanding of what your potential customers are looking for and the build a car subscription product for them. Starting this way will help you attract and retain more subscribers early on and put your subscription business in a great position to succeed.
Another important part of building a successful car subscription product is to offer a type of vehicle that aligns with your target market. By focusing on a particular niche, such as EVs, small cars, or luxury vehicles, you can better meet the exact needs of your customers and differentiate your product from competitors.
For example, if your target market, or even your current customer base, is environmentally conscious consumers, choosing a fleet of EVs could be a great way to appeal to this market and differentiate your product. Or if your target market is made up of predominantly urban dwellers who need small, fuel-efficient cars for city driving, focusing on a fleet of small cars could be a smart move. Alternatively, if your target market is affluent consumers who want a high-end driving experience, a fleet of luxury cars might be the way to go.
One company that has successfully targeted a specific segment of the market is Electric Zoo, a car subscription business based in the UK. They focused on EVs and were able to appeal to a younger, urban customer base that was interested in environmentally friendly transportation options. By offering a range of EV models and flexible subscription options, Electric Zoo was able to meet the needs of their target market and build a strong value proposition. As a result, they've attracted a large and loyal customer base and quickly established themselves as a leader in the EV car subscription market in the UK.
Flexible subscription terms are important for a successful car subscription product. Different customers might have different preferences when it comes to the duration of their subscriptions. Some might be looking at short-term rentals for occasional or temporary use, while others might be considering longer-term leases for more frequent or extended use. A good car subscription product should be able to meet the needs of both types of customers.
Offering customisable subscription plans that allow customers to choose the duration of their subscription, the type of car they want, mileage terms, and any additional services or features can also be helpful. This is another way to tailor your product to meet the needs of your customers and differentiate your service from competitors.
Another key factor in a successful car subscription product is building customer loyalty and maintaining a strong customer base. One way to do this is to differentiate your product by giving customers flexibility to change their plans in-life. This might include allowing them to switch to a different type of car, change the duration of their subscription, or adjust their monthly mileage allowance while on an active subscription.
This level of flexibility can be especially important for customers who have unpredictable or changing needs, as it allows them to adjust their plans to meet their changing circumstances. Allowing customers to add optional extras or maintenance services can also be a great way to create another source of revenue for your business and make it easier for customers to use your product.
By considering these three factors in the early stages of developing your car subscription product, you can create a fast growing and lasting value proposition, and with a clear understanding of your target market and a well-defined value proposition, you’ve already positioned your business for success in an ever-growing car subscription market.
As we’ve discussed in this article, defining your target market and value proposition is essential for the success of any car subscription service. By understanding the needs and preferences of your target audience, and offering a range of options that meet these needs, you can attract and retain more subscribers and differentiate your product from competitors. MOOV by Al-Futtaim is a great example of a car subscription service that has done just that.
Al-Futtaim recognised a need in the Dubai market for longer-term access to vehicles without the commitment of ownership. Many Dubai residents are ex-pats and are hesitant to purchase vehicles due to the temporary nature of their stays in the city. After recognising this gap, Al-Futtaim launched MOOV, a car subscription service that allows customers to access a range of cars on a monthly basis without committing to buying them.
To target this market, MOOV offers a variety of subscription options that fill the needs of both short-term renters and longer-term leasers. Their customers can choose from a range of makes and models, and can customise their subscriptions by selecting the duration and type of vehicle they want. In addition, MOOV offers a convenient pickup and drop-off service across the UAE, making it easy for customers to get into their new cars.
One key factor in the success of MOOV's car subscription product is the flexibility of their subscription plans. They offer a range of monthly durations, including just single month plans on certain cars. In addition to offering flexible durations, MOOV also allows customers to further customise their plans at booking through a very simple, fully-online, booking process. Customers simply choose the duration of their subscription, the type of car they want, and define exactly where and when they want the vehicle delivered, along with providing all of their documents and e-signing of contracts completely digitally. MOOV also allows customers to change their vehicle during their subscription, which is a particularly popular feature for customers who have changing needs or preferences, or who want to try out different models.
Overall, MOOV by Al-Futtaim's car subscription service is a great example of how understanding the needs and preferences of your target market, establishing a strong value proposition, and offering a flexible and convenient product, is key that unlocks any car subscription market. By following these exact steps Al-Futtaim was able to build a hugely successful car subscription product in under 12 months.