A reservation mindset
Mass reservations are happening in the EV world but why and how do we accommodate the customer as inventory is low and the need is high?
For the first time in Volkswagen's history, in 2022, they returned a profit. Since the pandemic in 2019, data shows that the demand for vehicles has grown as supply dwindled. On top of that, gas prices, inflation, and tax incentives make specifically EVs even more attractive. The president of GM North America, Steve Carlisle, said the industry needs to consider the transition to electric vehicles as "existential."
Context
How do others handle reservations and fulfillment?
Volkswagen is not the only digital storefront dealing with reservations, so I researched 14 different reservation-type digital experiences, from hospitality to PlayStation to other auto industries. I reserved seven other vehicles, including a Delorian, a truck from Rivian, and the EV Hummer. I noticed two distinct mindsets.
Reserve and go away (Tesla Cybertruck was the pinnacle example of this)
Reserve and can I tell you more information. (How can I be top of mind).
The challenge was understanding our customers and how the majority might respond, so we tested some flows.
Results
Although the results varied, we had to weigh the technical feasibility of getting something up quickly. We ended up with a hybrid approach internally named a pizza tracker (not my preferred terminology). We got people into the reservation quickly and kept them up to date periodically.
2021-2023 Reservation impact
Volkswagen had over 400k reservations in under a two-year time frame. The reservation platform was phased out in early 2023. I don not have the actual numbers of sales from reservations.
Some things could have been improved in this approach. Our CRM needed more visibility of the actual order status. It was hard to stay top of mind if the order was more than six months out. So we made some refinements and will launch a new reservation system for the long-awaited ID Buzz coming in 2024, and reservations should commence later this year.
For me, the most important part of the buying journey is the transaction. It is the last step to make an impact and create a memorable experience, even if that experience is forgettable because it was just that easy.
Okay, I am ready to buy.
Buying Flow
During the vehicle's buying portion, customers could not save their information entered. The process also missed opportunities to include accessories and customizations. On top of these above issues, through user testing, people thought the process could have been more intuitive and lengthy.
Existing problem
Looking through the analytics, understanding the business need, I had enough information to start conceptualizing a layout and flow that we could test.
Results
Testing the new flow was a success in our quarterly research study. It was noted that customers are having less issues completing. The QA team had also noted the transaction time has decreased.
How can we create a modular area and attach rules to modules to have a framework that can mature into different owner phases and allow opportunities for us to improve the framework as we learn?
