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.

  1. Reserve and go away (Tesla Cybertruck was the pinnacle example of this)

  2. 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.

Flowcharts of reservation processes for different account types, with steps such as overview, confirmation, and closing, annotated with sticky notes and icons indicating decisions and options.

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.

Volkswagen webpage featuring a white electric SUV car on a website with the headline 'Waiting was the hard part. Reserving online is easy.' The page includes navigation links, social media icons, and informational categories for Volkswagen.

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.

A digital screen with Reservations text, explaining vehicle configuration options, and a front view of a Volkswagen ID Buzz electric vehicle with a gradient blue and pink background.

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.

Flowchart of a car shopping and leasing process with steps including starting trade, browsing vehicles, selecting vehicle, getting terms, creating account, filling forms, offer builder, filling forms, choosing to continue purchase or lease, setting lease terms, applying for credit, submitting application, final confirmation, and payment deposit.

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.

Screenshot of a mobile webpage showing a white 2021 ID.4 Pro vehicle and details about purchasing or leasing it through Sheehy Volkswagen of Springfield.
Mobile phone screen displaying a 'Create account' page with fields for email and password, a green checkmark indicating successful password entry, and a 'Next step' button at the bottom.
A mobile webpage form titled 'Hello.' asking for personal information including first name, last name, date of birth, mobile number, address, city, and state, with a 'Next step' button at the bottom.
Mobile phone screen displaying a webpage titled 'Confirm your details' with personal information including name, phone number, birth date, and address, and a blue 'Next step' button.
Mobile app screen showing options to choose popular accessories for vehicle customization, including categories like comfort and protection, sport and design, and transport, with images of a car, bike holder attachment, and a snowboard/skis attachment.
Online vehicle trade-in form webpage with an image of two people walking past a blue Volkswagen car, asking if the user has a vehicle to trade-in, and offering options 'Yes' or 'No'.
Mobile screenshot of a vehicle trade-in webpage with options to select license plate, VIN, or make/model/year, and buttons to proceed or skip.
Mobile app screen showing vehicle trade-in options for a 2017 Volkswagen Jetta with VIN WVWZZZ3BZWE689725. Options include Excellent, Very Good, Good, and Fair condition, with respective user percentages. Buttons for next step and skip trade-in are visible.
Mobile screen displaying an online vehicle financing application form with options for payment type, credit rating, down payment, vehicle mileage, finance terms, summary of costs, estimated monthly payments, and a continuation button.
Screenshot of a webpage from myvw.com asking if the user wants to apply for credit with Volkswagen Financial Services, with options to proceed or choose alternative financing.
Mobile screen showing a webpage with a message about leaving a purchase in progress, with options to continue or exit.
Mobile screen showing an employment application form titled 'Apply for credit' with sections for employment details, current employment status selected as employed, employer 'Volkswagen', working title 'Marketing', work phone '(555) 555-5555', a checkbox for consent to be contacted by Car Company, and details about time at current employment including 10 years, 1 month, and yearly gross income of $60,000. There is a 'Next step' button at the bottom.
Screenshot of a vehicle financing approval page for a 2022 VW ID.4 Pro, with details of the dealership, pricing, down payment, trade-in value, taxes, estimated financing, deposit, and billing address.
A digital screenshot of a vehicle purchase confirmation from Volkswagen, showing the back of a white Volkswagen SUV and details of the purchase including price, VIN, contract status, pickup schedule, and dealership contact information.

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?

What about post reservations

A digitally designed dashboard for Volkswagen vehicle management. It shows sections for configuring a reserved vehicle, scheduling maintenance, monthly payments, and a custom built order. Features include images of cars, a financial service overview, and options for managing vehicle details and interacting with the Volkswagen experience.