This report is the result of a graduation project at the TU Delft, Faculty of Industrial Design Engineering. The assignment was commissioned by Eneco Group, with the aim to increase the adoption of the electric car among private consumers.
Problem definition
Over past decades, the electric car has received an increasing amount of interest. Especially for environmental reasons, the electric car is considered a promising alternative for the conventional fuel car. Currently, business consumers are the main users of the electric car. However, with the advantages of the electric car becoming clearer, the adoption among consumers is predicted to rise. Eneco E-Mobility has chosen to invest in electric mobility and has developed into a significant party in the market of electric car charge services. Eneco E-Mobility wants to prepare for the upcoming consumer market by creating user centered services that stimulate adoption of the electric car. This is the origin of this graduation project. The aim is to help Eneco to get an understanding of the consumer perspective on electric cars and to develop a service that stimulates adoption among private consumers.
To do so, the project was divided in three stages. The first stage gave insight in the challenges of the electric car market, consisting of a company analysis, a market analysis, a trend analysis and extensive qualitative consumer research. In the second stage, the insights of the first stage were combined into a design direction. The third and last phase developed the design further, presenting the service in form and function, with distribution channels, a business model and a promotion strategy. Below, the results are summarised.
Vision on solution
The first part of the design brief was an understanding of the consumer needs. Interviews with eleven potential consumers led to the development of three Purchase Drivers: profiles that represent the main purchase motivators for electric cars among consumers. The prominent reasons can be divided in three categories: environmental, financial and technological. The Purchase Drivers show the relationship between the reason to purchase an electric car and additional services consumers would be interested in. Accordingly, the Drivers summarise the most important consumer needs in a comprehensive manner, giving Eneco E-Mobility the understanding they wished for. The Drivers can be directly applied in product development and marketing communication: they should all be considered to make sure the widest range of consumers is addressed. With the Purchase Drivers, Eneco can make sure their offer is relevant and fits the prominent motives of their consumers.
Apart from the understanding of consumer needs presented in the Drivers, the research shows that two main issues play a role in the consideration for an electric car. One: consumers fear the range is not enough to let them enjoy their car as they are used to. Two: consumers see potential advantages the electric car may have, the environmental, financial and technical factors that were presented in the Purchase Drivers, but there is no way to specify the extent of these benefits for their situation. The available information on electric car purchase remains very general, leaving consumers unaware of the exact financial, environmental or technological gain. The combination of the unknown impact of the range and the haziness of the benefits impedes the purchase decision of the consumers. It makes them stick to the familiar fuel-powered car. The two factors are both linked to the compatibility of the electric car: the extent to which consumers can estimate what an electric car means for their life. Roger’s theory states an improvement in compatibility significantly stimulates adoption of an innovation, in this case, electric cars (Rogers, 2010). A focus on those issues is also perfectly in line with the strategy of Eneco E-Mobility, that searches the answer to needs of consumers.
Thus, to accelerate the adoption of electric cars, the emerging market needs a powerful tool that helps consumers to assess the effect of the range on their mobility and the extent of the sustainability and cost gains. These consumers can be found where they already inform themselves on electric cars: car dealers and lease companies. Altogether, the design direction is formulated in the following positioning statement:
Eneco E-Mobility will offer a transparent pre-sale tool that gives a personal overview of the benefits and costs of the electric car for their lease and car dealing partners. To do so, the service analyses the car use of the consumer to give insight in nearby charge facilities and the impact of the range on their mobility. Simultaneously, the service provides an overview of the savings in costs and for the environment and a sneak peek at future innovations.
Solution
The service materializes in an online platform called EV Inzicht (see Figure 1). Consumers insert information about their car and car use: type of ownership, distances they drive, et cetera. This data is then processed to a personal overview specifying the impact of an electric car for four topics: impact, finances, sustainability and technology. The impact shows the implications of the electric car for the routes of the consumer, with the effect on travel time and the location of chargers. The financial overview presents a breakeven point and return on investment (see Figure 2). The environmental overview determines CO2 emission savings and lastly, the technologic overview presents innovations Eneco works on. Al together, this overview specifies the costs and benefits of the electric car for the consumer’s personal situation. This enables a balanced decision that fits their personal motives. The tool is honest by using data from practice, like the actual range, and transparent by citing sources for the information.
EV Inzicht answers perfectly to the request of Eneco E-Mobility. It enables them to improve the information flow towards the consumer, emphasizing the benefits of the electric car. The consumer oriented strategy is continued by the incorporation of the Purchase Drivers, addressing the most important consumer needs. The service gives Eneco E-Mobility the opportunity to collect data about their potential consumer base, enabling tailored marketing campaigns. Since a collaboration with the distribution channels is already in place, it allows Eneco E-Mobility to strengthen the relationship with their partners, showing that electric car sales are considered a mutual responsibility. A close relationship with their partners fortifies Eneco’s market position relative to competitors. Simultaneously, the business model makes sure that EV Inzicht either leads to increased profit from the sale to the partners or from new leads for charge station installation. Most importantly, EV Inzicht promotes electric driving, accelerating the adoption of the electric car and thereby enlarging the potential consumer base of Eneco E-Mobility.
In conclusion, the Purchase Drivers provide an understanding of the relation between purchase motivation and consumer needs. The Drivers help Eneco E-Mobility to address the motives of the widest consumer base, ensuring relevance of their offer. The developed service, EV Inzicht, simplifies the purchase process of the electric car, aiding consumers’ purchase decision with the incorporation of individual needs. This stimulates the sale of the electric car, enlarging Eneco E-Mobility’s consumer base and boosting their sales.