14
Mar

Insight Communities – Driving ROI, Not Just Research Value


Richard Clarke, Vice President
Global Partnerships, VisionCritical

For decades, research has delivered powerful consumer sentiment and opinion into organizations – enabling these organizations to put the voice of the consumer into their decisions with the goal of creating more meaningful, successful, and effective products and services.

Methods and modes have changed over the years, with more and more complex solutions being created to get closer to the consumer truth at an ever-increasing speed. Incredible insight has been (and will continue to be) gleaned from consumers, informing multiple parts of clients’ business eco-systems. However, for many clients and users, research is seen as a cost center within an organization – something that needs to be done as part of a process or something that must be purchased as part of the broader vision of the business. The value of research is not generally associated as being an integral and fundamental part of overall business planning and development.

This is why whenever there is a downturn in business performance, or regional/global downturns (ex: 2008 Global Financial Crisis), one of the first areas to be questioned and lose budget is research.

What is the “value” that research is delivering?

There are many answers to this question, both objective and subjective, however, too few times does research itself get directly linked back to business performance. Ultimately, asking about the “value” of research is the wrong question. We should be asking: What is the “Return on Investment” of research? Because that is what research is: an investment into the organization, and not a cost.

There are many ways that Return on Investment in research can be measured, including:

  • More informed/accurate business decisions – what is the cost savings from NOT doing the wrong thing or validating the decision (risk aversion)?
  • Faster to market with the RIGHT product – how much does speeding up the development cycle save?
  • Quicker reaction time to customer feedback and demand – what is the short- and long-term savings of rapidly reacting to the situation or of knowing your customers’ buyer journey and pain points?

For years, I have been an advocate of research and Insight Communities – the idea of engaging with individuals to answer the business issues at hand with engaged members who, ultimately, also drive advocacy for the brand. Insight Communities should not be considered a research “cost” but rather as an organizational asset that both informs business decisions and creates brand advocacy among members.

Forrester Consulting recently completed a Total Economic Impact™ Study on the ROI of Insight Communities to clients. In addition to the cost efficiencies and speed value propositions of Insight Communities, Forrester quantified the financial value of continually engaging with members in a community. The highlights include:

  • $1.7M business value from increased customer insight
  • 590% ROI
  • $546K incremental profit and $4.7M increased sales from community members
  • 39% increase in average order value and 70% lower churn rate from community members
  • 75% reduction in cost compared to traditional market research methodologies
  • 4-6x faster speed to results

This continues to reaffirm the belief that an Insight Community is not only an incredibly valuable tool in providing fast and efficient consumer insight, but also drives business action that results in incremental sales and profit for organizations.

These are just some of the reasons that organizations are implementing communities. The client stories about the impact of an ongoing Insight Community are powerful and continue to prove out the short-term and long-term Return on Investment. Shifting the mindset to consumer engagement is resulting in hundreds of organizations realizing significant returns and outcomes (click here for client stories).

Five years ago, communities were more of a niche solution or emerging technology but, according to the latest GreenBook Research Industry Trends Report (Q3 2017), 82% of respondents stated that communities were either in use (60%) or under consideration (22%). This has led GreenBook to no longer believe that they are an emerging solution but are, in fact, a mainstream solution:

“In future editions of GRIT, it is likely that online communities will also be removed from “emerging methods” now that it is mainstream.” (GRIT Q3/Q4 2017).

Ultimately, these two pieces of evidence indicate that an Insight Community is not only a solution that spreads efficient business insight across organizations but is also an asset that drives revenue and profitability – thereby attaching a real-world ROI to the value of the asset.

Feel free to contact me to learn more about how an Insight Community can become your most powerful asset.

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11
Dec

The IoT Frontier: As Seen In Trade Shows

By Lucas Lowden, Research Director

As professionals, we often hear about expanding our horizons. How frequently do we actually do so? In reality, not very often. We get comfortable, and, we are experts at what we do anyway, right?

Commercial Vehicles. Fleets. Construction Equipment. I’ve done plenty of research projects with these professionals.

Big Data. Internet of Things. I’ve heard plenty about these concepts, and do work with a lot of data.

Now put all those ingredients into a pot and distill them into something useful for professionals in those industries?  That’s a different kind of problem. It requires new tools. New skills. A new way of thinking. A new understanding.

Truthfully, everyone’s reality is different and being made uncomfortable is not easy for most.

The last two years of my career have been a whirlwind of discomfort for me. And I’ve loved every minute of it. Learning, growing, helping – each in parallel with teammates and partners alike. In establishing a data-driven mindset we’ve embraced a new way of thinking to get to a new understanding. It’s been incredible!

It’s now late into 2017, and I recently attended the North American Commercial Vehicle Show, NTEA Executive Leadership Summit, and EquipmentWatch’s Traction 2017 show.

Interacting with fleet and equipment professionals at the trade shows forced me to personally broaden my horizons, and embrace the pain points that may make those professionals uncomfortable. I quickly realized that my reality as a Market Research professional differs greatly from that of a Fleet Manager or an Equipment Manager.

Which brings me to the first theme that became apparent to me.

Theme 1: Big Data Is A Big Deal, Getting Bigger With IoT

Let’s start with something that most industries in existence are familiar with – Data. Data. Data.

Data has long been available from an enterprise perspective – financial data, employee data, customer data, and transaction data, among others. Most have utilized each source of data independently for their own practical, everyday needs. Some have integrated the data for a broader application.

Operational data is becoming much more prevalent today – passive data coming in from sensors integrated with all types of equipment and applications used to conduct our everyday business and in our personal lives.

With the IoT I expect the growth curve of data to be an exponential factor the likes of which we may have never seen before. I’ve heard the term 4th Industrial Revolution thrown about. I’m not totally sold on that scope just yet, but it seems more possible than not from my perspective.

Getting the data is often not terribly difficult. Making sense of it is slightly more difficult. Harnessing the power held in these disparate data sources? Broad success stories are far and few between.

So how do we get past this hurdle?

Theme 2: Integration Is Key

Everyone has data. Few have truly harnessed the power of integrating their data to the extent it could be today.

To use an example from a long haul transportation perspective, integrating truck telematics data can give you the amount of fuel burned while a tractor is idling. Layer contextual feedback from a driver survey to understand the idle situation to deem an idle event necessary or unnecessary from a business perspective. Lastly layering that with fuel spend, and you can see how much money lost due to unnecessary idling.

There are lots of high quality solutions in the burgeoning market that provide services around the IOT ecosystem – telematics hardware, internal/external CRM, database architecture, reporting dashboards. As of yet, not many have fully embraced data integration.

That doesn’t even get into what I feel like is the next technology wave of data integration– blockchain. That’s a whole topic in its own right, so will save this for a later post.

For small to midsize organizations this highlights a challenge – they often don’t have the time available or skill set needed to integrate their own data across platforms.

Ultimately, baby steps are critical to integration efforts. Partner. Discuss. Get smarter. Get better. Rome wasn’t built in a day.

Integration of data and systems is a natural progression to the final theme.

Theme 3: Any IoT Solution Has To Be Easy To Use

The integration of data at the business level leads to a “what’s next?” question of sorts.

Sometimes, a reporting dashboard can be a solution. For others, it’s an app delivering their data and insights.

Any solution in this space needs to be data-driven and actionable to be most useful and effective for industry executives.

It also needs to be simple and easy to use. Time is money.  Difficult to use and hard to understand solutions cost a company more time and more money.

Currently I’m contributing to a data-driven solution that delivers descriptive dashboards and actionable light-prescriptive reports that, with ongoing interaction, can develop into full predictive and prescriptive systems.

From my perspective, full prescriptive and predictive analytics come with nothing more than time and data pumped into the appropriate systems. Those claiming the ability to do so already are quite far ahead of the curve.

Recap & Conclusion

To work through these steps requires some keen self-awareness and the desire to embrace a data-driven decision making approach around business and competitive intelligence.

In each case, we get there one way – by data.

New technologies are allowing data to be brought in, analyzed, and presented to stakeholders in ways never before imagined.

Doing so represents a whole new batch of challenges at the same time.

Do we have the time? Do we have the people? Do we have the money?

Yes. Yes. Yes. You have to.

If you answer “yes” to all the above then you’re golden. If you don’t answer “yes, I do internally” to all the above that’s ok too. One way to shorten your timeline is to say “yes, I do by partnerships”.

The risk of not saying “yes” and taking action in this new frontier is potentially greater than taking action and failing, but still learning along the way.

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14
Nov

How to Market Products Using China’s City Tiers

By Jenny Zhang, Research Analyst

Companies looking to market in China will hear about the country’s city tiers and wonder what it’s all about. It’s no question that the world’s most populated country would have the highest consumer demand. Their consumer expendable income is also on the rise, and with a flashy, name-brand-recognizing culture, marketing is more important than ever. The question is, can we market products to these so-called “tier cities” and how can we do so? I’ll start with a little explanation and let’s work on answering that question.

I’d like to reference South China Morning Post’s (SCMP) interactive definition of tiers. Here, they divide 613 cities into 4 tiers, but another popular approach is 6 tiers. As you can see, there is no standard way of defining tiers from the government, but the highest tiers, 1 and 2, are generally agreed upon by economists, politicians and the public.

Name a city in China: Beijing? Shanghai? These are Tier 1. The combination of GDP, Politics and Population classifies cities into the four tiers, however, some cities rank differently in the three areas so the average is taken to identify the tier, says SCMP. You can start to see how companies would want to understand tiers so they can target certain people. Consumers in Tier 1 cities tend to be more affluent and highly educated. Tier 4 cities are in the rural parts of Western China. Population is scarce and so are resources. They include provinces such as Tibet and Inner Mongolia. Are you starting to get ideas?

Advertising needs to appeal to the demographics. Same with promotions or deals. We will start asking what kind of media to advertise on based on what the consumers have access to. So the answer to the question we had in the beginning is “yes”, we can market products to different tiers and the way to do so depends on your product. The next time a client asks you about marketing in China, suggest looking at tiers and see where your research takes you.

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8
Nov

Tactics For Humanizing Data From Connected Devices and IoT To Drive Business Outcomes

By Lucas Lowden, Research Director

Connected devices. Automation. Machine learning. Artificial intelligence.

Just a few short years ago, we would’ve thought we were watching a science fiction movie.

There is much discussion around these technologies – and for good reason! Each are critical components of scalable Internet of Things (IoT) applications.

Today, it is the reality of our day jobs. With the support of various functions across the organization, we are actively establishing Morpace’s thought leadership and positioning for what we believe will be the future of the market research industry.

In support of these technologies, the importance of the human element should not be discounted.

There are numerous human interactions that provide crucial inputs to enable successful automation of machine processes. Doing so allows for a broader understanding and application of big data to produce actionable insights for business outcomes.

With several years growing in this space, we have developed a passion about leveraging big data and IoT systems. We have also realized the importance of Big Context – the intersection of man and machine that layers contextual understanding and lends business meaning to these massive data systems.

Are you leveraging Big Context in your business? Are you finding the humanity within your organization’s data?

Join the Strategists on Morpace’s Growth & Innovation Team – Jason Mantel (Sr. VP), Dania Rich-Spencer (VP), and myself, Lucas Lowden (Research Director) – for our webinar from Qualtrics’ Experience Week, Big Context: Humanizing Big Data From Connected Devices” and learn about tactics for driving positive business outcomes. To sign up and view our webinar, click here.

In the webinar, we explore the tenants of Big Context and how we have proven the importance of the human element and answering the question “Why?” for an automotive manufacturer and a transportation & logistics fleet.

We encourage you to reach out to us directly for any questions or further discussion around humanizing your organizations’ data at information@morpace.com.

 

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2
Mar

The Challenge of Selling Electric Vehicles

By Bryan Krulikowski, Senior Vice President

While automotive manufacturers continue to push forward with electrified plug-in vehicles in the United States, an important question begs to be answered: Who is going to buy them?

According to Morpace’s 2016 Powertrain Acceptance and Consumer EngagementTM (PACETM) study, more than one-third of current gasoline-powered vehicle owners plan to purchase an alternative fuel vehicle. While this shows high upside potential for EVs and Plug-In EVs, further analysis shows that consumers may not be completely comfortable making this leap from gasoline quite yet. In some sense, electrified vehicles are outside of most consumers’ comfort zone.

Keep It Simple, Stupid

Looking at data from the PACE study and leveraging our powertrain experience, we see that consumers prefer technologies that follow the GEMO principle—Good Enough, Move On—and prefer the least change to their lifestyles as possible. Technologies that offer both of these attributes include Hybrid EVs, turbocharged gasoline-powered vehicles, and the conventional internal-combustion engine. Automotive manufacturers have made significant strides in improving the fuel economy of gasoline-powered vehicles and, for a significant number of consumers, the fuel-savings realized by these technologies—and the lower incremental price charged for them over electrified powertrains—provides a “good enough” level of performance and efficiency. Further, neither of these technologies requires consumers to install re-charging equipment at their home, be at the mercy of infrastructure limitations when looking to re-charge away from home, or worry about other issues related to range anxiety. If you run low on gasoline, one can almost always find a refueling station nearby; for electrified vehicles, ease of finding re-charging stations is still the exception not the rule.

Not Motivated to Change

Further, the lack of a major market event is curtailing interest in electrified vehicles among mainstream vehicle buyers. Specifically, fuel prices in the U.S. are not driving consumers to consider electrified vehicles at an accelerated rate. In fact, the lower prices we have enjoyed in the U.S. have resulted in the opposite effect.

According to the PACE study, today’s national gasoline prices are below the price consumers have indicated is low enough for them to consider a less fuel-efficient, larger vehicle. This is one explanation for the market shift we are seeing away from sedans to SUV/CUVs and Trucks. In fact, gasoline prices would have to reach $5.20/gallon for the average consumer to consider a more fuel-efficient vehicle than what they have now—nearly $3.00/gallon more than today’s average.

But… There is Hope!

While the above commentary suggests a less-than-pretty future for electrified technologies, this certainly does not have to be the case. Perhaps the most important finding from the PACE study is that virtually all current owners of PHEVs or EVs will remain an electrified vehicle owner in the future. Once consumers move away from gasoline-powered vehicles, they are extremely unlikely to go back to them. However, a daunting challenge is ahead of automotive manufacturers as they need to not only offer electrified vehicles in the right package and at the right price, but they also need to rely on a dependable and comprehensive infrastructure to support these vehicles on a mass-market level.

It will certainly be exciting to see how electrification strategies play-out in the coming years.

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14
Sep

For Most Americans, Being “Mobile” Still Requires a Personal Vehicle

For Americans, Being "Moble" Still Requires a Personal VehicleBy: Bryan Krulikowski, Senior Vice President

How do you get from point A to point B? Given that 4-in-10 consumers believe their primary mode of transportation will be different five years from now than today, the answer to this is going to become increasingly complex.

The goal of the Morpace MOVETM Study that was recently fielded and is now available as a syndicated study is to help answer this question. We surveyed more than 3,000 consumers across eight U.S. metropolitan markets and uncovered some interesting consumer insights about the role of transportation and mobility in this new “Sharing Economy.”

Consider:

  • Overall, more than two-thirds of respondents would have their ability to get around strongly impacted by not owning their own personal vehicle.
  • Although ride-sharing services are currently being used at a greater rate than car-sharing services, they are reserved for “occasional” use and not relied on as every day transportation.
  • Despite lower levels of vehicle ownership, Urbanites have a stronger emotional attachment to their vehicle than Suburbanites—even going so far as to give their vehicle a name.
  • Finally, fewer than one-third of respondents feel that alternative mobility solutions are practical for them. After all, consumers do not see any other option as convenient as owning a primary vehicle in the U.S.

This shouldn’t come as a major surprise. For decades, vehicles have represented freedom for many Americans. The national highway system has made it feasible to get from state to state, where driving long distances for work or play is more common than in other parts of the world.

Among the many findings in this study is the idea that the majority of consumers clearly feel that having their own vehicle is necessary. They may not use it every day, as other results from the Morpace MOVETM Study show us, but when they need their vehicle, THEY WANT IT.

The study also gives us ideas for how and when personal vehicles are used compared to other forms of transportation. Public transit, particularly in urban areas, does (and will continue to) play a role, perhaps based most on convenience and cost. One-half of respondents have access to public transportation within one mile of their residence. Still, public transportation comprises just part of the mobility puzzle for Americans today.

Morpace MOVETM found that eBike, shared bikes, and car-sharing modes show the greatest potential increase in spend in the next one to three years. But there are times that Americans want to get where they want, when they need to get there. So even for those living in some of the country’s most densely populated communities, nearly all respondents use their own vehicle at least a couple times per month. And three-quarters of current vehicle owners are planning to buy or lease a new vehicle in the next five years.

We may now be part of the “alternative mobility” movement in the U.S. Yet, the value and importance of a personal vehicle remains high for Americans because of that sense of freedom it provides – no matter where you live in this country.

Other findings and insights are available through our Morpace MOVETM Study and you can learn more by clicking here.

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8
Sep

Is Autonomy Happening Too Fast?

Is autonomy happening too fast?

By: Greg Swando, Senior Research Director

While automotive manufacturers across the globe work feverishly to equip their current automotive line with the latest Advanced Driver Assistance Systems (ADAS), and some even striving for full autonomy as early as 2020, how are consumers reacting to this new technology?

We’ve published a new study on consumer sentiments toward autonomous driving technologies and among the findings we learned that up to 50 percent of U.S. drivers that own vehicles equipped with driver assistance systems are turning them off.

Why? According to consumers it’s because some feel they are more confident in their own abilities to anticipate emergency situations.  Others find the warnings and audible alerts to be annoying. Several consumers don’t fully trust some of the ADAS technologies that are now being incorporated, while others may not even be aware whether or not they own the features.

At the same time, there are segments of consumers seeking out ADAS features and excitedly look forward to the day of a fully autonomous vehicle. These consumers are ready, and willing to put full their trust in the current technology—but is the technology ready to be trusted? Take a look at the recent Tesla Autopilot crash. We believe that one of the outcomes of our study is that consumers need to be educated on how these features work, why they’re needed, and how they can benefit from them.

While OEMs are planning to increase their investments and marketing spend toward fully autonomous vehicles within the next 10 years, consumers need to feel better prepared to drive these vehicles than they are today. Such consumer education is key to not only getting the public to trust the new features, but to also use them properly so that accidents, like the recent Tesla one, can be avoided.

Our study, A Consumer Centric Journey Toward Autonomy, highlights customer opinions and experiences—both good and bad—when it comes to autonomous features, and found various consumer personas that will shape future autonomous vehicle adoption. These findings will help OEMs and suppliers better understand the consumer and their relationship to new autonomous technology, preventing the consumer from feeling autonomy is being adopted too quickly.

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31
Aug

Auto Manufacturers’ Response to the Takata Airbag Recall

Auto Manufacturers’ Response to the Takata Airbag Recall

By Greg Deinzer, Research Director

If you are like 62% of Americans, you are aware of the largest-ever U.S. auto recall by Japanese company Takata Corporation for defective airbag systems. The recall affects tens of millions of vehicles and dozens of vehicle manufacturers/brands, and has expanded dramatically over the past six months. Findings from Morpace’s July 2016 Omnibus survey of 1,000 U.S. respondents provide consumers’ opinions and feedback on this critical concern.

According to media reports in May of this year, at least 10 deaths and more than 100 injuries have been linked to the airbag problem worldwide. Additionally, the recall is expected to take place in phases over the next 2-3 years, and a few auto manufacturers are still equipping their new vehicles with the type of Takata airbags that are currently being recalled. Here’s hoping the other 38% who are unaware of the recall stay off the road for the next three years.

Somewhat surprisingly, those aware of the recall have about the same impression of the auto industry as those who are unaware, with more than one-third rating it “Good” or “Excellent”, over half rating it “Fair”, and only 1-in-10 rating it “Poor” or “Very Poor.” Ratings are higher for those on the recall list and for drivers who have been notified by the manufacturer or have had their airbags replaced. Even so, one-fourth of those who heard about the recall before this survey have a somewhat lower or much lower opinion of the auto industry in general.

Honda/Acura and Toyota/Lexus automobiles account for over half of the vehicles mentioned by survey respondents as being on the recall list. Although 6-in-10 vehicles on the list have already been replaced, 82% of those who are still waiting for replacement airbags have not been given an estimated time frame for their repairs.

Dealer Manufacturer actions chart

Seventy percent of those who are still waiting for replacement airbags are driving their vehicle as usual. That is, they are not taking any additional actions or precautions such as driving the vehicle less often, or not allowing anyone to sit in the front passenger seat. Likewise, in over one-fourth (28%) of pending recall replacements, the dealers or manufacturers are not providing any amenities to those who are waiting.

On the other hand, many companies are taking steps to alleviate or correct the situation by installing airbags from another supplier, providing a rental car, or deactivating or removing the airbags altogether until they can be replaced.

Some feel that mistakes happen and that recalls are inevitable. As one respondent put it, “auto manufacturers should not be blamed for the defects of one supplier.” Yet others hold vehicle manufacturers to a higher standard and expect quicker notification, an action plan, and replacement in a shorter period of time.

Many hold a more negative view—that automakers are willing to cut corners at the expense of safety. One respondent referenced an ironic fact: “a safety airbag manufacturer that manufactures unsafe equipment.”  Still, in relation to the airbag recall, only 7% do not feel at least moderately safe driving their vehicle.

Consumers are split on their feelings of how Takata is handling the recall. Thirty-four percent are “Very” or “Completely Satisfied”, 33% are “Moderately Satisfied”, and 33%are “Not Very” or “Not at all satisfied.” Auto manufacturers receive higher satisfaction ratings. Almost half of respondents are “Very” or “Completely Satisfied” with the way their vehicle manufacturer is handling the recall.

This illustrates the importance of open communications by suppliers and OEMs in clearly disseminating information and warnings to the public even if your hands are tied for months or even years. In this case, and probably many others like it, the public is likely to be more forgiving when transparency is used with consumers.

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16
Jun

Top 3 Reasons Why Consumers are Rejecting Autonomy

Top 3 reasons why consumers are rejecting autonomy

By: Greg Swando, Senior Research Director

Autonomy.

This one word is the beginning of the current automobile industry’s disruption, as OEMs across the world race to incorporate various levels of autonomy and services into their vehicles.  New features such as Forward Collision Warning, Lane Keeping Assistance, and Emergency Braking, among others, have been emerging on the market and becoming more commonplace across vehicle portfolios and advertising campaigns.

But what exactly do consumers think about these new Automated Driver Assistance Systems (ADAS)?

While today’s consumers will see more advances in vehicle technology over the next five years than in the past 50, their rate of technology adoption may be slower to respond, as found by the report “A Consumer-Centric Journey Towards Autonomy”. This report was developed by our automotive team in partnership with SBD and Gamivation, in order to understand the opportunities and challenges that lie ahead in the journey toward next generation autonomous vehicles.

Our report revealed that there are 3 main reasons consumers are not only nervous about the new ADAS features, but may also be rejecting them entirely:

  1. Today’s driver assistance systems are being underutilized and/or misunderstood
  2. A significant number of current ADAS owners find the technology distracting and even irritating
  3. Many consumers reject needing any assistance–and are against giving up control of their vehicle

These and other surprising insights were revealed through the study, including how consumers are viewing the implementation and use of current ADAS features in vehicles. The types of consumers most open and receptive to these features, and those who are more likely to be suspicious or frightened by the new technology, are also revealed in the report, along with why consumers are reacting in these ways.

Our Automotive team and partners will help you learn how your competitors are implementing autonomous features and compare and contrast consumer viewpoints among each of these systems. After determining these points, our team can map out best-practice guidelines to differentiate your features as part of your overall brand, and help to make the consumers’ transition to autonomous features a smoother ride.

To find out more about “A Consumer Centric Journey Towards Autonomy” click here.

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8
Jun

How Long Are People Willing to Wait for the Tesla Model 3?

How Long are Consumers Willing to Wait for the Tesla Model 3?By: Kimberly Doherty, Senior Project Manager; Pam Cunningham, Research Manager

With 373,000 deposits in for the Tesla Model 3, questions are circulating around consumers’ expectations: How long do they plan to wait for delivery? What features do they expect the vehicle to come equipped with, and what do they want to add on? In search of answers, we reached out to our MyDrivingPower (MDP) community members who put down a deposit to uncover their insight and opinions.

The Model 3’s competitive price has captured the attention of EV and gas-powered vehicle owners alike, not to mention current Tesla owners. How much it will cost to equip the vehicle with additional features though is still unknown. Curious about consumers’ willingness to pay for add-ons, we asked MDP members that placed deposits on the Model 3 how they plan to configure their new vehicle. In true vehicle enthusiast fashion, none plan to drive off with a base model.

Most members we reached out to are realistic about the upgrades they want. They do not plan to buy a ‘fully loaded’ vehicle, but will weigh the cost against benefits of each individual feature. Typically, these consumers estimate they will spend $45,000 – $50,000 for the final product. Some of the ‘must have’ features are functional, including extended battery range, all-wheel drive (dual motor), and supercharging.  A few expressed an interest in autopilot, but it generally is not a ‘must have’. The possibility of a tax credit will also factor in how much extra they are willing to spend on their vehicle.

For example, here were two direct member quotes:

“I assumed I would spend ~$50k to get what I want. All-wheel drive is mandatory. Longer range is mandatory. All other options will be decided on costs/benefits.”

“I plan to get all-wheel drive, a battery that is close to 85kwHr as they have a supercharger (if there is a fee), and autopilot. Once the prices are known, I’m hopeful that will price the car near $45,000.”

There is a significant gap between when deposits were made for the vehicle and when the Model 3 will be released (many industry experts estimate mid 2018 at the earliest). But how long are people actually willing to wait to buy? Many MDP members claim they are committed to their planned purchase and don’t mind the long wait. Some are trying to manipulate their current lease-end date to coincide with the release of the Model 3. Still others say they will try to extend their current lease or see if the dealership will allow them to continue to lease on a month-to-month basis, or will make due with another vehicle in their household. Additional member quotes highlight this:

“I’m considering this an EV pioneer experience so…as long as it takes.”

“I’ll wait until the end of February 2018 when my Model S lease is up. That seems pretty consistent with the time they are saying deliveries will begin. If   there is a delay beyond that date, I guess I’ll be stuck driving my Spark EV for a while.”

Placing a $1,000 down payment indicates a level of consumer interest and commitment, and our community members are a historically dedicated group, but do they have faith in their fellow enthusiasts? Many believe at least 50% of those who placed a deposit will follow through with an actual purchase. Timing may play a role, they say, as not everyone has control over when they need a new vehicle. Moreover, a person’s ability to purchase may be affected should their financial situation change between deposit date and vehicle availability.

Other MDP members speculate the potential for competitors to release new EV products before the Model 3 is ready, which may sway shoppers hoping to get their hands on a vehicle sooner. As seen from the member comments below, there is doubt as to whether another automaker could introduce a true competitor before the Model 3 is ready, but some admit they would consider other options they see as tempting.

“Perhaps[people will be swayed] if the enhanced CCS [Combined Charging System] network I read about last week actually takes off and becomes competitive with supercharging, and Nissan or GM bring out cars able to take advantage of it, but there’s no sign of that happening.”

“I feel approximately 50% will follow through. Why not a higher percentage? The very long period of time between deposit and delivery. This results in two issues, first, changes in buyers’ personal/financial situation and second, time for competition to take business.”

As seen in two quotes below, MDP members anticipate Model 3 production to begin in December 2017, with a 6-month grace period. Although these consumers have no idea where they are ‘in line’, they suspect their vehicle will be ready sometime between mid and late 2018. While their rank in the waitlist is unclear, Tesla did announce that current Tesla owners will be given priority, and those who reside in California–home of Tesla headquarters –will be among the first to obtain their vehicles.

“I will be pleasantly surprised if I see my car in 2018. 2019 is a safer bet. And for the record, I’d far rather wait for a car that’s done right, than get one soon that needs to be fixed in short order…costing me time and Tesla more money.”

“I am hopeful that deliveries will start in Dec. 2017, but I have allowed for up to 6 months to take delivery of mine specifically. I really have no idea my place in line.”

Many MDP members indicated that they are not familiar with the Tesla delivery process, but do expect to be able to pick up their Model 3 at a local dealer. Some would not mind driving a considerable distance to pick up their EV (up to 90 miles one-way), while others consumers expect it to be delivered directly to their home.

“I am not familiar with the delivery process on a Tesla, but I plan to take delivery in my home state of CA.”

“I hope to go to the factory to pick it up–it is only 90 minutes away. Or get home delivery–like my Model S.”

“I’ll pick it up from the Tesla store in Portland, OR, which is about 80 miles north of me.”

Plans are already in place for their next electric vehicle and based on feedback, most community members plan to do whatever it takes to get their own Model 3. How things evolve as more vehicle details are released and the release gets closer remains to be seen. We’ll be following up to see what MyDrivingPower members think as time goes on.

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