This month — in celebration of its fifth anniversary — charity: water will be investing in a new drilling rig that will help bring clean drinking water to 40,000 people in Ethiopia. Charity: water is a non-profit that brings clean and safe drinking water to people in developing nations, and it has been capturing considerable attention for the organization’s innovative use of social media to get its message out.  Every dollar that Charity: water raises in September will directly fund the new rig (all financial support for staff comes from other sources). And in case you want proof, the non-profit will be tracking the rig with GPS.

Charity: water has been testing SPOT satellite GPS devices that will enable donors to track progress in real time using Google Maps. “Our goal is to have real-time GPS information available online for donors for years after the rig is purchased so they can see their dollars at work,” said Paull Young, Director of Digital at charity: water. “We’ll be creating an interactive map that will display the GPS information, and even creating a Twitter account for the rig that will update with GPS data.”  Charity: water currently requires completion photos and GPS coordinates for project reports from all of its partners.

The new rig will have the capacity to drill 80 wells annually, or one well every 4.5 days. The equipment will be mounted on a three-axle truck, which will enable it to get through the rough Ethiopian terrain. The organization’s goal is to raise $1.2 million for new drilling equipment. If charity: water reaches that fundraising goal, an additional rig will be donated by a second donor.

In addition to the $700,000 drilling rig, a compressor and truck ($200,000) will be needed, along with a support truck, transport and insurance ($100,000), pipes, tools, drilling bits and spare parts ($200,000). The equipment will be purchased directly from Fraste, an Italy-based manufacturer specializing in hydraulic drilling rigs based. The rig will be transported by sea from Italy to Africa, then overland to its final destination in Ethiopia.

The 2011 September Campaign. Our 5-year-anniversary video from charity: water on Vimeo.

The fleet will be built specifically for use by Relief Society of Tigray (REST), charity: water’s local partners in Ethiopia. The REST team includes an expert driller as well as hydrologists and currently has three drilling rigs in operation that are being worked to capacity. Charity: water wants to help them dig more wells faster, getting them closer to their goal of providing 100 percent water access to the people of Northern Ethiopia. The plan is to have the new rig in operation by early 2012.

For more information on charity: water and its September campaign, visit the organization’s site.

Disclosure: Charity: water has been a Razorfish pro bono client since 2010.

Related links:

• Charity: Water
• Spot
• Relief Society of Tigray (REST) photo album on Facebook
• Fraste
• From the field: some REST in Ethiopia; charity: water blog, 06.09.11

Image credits:
Fraste drilling rig image appears via charity: water; satellite GPS device appears via Spot.

Today, this is a bit of a “no duh” statement, at least for social. The current challenge is making connections across social and all applicable touchpoints, even the most traditional ones. As we discuss in “Liminal,” engagement is more than just a channel. It’s a dialogue; it’s the ability to choose how and when to engage; it’s the value each channel represents; it’s whether or not expectations were met.

The consumers we interviewed, instead of going straight into listing the channels they use to engage with a brand, focused on their relationship with a brand and how channels deliver on their interests, needs and expectations in different ways. We learned right away that the channel is subservient to the relationship need.

This enabled us to determine the six most important needs consumers have when they reach out to a brand: feeling valued, trust, efficiency, consistency, relevance and control. We call them the Engagement Elements, and they, not individual channels, should be the starting point for any interaction a brand has with a consumer.

Yes, feeling valued, efficiency, trust, consistency, relevance and control are the six consumer-centric needs that form the backbone of engagement. Yet the data from our 5,600-participant survey showed that there is more to know. Below are two further points about the Engagement Elements that stood out to us:

1. Feeling valued, efficiency and trust, in that order, were overwhelmingly the three most important Engagement Elements. Consistency, relevance, and control were important, but much less so.

2. No matter how we sliced the data—whether by gender, age, or favored channels—the rank order of the Engagement Elements remained the same, even if different age groups gave them different statistical weighting. Therefore, the consistent ranking of the importance of Engagement Elements is a barometer that allows us to understand why different channels are more successful than others.

Going back to 2008 to illustrate this point; it is clear by watching the actions of these Ford Twitter followers that these consumers truly felt valued and trusted Scott to get back to them with an answer in an efficient manner.

Taking this topic to the automotive industry, Mercedes is focused on re-positioning themselves in the minds of the young consumers and saw great success with its Tweet Race to the Super Bowl. Steve Cannon, the German carmaker’s U.S. VP of marketing, is quoted in ClickZ as saying, “We went from zero followers on Twitter to 77,000 followers,” Cannon said. “And since that time, we have been using that newfound channel to regularly engage those [consumers].” And Twitter is only the tip of the iceberg here – simply the platform Mercedes used to reach out to a young audience and engage with them. Literally, Mercedes used Twitter to “fuel” the passion (or actually the Twitter passion was the fuel) of this young audience. The key for Mercedes now will be to understand the needs of this newfound audience and meet them in new and profound ways and across all of the applicable channels and engagement touchpoints

So as we get better in these emerging channels we need to also remember the tried and true. How can you find new ways to ensure your consumers feel valued each time they receive an email? Is it simply allowing them and encouraging them to reply back to you with comments or questions? Is your website addressing that visitor’s needs Efficiently? And what about that piece of direct mail? In the automotive space, where relationships are complicated, brand vs. dealer, financing vs. parts and service, it’s more important than ever to ensure that every touch-point is providing consistency, value and relevance to consumers.

Full disclosure: Ford Motor Company is a Razorfish client; Razorfish is the digital agency of record for Mercedes-Benz USA. The Tweet Race campaign was developed and implemented by Razorfish.

Related links:

• Liminal, 2011 Razorfish Customer Engagement Report
• How Scott Monty Stopped a Ford PR Disaster; Samir Balwani, 12.10.08
• Mercedes Tweet Race to Super Bowl; The Inspiration Room, 2.05.11
• Mercedes’ 1st Gear on Foursquare: $1,000 Check-Ins; ClickZ, 4.20.11
• Lessons in changing consumer perception of a major brand, one tweet at a time; Headlightblog.com, 12.12.08

Image credit:

Illustration appears via liminal.razorfish.com

Author bios:

• Chad Maxwell
• Whitney Hutchinson

As automakers continue to use digital experiences to engage with electric vehicle shoppers and owners, many companies outside of automotive manufacturing are turning to digital to help build the infrastructure that will support a world of electric vehicle drivers. From large multinational conglomerates to nimble startups,  a number of companies around the globe are envisioning a world where not only is vehicle charging efficiently managed through digital devices, but where cars are networked, communicate with each other, and improve the overall driving experience through a digitally managed electricity network known as the smart grid. While the latter may be a further down-the-road proposition, many companies are looking to take an early lead in building the technology that will make owning an electric vehicle an everyday reality.

Building EV charging infrastructure
No matter how many electric vehicles are manufactured, broad consumer adoption will be dependent on accessibility to charging stations. One standout in charging station technology is General Electric’s WattStation, selected as one of the 2011 CES Best Innovation Honorees by PCWorld. With its smart grid-optimized design and GE’s broad distribution capabilities, the WattStation is poised to be an early leader in the EV infrastructure race. To help build awareness for the company’s WattStation product line (commercial-use WattStations are pictured above), as well as its other green industrial solutions, GE is turning to digital marketing to help educate consumers about the benefit of its charging product and why the smart grid matters. GE’s most recent digital campaign, ecomagination, encourages green entrepreneurs to submit ideas for a chance to win a grant from the company. In addition to educational videos and content, GE showcases many of the grant entrants on its ecomagination microsite.

Coulomb Technologies, another early leader in electric vehicle charging, is taking a data-driven approach to networking EV drivers. Through recent partnerships with major municipalities, such as Baltimore, Boston, Santa Barbara and Tampa, and with many direct partnerships with companies around the globe, Coulomb’s ChargePoint Network of charging stations is quickly expanding its networked reach. To help consumers navigate the growing ChargePoint Network, Coulomb is developing new mobile and desktop experiences to help drivers find the nearest charging station. Coupled with Coulomb’s ChargePass Card, electric vehicle owners can use the ChargePoint mobile application and/or website to manage their EV charge costs and keep track of vehicle status while charging.

Evolving the charging process
Palo Alto-based Better Place is looking beyond the charging station model and creating a network of battery-switch stations where electric vehicle drivers can swap out a battery instead of waiting for a charge. By simply replacing one battery for another, Better Place aims to remove the burden of waiting hours for a vehicle to charge, ultimately replicating the freedom of driving a combustion engine vehicle. To support its battery-switch model and help electric vehicle drivers locate swap stations and manage their charges, Better Place is developing telematics software for cars and mobile applications to find the closest station and showing charge options during route planning.

Better Place in-car software showing charge options during route planning.

Though the infrastructure challenges behind developing a battery swap network may be daunting, Better Place has already made a few large strategic alliances. In October 2010 the Bay Area’s Metropolitan Transportation Commission awarded nearly $7 million to the San Francisco Municipal Transportation Agency, the city of San Jose and Better Place to demonstrate electric taxis. The program will provide a fleet of 61 electric taxis with switchable batteries and four battery-swapping stations in the Bay Area over the next three years.  

To help combat the potential complexities of a charging process or battery-swapping experience, Wytheville, Va.-based Evatran is developing Plugless Power, a wireless charging floor pad that allows drivers to simply park over a charging mat to fuel up their vehicle. Like an electric toothbrush station, the Plugless Power charger uses induction charging, allowing electricity to automatically flow from the charging station to the car battery. Google is trialing a Plugless Power charging station, the first public release of the technology, at its Mountain View, Calif. headquarters.

Rolls-Royce debuted the 102EX Phantom at the Geneva Motor Show in March. Although there are no plans to develop a production variant, Rolls-Royce is hoping the experimental vehicle will generate feedback on alternative drivetrain technologies in ultra-luxury cars. Comments are being collected on the Electric Luxury microsite.

Taking this concept one step further, HaloIPT, which claims to have launched the world’s first wireless charger, envisions a future where charging pads are not only in garages and parking lots, but also embedded in roads so cars can be charged on the move. Beyond charging, HaloIPT sees an opportunity for its charging pad grid to tie drivers into a larger data network that can tell electric cars when there are traffic jams. While this networked-car grid is still a long-term vision, the Rolls-Royce 102EX Phantom, an experimental electric car revealed at the Geneva Motor Show in March, features the inductive charging system.

Empowering drivers through the smart grid
As smart grid technologies continue to develop, many companies in the energy-management sector are beginning to set their eyes on incorporating electric vehicle usage into their business models. One such company is Salt Lake City-based Control4, which aims to revolutionize home-energy management through a digital experience that uses data visualization to educate consumers about their energy consumption habits. Consumers can actively monitor their energy use through Control4’s web or mobile experiences. In January 2011, Control4 was engaged by the Ohio unit of American Electric Power to help increase awareness of the cost and impact of energy consumption. The selection of Control4 is part of AEP Ohio’s gridSMART Demonstration Project, which is intended to demonstrate the benefits of developing a smart grid for consumers that helps manage not only home and commercial devices, but hybrid and electric vehicle usage.

OPower helps homeowners cut their home-energy use by employing behavioral science.

A relative newcomer to the smart grid management space, OPower is approaching energy management from a slightly different angle. OPower aggregates energy usage data to let users know how efficient their energy usage is compared to neighbors and similar people. They then provide tips to help homeowners improve their energy usage. Like Control4, OPower allows users to access their usage data through a number of digital devices, including computer, smartphone or tablet. While OPower currently does not offer any electric vehicle-specific product offerings, the natural extension of crowd-sourced efficiency would translate well into the driving experience.

Charging ahead
Like any emerging industry, electric vehicle infrastructure will continue to evolve and mature as companies learn more about electric vehicle ownership needs. As time goes on, there will likely be further experimentation with different ways of changing our world to support electric vehicles. Whether the future of electric vehicle infrastructure lies in vehicle charging stations or roads lined with inductive charging pads, we are at the beginning of a major transformation in what it means to drive, own and maintain a vehicle.

Related links

• WattStation, GE Energy Industrial Solutions
• 2011 CES Best of Innovations Honorees; PCWorld, 11.11.10
• Coulomb Technologies Expands ChargePoint American Program with the Addition of Six New Cities; Coulomb Technologies press release, 4.13.11
• ecomagination microsite, General Electric
• ChargePoint Network microsite, Coulomb Technologies
• Better Place
• In-car Software set, btrplc’s photostream, Flickr
• MTC Awards $33 Million in New Grants to Spur Innovations in Emissions Reduction; Metropolitan Transportation Commission press release, 10.27.10
• Plugless Power microsite, Evatran
• Google Installs Wireless EV Charging Station; Wired.com, 3.21.11
• Electric Luxury microsite, Rolls-Royce Motor Cars
• HaloIPT
• Ditch the Cord, Let the Road Charge Your EV; Wired.com, 11.22.10
• Wirelessly charging into the future, HaloIPT channel, YouTube
• So Simple, Your Chauffeur Can Use it; WSJ.com, 3.9.11
• Control4
• Control4 Selected to Deploy Home Energy Management Solution for AEP Ohio’s gridSMART Demonstration Project; Control4 press release, 1.12.11
• Motivating Millions, One at a Time; OPower

Image credits
Commercial-use WattStations image via the GE Energy Industrial Solutions website; Better Place in-car software screenshot via the company’s btrplc photostream on Flickr; 102EX Phantom vehicle image via the Rolls-Royce Motor Cars media site; neighbor comparison screenshot via the OPower website.

The cars of the future require similarly cutting-edge telematics, judging from the digital accessories automakers are rolling out to accompany their first plug-in electric vehicles. Systems include in-vehicle, online and smartphone-based tools that provide support and information for drivers, many intended to alleviate common concerns like “range anxiety” and the lack of a robust charging infrastructure.

Telematics have been integral to electric vehicles since the first-generation Toyota Prius (pictured above), with its in-dash touchscreen, revealed how one’s driving style affected mpg. This gaming element (get the best mpg possible!) delighted consumers while educating them about how to get the most from their hybrid gasoline-electric powertrains. Roughly a decade after the Prius’s U.S. launch, most 2011-2012 plug-in electric vehicles include in-cabin touchscreen systems.

And, telematics will be more important than ever as plug-in electric vehicles hit the roads in a nation ill-prepared to support them. With a mere 722 public charging stations in the U.S. today, according to the Department of Energy , and a grid that has never before coped with significant numbers of electric vehicles,  the consumers who buy electric will face an uncertain landscape. In this environment, technology will provide a sense of security to drivers and serve as a vital portal between owners and their new car’s powertrain.

Owners can get even closer to their battery-powered cars via websites and smartphone apps that connect to their in-vehicle touchscreens. The mid-priced contenders— the 2011 Chevrolet Volt , the 2011 Nissan Leaf and the 2012 Ford Focus Electric —all promote apps as part of the ownership experience. Key partnerships supporting this include the Volt with GM-owned OnStar, the Leaf  with Carwings and the Focus with Airbiquity.

These apps provide oddly similar, highly tactical services, like checking your vehicle’s charge or telling it to begin charging from afar. You can also turn on your car’s heat or air-conditioning remotely. The features are, for the most part, rooted firmly in the practical aspects of connecting owners with their vehicle and electric powertrain.

More interesting features include the Leaf app’s gaming component, which compares its driver’s efficiency to that of other Leaf drivers in the region.  The app also has a “contact” section that connects you to customer support or roadside assistance at the touch of a button—a nice way to mitigate range anxiety. The Focus’s MyFord Mobile app will help owners find nearby charging stations.

These OEM apps seem built to extend to web browsing experiences, in which consumers can log-in to owner pages, such as MyNissan. This allows owners who don’t have smartphones to take advantage of the technology and keep tabs on their vehicles. A more creative app example, which is not tied to a specific vehicle, is Toyota’s “A Glass of Water” app. It challenges drivers to try not to spill water from its virtual glass of water: the resulting smoother ride lowers fuel consumption. (Toyota also recently announced it will team up with Microsoft to create telematics for the RAV4 EV; the system is slated to address energy-efficiency issues.)

Although vehicle-specific smartphone apps may seem like a luxurious addition to an ownership experience, high-end manufacturers have been slow to jump onboard. Tesla has not put its dollars into creating apps for its vehicles. The same thing holds true for Fisker and its 2012 Karma. This may in part be because manufacturers at higher price points—the Tesla Roadster retails at $109,000, the Tesla Model S at $59,000 and the Karma at $96,850 —aim to create a more personal and tailored customer service experience. Tesla’s Mobile Service Team, for instance, makes “house calls” to Roadster owners, for a $1-per-roundtrip mile fee from the closest Tesla service center (with a minimum charge of $100). With such assurance, it may be that owners aren’t as anxious about checking on their vehicle with their smartphone or being able to access its information at all times. The Tesla Roadster is even available with or without a telematics screen—the only electric vehicle that appears to offer this option.

But even though Tesla isn’t funding smartphone app building, it does plan to facilitate it. CEO Elon Musk recently announced that the Model S’s ample 17-inch, 3G-capable touchscreen (shown at left) will support third-party apps. Additionally, BMW, which plans to launch electric vehicles in 2013, is proactively investing in technology by founding BMW i Ventures, a venture capital fund that will invest in startups developing wireless services for drivers and smartphones.

For owners hesitant to take the plunge into electric vehicle ownership, practical telematics will instill confidence and a sense of control over their vehicles. As consumers grow more comfortable with the technology or move to more luxurious vehicles, more exciting, innovative experiences will replace the pragmatic telematics of the first generation of mass-market electric vehicles.

Full disclosure: Ford Motor Company is a Razorfish client.

Related links:

• Better Gas Mileage in a Toyota Prius; Hybrid Cars, 4.1.11
• Digitally electrifying vehicle ownership; Headlightblog.com, 3.29.11
• Will Electric Cars Wreck the Grid?; Scientific American, 8.13.09
• 2011 Chevrolet Volt vehicle page; Chevrolet.com
• 2011 Nissan Leaf vehicle page; Nissanusa.com
• 2012 Ford Focus Electric vehicle page; Ford.com
• Demo: OnStar app for Chevy Volt; TechFlash, 1.4.10
• Nissan Leaf gets iPhone app that James Bond wouldn’t approve of; AutoblogGreen, 5.23.10
• Ford Focus Electric hooks up wirelessly with AT&T, incurs jealous looks from T-Mobile; engadget, 3.24.11
• Nissan Leaf Carwings turns driving into an eco-competition; SlashGear, 12.27.10
• Telematics Features Get to Ford Focus Electric; GPS Business News, 1.10.11
• MyNissan
• A Glass of Water
• Microsoft and Toyota Announce Strategic Partnership on Next-Generation Telematics; Toyota USA Newsroom, 4.6.11
• Tesla Roadster vehicle page; Teslamotors.com
• Tesla Model S vehicle page; Teslamotors.com
• Fisker Karma vehicle page; Fiskerautomotive.com
• Tesla Service Centers and Mobile Service Rangers; Teslamotors.com
• Tesla CEO: Model S will support third-party apps; VentureBeat, 3.16.11
• BMW i Ventures

Image credits:
2001 Toyota Prius Energy Monitor image via automobile.com; Nissan Leaf app screenshot via iTunes; Tesla Model S interior image via PlugInCars.com.

In 1899 and 1900, electric vehicles outsold all other types of cars, such as gas- and steam-powered vehicles. In 1897, the first fleet of electric taxis was introduced in New York City. Pictured above are several of those electric taxicabs, with the drivers perched on top.

Embracing Electric
It is official: vehicle manufacturers are embracing electric again. More than 100 years since the first fleet of electric taxis hit the streets of New York City in 1897 and a number of mass-produced electric vehicles, including the General Motors EV1, were developed in the 1990s, manufacturers across multiple price points are developing a range of electric vehicles options, including hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs).

According to automaker estimates, by the end of 2011 General Motors will manufacture 10,000 Chevrolet Volts and Nissan is expecting to have 50,000 Leafs in production. Ford currently offers its Transit Connect in electric and plans to release the new Focus Electric by early 2012. Toyota is planning on expanding its Prius platform to include plug-in hybrid electric models. Tesla’s first four door sedan, the Model S, will come early next year and even BMW is planning to launch a full line of electric vehicles under its new BMW i sub-brand in 2013, to name a few of the manufacturers in the space.

Even as electric vehicle production ramps up, many are wondering whether or not consumers are ready for the shift in driving behavior, vehicle maintenance and support that comes with an electric-powered vehicle. According to J.D. Power estimates, mass-market electric vehicle adoption might not be as close as many in the industry hope. By 2020, J.D. Power projects that HEVs and PHEVs will account for roughly 10 percent of vehicle sales in the U.S., or nearly 1.7 million units, and BEVs will account for less than 1 percent of sales, or 108,000 vehicles. With a projected collective market share of less than 11 percent, many OEMs are interested in understanding and responding to consumer concerns about electric vehicles as they look to increase adoption over the coming years.

According to a recent study by Deloitte, the top four barriers to entry for mass product adoption of electric vehicles in the U.S. are: vehicle price, reliability, costs of charging and convenience to charge during ownership. For many future electric vehicle owners, these are all valid concerns. A shopper searching on Edmunds.com would note the MSRP for a new Chevrolet Volt is more than $40,000, compared to the $16,000 Chevrolet Cruze or the $21,000 Chevrolet Malibu. And while the U.S. government projects massive growth in electric vehicle adoption, there are only 722 public charging stations in the U.S. today, according to the U.S. Department of Energy.

It seems for now, no matter how fast prices for electric vehicle fall or how quickly new infrastructure is built, for many consumers the electric vehicle represents a rather daunting shift in their driving life.

At the root of this perception problem may be the depth of consumer’s familiarity and understanding of how electric vehicles will work within their day-to-day lives and ultimately how they will be better for the environment. In a recent survey, IBM confirmed that while consumers have generally “heard about” electric vehicles, 42 percent of them admit that they know little detail about them. This fact has not gone unnoticed by OEMs and other companies in the electric vehicle support industry who are exploring innovative ways to help increase consumer’s understanding of the lifestyle benefits of electric vehicle ownership, including long-term cost savings, ability to actively track emissions and the global impact of reduced fossil fuel usage. At the core of many of these marketing and product development efforts are digital-native solutions that are designed to empower the customer’s driving and owning experience, build advocacy and support for electric vehicles.

Over the next few weeks, Headlightblog.com will explore a number of examples from vehicle manufacturers and companies developing electric vehicle support technology that demonstrate how digital is being used to bridge the gap between manufacturers and consumers and ultimately grow the electric vehicle market. From enhanced vehicle telematics, to tying your vehicle to the smart grid and rethinking the vehicle ownership support, digital is proving to be a driving force in electric vehicle consumer empowerment. Stay tuned.

Full disclosure: Ford Motor Company is a Razorfish client.

Related links:

• 7 Groundbreaking Electric Vehicles Built Before the 1900s; Gas 2.0, 9.27.09
• Electric and Hybrid Cars: A History, by Curtis D. Anderson and Judy Anderson; 2010
• History of the Electric Vehicle; Wikipedia
• Timeline: History of the Electric Car; Now on PBS, week of 10.30.09
• General Motors EV1; Wikipedia
• Chevrolet Increases Projected 2012 Volt Production Capacity by 50 percent; Car and Driver, 7.30.10
• Nissan Leaf electric car to be built in Sunderland; BBC News, 3.18.10
• Ford Confirms Focus Electric Production for 2011, But Stresses Real (and Increased) Volume in 2012; Ford Focus Electric, 10.23.10
• Toyota Plans 6 New Hybrids for 2012; New York Times, 9.13.10
• Tesla Puts Prices, Delivery Date on Model S; Greentech Media, 3.7.11
• BMW Announces BMW i Sub Brand, Promises Two Cars in 2013; Motor Trend, 2.21.11
• Drive Green 2020 Report; J.D. Power and Associates, 10.27.10
• Gaining traction: A customer view of electric vehicle mass adoption in the U.S. automotive market [pdf]; Deloitte, 6.17.10
• Electric Charging Station Locations; U.S. Department of Energy, Energy Efficiency & Renewable Energy
• Alternative Fueling Station Total Counts by State and Fuel Type; U.S. Department of Energy, Alternative Fuels & Advanced Vehicles Data Center
• IBM Study: Electric Cars Stir Interest But Face Obstacles; IBM Press Room, 1.11.11

Image credits:
Photograph of electric taxis in New York City in the 1890s appears via Gas 2.0; photograph of a Leaf being charged via Nissan; “Electric car parking only” sign via Sacramento Municipal Utility District.

During the 2010 Mondial de l’Automobile in Paris, BMW demonstrated the possibilities for online use made possible by the WiFi hotspot function, which provides rear-seat passengers using a notebook or iPad with wireless internet access.

Whether delivered directly through consumers’ mobile devices or through in-vehicle electronics, there is a large movement of online content into the vehicle experience. It shouldn’t surprise anyone that many drivers prefer to bring their web and mobile media behaviors into the vehicle. While Ford’s SYNC technology has grabbed a number of headlines touting online data brought into the car, other recent examples include:

• OnStar + Facebook: GM announced they are testing and in-vehicle application allows owners to read text messages aloud, listen to Facebook status updates / news feeds, and update their own Facebook profiles
• BMW + Apple iPad: A docking port allows owners to connect their existing Apple product to their car, and use the device to control in-car audio, video, etc. Mercedes-Benz just announced a similar integration
• Audi + Google Earth: Audi recently announced the integration of Google Earth into their navigation interface for the A8. Drivers will see 3D satellite imagery and many layers of additional information based on their location
• Mercedes-Benz + Pandora: Mercedes drivers can now stream Pandora through either an iPhone or BlackBerry with Bluetooth streaming audio. Drivers can control Pandora with the steering-wheel buttons
• MyFord Touch/MyLincoln Touch: The technology offers voice activation of multiple web-connected apps such as Pandora and Stitcher.

This space is going to progress very quickly and we expect to see many more partnerships and integrated information services announced soon.

The 2011 Audi A8 integrates Google Earth and terrain-mapping into its 8-inch LCD screen.

For manufacturers, consumer technology has now become the top driving force behind automobile industry progress. As an early example Ford has now sold more than two million cars with SYNC and 80 percent of potential buyers said Sync favorably impressed them.

According to KPMG, manufacturers are shifting focus from quality improvement to new technology products. Many automotive marketers are quickly realizing that while the competition around price, fuel economy, and quality is tight, technology is a key way to differentiate and consumers are listening.

Full disclosure: Ford Motor Company is a Razorfish client; Razorfish is the digital agency of record for Mercedes-Benz USA.

Related links:

• Gartner Highlights Key Predictions for IT Organizations and Users in 2010 and Beyond; Gartner Press Release, 1.13.10
• Car Buyers Rank Entertainment Over Safety; AOL Autos, 10.16.10
• GM testing OnStar Facebook and texting functionality; Autoblog, 8.08.10
• BMW and Mercedes-Benz to Add Mounts for iPad; New York Times, 10.14.10
• Google Earth Comes to Audi A8; Mashable, 12.17.09
• Now Pandora audio will stream in your Mercedes-Benz; USA Today, 10.18.10
• Pandora, Stitcher First Of Many Voice-Driven Ford MyTouch Apps; The Car Connection, 1.07.10
• Ford Sync Hits 2 Million Mark; Edmunds Inside Line, 3.24.10
• 7 amazing advances in new car technology; Bankrate.com, 2010 Spring Auto Guide

Image credits:
BWM iPad holder image appears courtesy of the BMW USA media site; Audi A8 image appears courtesy of the Audi USA media site.

So what happens? Marketers push for the maximum amount of form fields that customers will tolerate, designers experiment with enticing styling, while legal, well, let’s face it: attorneys with specialized knowledge of FTC regulations governing online credit applications usually don’t share the same concern for user experience as UX professionals.

This debate surely hits home with readers of this blog. Online credit applications are fairly common on auto manufacturer websites. The logic goes: Once in-market consumers have built their vehicle online, they’re likely salivating at the thought of ownership. Filling out a credit application to see if they qualify for a loan or lease is a no-brainer. Enter: long forms, uncomfortable questions and too much legalese.

Gotta get me one
For one Razorfish automotive client, the solution for its captive finance division’s daunting credit application was to dangle a carrot for customers who had configured a vehicle online. The “carrot” was provided courtesy of a vehicle module, which consisted of a picture, description and feature list of the vehicle the user just assembled. Pretty cool – just like when I was a kid, with that framed photo of a muscle car next to my piggy bank: “if I save enough, one day she’ll be mine!”

Credit-seeking customers who haven’t built an online vehicle are served an application without a vehicle module. If you had to guess which application had a higher conversion rate, common sense might lead you to believe that the application with the vehicle module would prevail. But, as you can see in the within page dropoff percentages depicted above, that was not the case.

Don’t touch that
Overall conversions on the credit application left plenty to be desired, so the Razorfish Consumer Insights Group conducted a site-side study over two weeks to understand user behaviors (within-page tracking) and attitudes (survey).

We found that more than 26 percent of credit visitors engaged with the vehicle module. What makes this significant is that these visitors were far less likely to complete the application. Our behavioral study showed visitors had a blast tooling around with the vehicle module. They clicked on their vehicle, played around with the monthly terms and down payment amount. But this ultimately distracted them from the desired task at hand: complete the credit application. As a matter of fact, the majority of abandoners last clicked within the vehicle module.

By employing a hybrid agile process for rapid UX (user experience) and Creative prototyping, the client’s account team at Razorfish was able to devise a new online credit application that no longer included a vehicle module, yet kept potential customers engaged (see Figure 1 above).

Former Razorfish User Experience Lead Alexander Weishaupl, who worked on the application redesign, adds: “Without the contribution of the Consumer Insight Group’s Advanced Optimization technology, we wouldn’t have known down to the form field level where friction forced abandonment; their data helped our designers focus on fixing the things that were making it hardest for customers to successfully complete the application process.”

Additional roadblocks to conversion
The vehicle detail module was not the only obstacle to a higher conversion rate. It turns out there was also a 92 percent error rate because visitors didn’t know they had to read the Terms and Conditions first. Upon further investigation, Razorfish determined that error messaging was poorly handled through inundating visitors with unclear messages. Furthermore, the most common error that users encountered was related to the password field, which generated a 46 percent error rate. These findings presented a tremendous opportunity for Razorfish UX to revise the credit application’s messaging.

Dramatic results
The results were immediate and impressive. With all of the above issues addressed – by removing the vehicle detail module, addressing error handling and redesigning the Terms and Conditions – the credit application completion rate increased 34 percent in the one-week post-launch period, when compared to the one-week period prior to the redesign.

The takeaway
In our current economy, marketers are expected to make data-informed decisions and must be equipped with the insights to do so. Proprietary technology and capabilities like Razorfish Advanced Optimization is just one example of how an agency can provide actionable insights.

Image credit:
Lead image appears via Chase Auto Finance; remaining images provided by the author.

At last week’s J.D. Power 2010 Automotive Internet Roundtable I moderated a panel on location-based services, which examined how automakers and dealerships are leveraging check-in services to attract new business and to reward loyal customers.

Joining me on the panel were representatives of both social media platforms as well as retailers that are using location-based services to promote their businesses. Contributing their expertise were:

• Doug Frisbie, Automotive Strategist, Facebook (@dougfrisbie); pictured below, seated on the right
• Eric Miltsch, Internet Director, Auction Direct USA and c0-creator of the CarZar app (@AuctionDirect, @emiltsch and @CarZar_app)
• Bill Pearson, Co-owner/GM, Finish Line Ford
• Luther Lowe, Business Outreach Manager, Yelp (@lutherlowe); pictured below, seated on the left

Topics covered during the session included ways that both automakers and dealerships are now using check-in services, what to do before getting started, how to get started, potential pitfalls and how to go beyond the check-in. The 2010 Automotive Internet Roundtable videos are now available online, if you would like to view the entire location-based services panel discussion.

A few interesting tidbits from the discussion:

—While having a special offer for service is a great way to reward your most loyal customers, it may benefit the dealership in other ways. “Our Mayor has bought one car from us and has referred three additional people to us in the past three months,” according to Miltsch. “We have had at least three actual sales from this so far and, most importantly, this is free.”

—Lowe is not drinking the LBS Kool-Aid.  His point of view on location-based services? “If you’re giving your Mayor free floormats, but not responding to the 10 negative reviews on  your Yelp listing, you’re doing it wrong.”

—For those who are looking to get started, Pearson suggests setting goals beforehand and having an understanding of what you are trying to accomplish.

—Frisbie predicted that, “In the near future, observing check-ins by your friends will become a primary way in which people discover local businesses.”

After the panel concluded, I checked all of the tweets tagged with #JDPAIRT to see which parts of the discussion resonated with the audience. Not surprisingly, the highly quotable Lowe’s advice to businesses to not aggressively solicit consumer reviews ignited a flurry of tweets. He thinks the soft sell — letting your customers know you are using location-based services by putting up signage or window clings — is more effective. Do you agree or disagree? Share your thoughts in the comments.

Related links:

• J.D. Power 2010 Automotive Internet Roundtable; foursquare
• Location, location, location: The next big thing in social media marketing; SlideShare
• Video of the location-based services panel at the 2010 Automotive Internet Roundtable; J.D. Power
• Tweets tagged with #JDPAIRT; Twitter
• Location-based services: The hottest segment in social media; Headlightblog.com

Image credit:
First image appears via Mashable; second image appears via J.D. Power

Location-based service strategies include any application that has the ability to share an individual’s physical location, in real-time, with his or her online social networks. Users are rewarded with badges, stickers or points — satisfying the need for self-accomplishment. Users can also be rewarded for their activity by companies and brands leveraging these services as another element of their marketing strategy. Among the most popular location-based services are foursquare, Gowalla and Yelp Check-ins. Add Facebook Places to the location buffet as well.

Why has this become a significant factor for brands to consider? A perfect storm of circumstances is creating a unique set of opportunities:

What if you want to create a hyper-local, targeted campaign? One with the ability to draw attention to your current promotions and target qualified prospects within a specific location? Historically, a traditional ad agency or a direct-mail campaign may be able to help. For a hefty fee. Let’s also say you want the agency to create a few slick features. Features that can really help your business by:

Location-based marketing strategies already provide these features, for free. I’ll repeat that so it sinks in: The services are free. Now is the time to use it. Didn’t you learn your lesson when you waited to launch your blog and optimize your website?

Is location right for my business?
As usual, most companies will wait before they participate. Forrester Research’s Location-Based Social Networks: A Hint Of Mobile Engagement Emerges report in July bluntly stated: “Unless you’re targeting affluent men between 19 and 35, you don’t belong on Foursquare.” Seems like a prime demographic group for both automotive manufacturers and retailers to target.
Even if you don’t recognize it, your customer base already participates in some form of location-based marketing activity. This segment is positioned nicely for explosive growth. In 2009, 42 percent of in-store retail sales were influenced by mobile and Internet research, Forrester estimates. This number is expected to grow to 53 percent by 2014. Consumers enjoy being able to locate points of interest, shops and services via their mobile phones. Also helping drive consumer acceptance is the increased willingness of their peers to share their location in exchange for perks and rewards. (The popularity of the Shopkick app is a testament to this.)

Starting on September 7, the public reveal of the 2011 Bentley Continental GT was hosted on a microsite devoted to the vehicle.

Although the teaser clip garnered a lot of attention for the brand and the car, the post-unveiling buzz for the online event has been barely a fraction of what it had been beforehand, judging by web search, and by additional searches on social networks. A handful of articles and tweets can be found regarding the design changes, but there does not appear to be much regarding the web-streamed unveiling event.

Bentley is not a first mover in the auto industry in terms of generating pre-release hype using digital means. Consider the recent Honda CR-Z promo on Car Town – a Facebook-based game targeted toward autofiends. Also, earlier this summer, Ford launched its 2011 Explorer on Facebook via an all-day event. Then we saw the highly successful VW GTI launch from October 2009, which was done solely via iPhone app, and 2009’s Ford Fiesta campaign, which involved 100 “social agents” who recorded and virtually shared their monthly Ford-assigned adventures involving their Fiestas.

So, how is it that Ford, Honda and VW’s digitally supported campaigns got people talking for a long time, while the buzz surrounding the Bentley unveiling died as soon as the event took place?

The answer lies in one simple marketing term: Customer Interaction.

While all other campaigns involved interaction with (potential) customers or buzz-generators, the Bentley unveiling simply featured a streaming video. Once the live unveiling had taken place, all that remained for those interested was an approximately three-minute-long clip summarizing the launch, including views of assembly of the set, shots of the interior, and of various angles of the car, with special emphasis upon its grille. As a result, almost all post-unveiling buzz for the car has involved discussion of the redesigned features with no mention of the online webcast.

Let’s quickly examine the interaction involved in the aforementioned Honda, Ford and VW examples:

1. Honda CR-Z Sports Hybrid – To promote the launch of this model, Honda utilized Car Town, a Facebook-based game where users can purchase cars and store their collections in virtual garages or use them to take road trips, participate in races and complete challenges that earn them currency/rewards allowing them to purchase even more vehicles. While virtually cruising in the vehicle, users are made aware of features such as fuel efficiency as well as the car’s ability to withstand various weather conditions. This had Car Town’s 3.5-million user base (as reported in August 2010) abuzz about the CR-Z.

Honda’s campaign for its new CR-Z features the hybrid vehicle in billboards on display in Car Town, a virtual game on Facebook.

2.    Ford Explorer – Though relatively simple as compared to the other examples we are discussing, the 2011 Explorer involved an event-filled all-day launch, which included pre-event discussions with Ford CEO Alan Mulally as well as live chats with the designers, engineers, program managers and VP of sustainability, environment and safety. The campaign surpassed its goal of 30,000 fans even before the unveiling. (See related article on Mashable for details.)

The automaker used the Ford Explorer Facebook Page to generate excitement in anticipation of the all-day vehicle reveal event on July 26, 2010.

3.    VW GTI – The most impressive of all is AKQA’s iPhone- and iPad-only app to promote the GTI. One week and approximately 4.3-million downloads after its launch, Real Racing GTI became the No. 1 app in 36 countries. The app invited users to race the GTI on the app, competing with their own scores and worldwide top-recorded scores by encouraging them to post their racing videos online. This contributed heavily to its popularity.

Giveaways to top scorers included four free limited edition GTIs, and a range of VW products. The campaign led to an 81 percent increase in GTI test drives and an 84 percent increase in quote requests, despite no use of print, broadcast or online banners. View an AKQA summary clip here.

A view of Real Racing GTI, an iPhone app promoting the VW GTI.

4.    Ford Fiesta – The Ford Fiesta campaign kicked off with a contest inviting candidates to send in a short video clip describing why they should be a Fiesta social agent. Of all applicants, 100 chosen social agents were given a free Fiesta. They would be required to share via social media, videos of a Ford-assigned trip or adventure that they would undertake on a monthly basis with family or friends. Buzz spread as these 100 individuals, and those they brought along, began sharing the videos on a consistent per-month basis across YouTube, Facebook, Twitter and so on. Watch a video of social agent Bliss Dennen from Chicago whose monthly mission was to drive to, and take a class at the Trapeze School New York.

Bliss Dennen was one of 100 social agents who participated in the Fiesta Movement.

Let’s also not forget an obvious, binding thread among these four campaigns – the fact that their target consumers were tech-savvy and socially connected online. Can the same be said for the typical Continental GT consumer?

Regardless of the lack of attention garnered by its online reveal, the second-generation 2011 Bentley Continental GT will no doubt make a splash when it is introduced at the 2010 Paris Auto Show in about a week’s time. Other high-profile launches taking place at this show include the 2011 Lotus Elite, the 2010 Citroen-Lacoste concept car and Lamborghini’s (rumored) 83X concept car.

Related links:

• 2011 Continental GT reveal film
• 2010 Paris Motor Show site
• Car Town on Facebook
• Honda Takes Social Gaming for a Test Drive; Mashable, 8.29.10
• Inside the 2011 Ford Explorer Facebook Reveal; Mashable, 7.26.10
• Real Racing GTI, free iPhone and iPad game app from VW
• Videos Posted by AKQA; Facebook
• Ford bets on social media for its next American compact; Headlightblog.com, 4.30.09
• Adventure Mission: Circus Tricks; Fiesta Movement, Bliss D.
• Trapeze School New York site
• 2010 Paris Auto Show Preview: Lotus Elite Concept; Motor Authority, 9.20.10
• Paris Preview: Citroën puts un peu d’air sur terre with Lacoste concept; Autoblog, 9.20.10
• Lamborghini to unveil technology concept at Paris Auto Show; AutoGuide.com, 9.20.10

Image credits:

All vehicle-related photographs and screenshots appear courtesy of the respective automakers. Car Town image via the application’s Facebook page.