The Untapped Potential of Vehicle Telemetry

This paper dives into the wild world of vehicle telemetry data and how unlocking it can transform your car dealership. We're talking OBD insights, game-changing services, and a whole new level of customer engagement. From remote diagnostics that save the day (and your bottom line) to proactive maintenance that keeps them coming back for more, we explore business cases and potential ROI of this tech. Think open-source solutions, manufacturer workarounds, and a future where connected cars aren't just a dream. Ready to rev up your revenue and leave the competition in the dust? 

We began a technical trial a few months ago to see if we could access telemetry data from a vehicle's OBD (on-board diagnostics) interface. We wanted to find out what data we could collect and how it could be used in a car dealership's services and systems. This paper summarizes the results of that trial, outlining potential business uses for the data and assessing whether it's a worthwhile investment. We also consider the customer's perspective: why would they agree to share their vehicle data with us?

Why are we exploring this?

Crasman has a long history in the automotive field as a design partner and service developer/provider for car dealerships and automotive startups.

We are committed to advancing the automotive industry by exploring current trends and technologies, and we have a track record of high-quality research projects.

In our experience, individual car dealerships (at least in Finland) are often deeply embedded in their daily projects and deadlines; they rarely have the time to test and experiment with these types of technologies.

The problem with manufacturers’ (OEMs’) systems & fleet management solutions?

From the car dealers' (and the end-users') perspective, the issue is that all the necessary data is already being collected from the vehicles and sent to the manufacturers' data centers. However, very little of this data is available or usable. Manufacturers are not obligated to provide telemetry data openly to dealerships and leasing companies. Even if the data were made available, manufacturers use proprietary software solutions—a dealership or service provider with a multi-brand platform would likely require multiple integrations. The communication between dealers and manufacturers is typically a one-way street; manufacturers are unlikely to provide support or respond to feature requests.

On the other hand, large-scale fleet management solutions are not necessarily attractive to agile startup projects. Small fleet trials can be cumbersome to set up, and the pricing of these services is often not very transparent. Platform customizability can be limited, and any development work is subject to vendor lock-in.

Our solution

We aimed to discover a solution that is both cost-effective and scalable, suitable for a single car proof of concept or a larger fleet. Our goal was to utilize an open-source platform with robust API support, allowing us the flexibility to create our own applications and interfaces if needed. For connectivity, we sought a solution with integrated 4G capability for data transmission and remote configuration.

The solution we identified involves a physical dongle that must be inserted into the car's OBD interface, which is essentially the only challenging aspect of the setup. The dongle's use is simple: it is registered on an online dashboard by entering its serial number. You can upload any custom configuration templates you wish to apply to your device, including brand-specific settings or service-related automations and alerts. This process is conducted over the mobile network, enabling remote execution. Once activated, the dongle is ready for use, allowing you to start receiving data on your online dashboards.

The dashboard can be customized to show any data accessible from standard OBD or OBD II extended sources. We can provide dashboards tailored to fleet management needs or details about specific vehicles.

What is available?

• Tracking trips, monitoring speed, and capturing xyz accelerometer data,..
• Monitoring coolant temperature, fuel levels, and battery health,..
• Reading diagnostic error codes.
• Recording the distance and duration of vehicle usage.
• Potential integration with CRM data for customer service history and contracts.
• Automated notifications via webhooks or email when the vehicle needs attention.
• Geofencing capabilities with alerts for vehicle entry or exit in designated areas.
• Remote vehicle control – unlock doors, open windows, and access connected devices like cameras, etc.
• And more…

And how to use it?

We also aimed to investigate the potential business applications that could be developed using this data. While some of these applications have been adopted in certain markets, they remain underutilized or absent in many European countries.

Remote diagnosis on error codes

Here's a true scenario: A leasing customer's car displays the engine check light, prompting an urgent visit to a garage. Diagnosing the issue takes several trips, and eventually, it's discovered that a faulty sensor is to blame. The leasing service provider can't assist, necessitating repairs by a brand-specific specialist.

With remote OBD reading, the customer could have been alerted immediately when the error was detected. They would be informed if the issue wasn't critical, allowing them to continue driving safely until service was available. The customer could be directed straight to a brand expert familiar with the error, avoiding unnecessary garage visits.

The leasing company would also benefit by cutting costs associated with unnecessary service trips. Customer service time spent on needless communications would be significantly reduced. Ultimately, enhanced customer satisfaction would lead to better retention and improved business outcomes.

Remote odometer readings

By remotely monitoring the car's odometer, customers can easily keep track of their contract kilometers. This allows for automatic service reminders to be sent, helping maintain the fleet's condition and preventing unexpected issues when the car is returned at the end of the contract. Furthermore, leasing companies can use this data to proactively recommend increasing contract limits, thus avoiding difficult conversations at the contract's conclusion and easing customers' concerns about surpassing their limits.

Small business fleet management

Small businesses with fleets of 5-20 vehicles often don't utilize specialized fleet management software. However, a straightforward dashboard solution from the dealer can offer them several advantages:

1. real-time vehicle tracking and route optimization to monitor vehicle locations and statuses for timely deliveries and efficient operations
2. automatic driving log creation and mileage allowances to differentiate between business and personal driving; optimized and predictive maintenance scheduling
3. real-time monitoring of vehicle health
4. tracking of driver behavior, such as speeding, harsh braking, and excessive idling, to encourage safe driving practices.

Offering these services to small business clients enhances customer retention and provides a competitive edge over other leasing providers. Customers enjoy tangible savings, increased efficiency, and reduced administrative tasks.

Savings on insurance costs

This business model is prevalent in the UK, yet it remains unadopted in many other countries.

Customers can choose to share their accelerometer, speedometer, GPS, and location data. Insurance companies evaluate this driving behavior data and offer safer drivers more competitive insurance rates. Vehicle location tracking aids in recovering stolen cars and alerts when vehicles cross borders. In cases of accidents or mechanical issues, data can help identify the causes. Additionally, customers can receive remote notifications if their car alarm is triggered.

Return on investment

How do you determine the value of this, and how can you forecast the return on your investment?

Suppose we begin with a 200K€ investment and initiate a two-year service trial involving 2,000 customer vehicles. We allocate 25% of the budget to equipment and platform expenses, while 75% is dedicated to project work. This results in a bi-annual cost of 100€ per customer. The potential for generating revenue or reducing costs during the two-year pilot can be estimated as follows:

• If we decrease unnecessary service appointments by 100 visits over the two-year span, with each visit costing between 100-200€, the savings range from 10,000-20,000€.
• By cutting down 400 unnecessary customer support interactions, each costing 20€, we save 8,000€.
• If we prevent 10-20 instances of car damage or warranty loss (average cost 1,000€) due to untimely servicing, potential savings are 10,000-20,000€.
• Increasing the mileage limits on leasing contracts for 10% of customers, with an additional monthly revenue of 20€/month/customer, generates 96,000€ in revenue.
• If the monthly profit per customer from a leasing contract is 50€, enhancing the retention rate by 2% results in a profit of 48,000€.
• Lastly, attracting 100 new customers through improved recommendations from existing clients generates a profit of 120,000€ over 24 months. 

Of course, there is some speculation in these numbers, but they do add up, and I strongly feel that this is the future we should be building! If you're interested in delving deeper into this topic, feel free to reach out.