Introducing the Automotive Industry’s First Metric based on Experiences Per Mile: The Automotive EPM Index

The automotive industry has made significant strides in the movement toward offering enhanced Experiences Per Mile (EPM) over the past several years. While mechanical performance and exterior looks were key considerations in evaluating a car in the past, buyers now have found a new way to measure the value of their vehicles: assessing the experiences delivered by the car. Automotive experts across the industry are watching customers prioritize finding new ways to bridge their worlds inside and outside the car purely through the connectivity-focused technologies that are elevating the in-cabin experience.

A new report was released by the EPM Advisory Council, that explores the value of creating a new experience-based metric for the automotive industry. In contrast to the currently accepted methods of measurement which focus on satisfaction and quality of features and functions inside the vehicle, the report aimed to create an alternative and actionable metric to measure a vehicle based on its ability to provide the customer with more fulfilling Experiences Per Mile. This initial “Exploratory Study” was conducted with Premium and Mainstream Compact SUV owners. Learn more about some of the key findings below.

Consumers have different goals for different trips

The first key finding is that automotive consumers have many goals as they get into their vehicles, and the prioritization of those goals varies by trip type. They’re entering the car-buying experience with various types of journeys in mind – from dropping the kids off at soccer practice to taking a business meeting on the road. The vehicle they purchase needs to be flexible enough to accommodate each of their differing needs depending on the journey they pursue at any given moment in time. Critically, research showed the accomplishment or fulfillment realized has a strong correlation with a trip’s goals, and this is crucial to a customer’s overall trip rating.

“Electrification of vehicles is creating a shift in what consumers expect from their cars. The consumer experience for the Electric Vehicle varies substantially from one with gas powered vehicles. EV owners may suffer from range anxiety, be environmentally concerned, looking for better experiences at charging stations and/or expecting the transition to electric to be seamless. Moreso, we have found that these experiences vary by trip type, vehicle type and more. Monitoring the customer experience for all vehicles will be key to survival for automakers, technology providers, suppliers and more.”

Tom Rivers
Vice President, Global Marketing
Harman Automotive & Digital Transformation Solutions
HARMAN International

The purpose of the EPM Index

Through conducting their own research with consumers with well-known industry research provider IPSOS and informed by their experience with evolving trends in the automotive space, the council developed a new EPM Index, a rating system that differentiates across trip types and various vehicle models. This key metric could assist customers in making vehicle purchasing decisions by allowing them to compare individual vehicles based on how well they may help meet their various trip needs. Just how would the EPM Index serve customers in the real world? Imagine shopping for a car, either online or at the dealership, and asking to review vehicles with the highest EPM Index rating for “Excursions,” which could be appealing to customers who often enjoy getting on the open road with family and friends. To summarize, the EPM Index could be a new metric that would help guide consumers in their very important decision of buying or acquiring a new vehicle.

“While the industry is going through explosive change and technology adoption, the question now becomes are these changes all for the better? Drivers and passengers are the ultimate ‘judge and jury’ of the next-generation mobility experience and are eager (and willing) to render their verdict. For most, their votes are only counted every 5-6 years when they shop for their next vehicle. If automakers and partners have the ability to enhance the consumer experience on a daily basis, then why wait? Creating an EPM metric at scale can enable a real-time experience feedback loop centered around key trip types and their underlying mobility goals and expectations. Unpacking and testing the key ingredients of an Automotive EPM Index and measuring them is a huge first step in that vision.”

Jeffrey Hannah
Chief Commercial Officer
SBD Automotive

Technology enthusiasts appreciate experiences delivered

Interestingly, the research also had an early indication that the technology used in the car by consumers may be critical to achieving a high score on the EPM Index. This is true particularly for consumers who tend to use and appreciate the additional tech features. Researchers felt there was an indication that the use (by the driver) of in-vehicle technology tends to help customers meet their various trip goals, thus leading to higher ratings on the EPM Indices. OEMs who focus on encouraging and training new vehicle owners to use the technology inside their newly purchased cars can potentially improve the car owner’s experience and, in turn, influence the EPM Index positively. By analyzing the impact of individual tech features on the EPM Index, it is possible to identify the features that are most and least effective in helping customers reach their trip goals, information that would prove useful to OEMs and customers alike.

The findings are clear: consumers are prioritizing customizable, connected Experiences Per Mile and in-vehicle technology features will help them get there. The EPM Advisory Council will continue to work with consumers and partners in the automotive ecosystem to explore the experiences customers need and value most. Early research findings look positive and show that an EPM Index could become a measurement of the future, particularly as we move more toward autonomous vehicles where experience is paramount. Want to dive deeper into the findings of the latest EPM Advisory Council report? Follow the link for the EPM report here: https://experiencespermile.org/reports/creating-the-first-epm-index-for-automotive-report

The Experiences Per Mile Advisory Council, is co-directed by representatives from:

• Cox Automotive, HARMAN, HERE and SBD Automotive

It is comprised of industry executives that are studying all aspects of mobility including vehicle personalization. EPM Advisory Council member companies include OEMs such as:

• Ford Motor Company, General Motors, Hyundai, Nissan NA, Polaris, Silk-FAW Automotive Group, Stellantis, Vinfast and Zoox.

Other technology-based and/or suppliers to the industry involved in the council include:

• AccuWeather, Amazon Web Services, Cox Automotive, DarkTrace, HARMAN, HERE, Intel, LG Electronics, Otonomo, Panasonic, SAP, SBD Automotive, Spotify, TomTom, Whip Mobility and Xperi.