BMW, the renowned automotive brand, recently made a significant decision that has been met with relief and satisfaction from its customers. The company has abandoned its controversial plan to charge a monthly fee for heated seats in its vehicles. This move comes after customers expressed their dissatisfaction with the idea of paying extra to unlock a feature that should be included as a standard offering. In an interview with Autocar, Pieter Nota, BMW’s board member for sales and marketing, admitted that the heated seats subscription experiment did not meet the desired level of user acceptance. As a result, BMW has decided to discontinue this subscription service.
The Failed Experiment with Microtransactions
BMW’s heated seats subscription was part of the company’s broader experimentation with microtransactions. The intention was to provide an additional service to customers by offering the option to activate heated seats at a later stage. However, this approach did not resonate well with customers, who felt that they were being asked to pay twice for a feature that should be included in the original purchase. Nota acknowledged the importance of perception in the market, stating, “Perception is reality, I always say. So that was the reason we stopped that.”
The Controversial Paywall
The controversy surrounding BMW’s heated seats subscription first caught the attention of the public when the feature appeared in the company’s digital stores in various countries. Depending on the region, customers were expected to pay a monthly fee of approximately $18 to enjoy the comfort of heated front seats. Subscription options included one year for $180, three years for $300, or unlimited access for $415. This approach, where a basic feature was locked behind a paywall, did not sit well with customers.
A Global Perspective
It is important to note that the heated seats subscription was not introduced in the United States. A spokesperson confirmed that the subscription was available in countries such as the UK, Germany, New Zealand, South Korea, and South Africa. However, the spokesperson did mention that the heated steering wheel subscription was also removed from BMW’s ConnectedDrive store.
Learning from Past Experiments
BMW’s heated seats subscription is not the first attempt by the company to introduce controversial payment models. In the past, BMW tried to charge an annual fee for customers who wanted to use Apple’s CarPlay in their vehicles. Initially, the fee was set at $300, and later reduced to an $80 annual charge. However, the majority of car companies offer CarPlay and Android Auto for free, making BMW’s approach seem out of touch with industry norms. These unsuccessful experiments with subscriptions eventually led to the discontinuation of programs such as Access by BMW, a service where customers paid a monthly fee for access to a range of BMW vehicles.
The Growing Trend of Automotive Subscriptions
While BMW’s heated seats subscription may have faced backlash, subscriptions in the automotive industry are still on the rise. Many companies are exploring the possibilities of offering new services for monthly or yearly fees, leveraging over-the-air software updates to provide additional value to customers. Features such as advanced driver-assist capabilities and adaptive suspension are being offered as subscriptions in certain regions. While customers may be willing to pay for additional features they wouldn’t otherwise have, charging for functions that are expected as standard can lead to negative perceptions and headlines.
A Win for BMW Customers
BMW’s decision to drop the heated seats subscription is undoubtedly a win for its customers. By listening to their feedback and acknowledging their dissatisfaction, BMW has demonstrated its commitment to prioritizing customer needs and expectations. While heated seats and steering wheels may still be offered as optional packages, the removal of the subscription model ensures that customers can enjoy these features without any additional financial burden.
See first source: The Verge
FAQ
1. What was BMW’s plan regarding heated seats, and why was it controversial?
BMW initially introduced a subscription model for heated seats, where customers in various countries had to pay a monthly fee to activate this feature in their vehicles. The controversy arose because customers felt they were being asked to pay extra for a feature that they believed should be included as a standard offering with the vehicle purchase.
2. Why did BMW decide to discontinue the heated seats subscription?
BMW decided to discontinue the heated seats subscription after it failed to gain sufficient user acceptance. Pieter Nota, BMW’s board member for sales and marketing, acknowledged that perception plays a crucial role in the market, and the company recognized that this subscription model did not align with customer expectations.
3. In which countries was the heated seats subscription available?
The heated seats subscription was available in various countries, including the UK, Germany, New Zealand, South Korea, and South Africa. However, it’s important to note that it was not introduced in the United States.
4. Was the heated steering wheel subscription also removed by BMW?
Yes, BMW removed the heated steering wheel subscription from its ConnectedDrive store, indicating a broader move away from such subscription-based offerings.
5. Has BMW introduced other controversial subscription models in the past?
Yes, BMW has previously experimented with controversial payment models, such as charging an annual fee for customers to use Apple’s CarPlay in their vehicles. While this fee was initially set at $300, it was later reduced to $80 annually. Such experiments with subscriptions led to the discontinuation of programs like Access by BMW, where customers paid a monthly fee for access to various BMW vehicles.
6. Are subscriptions still a growing trend in the automotive industry?
Yes, subscriptions in the automotive industry continue to grow. Many companies explore offering new services for monthly or yearly fees, often using over-the-air software updates to provide additional value to customers. While some features like advanced driver-assist capabilities and adaptive suspension are being offered as subscriptions in specific regions, it’s essential to strike the right balance to avoid negative customer perceptions.
7. How does BMW’s decision benefit its customers?
BMW’s decision to drop the heated seats subscription benefits its customers by eliminating the need to pay an additional fee for what is considered a basic feature. While heated seats and steering wheels may still be offered as optional packages, removing the subscription model ensures that customers can enjoy these features without any extra financial burden.
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