Maximising profitability through a mobile strategy in fleet services, leasing and contract hire

Asset finance based businesses thrive off utilisation and unsurprisingly, technology can help drive this whilst also reducing the operating costs associated with managing and maintaining assets.

As an intermediary between the funding line and the customer, margins can be squeezed by both needy customers and by problematic service maintenance of the fleet. This can be relieved by both ‘business automation’ and ‘digital transformation’, if done properly.

As Automotive Fleet reports in their 2025 fleet management forecast report, they see new digital services will be created to improve productivity and vehicle management.

...I predict this new tech-savvy workforce (and management) will demand and even accelerate the adoption of technological solutions in fleet operations...

mobile usage

 

 

Mobile should be a top priority channel for transformation - growth of mobile is huge, sales of laptops is decreasing and mobile suits decentralised workforces.

Beyond the relationship with fleet managers
As the primary point of contact with customers, the fleet manager often controls the account. Maintaining close contact and doing regular account reviews enables healthy, sustainable growth of the fleet and the retention of customers. A number of technology services are out there for fleet managers to track and utilise their fleet, here are three that caught our eye:

customers

..44% of UK-based respondents at companies with 100 or more employees find mobile phone apps a useful fleet management tool, as do 27% of smaller organisations..

(Corporate Vehicles Observatory [CVO] Barometer research from Arval 2015)

These products support the fleet manager and are well served by various telematics companies. Also larger players such as Scania Telematics have released their own in-house version after many iterative upgrades to their Scania Fleet Management mobile app - resulting in a good app store rating and adoption.

An opportunity to help customers with their duty of care

As the UK government increasingly looks to Fleet Managers to represent the duty of care for drivers in their fleet, the need for cost effective solutions is dramatically on the increase. .

Fleet managers can turn to mobile learning solutions to promote training material and so fleet management companies can offer such value-add services to their customers. Arval for example launched their Driver Challenge mobile app in 2015.

                        

A mobile strategy leveraging your access to drivers

Successful businesses are customer centric and are aligned to the needs of their customer rather than their own operations. As we discussed in our “Self-service is an oxymoron” article a mobile strategy is less about channel shift to mobile and more about creating a unique proposition.

A mobile strategy which seems to be underlooked is leveraging the channel and access to the drivers (the user base of the fleet). Each of these individuals spend a huge amount of time travelling, by aligning with their needs, value add services can be designed and tailored around their unique requirements as a user

Hotel booking, fuel card top-ups and loyalty schemes are all potential value-add services which could be offered to drivers, via mobile. Improving the customer experience is proven to result in adoption, advocacy, and loyalty

..Fleets get smarter by using mobile technology..

5 tips for mobile that focus on lifetime value

One of the drivers behind profitability is maximising the value of the relationship with your customers, without eating the margin of your own proposition. Some of examples of how mobile can be used to maximise this relationship and result in profitablity are: 

  1. Handling duty of care for your customers
  2. Cross-selling value-add services to drivers
  3. Streamline claims, defects and problems with the fleet
  4. Service upsells to customers
  5. Car pooling across companies

More and more, blue collar and task-oriented staff are coming to expect to carry out their work supported by user-friendly mobile devices

A cost effective and lean approach to mobile

At Byng we’re here to help businesses disrupt their competition with technology. We help our clients by examining opportunities to grow revenues and bring efficiencies to existing processes with technology. For more insight into our recommendations for mobile strategy to disrupt a market see our articles on Doing Mobile Fast, Well and Killing the Competition.

  • Appealing to market leaders
  • Selling new services to customers and expanding the LTV ratio
  • Mixing efficiencies with upselling - this is a bespoke experience
  • Using APIs from solutions in the marketing technology space

*Sources

https://www.accenture.com/il-en/insight-practical-steps-transforming-fleet-management.aspx

http://www.automotive-fleet.com/article/story/2015/01/fleet-management-circa-2025-future-trends-in-productivity-tools.aspx?refresh=true

http://www.fleetnews.co.uk/fleet-management/fleet-software/fleets-get-smart-with-mobile-phone-technology

https://itunes.apple.com/gb/app/arval-drive-challenge/id705229209?mt=8