Introduction

In recent years, the automotive industry has witnessed a significant shift towards microtransactions and subscription-based services. Car manufacturers are exploring new revenue streams, often by charging customers for features that were once considered standard. One such attempt was BMW’s ill-fated venture into the world of subscription-based heated seats. In this article, we will delve into the story behind BMW’s heated seats subscription, its regional variations, and the broader context of automotive subscriptions.

BMW’s Heated Seats Subscription Debacle

At first glance, BMW’s decision to introduce a heated seats subscription seemed like an innovative approach to offering additional services to its customers. However, the reality turned out to be quite different. Customers were less than thrilled about having to pay extra for a feature that they considered essential, especially in colder climates.

Pieter Nota, a BMW board member for sales and marketing, acknowledged that the heated seats subscription was part of the company’s experimentation with microtransactions. Unfortunately, it was not a successful experiment. Customers perceived it as paying twice for a feature they expected to be included with the purchase of their BMW vehicles. This perception led to widespread discontent and forced BMW to reconsider its strategy.

Regional Variations

One intriguing aspect of BMW’s heated seats subscription was its varying cost and availability in different regions. In some countries, the monthly subscription fee was approximately $18, with options to subscribe for a year, three years, or even “unlimited” access for a higher price. This regional disparity further fueled the controversy and raised questions about fairness and consistency in BMW’s pricing strategy.

While the heated seats subscription never made it to the United States, it was offered in countries such as the UK, Germany, New Zealand, South Korea, and South Africa. Additionally, a subscription for heated steering wheels also briefly appeared in BMW’s ConnectedDrive store, adding to the overall confusion surrounding BMW’s subscription offerings.

Other Unsuccessful BMW Subscriptions

BMW’s heated seats subscription was not the company’s first misstep in the realm of subscriptions. Previously, BMW attempted to charge customers an annual fee for using Apple’s CarPlay, a feature that many car manufacturers provide for free. Initially, this fee was set at a substantial one-time cost of $300 and later revised to an $80 annual fee. The backlash from customers and the media was swift, ultimately forcing BMW to backtrack and offer CarPlay for free like most other carmakers.

Another failed experiment was “Access by BMW,” a subscription service that allowed customers to pay around $2,000 a month for access to a range of BMW vehicles. While the idea seemed enticing to some, it was not sustainable, and BMW eventually discontinued the program. These experiences highlighted the challenges and pitfalls of implementing subscription-based models in the automotive industry.

The Growing Trend of Subscriptions in the Automotive Industry

Despite BMW’s setbacks, subscriptions are gaining traction in the automotive sector. Car companies are exploring new services that can be offered to customers for monthly or yearly fees. The allure of over-the-air software updates and the potential for additional revenue streams are driving this trend.

Customers are increasingly willing to pay for features they might not have considered essential in the past, especially when it comes to safety features and advanced technology. However, there is a fine line between offering optional services and charging for features that were once considered standard.

Customer Attitudes Toward Subscriptions

The key lesson from BMW’s heated seats subscription and other failed attempts is that customer perception matters. While people may be willing to pay for added convenience and safety, charging for features that have historically been part of a vehicle’s standard package can lead to negative headlines and a loss of trust.

Conclusion

In conclusion, BMW’s heated seats subscription serves as a cautionary tale in the evolving landscape of automotive subscriptions. While experimentation is essential for innovation, understanding customer expectations and avoiding the perception of double-charging is equally crucial. The automotive industry continues to evolve, and finding the right balance between value-added services and customer satisfaction remains a challenge.

FAQs

1. Why did BMW introduce a heated seats subscription?
   • BMW experimented with microtransactions to offer customers the option of activating heated seats later. However, this move was met with backlash due to the perception of double-charging.
2. Did the heated seats subscription vary by region?
   • Yes, the subscription’s cost and availability varied in different countries, leading to questions about fairness and consistency.
3. Were there other subscription-related issues with BMW?
   • Yes, BMW faced criticism for charging customers for Apple CarPlay and offering a high-priced subscription service called “Access by BMW.”
4. Why are subscriptions becoming more common in the automotive industry?
   • Car companies see subscriptions as a way to generate additional revenue, especially through over-the-air software updates and new service offerings.
5. What lessons can other car manufacturers learn from BMW’s experiences with subscriptions?
   • Other manufacturers should be cautious about charging for features that customers perceive as standard, as this can lead to negative customer reactions and harm the brand’s reputation.