Do EV Charging Stations Make for More Loyal Customers?
Survey Says: They Certainly Do. EV drivers prove to be most loyal to businesses that appreciate them, their cars and the environment.
At National Car Charging, we’re often asked the question, “Why should I put in EV charging stations?” There are, of course, lots of different ways to answer that question: EV’s are better for the environment, they reduce greenhouse gases and selfishly, they look good parked outside your business.
However, the reason we often find the most compelling is that EV drivers tend to be much more loyal to businesses with electric car charging and as we all know, loyalty typically brings more business.
If you like us, we’ll like you.
It makes sense, right? EVs need to be charged and drivers will frequent businesses that make charging easy for them. If fact, several years ago, Kohl’s found electric vehicle drivers spent about 20 more minutes in store than non-EV drivers and another major retailer found EV drivers spent more than three times longer in store. With statistics like these, the ROI is much higher and much easier to calculate than many other amenities.
We wanted to learn more about this dynamic and better understand if it was simply retail specific or did access to EV charging also impact other businesses? So, we conducted an online study to find out more.
The proof is in the data.
The results were overwhelmingly conclusive. Electric car drivers were more likely to favor businesses with EV charging. And the numbers were big!
When asked if charging makes you more loyal to a business, 81% of the 700+ EV owners blindly polled, said ‘Yes.’
One respondent said, “We’ve spent way more money eating at restaurants with charging stations than we ever would have spent on gas.”
Another reported, “It’s the convenience. I’m there and I will explore (translation: spend money) at close by businesses.”
A third told us, “Absolutely! The very first thing we did after taking delivery of our EV was to go support a business that had chargers installed.”
And a fourth said “one day our local super charger even cost me new glasses” – alluding to her increased propensity to spend while waiting for her car to charge.
Tesla drivers are even more loyal.
And ironically, loyalty among Tesla owners was even greater at 92%. Until recently, Tesla drivers could boast having the longest available driving range, often not needing to charge away from home unless they were traveling. However, with Elon Musk releasing many of Tesla’s patents, other manufacturers are now quickly catching up.
Therefore, Tesla driver loyalty rooted less in need. They want to support business who embrace the future. For them, it was less about requiring fuel and more about brand appreciation and early EV recognition.
This loyalty is extremely important to businesses. Let’s not forget, a large portion of Tesla drivers are luxury buyers. Today, you can purchase Tesla’s Model 3 for under $45,000; however, the original Model S and the SUV, Model X, sell for well over $80,000 new – and the allegiance of these consumers can be priceless for business retailers.
But this isn’t just about high-end luxury car owners – the owners polled represented a wide cross-section of EV cars, each at different price levels, new and used, from $15K-$100K+. Regardless of their investment, EV drivers happily frequent businesses where they, and their cars, feel most appreciated.
Going Green.
Those polled also noted they like to frequent businesses with a lower carbon footprint and those who are looking out for our shared environment. “I like to see businesses supporting green initiatives.” A trend that is becoming increasingly more important to consumers.
The Nielsen Global Corporate Sustainability Report found that 66% of survey respondents stated they are willing to pay more for sustainable goods. And, a further study conducted by Harris Interactive found that 82% of adults claim to be well informed about brands with a strong track record for sustainability. Therefore, those businesses wishing to thrive, attract and retain customers must prepare for these new challenges and take a step to adapt and change towards a sustainable economy.
These findings align with perfectly with the primary reason EV drivers buy electric in the first place. There are numerous motives to switch from the combustion engine to an EV, but the primary stimulus is the lower environmental impact.
However, there is an even greater benefit to businesses with EV charging. EVs are significantly cheaper to run and maintain – allowing EV drivers to enjoy more disposable income – in other words, loyal customers have more money to spend at your business.
Retail and beyond.
Interestingly, the commitment to green businesses goes well beyond retail. It plays a role when EV drivers decide where to rent (if they’re not homeowners), where they ‘play’ and where they chose to vacation.
Hotels are a great example. My husband, for example, is willing to give up hotel points for a hotel with charging – in other words, future stays lose out to current fueling which is a huge change in behavior for him and most of us.
Our respondents reacted similarly. One woman polled shared “I travel to the same city at least once each month for business trips. I stayed at the same hotel for the last 5 years. They know me by name, leave little extras in the room periodically as a thank you and so forth. I switched because the hotel down the street has a charger in the parking garage”
Regardless of destination or the EV brand they drive, our study universally found that offering charging increased the loyalty of EV drivers. So, it begs the question, why haven’t you added EV charging to your business?
How many EVs are really out there?
You might say, well loyalty is great, but the numbers are small. That was true years ago, but the landscape is changing and changing fast. When EVs first hit the road a decade ago, most Americans and Wall Street thought it was a fad. Flashforward to 2021 when around the world there was an EV sold every six seconds.
Electric vehicles are no longer a fad, but a reality.
All major automotive manufacturer have ceased R&D on gas powered cars
Automakers are planning on a carbon neutral future
Countries around the world are taking action and electrifying
There are dozens of new automakers - exclusively producing electric vehicles
Whether we’re ready or not, transportation is changing quickly.
Late in 2021, Clean Technica reported “Global plugin vehicle registrations were up 72% in November 2021 compared to November 2020. There were 721,000 registrations (or 11.5% share of the overall auto market), establishing a new global record for PEV sales. The future is now and with the number climbing month over month, are you willing to forgo a customer who is 81% more likely to shop, live or stay where there are EV charging stations?
Interested in learning more? Contact us at info@nationalcarcharging.com.
