I am on the fence about my first experience of the ‘self-drive’ option versus the ‘drag race’ acceleration of my first-ever Tesla drive during my recent trip to the USA.
Where the ‘self-drive’ option contributed to a much easier transition to driving in the USA, from my usual right-hand drive experience back home in South Africa, the ‘insane-mode’ is like being part of a Space-X launch. Both are pretty awesome!
Intrigued by my host’s evangelical passion for Tesla and visiting a showroom, and putting on my CX and researcher hat, my curiosity simply got the better of me. I decided to talk to other Tesla owners in a quest to understand their unwavering brand evangelism, which is unlike any I have witnessed in my extensive CX professional journey.
Acknowledging that Tesla is a far more product-focused brand rather than customer-centered – largely driven by its intense focus on innovation and technology – Tesla maintain high NPS results and rely heavily on word-of-mouth marketing.
My quest was ignited to discover the ingredients of this brand advocacy and uncover how close this disruptive brand is from early adoption, to closing the gap in the chasm, to early majority.
In a world where brand loyalty is synonymous with personalised experiences and human interaction, Tesla defies conventional wisdom.
Delving deeper into this phenomenon, owners’ mindsets, experiences, and reasons for their Tesla brand affinity were explored. While the sample size was small, the insights gleaned offer valuable perspectives into the broader landscape of Tesla ownership and its appeal that challenges all preconceived notions about what drives loyalty in the automotive industry.
Tesla’s Market Share and Growth: As of 2024, Tesla commands a significant share of the electric vehicle (EV) market, holding about 20% of the global EV market. This dominant position underscores the brand’s influence and reach in the rapidly growing EV segment. Tesla’s market share in the broader automotive market is smaller but still notable. In the United States, Tesla’s market share is around 4.2% https://www.counterpointresearch.com/insights/global-electric-vehicle-market-share
Net Promoter Score (NPS): Tesla boasts an impressive NPS of around 96, one of the highest in the automotive industry. This metric highlights the extraordinary level of customer satisfaction and loyalty, reflecting the strong advocacy among Tesla owners.
A Deep Dive into Tesla Owners’ Perspectives
Tesla’s disruptive approach to the automotive industry, driven by innovation in electric vehicle technology and autonomous driving capabilities, sets it apart from traditional automakers. This disruption is characterised by several key factors:
- The Appeal: Tesla’s brand image as a symbol of innovation, luxury, and sustainability influences consumers’ purchasing decisions and willingness to pay a premium for its products. Some felt competitors, even non-EVs, lacked advanced technology combined with the sporty luxury that Tesla offers.
- Technology: Tesla’s reputation for producing high-performance electric vehicles with advanced technology and features appeals to tech-savvy consumers and early adopters. The over-the-air updates continually improve the car’s features and performance, positioning owners as trendsetters.
- Innovation: Tesla’s advanced driver-assistance features, such as Autopilot and Full Self-Driving capabilities, offer a unique value and attract consumers interested in cutting-edge technology.
- Environmental Consideration: While not the primary factor, the appeal of sustainable recharging compared to reliance on fuel, coupled with associated environmental benefits of driving an electric car, is significant. Tesla’s Supercharger network provides a competitive advantage by ensuring convenient charging.
- Government Incentives and Regulations: Government policies, such as tax incentives and emissions regulations, impact the affordability and accessibility of electric vehicles, influencing the purchasing decision.
- The Buying Experience: Tesla’s direct-to-consumer sales model bypasses traditional dealership networks, allowing for greater control over the customer experience and enabling innovative sales and distribution strategies. The perceived advantages included bypassing the interaction with sales staff (haggling) and being in full control of the purchase process. While appreciating transparent fixed pricing models and the simplicity of the purchase journey, some found the absence of negotiation opportunities and overall impersonal experience disjointed.
- The Ownership Experience: Many aspects of Tesla’s customer service, including purchasing, service scheduling, and software updates, are managed through digital platforms and mobile apps. While this approach streamlines operations and emphasises the product’s capabilities, it often results in limited human interaction, which is typically a hallmark of customer-centric brands.The seamless user experience from vehicle design to software updates enhances ownership experience. Personalisation driven by technology and AI customizes every feature, and the over-the-air software updates ensure every owner enjoys the latest releases irrespective of the exterior hardware of the model. Customer-led product (features) enhancement is perceived to be very responsive.
- Service Experience: Service interactions are primarily through digital interfaces, which can be challenging, particularly for less technologically savvy individuals. The service experience does not always meet the level of personalised attention expected, especially when support is required. However, this is counter-balanced by responsive service and a willingness to address early issues. Alternative service models, including remote and mobile service options, mitigate the lack of access to human support. The elimination of regular parts replacement is the perceived benefit of driving EVs.
Key Decision Making Factors
The anecdotal research revealed the following key decision making factors:
- Convenience: Easy access to charging constantly expanding infrastructure and home charging, and alternative service models.
- Technology and Innovation: Over-the-air software updates ensure access to the latest software releases and driver-assisted features.
- Performance: Appreciation for the speed and responsiveness of electric vehicles. Torque and safe road handling capability combined with bigger driving ranges.
- Economic Considerations: Tax benefits and lower operating costs of electric vehicles.
- Environmental Considerations: While present, they are not the primary driver in this context.
- Brand Image: Attraction towards Tesla’s innovative and modern brand image.
The insights gleaned from interviews with Tesla owners offer a multifaceted understanding of brand loyalty and advocacy. Beyond the perceived drivers for this segment, such as innovation, technology and performance, lies a deeper connection rooted in shared values and community as trendsetters. Owners counter-balance the lack of human interaction and sub-standard customer service with value drivers.
As Tesla continues to redefine the automotive landscape, its unwavering appeal to consumers reflects a paradigm shift in the industry, but how close is the brand to early majority? While most of the loyalty drivers for the current segment reflect their values, one has to consider:
- How ready the automotive market to adjust to a direct-to-consumer and alternative service models?
- How ready are consumers are to fully embrace EVs and sustainability?
- How appealing is the limited human interaction approach to a broader consumer base?
The jury is out as the unconventional disruptive nature of the product and brand experience needs a significant leap to cross the chasm into majority appeal.
The Consumer Psychology Lab has over 15-years in-depth experience in the automotive segment engaging with customers through Voice of the Customer Programmes, journey design and training.
