In: Economics
Does Tesla’s insurance program keep customers in the “ecosystem” and make them more likely to buy products from the brand in the future? Explain why.
The new insurance policy of Tesla will take customers into the
ecosystem and their decision to provide lower cost insurance to the
customers will potentially make them more to buy products from the
brand in future.
The Tesla motors CEO Elon Musk is stepping into the insurance
business as an attempted to accomplish what the company has
struggled from past
The Company claims that they will begin offering insurance very
soon that taps internal data from auto-pilot driver assist to
reduce rates.
The product would "be much more compelling than anything else out
there." Musk said on the quarter earnings call of Tesla.
The experts are also agreeing with that, the company can provide
lower price because the auto pilot system will decrease the rate of
collision claims.
By providing lower insurance rate to their new product they can
take the customers into the ecosystem and they can make their
unique selling point in the market.
Before stepping into this new insurance business the Tesla's models
were among the top vehicles to insure in the U.S. Obviously this
change will make them more familiar with customers and make them
more likely to buy their products in the future.
PLEASE GIVE AN UP VOTE IF YOU ARE SATISFIED WITH MY ANSWER. LEAVE
FEEDBACK IN THE COMMENT BOX. THANK YOU!