M2M FEATURE

October 04, 2012

Nissan & Sirius XM Team Up to Get Telematics in Vehicles

Earlier today, Nissan announced that they would be working with Sirius XM to bring a variety of new telematics services to Nissan vehicles. A variety of services will be made available as part of the arrangement, which in turn will set the stage for some very unexpected new business practices as well.

The telematics set to be included as part of the arrangement between Nissan and Sirius XM include a 24 / 7 emergency contact system in the event of a car accident, as well as stolen vehicle tracking and the standard suite of audio entertainment options that have come to be associated with the name Sirius XM.

While there are a lot of new options involved in the new telematics systems, Nissan and Sirius XM will also be looking to make their use easier on the users themselves. To that end, they'll be providing not only a consolidated bill for the subscription options they use, but they'll also be offering a centralized website making it easier to manage the subscriptions they have, allowing users to easily add more services as the desire strikes, or remove services in deference to the individual budget.

The Director of Nissan Connected Services, Trisha Jung, offered further explanation of the value of the connection between Nissan and Sirius XM with her remarks, "Being the first car company to launch these telematics services allows us to further enhance the whole customer driving experience by providing the finest audio entertainment and data services that meet the growing expectations of the connected driver.".

Indeed, Sirius XM has been stepping up its offerings in terms of value provision, working with Nissan on new cars and with GM, Volkswagen, and several other brands on used cars. In fact, Sirius XM reportedly has some plans to look beyond cellular telematics and incorporate satellite networks into their package as well, providing an expanded range of services and an improved overall value prospect thanks to personalized services previously unavailable as well as some "next-generation audio offerings" as well.

Providing added value is the key to capturing customer dollars in an uncertain marketplace. Customers value having their dollars on hand more than they value many goods and services, so finding a way to provide products that are a better value than having dollars on hand is the key to getting those necessary customers in the door and buying. Sirius XM and Nissan have a pretty good handle on that concept, but will it be sufficient to get more users buying Nissan? Only time will tell, but the current prospects are certainly encouraging.

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Edited by Brooke Neuman


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