
What’s the number one rule for EV charging businesses looking to succeed in today’s less-than-ideal economy? Catering to customer needs, of course. CPOs have known this for a while, (just think of the increased significance UX and CX (customer experience) has gained in companies over the last few years) – however, the focus has recently started to shift.
Customer needs don’t always stay the same, after all. Like plants, humans and algorithms, they evolve over time.
And yet, this evolution – the changes our customers experience while using our services, and the resulting shifts in their habits and expectations – is still typically an afterthought, not a priority for businesses in the soon-to-be saturated landscape of electric mobility. Whereas the fact that customer needs change throughout the customer journey isn’t so surprising: when it comes to EV charging, drivers typically ease into the EV way of life slowly, then once the honeymoon period has ended, their expectations and needs become much more urgent and specific.
Which is as it should be. But it definitely means an extra load of pressure for the CPOs on the other side of the chargers.
CPOs’ to-do lists are getting longer
Because the truth is that heightened customer expectations are just one side of the story. As EVs gain popularity in Europe and China (as well as the US, albeit at a slightly slower pace), the need for up-to-date EV charging infrastructure is heating up everywhere, meaning that CPOs around the world have at least five different challenges to tackle:
1. Scaling original business models
With the demand for EVs growing so rapidly, most CPOs need to scale operations far sooner than planned for – as well as rethink and adapt their original business models. While there’s definitely a learning curve to EV driving, once your core customers become more familiar with EVs, their expectations evolve rapidly; and CPOs wanting to stay competitive and foster growth need to answer these expectations fast.
Exploring new potential revenue streams (like subscription-based services, partnerships with energy/utility companies, or fleet operations) is an effective way to answer changing customer needs, while also remaining a market leader in the electric mobility industry. And, to do this, CPOs need a simple way to explore these different revenue streams and business models.
2. Investing in new technology to be adaptable
The various advances in EV technology are, at first glance, an unequivocally great achievement. However, CPOs who have already committed to (and invested in) the previous technology will need to decide how to move forward when it comes to being adaptable to customer needs: update existing infrastructure or stick to the old one?
Of course, to stay competitive and differentiate your company in a crowded market, the choice is clear: CPOs need to invest in technology that’s proactively adaptable and evolving by nature, so it won’t become outdated by fresh EV charging features such as sponsored charging or dynamic pricing.
3. Maintaining and growing market share
Speaking of crowds and competition: since there are so many new entrants to the EV charging space, all of whom are actively innovating to gain a larger chunk of the market, CPOs also need to decide if they’re willing to double down on their innovation and market strategies to stay in place.
Whether it’s through new, ingenious ways to differentiate your business and stay profitable without initiating a price war, or incorporating cutting-edge solutions like data analytics and AI to both meet demand and predict it, innovation is key to keeping your spot in the EV charging race. And don’t forget: even though it’s a race, there’s no reason why a well-timed partnership couldn’t help both of you reach the finish line faster.
4. Keeping up with new regulations
We all know the legislation around EVs is changing. Governments around the world are increasingly setting stringent regulations concerning EV infrastructure, such as charging standards, data sharing, and energy efficiency. In the EU, the recently implemented AFIR and NIS2 directives are just the latest examples of these regulations becoming a larger-than-life factor for CPOs – leading to increased responsibility for both global and regional compliance with all new (and existing) regulations. On an ongoing basis.
Companies that don’t comply with these new regulations will receive severe financial penalties, so compliance is not particularly optional. It does, however, require CPOs to have total awareness of everything they need to be proactively compliant with expected changes to existing regulations.
5. Growing together with customers
As they gain more EV experience, EV drivers’ expectations for speedier, more reliable and user-friendly charging solutions like easy-to-use apps, integrated payment systems, or real-time availability updates have become more urgent. And while these expectations are far from unusual, they do require CPOs to answer them with some seamless, reliable solutions.
This evolution of customer needs actually presents a great opportunity to look beyond your customer’s product-related experience. It also encourages businesses to find other ways to enhance their satisfaction and loyalty; from finance-related solutions (like new financing models, crowd-funding or green bonds) to fresh customer engagement strategies on an operational level, there are multiple solutions a customer-focused CPO can consider.
We won’t lie: facing these five challenges requires a lot of work (and top-notch technology). Not least because they’re all connected – one cannot talk about new customer-friendly payment systems without bringing innovation to the table, after all. But the most crucial ingredient, the single thing that will pave your road to profitability and set you apart from other EV charging businesses is the mindset you should adopt while dealing with all five: a mindset of constant flexibility and adaptability.
Shifting strategies to succeed
Stephen Hawking once said that “[i]ntelligence is the ability to adapt to change”. And we happen to agree with him – even if, looking at it from a business strategy angle, radically adapting your products and services to each upcoming challenge, big or small, may seem unrealistic. (Or worse: unfeasible.) But once these challenges have reached critical mass and become actual customer trends, adapting to them is neither unrealistic nor unfeasible – thanks to technology that already lets you apply different, personalized strategies for your different customer segments (and much more!).
Meaning that CPOs looking to adapt to new challenges today may easily gather all the necessary tools to
- implement the latest, scalable EV charging infrastructures,
- take your infrastructure management to a whole new level, with automation-powered features like seamless monitoring, proactive maintenance, and user self-administration,
- answer emerging customer requests and expectations with brand-new solutions,
- tailor these solutions to their different segments (public, domestic and commercial), and
- invest in market-leading innovations such as Plug&Charge, that will greatly enhance EV drivers’ charging experience
Without any major disruptions to the core business. In fact, applying an adaptability-based mindset has the potential to boost multiple aspects of our EV charging business, from managing diverse operational challenges to capitalizing on new market opportunities. Adapting to the changed circumstances instead of sticking to previous market goals holds significantly more growth potential!
Adaptability giving CPOs the edge
But this willingness to adjust to different market environments, business models, and customer expectations does more than just create new business possibilities for CPOs. Combining a sense of adaptability with a healthy dose of know-how about the EV charging industry also makes sure other would-be players will stay one step behind – focusing on what’s happened so far, instead of what’s happening right now (or even tomorrow).
Naturally, setting your company apart from the competition also impacts your profitability. It makes sense: adapting to new customer expectations boosts retention, after all. And potential partners are always more willing to choose solution providers that are leading the way in the industry, not following others – a true win-win situation, powered by strategic flexibility.
But ultimately, navigating the road ahead in a rapidly evolving industry like EV charging should be based on a simple yet powerful truth: the only constant is change. For CPOs, this reality requires a mindset that doesn’t just respond to immediate challenges, but embraces adaptability as the key to long-term success. Placing the evolution of your customer needs front and center ensures that you not only meet the demands of today, but also anticipate the opportunities of tomorrow – not just utilizing innovation, but actually driving it.