My first post highlighted the huge number of fleet tracking solutions that are battling it out for the fleet manager’s attention. I’m still adding vendors daily to a database of tracking solution providers – frankly it’s absurd. There are way too many "like solutions" and if anything, this industry makes it difficult for a fleet manager to know what to do.
So why does this industry still make it hard to do business? What events in 2008 will bring about change in this industry?
Here are some industry trends that I predict will drive simplification of the buyer’s experience over the next two years:
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Tracking device technology advances rapidly
- Much smaller – often no bigger than a package of gum
- Routinely sub $200
- AGPS based, delivering rapid fixes without a view of the sky
- Featuring integrated antennas
- User self-installed – "power and go"
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Skyrocketing cost of fielding a direct sales force
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Greater use of the web as a sales fulfillment channel
- Fierce competition leading to lower prices and an industry shakeout
Although the bleeding edge of technology will always require a direct sales force to drive adoption, basic location and tracking services have clearly commoditized. As a commodity, new sales channels are needed to ensure vendors will be able to operate their business profitably and prosper.
One tracking vendor that clearly understands the power of the web is NavTrak. Web marketers will recognize their website and communication techniques (response email, blog, etc) as those of a company that both embraces and capitalizes upon the web.
DriveOk is another great vendor. Their core markets are consumer and teen tracking. What makes them so successful (they claim 60,000+ units sold) is the fact that they understand how to convert web visitors to buyers – without sales rep interactions. The first two tabs on their website are demo and buy now. This combined with a bold $269 "Internet Special" call-to-action gets the job done.
Taking the ecommerce front one step further, check out Brickhouse Security‘s portfolio of GPS solutions. Some of these solutions are branded for Brickhouse; others such as the DeWALT Asset Tracker carry the manufacturer’s brand. You might argue that this is not the site for fleet managers to make an informed good decision from – but they do understand how to use the power of the web to drive traffic and conversions, and that’s what I’m highlighting for you. Try this, search on Brickhouse GPS on YouTube – you will note that their video’s have generated 6,000+ views, which is Web2.0 marketing at its best.
The bottom line is that successful main stream location and tracking solution providers will need to dramatically simplify their means of selling and deploying their solutions. With solution prices falling, it is no longer feasible to employ face-to-face selling techniques or to expect customers to absorb the overhead of expensive sales channels. Give your prospective customer the ability to learn about, demo, and then simply and easily purchase and manage on the web.
My prediction for 2009 is that rapid growth companies in this segment will be those that embrace the web as a complete solution delivery mechanism, and those that do not, will be cannibalized and driven to extinction by those that do.
