HomeResourcesBlog32% GPS Fleet Tracking Users Report Positive ROI in Less Than 6 Months
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32% GPS Fleet Tracking Users Report Positive ROI in Less Than 6 Months

By Verizon Connect November 23, 2020

GPS fleet tracking usage up 8% YoY

 32% of GPS tracking users reported a positive ROI in less than 6 months

 Fleet tracking technology users report an average 8% decrease in fuel cost  

If there is one business lesson to take from 2020, it's the importance of preparedness, connectivity and resilience—and fleets across industries have had to navigate uncertainty and swiftly adapt to new ways of operating this year. According to the 2021 Fleet Technology Trends Report, fleet tracking technology has helped fleet-based businesses address both everyday challenges and the unique obstacles presented by the year 2020.

The survey, conducted for Verizon Connect by Bobit Business Media, publishers of leading trade publications such as Automotive Fleet, Business Fleet, Government Fleet and Heavy Duty Trucking, found that GPS fleet tracking technology provides a competitive advantage for companies when it comes to improving productivity, decreasing costs and boosting customer service. Based on surveys completed by more than 700 U.S. fleet managers, executives and other mobile-business professionals, the report highlights the value fleet businesses are achieving by investing in fleet tracking technology.

Key data points from the report indicate that customer service has emerged as one of the most important areas of improvements for those who have adopted fleet tracking technology, with 54% (up 4% from last year) reporting a marked improvement in this key performance indicator (KPI). What’s more, though 55% reported a negative impact of the pandemic in 2020, it didn’t stop fleets from experiencing remarkable returns from investing in technology.

Let’s take a closer look at the survey results.

Competitive edge with fleet technology

This year, a majority of respondents across industries indicated that GPS fleet tracking has had a beneficial impact on fleet operations—72% consider it “very” or “extremely” beneficial. That’s giving these companies, especially those in transportation and services, a serious competitive edge in the post-2020 landscape.

In the transportation industry, 62% of those currently using a GPS fleet tracking solution realized improved customer service, 54% achieved their ELD/regulatory compliance goals, 50% achieved improved routing, 49% improved productivity (including number of jobs and vehicle utilization) and 41% improved vehicle maintenance.

In the services industry, a large percentage of respondents also achieved critical goals using GPS fleet tracking technology. Eighty percent achieved improved productivity in terms of number of jobs and vehicle utilization, and 63% saw an improvement in vehicle maintenance.

Given the rising customer expectations and increased technical complexity in fleet-dependent industries nationwide, these findings bode well for organizations struggling to stand out at a time when ensuring business continuity is increasingly challenging.

Fleet industry is experiencing significant benefits from using fleet tracking technology. Download the full report to know more.

Value of integrated video technology  

In the drive to improve safety and efficiency, which also impacts company reputation, in-cab video has emerged as a standout solution. Of those survey respondents using an in-cab video solution, a significant 83% saw improvements in driver safety.

The transportation industry experienced a high level of success with integrated in-cab video—74% of those currently using it considered it “very” or “extremely” beneficial, and more than three-fourths of these users were able to improve driver safety and protect themselves from false claims.

Other industries saw a similar trend and even better in some cases. 83% of those in the services industry and 68% of those in the government sector realized improved driver safety. 65% of those in government also improved their organization’s protection from false claims. In the construction industry, 57% achieved both reduced accident costs and improved driver safety, while 43% also saw reduced insurance costs.

Cost savings remain crucial, and achievable

The theme of reduced costs continues to be an important issue with fleet-based organizations this year. According to the survey, 44% of businesses said cost was one of their biggest challenges overall. And technology remains a pivotal tool in controlling costs across all operational areas. Users of fleet tracking technology have realized remarkable benefits in this and other KPIs to move the needle for their business, especially in these more challenging times.

Among those currently using a GPS fleet tracking solution, across all industries, an average decrease in fuel costs of 8% was achieved. Users also saw an average decrease of 11% in accident costs, and a decrease in overall labor costs of 10%.

When talking about cost savings, the ability to achieve ROI on technology investments cannot be overlooked. That's why it's important to note that a majority of those in the transportation and services industries achieved a positive ROI in less than a year after implementing GPS fleet tracking. Over a third of those in government and over a quarter of this construction did this same.

Organizations can expect improvement in their ROI from by implementing a fleet tracking solution in the following ways:

  1. Promoting driver safety and reducing liability: Using GPS tracking, managers can proactively monitor behavior that increases the probability of a driver causing an accident. Safe driving can also be reinforced by using in-cab alerts.
  2. Improving asset utilization: Fleet tracking technology includes a number of dashboards that show operational efficiency and fleet utilization. This allows fleet managers to examine how individual vehicles are being driven and then balance capacity and vehicle utilization to reduce miles driven and wear and tear.
  3. Reducing direct labor costs: Those managing a mobile workforce face the challenge of having little visibility into how teams are spending their time. Using GPS tracking, managers can see vehicle history for a specific day, including all trips taken, stops and idling events.

What does this data mean for your fleet?

Data from Fleet technology Trends Report makes it clear that fleet organizations are using technology to build resilience into their business operations. Your technology toolbox could be your biggest ally in navigating any kind of emergency and achieving business success. To that end, look at the following key features as you decide on a fleet tracking solution: 

  • Access from virtually anywhere: ability to view data and maps on any device at any time
  • Detailed maps: allowing you to view near real-time activity and current status of all vehicles, workers and equipment
  • Easy-to-use dashboards: showing you up-to-the minute fleet analytics
  • Coaching modules to help fleet managers underscore safe driving behaviors 365 days a year
  • Simplified ELD compliance
  • Front-facing and driver-facing video solution

To learn more about how your peers view and value GPS fleet tracking technology, download the full 2021 Fleet Trends report

Verizon Connect

Verizon Connect Staff represents a team of professionals passionate about everything telematics. Get to hear about the latest trends, product features and industry best practices from the desk of Verizon Connect Staff.

Tags: Productivity & Efficiency, Data & Analytics

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