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Why Savvy Fleet Owners Focus on Value More Than Cost

By Verizon Connect May 12, 2020

Update: Fleet Technology Trends Report 2021 is live and available for download.

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

Continue reading for fleet facts from 2020 Fleet Technology Trends Report.

All fleets must manage budget, technology, employees and infrastructure; and many may feel they have hard decisions to make when it comes to prioritizing improvements and juggling costs. Savvy owners, however, recognize that the value they get from a solution is more important than money, when choosing technology to implement in their organizations.

According to the results of the 2021 Fleet Tracking Trends Survey, conducted for Verizon Connect by Bobit Business Media, the publisher of leading trade publications like Automotive Fleet, Heavy Duty Trucking and Government Fleet, a large percentage of GPS tracking users give greater weight to value over cost when implementing a technology solution. These companies report improved productivity, ELD compliance and customer service upon implementation of GPS fleet tracking.

The report, based on a survey completed by more than 1,200 U.S. fleet managers, executives and other mobile-business professionals, provides detailed insights into the value companies across industries are seeing from their technology investment. Let’s take a closer look at what respondents had to say about GPS tracking technology.

GPS tracking users say value outweighs initial cost

Survey respondents are nearly unanimous in saying fleet tracking has a beneficial impact on their fleet operations, with 98% confirming the technology’s value and 80% saying fleet tracking is beneficial. That’s up from 74% in 2018. And those saying the technology is only “somewhat” beneficial dropped from 23% last year to 18% this year. Only 2% say fleet tracking is not beneficial at all.

Fleet professionals want to be sure they get their money’s worth from any technology purchase. But businesses that use fleet tracking actually put upfront costs and monthly fees below service coverage (91%), customer service (89%), and software features (81%). Ease-of-use emerged as the most valuable attribute for businesses with fleet tracking, and the second most important for those without.

Is your business losing out on the benefits of GPS tracking?

Why are some businesses not willing to invest in fleet tracking despite established benefits? Forty percent of businesses said that it was not on their priority, and 30% said they did not have the budget for it.

Our data shows these businesses are losing a competitive edge and leaving money on the table. Companies without fleet tracking are often too focused on the expense, with upfront costs and monthly fees standing out as their most important considerations.

However, of those not using a GPS tracking solution, many already see the potential for significant benefits. 34% foresaw improvements in productivity, including number of jobs and vehicle utilization, 30% believed they would see improvements in vehicle maintenance and 29% anticipated improved customer service. Here are some of the other potential benefits:

When it comes to GPS tracking benefits, the reality surpasses expectations

It turns out that the benefits companies realize from fleet tracking technology often surpass their expected output. Where 34% of fleet managers without fleet tracking say they would expect productivity increases if they implemented fleet tracking, 53% of companies who are using the technology reported actual productivity increases.

Those that do choose to implement a GPS tracking solution are realizing far more than even their anticipated results. As the chart below shows, reality outstrips expectations on every measure, from labor cost reductions to improved customer service.

Concerned about cost? The savings add up

In addition to improvements in productivity, compliance, customer service, routing and maintenance, companies are also seeing significant cost savings from fleet technology.

 Here are some of the other ways that GPS fleet tracking can help your organization cut costs:

  • Fuel usage: Fuel purchases represent one the biggest expenses for most fleets. GPS tracking can help you control these costs by reducing idle time, monitoring speeding, reducing unauthorized vehicle use, improving routing efficiency and more. 36% of companies say they have lowered their fuel costs as a result of implementing fleet tracking.
  • Driver wages: With GPS vehicle tracking, you can help control labor costs and improve service quality by managing your entire fleet more efficiently. 13% of survey respondents say that technology has helped them reduce labor costs.
  • Safety and insurance: When used as part of a fleet safety program that includes using GPS tracking data to coach employees to drive more safely, GPS tracking can often contribute to lower insurance premiums. 22% of survey respondents report lower accident costs as a result of implementing fleet tracking.

Among those currently using a GPS fleet tracking solution, here is a breakdown of some areas of expected savings:

An average decrease in fuel costs of 9% was realized.

An average decrease in accident costs of 17% was realized.

An average decrease in labor costs of 11% was realized.

Has your organization changed its perspective on fleet tracking over the last year? Do you anticipate implementing a GPS fleet tracking solution in the near future? To learn more about how your peers view and value GPS fleet tracking technology, view the full 2021 Fleet Tracking 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: Customer retention rates, Productivity & Efficiency

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