Volkswagen: ID.4 EV reservation platform
Volkswagen set out to launch a fully online pre-order experience for its first long-range electric vehicle in the U.S. The business goal was to allow customers to complete the entire purchase journey digitally, without relying on traditional dealership visits. Early research, however, revealed a core challenge I needed to overcome for the business: customers who were specifically interested in electric vehicles (EV) were hesitant to complete a high-stakes purchase entirely online.
Company
Volkswagen Group of America
Role
Product Strategy+Design
Year
2020
Process
Understand the EV consumer mindset
Research showed that "pre-ordering" implied too strong of a purchase commitment with many unknowns. Hesitation to purchase an EV entirely online stemmed from three closely related needs. First, customers lacked reassurance about the vehicle itself, its range and what ownership would actually feel like. Second, many customers sought emotional reassurance that they were making a sound decision, which they believed typically came from in-person interaction with a trusted person or place. Finally, customers had unanswered process questions, particularly around financing, preparation and ongoing support. These themes were real, however customers were not rejecting the idea of an online purchase all together. They simply didn’t know when or where these needs would be addressed in an online experience.
Reframe the strategy to meet customers' needs
Based on these insights, I proposed a strategic reframe to Volkswagen leadership. Rather than asking customers to pre-order an electric vehicle they had never seen, the experience would invite them to reserve a spot to pre-order. Customers could reserve a spot with a fully refundable $100 deposit, a significant reduction from the originally proposed $500. During the reservation period, they would gain access to curated education within the myVW portal, covering topics such as financing, EV ownership expectations, and range planning. As customers became more informed and confident, they would be invited to convert their reservation into a full pre-order by paying the remaining $400 and entering an “Owner-in-Waiting” stage.
Design the user experience
I designed the reservation to "Owner-in-Waiting" experience to provided customers with transparency and control. Customers could view personalized production and delivery timelines, complete required financial steps at their own pace, schedule test drives, and still back out of the pre-order if needed. This flexibility and transparency helped establish trust between Volkswagen and its customers, turning confidence into commitment.
Outcome
The results validated my influence to reframe the strategy. Volkswagen received over 40,000 gross reservations for the ID.4, with approximately 15,000 vehicles sold and another 25,000 customers continuing through the Owner-in-Waiting funnel. High reservation volume directly contributed to increased production at the Chattanooga, Tennessee plant to support demand in North America and Europe. More than two-thirds of ID.4 buyers were new to the Volkswagen brand, many of them first-time EV owners. Demand was so strong that the supply chain became constrained and Volkswagen made the decision to pause new reservations beyond the first release, which was not a bad problem to have at all!
