BMW has just made a huge change that has customers very angry. It's a lesson in emotional intelligence

Like it or not, we live in a subscription-based society. You know, Netflix, Apple...BMW?

That's right, the German automaker made headlines this week when internet sleuths discovered that in a number of countries, including the UK and South Korea, BMW has started to charge for monthly access to features like heated seats. In other words, although the car may be equipped with the necessary hardware, new customers will need to pay a subscription fee (or larger one-time fee) to unlock the features through software.

As customers take to social media to express their outrage, business owners can learn a major lesson from this debacle. Indeed, by stealthily introducing these features in various countries, BMW made a major mistake: it underestimated the emotional impact it would have and the potential impact on its reputation.

This is a great case study in emotional intelligence, the ability to understand and manage emotions. Let's break it all down and see what businesses around the world can learn from it.

(If you find value in the lessons presented here, you might be interested in my course on emotional intelligence, which includes 20 additional rules that help you develop emotional intelligence in yourself or in your organization. Check out the course here.)< /p>

How bad is the subscription model?

Let's play devil's advocate for now. Is a subscription model for cars really as bad as it sounds?

Let's say you live in an area where it's hot all year round, or at least where the summers are very hot. If you're the type of person who only keeps your car for a few years, you could save some money by subscribing to a feature like heated seats only when you need them.

Add to that the possibility that BMW could make the cost of unlocking the heated seats roughly the same - or even less - than what it currently charges for this feature on the car. Then customers could actually save money with the new model.

But how would such an arrangement benefit BMW, you might ask? After all, if it's spending to equip all cars with the same equipment even if some don't pay to use it, won't it waste money?

Maybe. On the other hand, revenue from a subscription model could prove more profitable, as production processes could be made more efficient when all cars are made to the same specifications.

As you can see, this is a bit more complex than it first appears.

The emotional intelligence lesson here, however, is how BMW has handled the rollout of these features.

Specifically, that he made these three mistakes:

BMW has lost sight of its brand.

There are plenty of car shoppers looking for ways to save every penny and might be willing to commit to a subscription model to do so. But these customers are generally looking for more economical cars, not BMWs.

By contrast, BMW is a luxury brand. Its target clientele is looking for an “all-inclusive” spirit. With this model, BMW is sending a message of nickel-and-diming customers, similar to a low-cost airline charging for every meal and drink on a flight. But BMW customers are looking for first class.

Subscribing to basic features such as heated seats risks sending potential – and even loyal – BMW customers to competitors.

BMW let others write the narrative.

Through a PR campaign or even a press release, BMW could have provided details about these features and explained how they could help customers save money, and that it would only advance if the test markets proved that the model made sense for both...