The ability to mimic the simplest form of human behaviors is known as artificial intelligence. Back in 2018, the automotive industry predicted a 13.7% increase in budget for digitalization. The reason being, AI has become a buzzword and solution to every problem in the modern auto dealership industry. It can optimize processes by analyzing huge data sets which could otherwise be inefficient or costly. In the current scenario, dealers can benefit from artificial intelligence by deriving the latest insights and following business opportunities. With boosted opportunities comes higher profitability, and that is the holy grail of majority dealerships today.
Let’s dive deeper into areas where AI is positively impacting dealership:
Digital Marketing with AI
From the ability to adapt to effectively performing data analysis, AI is now playing a fundamental role in identifying the latest marketing trends. Marketers and brands are now leveraging on AI to save their resources and time through the automated digital marketing services of AI. Why is it so great? Let me explain
- It helps you analyze data to predict buyer behavior and thus you get to understand your target audience.
- It ends the guesswork; you can create more effective marketing strategies via data-driven analysis of AI.
- AI-empowered decision making ensures you deliver optimized content. Thus it automatically increases your ROI.
Better Customer Services via Chatbot
Did you know, approximately 80% of routine customer service queries are catered by chatbots? These bots are trained to respond to customer service questions 24/7. Some of the best ways AI chatbots are improving brands’ image I dealership industry are as follows:
- Immediate Response: Be it 4-9 or 10-5, your chatbots don’t sleep so by answering every query rapidly, AI chatbots improve customer experience.
- Lesser Errors: While answer queries, AI chatbots tend to make lesser errors simply because cognitive technology helps them interpret and respond to customers more accurately.
- Handling Transactions: These AI-based chatbots can also perform a range of transactions for your automotive dealership company. Such transactions include money transfer, booking and selecting your preferred services, etc.
- Consistency: Typical live chat services are heavily dependent on actual live staff. Some may be more informed and better trained than others. This can create a huge variation and discrepancy in the quality of responses. AI reduces this and ensures that the dealership can feel safe and secure knowing that the information being disseminated is faithful to the originating source.
Customer Classification and Sales Prediction
Dealership companies use AI to advance their businesses in innovative manners especially for decision-making processes and business predictions. Some of the ways in which AI has optimized sales’ prediction in the dealership industry are as follows:
- Lead Scoring: You see, each and every salesperson has a pipeline of potential customers with them and thus they are required to make some crucial decisions on a daily basis. Using AI-based decision making, sales can be boosted since AI helps in collecting accurate information through the client’s history and rank leads according to the chances of a more successful closing.
- Price Optimization: In the dealership industry, discounts are very trendy. So knowing what discount to give to a client, is always a very tricky situation. In order to win a deal while not losing your side, it’s essential to use AI algorithms which tell you the ideal discount rate that you can set on the proposal so as to ensure that your deal is a win-win situation.
AI has found its place in today’s modern car dealership but has not yet realized anywhere near its full potential, especially in the area of front lines communication or being used as a way to aggregate and streamline the vast number of services and products offerings into a single user-friendly interface. But we’re close. In our CEO Justin Poy’s next article entitled, “Are we ready to embrAIce it?” I will delve into the acceptance of AI by the general consumer and the expectations that we have of the technology.