Every leap forward in auto retail requires some trial and error. But savvy dealerships pay attention to the trends, including those within other retail sectors, to predict how new technology can advance their businesses and sustain future success. It happened in the 1990s when auto dealerships followed other traditionally brick-and-mortar retail stores to establish their own online platforms. And it’s happening again today with artificial intelligence. Here are four specific applications of artificial intelligence that will revolutionize the next generation of automotive retail.
1. Personalization of Product Offerings
Artificial intelligence can analyze millions of data points, including demographic data and past purchasing and shopping behavior, to draw connections between product and consumer. Dealers can then personalize product offerings based on actionable information to boost sales. And, when dealers better understand their customers and recommend the right products at the right price points via tailored, targeted marketing messages, customer loyalty increases in turn.
2. Uncovering Buying Signals
Artificial intelligence also has the power to predict when a customer is ready to make a purchase. Using predictive analytics, which uses current and historical information to predict what will happen in the future, artificial intelligence can evaluate customer interactions and measure the engagement levels of customers. Dealers can use customer information from their CRM, as well as customers’ online interactions, to uncover buying signals and speed up deal closings.
3. Improving Customer Satisfaction
Artificial intelligence can analyze customer text messages, emails and other communications to help dealerships understand customer sentiment. So, when a customer has negative or neutral feelings about their interaction with a dealership or a particular employee, dealerships can reach out with additional help and proactively resolve customer problems.
4. Bridging the Gap Between Online and In-store
According to the Cox Automotive 2019 Car Buyer Journey Study, car buyers spend nearly 9 hours of the car buying process online. And yet many dealerships don’t have the technology to leverage their customers’ online work before they visit the lot. Not only does this frustrate customers, it bogs down the car buying experience with unnecessary work for the dealership. Fortunately, dealers can use artificial intelligence to analyze online behavior and build customer profiles to streamline the buying process and improve customer trust.
Artificial intelligence is being called the next giant leap forward in auto retail. By paying attention to technology trends, both inside and outside automotive retail, savvy dealers can implement the right artificial intelligence applications to change the way consumers shop and better their businesses.
To learn more about the four artificial intelligence applications that are revolutionizing auto retail, check out our white paper, Artificial Intelligence: The Next Leap Forward for Automotive Retail.