How AI is Improving Customer Engagement Rates in Automotive

How AI is Improving Customer Engagement Rates in Automotive

Why is AI the perfect strategic partner for dealerships? What methods does AI use and why does it integrate so well into dealerships?

By Cole Kutschinski, president of

Artificial intelligence continues to develop the industrial world in many ways and its impact is being felt in every sector. When we think about the automotive industry and its main needs and technological advancements, AI’s implications in it are quite clear. AI is already used to improve vehicle safety, navigation and autonomy. Regarding dealerships, artificial intelligence helps automate tasks such as scheduling appointments, managing inventory and processing paperwork.

But how does AI positively impact dealerships? Well, advanced AI technology helps auto dealers strongly improve their customer service by offering high-leveled personalized experiences that drive engagement rates. It also speeds up customer service processes by providing consumers with relevant information in a faster way.

Let’s think for instance about the last time you called customer support. You navigated through a web full of options only to be put on hold for several minutes before you heard words such as “Hello, how may I help you today?” Have you ever imagined being on the other side of the picture? Imagine yourself being asked the same questions hundreds of times a day by different customers or even worse, not knowing the answer to any of those questions. Customer service teams face these challenges daily and do their best to keep pace with customers’ needs and requirements.

Let’s talk a little about the main features of artificial intelligence that make it the perfect strategic partner for dealerships. So, in what ways exactly does AI enhance customer engagement? What methods does AI use and why does it integrate so well into dealerships?

Improve Interaction

AI systems play a key role in augmenting interactions with customers. One of the most significant ways AI is augmenting customer service is through messaging. AI platforms use intelligent, human-like conversations to interact with customers and better understand their needs and preferences. This conversational AI system uses ML (machine learning) and NLP (natural language processing) to engage customers in specialized and friendly conversations that result in 65% overall positive engagement with customers.

Personalize Customer Experiences

Personalization makes customers feel comfortable, and therefore happy. That’s why artificial intelligence monitors customer behavior and preferences to deliver tailored chat experiences. By using an AI solution, dealerships can create individualized consumer experiences that increase loyalty and customer satisfaction by about 12%.

Round-the-Clock Service

Customers expect service on their terms — they want dealerships’ services to be responsive and to quickly solve their queries 24 hours a day throughout the year. Properly functioning AI means dealerships are 100 times more likely to make contact with customers. So, this efficient communication solves issues as soon as they arise.

Gathering Data

AI systems make gathering lead information easier and can unify thousands of data points into a single customer record based on the client’s behavioral patterns. AI-powered systems analyze customers’ preferences and patterns to quickly respond to their needs and sentiments. This is done to guide customers through their purchase journey in a personalized way that makes them feel understood, leads to quality engagement and a 28% increase in customer call appointments set.

Making Predictive Insights

AI predictive insights are making work easier for dealerships with the ability to instantly scan through previous products, inventory or services to recommend relevant items to the customer. This increase in transparency makes customers feel like every product or service is specifically tailored for them. Not only are customers more satisfied, but AI is bringing it full circle for dealerships with a new work vision and methods that promote growth and customer loyalty with customer contact rates increased by 50%.

AI software provides a skillful tool for dealerships that can help make smarter decisions, backed by data, in a faster way, in order to better understand customer needs and predict behaviors and trends.

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