AI in the auto industry

Posted on Thursday, March 15, 2018 by RICHARD HARRIS, Executive Editor

Many dealers are still attacking the challenge of customer retention and revenue generation through direct mail or maybe mass email campaigns; tactics they have been using for decades. By identifying lifecycle trigger points, the customer is provided with relevant offers and information, with the critical addition of persistent and individualized follow-up, for as long as it takes. Those types of persistent, relevant customer communications are practically impossible with the status quo: manual tasks assigned to multi-tasking employees.

In a recent study by Conversica, a provider of artificial intelligence powered business conversations for auto dealers. From the research they discovered from talking to over 124 car dealerships and other businesses in the auto sector - service is the key for auto dealers getting more sales.

PCG Research on the Conversica AI Auto Service Assistant findings:

82% of car buyers who service with a dealership will buy their next car from that dealership
Furthermore, with an average 72% gross revenue margin, auto service is the most profitable department of most dealerships
By contrasting results between these two departments, we give automotive companies more insight into the effect their relationship has on sales performance
Of the 124 automotive departments surveyed, 74 (60%) were sales and 50 (40%) were service centers.

With data mining and conversational artificial intelligence, Conversica is able to analyze and manage DMS data with great success, reaching out to the right customer at the right time with an engaged conversation. One of their customers, for example, is the Cutter Auto Group, a family run business of car dealerships serving Hawaii for more than 40 years. They say their sales have increased at least 20% because of their AI assistant, Lilly.

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