The customer experience remains a major differentiator between auto dealerships. When buyers feel educated, supported, and served, they have fewer reasons to shop around — and more reasons to return for additional services and eventual repurchases, as well as make referrals.
Consumers expect individualized, on-demand attention, and in a saturated industry like automotive retail, the dealer that can consistently provide that will win. But that’s a tall order because even the most innovative, responsive team members can’t be available 24/7 or analyze and act on huge pools of data. However, Automotive AI solutions can enable auto retailers to do exactly that – and more.
With help from AI platforms, dealerships are reshaping, refining, and revolutionizing their customer engagement capabilities. As a result, they’re wowing customers with unparalleled efficiency, personalization, and service delivery while reaping cost savings and increasing profitability through buyer retention and satisfaction.
What are some of the most prominent use cases for AI in automotive sales and dealerships?
1. Powered-up AI webchat and virtual assistants
Chat technology has seen tremendous growth, and auto dealerships are discovering just how far it’s come. While last-gen technology, chatbots, and auto-responders attempt to help teams save time, they often have the opposite effect. Scripted chatbots are robotic, with very limited conversational capability or ability to answer questions. While they may have bought dealerships some limited time to respond once a human staff member became available, the long wait time, poor first impression, and lack of answers often drives customers away.
Today, AI webchat assistants are fueled by sophisticated generative conversational AI. The software is capable of forging a natural discussion with customers, making the experience feel much more human than it once did. However, specialized Automotive AI webchat assistants don’t just excel in back-and-forth dialogue. They’re specially built to achieve the outcomes that both dealership customers and staff members seek – vehicle sales and service.
For example, consider a customer who has questions about a car that’s listed on a dealership’s website. A conversational AI platform can interact with the customer through a variety of different communication channels based on the customer’s preferences. This could be anything from texting and emailing to messaging on WhatsApp or through chat. The customer gets immediate attention, comprehensive information and a dynamic experience – and the dealership’s sales team members don’t have to pivot from other high-level work. It’s the perfect balance for everyone and engages the customer at a critical buying moment.
2. Personalized customer engagement via AI systems
Across all industries, consumers expect personalized attention — and they reward companies that provide it. According to recent Gartner findings, providing personalized help to customers can boost business outcomes by 16%. Therefore, dealerships that position themselves as helpful to customers at a personal level are likely to see a higher return on investment.
Personalization at scale isn’t realistically possible or economical without purposefully built AI-driven automotive sales software that integrates with systems commonly found in standard auto retail ecosystems. Through constant analysis of first-party and zero-party data, Automotive AI helps dealerships understand what a customer might need or prefer. This enables proactive, individualized communications that reduce opt-outs, anticipate customer needs, and improve buy-in – all while creating concierge experiences.
The relationship management potential of this type of personalization is profound. With AI platforms, both customers and auto dealership employees can forge stronger bonds — and they can do it faster than ever thanks to Automotive AI.
3. Predicting customer behavior with data
Determining the full scale of a buyer’s intent and desires can be challenging. That’s why many dealership employees resorted to “hunches” or “gut instinct”. Automotive AI makes the process simpler and more straightforward, eliminating questions about what a customer wants.
Think of Automotive AI as an active listener at scale, able to identify in-market customers and listen for hints that customers drop about their lives that might be important, such as getting a new job or starting a family. AI leverages this powerful behavioral data to reach out to and engage customers in hyper-individualized fashion. Dealerships can also tap into this treasure trove of insights to recommend tailor-made promotions, implement highly relevant (and timely) marketing strategies, and deliver highly personalized follow-up.
Rather than guessing what “might” work, dealerships can make smarter and more informed marketing and operational decisions to drive improved lead generation, sales conversion rates, and customer retention. In fact, the predictive prowess of AI for car dealerships is one of the most talked-about opportunities in AI for automotive retail.
4. Automated scheduling for test drives and service appointments
The world runs at an always-on pace, and AI allows dealerships to keep up. A sophisticated AI platform that’s been designed to achieve automotive retail outcomes can book appointments, send reminders, and follow up instantly (and persistently). This constant communication keeps customers from getting lost in a scheduling pipeline, or having their requests and concerns overlooked. Best of all, the interaction can effectively encourage customers to book appointments, all without any human assistance.
Of course, the way to maximize automated scheduling is to invest in a purpose-built automotive solution like Impel AI that integrates with dealership software and systems. This direct integration with a dealer’s tech stack ensures seamless interactions, efficient workflows, and real-time updates across sales and service. Not only can customers book appointments on their own terms, but employees are no longer bogged down coordinating calendars or playing phone tag. Instead, they can focus on developing stronger relationships and providing white-glove service to the customers in the service bay. There’s no lag time spent on labor-intensive administrative tasks; just a streamlined process that removes selling and buying friction.
In addition to fostering efficiency, automatic scheduling helps reduce no-shows. This means more interested customers follow through with their appointments, giving car dealerships more opportunities to surprise and delight.
5. AI for after-sale engagement and retention
The customer experience shouldn’t end when someone drives off a dealership’s lot. Post-purchase, customers appreciate getting updates and reminders. These could include everything from maintenance reminders and follow-ups to personalized offers and service tips.
Automotive AI can even handle warranty reminders and recall efforts, which enhance a dealer’s reputation and build customer trust. Dealers can also launch on-demand campaigns to specific customer cohorts and action real-time zero-party feedback, such as recording a vehicle’s accurate mileage or updating contact information when customers provide them.
Every car dealership spends money to get qualified leads in the door that turn into sales. Keeping customers coming back after purchase slows churn and expands each customer’s lifetime value, not to mention boosting referral possibilities. In fact, Impel research shows that customers who received automated communications were 27% more likely to schedule follow-up appointments and services within 90 days than those who didn’t receive communications.
6. AI-powered inventory and pricing optimization
Staying up to date with inventory management has traditionally been a somewhat uneven process. AI streamlines inventory management workflows by using historic sales, service, and CSI data to inform dealer inventory decisions, boosting demand and accelerating inventory turn. For auto dealerships working around seasonal sales and service spikes, this kind of insight is a game-changer.
Beyond optimizing inventory, AI software offers robust dynamic pricing capabilities. By offering dynamic pricing, car dealerships can enjoy a competitive advantage and remain relevant with shoppers who are looking for appropriately priced vehicles online and offline.
Being able to control and manage both inventory and pricing more effectively has a positive effect on dealership operational efficiency and cash flow. From the consumer perspective, customers feel like their experience (e.g., looking for a competitively priced car or finding a dealership with the make and model they’re seeking) is faster and easier than ever. It’s a win-win for dealerships and customers alike.
7. Future-proofing auto dealerships with AI products
As consumers increasingly rely on digital interfaces for everyday and special occasion purchases and experiences, their customer service expectations will continue to rise. Auto dealerships that use Automotive AI can stay at the leading edge of the industry and continue to transform the customer experience.
For instance, take the role of AI in autonomous vehicle sales and digital showrooms. The idea of buying a car without visiting a showroom, taking a test drive, or engaging with a human sales representative once seemed impossible. Now, it’s becoming more commonplace. With AI innovations, auto dealerships can truly help people navigate the experience of purchasing a car through a variety of supportive options and channels. And they can make that experience memorable, positive, and enjoyable.
Does AI in customer service mean the end of the human touch in the role of buying, selling, and servicing vehicles?
On the contrary, AI technology is opening doors for employees to focus on the touchpoints that are best served by human-to-human engagement. AI tools aren’t substitutes for people; they are the always-on assistants that enable people to do their best work and deliver on what matters most — building relationships and delivering white-glove experiences that foster customer loyalty.
Impel helps thousands of dealerships and automotive OEMs around the world transform business and team outcomes with AI. To learn more about leveraging Automotive AI for your dealership, schedule a demo with Impel today.
