Former Cox Automotive and LivePerson Executive Skip Dowd Joins Impel as Senior Director, Partnerships | Read More

Former Cox Automotive and LivePerson Executive Skip Dowd Joins Impel as Senior Director, Partnerships | Read More

Impel Blog

Future-Proofing Your Car Dealership: The Transformational Role of AI in Fixed Ops

Discover how AI is helping car dealerships future-proof their operations by transforming the fixed ops business model.

Long overlooked in the digital disruption of automotive retail, the fixed ops business model is one of the key areas where cutting-edge technology is finally beginning to have a serious impact. Artificial intelligence is at the forefront of the transformation, offering solutions that help dealerships optimize their current business while growing and future-proofing their service revenue and dealership profitability.

Future-proofing dealerships with a focus on fixed ops

The automotive sector is no stranger to change. From fluctuating market conditions to an increasingly unpredictable economy, dealerships must constantly adapt to stay relevant. The pace of change has only accelerated in recent years – and it’s high time for dealerships to realize the opportunities to maximize customer lifetime value (CLV) throughout the customer lifecycle – but particularly in the service drive. With the right solutions, dealers can consistently deliver value that doesn’t end with selling a car but that continues throughout the entire customer ownership lifecycle.

The AI advantage in building a future-proof business model

AI is foundational to future-proofing dealerships so they can operate effectively at scale in an increasingly complex omnichannel world with unpredictable markets. In the service department, AI-powered automation and communications are changing how dealerships interact with their customers with personalized engagement and appointment-setting at scale with thousands of customers. The result is improved customer retention, consistent and reliable revenue growth, and a more secure future sales pipeline.

AI isn’t just about saving time and money by automating routine tasks. When leveraged correctly and deployed at scale, it augments a dealership team’s performance and productivity. By leveraging AI-powered automation and outreach, existing staff can focus on more customer-centric activities like building relationships, providing white-glove service, and handling complex, higher-revenue maintenance or repair inquiries. It can also analyze vast amounts of data – such as the thousands of customer records dealerships have tucked away in their DMS. Using customer behavioral data and history, next-generation AI can use predictive analytics to reach out to customers with hyper-relevant messaging based on each customers’ demographics and their status in the ownership lifecycle. Dealers can leverage these insights to inform strategic decision-making and to fuel other system activities, such as DMS hygiene and more targeted marketing efforts.

The transformative power of AI isn’t just theoretical. Dealerships around the world are already benefiting from it. By continuously mining the DMS, robust AI platforms can target customers with messaging regarding first service, next service, missed appointments, state inspections, expiring warranties, specialized maintenance, deferred or declined services — and can even reach out with relevant communications to lapsed or abandoned customers. This in turn leads to more service bookings – and ultimately encourages customers to buy their next vehicle at the same dealership.

The future of car dealerships lies in embracing technologies that offer a clear path to resilience and growth. By transforming fixed ops analytics and communications, AI not only addresses current challenges, but also prepares dealerships for an unpredictable future.

Are you ready to future-proof your car dealership? Download our whitepaper to learn more about how AI can help auto retailers maximize customer lifetime value.