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Automotive Dealers Look To AI For Business Growth

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CDK Global’s latest research confirms what we at Impel already know: the automotive industry is primed and ready for Artificial Intelligence (AI). According to the study, approximately 68% of dealerships surveyed believe that the adoption of AI technology has had a positive impact on their business.

Dealers need to accelerate digital transformation in ways that complement their physical presence to stay competitive given constant change and technological disruption. AI-powered applications can enable personalization at every shopper touchpoint, bridging digital and physical experiences and efficiently guiding prospective buyers down the sales funnel. That’s essential today when consumers are “always on” and expect detailed responses anytime, anywhere – especially in a highly considered category like vehicle purchases.

Continued inventory constraints, clogged supply chains and labor shortages in a high-demand market mean heightened pressure for dealers to maximize productivity while enhancing the customer experience. A hot market is a mixed blessing in this context, with dealers struggling to effectively track and manage record numbers of leads. By implementing automated conversational AI to manage leads, dealerships can ensure they don’t miss an opportunity while providing consistent personalized engagement to every shopper. Retailers can free BDC and Sales staff from chasing endless low-quality leads, focusing instead on nurturing the most qualified high-value leads, closing sales opportunities, and other value-added activities.

A survey by McKinsey & Company highlighted in CDK’s report demonstrates the business potential of AI, with 63% of respondents reporting revenue increases due to the use of AI applications, with average gains of approximately 10%.

Read the full article here.