Shifting Dealerships into the Future with AI

“AI will inevitably be culturally, economically, and technologically transformational. It will create new opportunities in new ways that no one has even considered.” – James Alexander, CTO, Shift Digital.

The automotive industry is no stranger to technological advancements, and today, artificial intelligence (AI) is making waves. Already proven to enhance vehicle safety, performance, and efficiency, AI is poised to revolutionize the industry—and sooner than most may think. As OEMs streamline manufacturing processes, reduce costs, and optimize supply chain management, dealerships are, no doubt, increasingly captivated by AI's potential.

In fact, many dealerships are betting on the technology’s capabilities to enhance the consumer experience during their car shopping and servicing journeys. According to market research by CDK Global, Inc., a leading automotive retail software provider, 76% of dealers credit AI with positively impacting their sales, inventory management, service, and parts.

But not all dealerships are ready to dive headfirst into AI. Fears around AI replacing jobs and the unknown lasting implications of AI have many retailers hedging their bets. However, in a rapidly evolving automotive market, where consumer expectations will only continue to escalate, embracing AI may no longer be a luxury but a necessity to stay ahead of the competition.

So, how can AI transform retailers today? While the possibilities are endless, here are a few ways AI can drive your dealership into the future.

Let’s chat about sales.

For retailers, it all starts with sales. Whether a salesperson is new to the field or highly experienced, AI enables sales teams to have a more holistic understanding of their customers. Here’s how AI provides better sales enablement:

Customer Insights: AI analyzes extensive customer data, including demographics, past purchases, online behavior, and social media interactions, to provide a comprehensive understanding of customers. Sales teams can then utilize these insights to customize their approaches, better understand customer motivations, and engage with them effectively.

Sales Assistance: AI-powered tools provide sales teams with effortless access to up-to-date vehicle details, pricing information, inventory levels, and financing options. This streamlined access to information empowers salespeople to deliver accurate and timely insights to customers, driving their ability to convert leads effectively and close deals.

Proactive Sales: AI’s reasoning capabilities can predict customer behavior and preferences based on historical data, allowing dealerships to engage proactively with customers. For example, AI can identify when a customer is likely to be in the market for a new vehicle or due for maintenance, enabling dealerships to reach out with timely offers or reminders.

Let’s chat about personalization.

But, of course, sales are directly tied to the customer’s buying experience. Fortunately, AI can help retailers create even better, more personalized shopping experiences through its clever ability to generate the right content at the right time. Here’s how:

Tailored Recommendations: AI algorithms analyze customer data to understand preferences, purchase history, and behavioral patterns. This allows sales teams to personalize content and tailor it to each customer's needs and interests. By delivering highly personalized and relevant content, AI ensures that customers receive pertinent information, making their experience more engaging and satisfying.

Real-time Delivery: AI-powered chatbots and virtual assistants can interact with customers in real time, providing instant responses and relevant information. These tools can understand customer queries, offer personalized assistance, and guide shoppers through their journey. Whether answering commonly asked questions, providing vehicle specifications, or scheduling test drives, AI ensures that customers receive timely, accurate, and helpful information, creating a seamless and efficient experience.

Let’s chat about the business.

One of the most powerful applications of AI lies in its enhanced classification capabilities. When applied to business operations and processes, it can reveal patterns that may otherwise be missed. Here’s how:

Data-Backed Decision-Making: From performance numbers and data, AI can dig deep into the dealership's business operations and identify areas of excellence and areas that require attention. This enables dealerships to make data-backed decisions and proactively optimize their resources, streamline processes, and boost operational efficiencies.

Inventory Management: AI can assist in forecasting inventory demand and proactively calculate needs by surveying the market for desired vehicles. By understanding demand patterns, retailers can optimize their inventory levels, ensuring that they always have the right vehicles in stock. This helps to minimize excess inventory, reduce holding costs, and avoid stockouts.

Pricing Strategies: By analyzing market trends, competitor pricing, and customer behavior, AI algorithms can recommend optimal pricing points that maximize revenue and profit margins. This data-driven approach helps dealerships set competitive prices while considering supply and demand dynamics, leading to increased sales and profitability.

Let’s chat about how we can help.

At Shift Digital, we know that the AI world still has many unknowns. But as a leading authority in digital marketing optimization and data activation for the auto industry, we are poised to help retailers leverage AI for sales, personalization, and optimization. We have the expertise and experience to help retailers navigate the complexities of this new world. If your dealership has questions or is ready to explore the possibilities of AI, contact us today.