With the advent of digital dealer brands like Carvana and CarMax, as well as expanded options for online purchases through traditional dealers, more consumers are opting to research, buy, and finance vehicles online. In fact, according to Consumer Affairs, only 3 percent of vehicle purchases are completed fully online today, but 23 percent would consider ordering a vehicle online with some in-person contact at a dealership. Additionally, more than 95 percent of buyers source information online as part of the buying process.
Like retail shopping and other consumer activities, buying a vehicle has become a true omnichannel experience. Often, buyers have questions before, during, and after the sale. In addition to asking questions at a physical dealership, buyers today are engaging through email, phone, online chat, and SMS. With all these new channels to manage, dealers are under pressure to update and create efficiencies in customer service (CX). They must make the best use of dealer associate, customer relations, and service team time, while also supporting customer satisfaction and loyalty.
AI has emerged as a new tool to help automate these CX conversations. Although it can drive efficiency, human interactions are still important to overcome common customer service challenges. Dealers, whether brick-and-mortar or online, need to strike a balance between the use of AI and human support to build mutually beneficial, lasting relationships with buyers.
Remove Frustrations with Automation and Bots
Many dealerships have adopted online chatbots to allow customers to handle basic requests through self-service, such as confirming vehicle inventory, booking test drives, and getting information on local promotions. AI can serve as a tool for gathering customer feedback, integrating data into a dealer’s CRM system, facilitating customer callbacks and more.
On the surface, automation and chatbots seemingly address hurdles such as long wait times, but research shows that over 40 percent of people feel “unfavorable” toward chatbots. Consumers are skeptical of AI and bots or have had negative past experiences, leading to an overall sense of mistrust. On the other end, some dealers have been burned by customers purposefully tricking chatbots into unrealistic purchases.
To combat this, dealers should manage how they strategically adopt AI, giving it a defined role in the purchase process, while allowing human associates to navigate the more complex details of transactions.
Taking a Human First Approach to CX
Pairing human oversight with AI can mitigate many of the negative interactions that customers and dealers have experienced. But this requires both a technology and mindset change on the part of the dealership.
For example, when a customer contacts a dealership, whether online, on the phone, or via other channels, it’s important not to push the customer into an automated system. When a human is the first connection point, this conveys respect for the customer’s time and avoids frustration and potential hurdles that could prevent a future sale.
In a real scenario, it looks like this: A potential buyer reaches out to a dealer through a chat function to pre-qualify for financing. A human associate answers, evaluates the customer’s needs, and communicates the best route for next steps, helping to put the customer at ease from the very beginning.
It is then up to the associate to determine how and if AI should be used. In this case, the associate could transfer the customer to an AI agent that collects loan prequalification information such as name, address, birthdate, social security number, bank, driver’s license, and insurance information. The AI bot can also share information on what documents need to be provided to the dealer, such as pay stubs or bank statements.
If the customer experiences a problem, or has questions, it is equally important to provide a straightforward way for them to return to the associate for help. This human-first approach creates a more personalized, empathetic experience, making sure that the customer is left with a positive perception of the brand.
Car Buying, the Modern Way
Humans are a necessary part of the customer experience, but that does not mean there is no time or place for AI to drive efficiency. AI advancements have provided dealerships with new sales tools such as showcasing vehicles to potential buyers through digital showrooms with integrated video chats. With an immersive and personalized experience, stronger connections are fostered, and customers have a more memorable experience.
Notably, AI has expanded “business hours,” as inquiries can be addressed outside of a dealer’s standard hours of operation. Whether it’s general questions or requests for parts or service, AI powered technologies can provide customers with self-service or human-supported assistance 24/7.
If associates are overloaded with inquiries, it is possible to increase the amount of AI or automation being used at any given time to reduce long wait periods. Further, delegating simple customer asks to AI tools provides dealers with more time to focus on the relationship aspect of their business.
Balancing Future AI Advancements
Instead of a one-size-fits-all approach to AI and automation, dealers must strategically define how AI and humans can add value based on how customers interact with the brand and its current CX channels in place. Using AI in a beneficial way while ensuring customers are not forced into a technology-first experience, is the recipe for creating a positive customer experience. Ultimately, the perfect balance of AI and human support leads to higher customer satisfaction while also increasing efficiency and productivity.
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