Artificial intelligence (AI) is no longer science fiction but reality. What’s the best way to use it in your dealership for maximum return?
It may have originally been just a fictional story line in the Terminator movies, but artificial intelligence (IA) is now a reality. And it’s no longer an “if” your dealership should adopt it, but “when.” The key is to know how to use it to your advantage; its limitations and how to work around them; and most importantly, when you shouldn’t be using it.
There are numerous software providers with a wide array of products, including chatbots, analytics, digital dashboards, inventory integration, mobile apps, and more, whether for a single store or across multiple dealerships. Look for one that will customize the package to your specific needs.
Chatbots can be a useful addition to your website. When a customer visits, the chatbot may be embedded in the body of the site, or appear as a pop-up, with an invitation to connect such as, “How can I help you today?”
There are different types of chatbots to consider if you plan to add one, or upgrade what you have:
Rule-based chatbots are programmed to look for and recognize keywords. When they do, they generate a response likely to be the most appropriate. For example, if a customer types in something like “What are your hours?” or “When do you open?” then the chatbot will pick up on the “hours” and “open” keywords, and respond with a predetermined response – in this case, when you’re open and closed. They tend to be the least expensive, but they’re limited to the words and responses they know. If your customers use the chatbot for complex questions, they may be frustrated by its inability to respond correctly.
AI-powered chatbots use natural language processing and machine learning. Rather than just pouncing on keywords, they determine what the person is asking, and then come up with the best response to match the question.
Generative AI chatbots, such as ChatGPT, in simplest terms, use their database to look for words and patterns to understand what’s being asked, and then formulate a reply. These doesn’t use predetermined responses and so are closest to how a real person would answer. The questions and responses further train the system for improvement.
Customers increasingly want to be able to shop or research 24/7, and a major benefit to chatbots is that they’ll provide some level of communication when your dealership is closed. You also don’t have to tie up an employee to monitor questions for live chats. The chatbots can’t do it all, though, and you still need to communicate directly with customers as necessary. Chatbots don’t have all the answers, and they don’t have the human touch that can be essential to a sale.
Telephone chatbots work similarly, asking questions and responding to the answers. These can also be useful, but tread carefully: You don’t often find people who say they love automated phone attendants, and being asked what you want rather than being told “Press 1 for this” doesn’t really make it better.
Help with writing. As much as people are now more dependent on quick texts, there’s still a need for longer written communication, whether it’s to answer emails, write performance reviews, and more. Programs such as ChatGPT can definitely help with this, as you enter the points you want the piece to cover and let AI write it up for you. It’s almost instantaneous, but never send it out without carefully proofreading everything. AI is sophisticated, but it’s not perfect; it’s not unusual to find factual errors, or sentences that go in another direction away from what you intended.
Advertising can use AI help, but only to a certain extent. You can use it to help write advertisements for vehicles or products, but never run a photo through AI to enhance it. Customers have to trust that what they see in your ad is what they’ll get at your store, and you’ll lose your credibility if customers detect that a vehicle’s picture has been “doctored.” You should even be cautious about digitally cleaning up backgrounds, since customers may wonder if that’s the only thing you’ve altered.
Number-crunching. AI has the potential to analyze data and give you an immediate answer on what’s happening, and across wide swaths of your business. Some of the possibilities include:
Inventory analysis. AI can show you such information as which vehicles sit longest on your lot; what configurations and trim levels are most in demand; and what vehicles and trims are being searched out by customers on your website.
Product sales analysis. In addition to determining which F&I products rack up the highest number of sales, AI can cross-reference them against other factors, such as which aftermarket items are most likely to be bundled into specific financing products, or which vehicles generate the highest warranty sales. Product sales can even be sliced as thin as the customers’ age, income, or trade-in, enabling you to better target your approach to them.
Overall, artificial intelligence can improve customer satisfaction, make tasks easier, and help run your dealership more efficiently. The key is to getting the best AI products for your needs, and then using them to their maximum potential.