In a recent episode of the podcast "Facts Not Feelings” with host Brooke C. Furniss, Rich Sands, CEO of Stella Automotive AI, shared insights on how AI impacts the automotive industry and enhances customer engagement.
AI in automotive retail
As dealerships emerged from the challenges posed by the COVID-19 pandemic, they faced a pressing need to enhance customer interactions. One of the most significant hurdles has been finding skilled personnel to manage customer inquiries effectively. A recent Manpower Group report found that 68% of employers in the Transport, Logistics, and Automotive sectors reported difficulty finding the talent they need. This is where AI steps in, providing a reliable solution to handle customer communications 24/7/365.
Sands highlighted that AI systems are now capable of answering phone calls, texts, and web chats, ensuring that customers receive timely responses. This technology not only improves efficiency but also enhances the overall customer experience by meeting consumers where they are and how they prefer to engage.
“Being able to answer the phones is not easy,” Sands said on the podcast. “Being able to have a reliable, credible voice AI system in place that knows your dealership, knows your brand, and can speak on your behalf is not a simple task, but the AI technology has come so far and continues to advance.”
Sands pointed to an example of a dealership that was spending $10,000 a month on BDC costs, but by implementing STELLA, the expenses dropped to only $164 as the BDC team was able to focus on outbound calls.
Understanding customer intent
One of the standout features of AI in automotive retail, specifically STELLA AI, is its ability to understand customer intent. When a customer calls, the AI recognizes their identity and history with the dealership, allowing for a more personalized interaction. It can analyze the tone and sentiment of the conversation in real time, determining whether to continue the interaction or escalate it to a human representative. This capability ensures that customers never feel frustrated or lost in a phone tree, a common pain point in traditional customer service.
“It knows your entire history with the dealership instantaneously,” Sands said.
STELLA can send customers on specific paths. For instance, recall calls are sent on a certain path, while VIP customers can get unique talk tracks and paths.
The importance of specialized AI solutions
Not all AI solutions are created equal. Sands emphasized the importance of choosing an AI platform specifically designed for the automotive industry. Such platforms understand the unique language and acronyms of the automotive world, ensuring that customer interactions are relevant and effective.
Integrating AI into dealership operations
For dealerships looking to implement AI, integration with existing systems is crucial. Sands noted that many dealerships operate with multiple software platforms, which can lead to data silos. A unified data layer allows for seamless communication between systems, enhancing the efficiency of AI applications. By investing in certified integrations, dealerships can ensure data security and improve customer interactions across all channels.
Protecting customer data is crucial, so dealerships must ensure that their AI solutions keep sensitive information secure and within their systems. With STELLA, which offers SOC 2 compliance, dealers can keep their data protected.
Enhancing customer engagement
Answering on the first ring is key to improving customer engagement. AI is not just about efficiency; it's also about enhancing customer engagement. By automating routine tasks, dealerships can free up their staff to focus on building relationships with customers. For instance, AI can handle service appointment bookings, allowing service advisors to spend more time with customers in the service lane. This shift not only improves customer satisfaction but also drives revenue growth. Almost 160 calls are missed at a dealership every month, Sands said, and STELLA helps prevent that.
The future of AI in automotive retail
Looking ahead, Sands predicts that AI will continue to evolve, becoming an integral part of the dealership experience. AI will play a pivotal role in generating new revenue streams, activating local customers, and improving overall operational efficiency. The goal is to create a frictionless customer experience, where AI seamlessly integrates into the dealership's processes, enhancing both customer and employee satisfaction.
The automotive industry is at a crossroads, and embracing AI is no longer optional. It's essential for survival and growth.
As Sands notes, "Smart dealers are not only leveraging AI; they are embracing it and running with it."
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