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The Advantages of Switching to AI-Powered Business Phone Systems for Dealerships

Updated: Feb 25

Effective communication is pivotal in car dealerships, yet the reality is that a staggering 1 in 3 calls goes unanswered. This missed opportunity can lead to lost sales and diminished customer satisfaction. That’s where AI-powered business phone systems enter the picture. They help dealership leaders improve communication and streamline operations without missing out on those opportunities. By leveraging AI-driven tools, dealerships can ensure that every customer interaction is optimized, paving the way for improved engagement and increased sales.


What Do AI-Powered Business Phone Systems Do?

AI business phone systems offer a wide range of capabilities, extending far beyond basic call answering. Some systems are equipped with advanced conversational AI, enabling them to engage in meaningful interactions with customers. 


Acting as a virtual receptionist, these AI systems can handle calls for dealerships around the clock, including weekends and holidays. This ensures that customer inquiries are addressed promptly, regardless of the time or day, enhancing customer service and ensuring no opportunity is missed.


These car dealership communication tools can also conduct automated SMS messaging for businesses, along with offering web chat features. 


Integrating these types of AI features is becoming increasingly important in automotive service and beyond because research shows customers expect consistent communication. Salesforce’s State of the AI Connected Costumer report found that “69% of consumers expect consistent interactions across departments.” They also want fewer touchpoints to get the information they need or complete a task, like setting an appointment. That means AI tools that help dealerships and other businesses automate these functions are key. 



A person holds a smartphone. AI powered phone systems like STELLA can help customers get service faster.

Enhanced Customer Engagement

AI-driven customer service improves customer interactions by completing their desired tasks or answering their questions more easily and faster. According to Salesforce’s AI report, 43% of customers would stop buying from a brand because of a poor customer service experience. This statistic underscores the importance of efficient, productive communication as a critical factor in retaining customers.


The benefits of AI chatbots, digital voice assistants, and similar tools for customer service in dealerships are numerous. These AI solutions can handle routine inquiries, provide instant responses, and guide customers through the purchasing process, all while operating 24/7/365. This not only enhances the customer experience but also allows dealership staff to focus on more complex issues that require a human touch.


Examples of customer engagement automation through AI messaging platforms include personalized follow-ups after a service appointment, automated reminders for upcoming maintenance, and instant responses to frequently asked questions about vehicle features or financing options. These interactions can significantly improve customer satisfaction and loyalty, as they feel valued and understood.


Moreover, as noted by Salesforce, “A quarter of consumers — even more among Gen Z and millennials (roughly one-third) – would share their personal information with an AI agent so it can better anticipate their needs.” This willingness to engage with AI highlights the potential for dealerships to leverage customer data to create tailored experiences that resonate with their audience.


To harness the full potential of AI-driven customer engagement, dealerships can turn to STELLA AI. This innovative platform is designed specifically for the automotive industry, offering advanced AI chatbots and virtual assistants that enhance customer interactions and streamline communication. Thanks to a proprietary voice technology that enables conversational AI conversations, dealerships can not only improve their customer service but also build lasting relationships with their clients.


Streamlined Operations

Virtual phone systems for businesses can optimize dealership operations by answering calls efficiently 24/7/365. These automated customer service solutions reduce wait times and improve efficiency. 


For instance, STELLA AI can book a service appointment in 2 minutes or less, streamlining the scheduling process and ensuring that customers receive timely assistance. Additionally, customers who need to cancel an appointment can do so in under 30 seconds, minimizing disruptions and allowing staff to concentrate on other important tasks.


One of the key advantages of STELLA is its ability to handle inbound calls simultaneously, ensuring that no calls are missed. Each call is answered promptly, right from the first ring, which significantly enhances the customer experience. This capability means that dealerships can manage high call volumes without overwhelming their staff, leading to a more organized and efficient operation.


By automating routine tasks such as appointment scheduling and cancellations, STELLA frees up valuable time for dealership employees, allowing them to focus on more complex customer inquiries and sales opportunities. This not only improves staff productivity but also enhances the overall customer experience, as clients receive quicker responses and resolutions to their needs.


Cost-Effectiveness and Scalability

For executives and leaders in the automotive industry, the cost savings associated with AI-driven customer service solutions are substantial. Although there is an initial setup fee and a monthly subscription cost, the long-term savings and increased efficiency far outweigh these investments.


AI-powered software for car dealerships is designed to scale alongside your business. The STELLA platform, for instance, can be seamlessly implemented across multiple locations within a dealership group. It offers customizable integration with existing systems, such as dealership service schedulers and Dealer Management Systems (DMS) like Reynolds and Reynolds. This integration ensures smooth appointment management and operational efficiency, with STELLA's capability to understand over 270 opcodes, a feature that significantly aids in managing complex dealership operations.


When comparing traditional phone systems to AI business phone systems, the advantages are clear. AI systems enable dealerships to book appointments and handle customer inquiries 24/7, capturing additional revenue opportunities that would otherwise be missed with traditional Business Development Centers (BDCs) limited to business hours. This round-the-clock availability not only enhances customer satisfaction but also maximizes revenue potential by ensuring no opportunity is lost due to limited operating hours.


Improved Lead Generation and Sales

AI-driven lead generation is significantly transforming sales operations for dealerships, providing innovative solutions that enhance the overall sales process. With the ability to analyze vast amounts of data, AI sales assistants can identify potential leads more effectively and engage them in meaningful ways.


One of the key advantages of AI sales assistants is their ability to streamline the lead qualification process. These AI tools can assess customer interactions and behaviors, determining which leads are most likely to convert. This targeted approach allows dealerships to focus their efforts on high-potential prospects, increasing the efficiency of their sales teams.


AI sales assistants can also enhance the sales process by providing real-time insights and recommendations. For instance, they can suggest personalized offers based on a customer's previous interactions or preferences, making it easier for sales staff to tailor their pitches. This level of personalization not only improves the customer experience but also boosts the likelihood of closing deals.


Additionally, AI-powered chatbots and virtual assistants can engage with leads around the clock, answering questions and providing information without delay. This immediate response capability ensures that potential customers receive the information they need when they need it, reducing the chances of losing leads to competitors.


AutoPilot for Lead Generation

AutoPilot marks a significant advancement for dealerships. Developed through a collaboration between STELLA Automotive AI, Dealer Funnel, and Client Command, AutoPilot is designed to empower dealerships by engaging active in-market shoppers effectively.


During its pilot phase, AutoPilot demonstrated remarkable results, achieving 127 completed repair orders and 12 vehicle sales within just three weeks. Notably, a substantial portion of these sales came from conquest customers, showcasing AutoPilot's ability to drive new growth and enhance overall sales performance.


By leveraging AI for automotive sales outbound messaging, AutoPilot targets both conquest and existing customers, maximizing revenue with minimal effort. Operating seamlessly in the background, it runs on "autopilot," allowing dealership staff to focus on building relationships and closing deals. With integrated communication channels—voice, text, and email—AutoPilot ensures efficient and effective connections with potential leads.


Future-Proofing Your Dealership

Adopting AI for automotive sales is crucial for dealerships aiming to maintain a competitive edge. Relying solely on traditional phone systems can leave many customer inquiries unanswered, resulting in lost business opportunities.


Empower your team with AI training: Equip your sales and support teams with the skills to effectively collaborate with AI tools. This involves training them to interpret AI-generated insights and seamlessly blend AI interactions with personal customer service. By doing so, your team can enhance the customer experience and maximize the benefits of AI technology.


Stay agile with continuous improvement: Regularly evaluate the performance of your AI tools and actively seek customer feedback to make informed adjustments. By remaining agile and responsive to technological advancements and evolving consumer preferences, your dealership can stay ahead of the competition and consistently meet customer expectations.


AI agents and other advanced tools can attract younger consumers, who are generally more receptive to interacting with AI for various tasks. According to Salesforce, 43% of Gen Z and millennials believe AI enhances customer experiences, compared to just 32% of baby boomers. These younger generations express a preference for working with AI agents to receive faster service than they would from human agents. To continue generating leads among these demographics, dealerships must be ready to adapt to their preferences.


Embrace AI to elevate your dealership’s results. Book a demo of STELLA AI today.


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