Everyone is talking about AI. At London Tech Week, every presentation on the main stage and every booth on the floor was showcasing how AI is and will change the way we do business. For some, AI is a bullet point to add onto the end of the product roadmap in an investor deck. For others, it is a disruptive technology that will fundamentally change industries and markets with big winners and losers.
The degree to which AI will replace humans, or will act in a co-pilot style capacity will depend on the vision of those who adopt it. Companies in industries that have been slow to adopt disruptive technologies have to make choices. Accept AI as inevitable or be beaten by those who harness its power to deliver better service at a lower cost.
One industry where technology is poised to change the rules is automotive, specifically the way cars and other vehicles are bought and sold.
Car dealers who have embraced digital have an advantage. Car dealers who understand their customers, their motivations and needs, through digital and offline channels also have an advantage. But… here is where AI can help all dealers.
AI Lead Management for Car Dealers – A Simple Case Study.
Decades ago, automotive brands that had a website had an advantage over those who had physical channels.
Imagine two website users. One navigates to the ‘wallpaper’ download section of the site and chooses a perfectly lit, studio shot of your most expensive model with all the extras. The other user searches for a specific model, browses some of the options and then clicks through to the financing page.
An experienced automotive salesperson, even one with no digital experience, could tell you which is the better lead, but could AI? The answer is a resounding yes.
Here is what the basic, free version of ChatGPT says…
When evaluating which customer is the better lead for a car website, the one that looked at the finance page is generally the better lead compared to the one that downloaded a wallpaper image. Here’s why:
Customer Intent and Engagement:
- Intent to Purchase:
- Finance Page Visitor: A customer looking at the finance page is likely considering the practical aspects of purchasing a vehicle. This indicates a higher level of interest and intent to buy, as they are exploring their financing options, which is a critical step in the buying process.
- Wallpaper Downloader: A customer downloading a wallpaper image might appreciate the aesthetics of the car or be a fan of the brand, but this action doesn’t necessarily indicate an intent to purchase. They might just like the design or be collecting images for personal use.
- Stage in the Buying Journey
- Finance Page Visitor: This customer is likely further along in the buying journey. They have moved beyond initial interest and are now considering the financial commitment involved, which is a strong indicator of purchasing intent.
- Wallpaper Downloader: This customer is likely at an earlier stage in the buying journey, possibly just browsing or showing superficial interest in the car’s appearance.
- Engagement Level
- Finance Page Visitor: This action suggests deeper engagement with the website and the purchasing process. They are actively seeking information that will help them make a buying decision.
- Wallpaper Downloader: While this shows some level of engagement with the brand, it doesn’t provide as strong an indication that the customer is considering a purchase.
Data Utilisation and Follow-Up
- Follow-Up Strategy
- Finance Page Visitor: This lead can be followed up with targeted information about financing options, deals, and incentives that can help them make a decision. Personalised follow-up messages focusing on financing can be very effective.
- Wallpaper Downloader: Follow-up with this lead might focus more on brand engagement and converting their interest into a buying intent. However, it may take more nurturing to move them down the sales funnel.
- Behavioural Insights
- Finance Page Visitor: Their behaviour provides clear insights into what they need next in the decision-making process. They might be comparing financing options, so offering personalised finance consultations or pre-approval offers could be very persuasive.
- Wallpaper Downloader: Their behaviour indicates an interest in the visual appeal of the cars, which might require further actions to gauge their purchase intent, such as sending them invitations to test drive events or providing more detailed car specifications.
In conclusion, the customer who looked at the finance page is the better lead because their actions indicate a stronger intent to purchase and a more advanced stage in the buying process. This makes them a higher-priority lead for follow-up and conversion efforts.
ChatGPT V3, June 2024
Now imagine you had 3 data points about these customers, or 5 or 500. How would an AI score these leads? How would an AI close the deal, with or without human intervention?
One AI developer Impel has found that in the automotive industry, 39% of leads are submitted after hours, 40% of leads received by dealerships are in the market for over two weeks, and 30% never have any level of engagement with your staff. Perhaps the most alarming finding was that 25% of leads are never followed up either during or after hours.
So, how would a freely available current generation AI respond to a customer who looked at the finance page out of hours?
Subject: Explore Financing Options for Your New Ford Ranger
Hi [Customer’s Name],
Thank you for visiting our website and showing interest in the Ford Ranger! We noticed that you checked out our finance page, and we wanted to reach out to help you take the next step towards owning this fantastic vehicle.
The Ford Ranger is renowned for its rugged performance, advanced technology, and exceptional versatility—perfect for both your daily commute and weekend adventures. We understand that financing is a crucial part of your decision-making process, and we’re here to assist you in finding the best options tailored to your needs.
We offer a range of flexible financing solutions, including low-interest rates, extended payment terms, and special incentives for qualified buyers. Our finance team is dedicated to making the process as smooth and straightforward as possible.
Would you be available for a quick call to discuss your financing options and answer any questions you might have? We can also schedule a test drive so you can experience the Ford Ranger firsthand.
Please reply to this email or call us at [Phone Number] to set up a time that works for you. We look forward to helping you get behind the wheel of your new Ford Ranger!
Best regards,
[Your Name]
[Your Title]
[Dealership Name]
[Contact Information]
P.S. Don’t forget to ask about our current promotions and special offers!
ChatGPT V3, June 2024
Not bad. Better than no response at all.
The process of buying and selling a car is about to change. AutoSettle is leveraging best of breed technologies including AI, Digital ID, advances in fintech and other emerging technologies like blockchain combined with a deep understanding of the automotive market and its stakeholders.
We are always open to discussing partnership opportunities with companies that have technologies that can help us deliver disruption in this space.