Tim Smith, chief executive of Automotive Transformation Group, shares his thoughts on how automotive dealers can get ahead in omnichannel and use artificial intelligence to their advantage.
Artificial intelligence (AI) continues to make headlines across all industries with Amazon Web Services (AWS) stating the variety of UK firms adopting the technology has increased by 31% from 2022 to 2023. This rapid acceleration could see digital technology adding £520bn to the UK economy by 2030, helping the country to satisfy its ambition to grow to be a tech superpower as early as 2028.1
Automotive retail is not any different; it’s increasingly searching for latest ways to make use of AI to its advantage.
The query is why?
At first, with its ability to automate time-consuming tasks, AI enhances operational efficiency. This may very well be a game-changer for automotive, as in response to ATG’s survey of franchised retailers, a 3rd of salespeople use 6-10 suppliers to finish a sale, with some using as much as 40 – reinforcing the necessity to streamline workflows.
Through the use of this technology, retailers can leverage AI to implement seamless processes that optimise their bandwidth.
The transition towards hybrid sales and consumer experience has also amplified AI interest. Many brands draw on AI to supply around-the-clock support for prospective leads in the shape of virtual assistance. ATG’s business intelligence service, VEGA, confirms 42% of online purchases happen outside traditional working hours.
By offering customers an ‘always-on’ sales concierge, retailers can guide customers through their journey, nurturing leads into sales in any respect hours.
One other highly effective channel where AI can enhance operational efficiency and customer experience is marketing. ATG’s partner, Phyron, for instance is leveraging AI to raise stock listing imagery and vehicle advertisements. While simplifying video ad creation on a list level, this AI-driven content may be used to advertise all stock types through Meta’s Product Level Video (PLV) format. This was once a hugely time-intensive process where salespeople were often unequipped to create studio-quality videos for each automotive on the forecourt.
They might upload each asset to third-party channels individually and manually create targeted campaigns. Phyron’s AI-powered software has demonstrated to the industry how this labour-intensive process may be significantly shortened, with its ability to do the equivalent work of 2-3 full-time video marketing employees. This highlights how curated content can attract 50% more viewers and enable retailers to sell cars three to 5 days faster. And these advantages are delivered for lower than the value of a cup of coffee, per automotive.
Technology like PLV also provides further sales opportunities. As the following generation of Meta’s Automotive Inventory Ads, it guarantees higher performance on paid advertisements and better conversion rates, in response to Meta – who observed a 17% increase in conversions when combining images and video.
While Phyron has helped retailers produce imagery and video at scale, Meta’s ‘Dynamic Media’ may be deployed to discover which format is almost certainly to fulfil a retailer’s business goals. A dual approach like this may help retailers ultimately improve scalability and overall ad performance through optimised targeting.
The automotive industry is on a journey of discovery with AI. By automating manual-intensive tasks like video production and content syndication, retailers can enhance their internal efficiency, which is prone to facilitate a greater customer experience and more sales opportunities.
With AI, the probabilities are as exciting as they’re profitable.
Taking the suitable steps to implement AI will help retailers optimise salespeople’s focus, engage customers, and thereby increase sales.
Writer: Tim Smith, chief executive, Automotive Transformation Group
This Article First Appeared At www.am-online.com
