The majority of car dealers and buyers agree that personalisation enabled by automation and artificial intelligence (AI) has the potential to greatly improve car buying and ownership, according to new research.
In a survey by Cox Automotive, two-thirds (67%) of car buyers said that personalisation technology will improve the car-buying experience and 63% said the same with regard to car ownership.
And while many consumers have concerns about privacy issues related to personal data, 68% of those surveyed for the Technology and Transformation of Retail Study indicated that they don’t mind dealers using personalisation technology if it improves the overall vehicle-buying experience. In fact, 76% of consumers expect their dealer to know something about them before they walk onto the showroom floor.
“Automotive retail is going through a period of transformation right now,” said Marianne Johnson, chief product officer at Cox Automotive. “AI is not just a buzzword. It’s already impacting the way consumers gather information about cars, learn about which car to purchase, and decide when to interact with a dealer. Artificial intelligence is also helping dealers become more efficient and transparent and deliver a better consumer experience.”
Among the dealers surveyed for the study, 72% see AI as a tool to help improve efficiencies and provide time for staff to focus on other areas of the dealership. More than half also agreed that adopting automated processes can help them deliver a better customer experience, improving retention and loyalty.
As the process of car buying and owning transforms, the biggest priority will be personalisation – the ability for dealers to deliver an experience that feels unique for each consumer, Cox Automotive said.
“Customer interaction must be carefully managed,” noted Lori Wittman, senior vice president of Cox Automotive Dealer Software Solutions. “This new study clearly underscores what we see with customer relationship management (CRM) usage every day: New-car owners do not want to be spammed or stalked by their dealership. Having the right data at the right time to be relevant instantly is paramount to successful personalisation.”
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