Car dealers and customers both want to have a custom experience through automation and AI and this leaves a lot of opportunity for growth within the car-buying process.
Artificial intelligence – advanced data techniques that allow computer systems to make predictions, make decisions and work more like the human brain – is currently transforming many industries, including automotive retail.
According to a new study by Cox Automotive, 67 per cent of car buyers believe personalization technology will improve the car-buying experience. Nearly as many, 63 per cent, believe personalization technology will improve car ownership.
“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.”
It is well known in the automobile industry that the car-buying process needs to be improved. According to the most recent Cox Automotive Car Buyer Journey Study, 61 per cent of buyers believe the process did not change or became worse since their last purchase. Research also shows that buyers are visiting fewer dealerships, so it is more important than ever for dealers to make every contact count. Insights gathered in the Cox Automotive Technology and Transformation of Retail Study show that one path to improvement is the smart adoption of AI technology.
Know Thy Customer
Advanced data techniques enable the harvesting and management of vast amounts of personal data, and some consumers are leery of privacy issues related to personal data. At the same time, 68 per cent of consumers surveyed in the Technology and Transformation of Retail Study indicated that they don’t mind dealers using personalization technology if it improves the overall vehicle-buying experience. In fact, 76 per cent of consumers expect their dealer to know something about them before they walk onto the showroom floor.
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