Auto Success Magazine Feature Article, October 2011

Auto Success Magazine

October 2011 by Drake Baerresen

ARTIFICIAL INTELLIGENCE IS PAVING THE WAY TO INCREASED SALES

While watching Matthew Broderick in WarGames years ago, most of us thought the day would never come when a computer could play chess or control our arsenals. Amazingly enough, that day has come and gone for chess. Hopefully Arnold Swarzenegger in Terminator has ended any chance of a fully automated nuclear arsenal. The military, however, does use technology like this to monitor enemies on the battlefield and coordinate our weapons today. Now this type of technology is making its way into retail automotive sales. BDCs were developed to cure the lack of follow-up sales conducted with prospects and past customers. BDC employees, like most dealership employees, earn bonuses for sales. This leads them to cherry-pick the calls, leads and e-mails they think are most likely to convert. This causes dealerships to lose out on sales due to incomplete follow-up. Even with the right training and intentions, the work load often leads to some follow-up being done poorly or skipped all together. Too many opportunities are missed this way. Now, artificial intelligence (AI) can be used to replace much of the work of the BDC.

With AI, dealerships can be sure that every customer gets followed-up the right way every time. This is much different than an auto responder or template e-mail or letter. Artificial intelligence can read the messages from the customer and respond as good as, and often better, than a real person. The best part is it can work 24 hours a day, seven days a week. It doesn’t get sick and doesn’t take breaks. The headaches of the BDC can now be in the past. The work of 10 can now be done by just a few of your most talented. Artificial intelligence can communicate with all customers and prospects. It can read their messages and return messages that are relevant and drive customers to the store or to a phone conversation.

Dealerships across the country are now using AI in a multitude of ways to generate more business. A customer with positive equity is a great lead. Every dealership has a database and can find these people. Why don’t all these customers get contacted? Time. AI has the time to contact all of them and set up appointments for sales.

Approximately 60 percent of the leads U.S. dealerships receive are in the market for six months. This is a long time for a salesperson to follow-up and not allow any to fall through the cracks. With AI, there are no cracks. Every lead, every time gets consistent follow- up until they buy. After they buy, they get service offers.

AI can communicate with customers in a way that feels like a real person is on the other end, a person who cares. The uses for this technology are limitless. Dealerships are using it to increase unit sales, service and even F+I products and accessories. For a free copy of, “How Artificial Intelligence is Paving the Way to Increased Sales,” e-mail me at the address below.

Drake Baerresen is the vice-president of sales and marketing at Turn-Key Events AVA. He can be contacted at 866.476.7748, or by e-mail at drakeb@tkevents.com.