AI for Automotive Sales: Enhancing Customer Engagement and Dealership Success

A person opens a car door; AI for automotive sales can help maximize efficiency and boost sales.

The automotive sales landscape is undergoing a dramatic transformation, and AI is at the forefront. No longer limited to service departments, AI is now enhancing how dealerships connect with customers, manage leads, and close deals. A 2024 CDK study, AI in Automotive, confirms this trend, with 68% of AI-powered dealerships reporting positive operational impacts. This guide explores how auto dealer AI can have a significant impact in the sales department.

More and more industries are leveraging AI, with the Information and Professional, Scientific, and Technical Service sectors leading the way, according to recent data from the North Carolina Department of Commerce. Automotive can also leverage the technology for personalization, automation, and intelligent lead qualification.

Personalizing the dealership customer journey with AI

AI can analyze customer data from various sources (such as website activity, social media, and CRMs) to create rich customer profiles. This data fuels personalized interactions, including:

Tailored email marketing: Artificial intelligence for dealerships can craft targeted messages based on data including individual preferences and purchase history.
Targeted advertising: With AI, dealership managers can maximize ad spend by reaching the right customers with the right message at the right time.
Customized vehicle recommendations: The technology can streamline the customer’s research process by suggesting vehicles aligned with their needs, preferences, and desires.
Personalized experiences: Dynamic content and personalized offers create engaging, unique experiences for each website visitor or caller.

This personalized approach strengthens customer relationships and boosts lifetime value.

Automating sales tasks with AI

Artificial intelligence can free up dealership sales teams from repetitive tasks, automating many routine processes, including:

Lead follow-up: AI nurtures leads with timely, consistent communication, guiding them through the sales funnel.
Appointment scheduling: With AI platforms like STELLA Automotive AI, dealership sales teams can leverage 24/7 online scheduling so they can focus on more high-value tasks. Automated reminders also minimize no-shows and optimize staff time.
Inventory updates: Real-time inventory tracking and automated notifications keep customers and salespeople informed.
Initial customer interactions: An AI virtual receptionist for car dealerships or a chatbot can handle inquiries, qualify leads, and schedule appointments, allowing salespeople to focus on complex interactions and closing deals.

Features like call transcription and custom dealer greetings further enhance professionalism and efficiency. By providing sales team members with call transcripts, for example, STELLA Automotive AI equips them with the information they need to maximize the chances of closing deals and providing superior service.

Qualifying leads with AI

According to a McKinsey report, AI can help dealership sales teams in a number of ways. The report states, “Within the sales motion, gen AI goes beyond initial sales-team engagement, providing continuous critical support throughout the entire sales process, from proposal to deal closure.”

AI algorithms analyze lead data (including demographics, online behavior, and purchase history) to score and prioritize leads based on their conversion likelihood. Hot leads are identified and flagged for salespeople in real time, maximizing efficiency and closing rates. This intelligent approach optimizes resource allocation and reduces cost per acquisition.

Real-world results of AI for automotive sales

The impact of AI on automotive sales is evident in real-world applications. For example, a recent study by McKinsey found that AI-powered sales tools can increase leads by up to 50%, and conversion rates by up to 30%.

One example of a tool that auto dealerships can utilize is AutoPilot, a collaboration between Stella AI, Dealer Funnel, and Client Command. AutoPilot can boost dealership revenue with minimal effort by automatically contacting both existing and new customers via outbound messaging. Working silently in the background, STELLA improves performance and frees up staff to focus on other customer interactions. This automated system, using voice, text, and email, requires no dealer intervention and delivers significant bottom-line results. Post-campaign, data analysis comparing DMS information with customer engagement reveals valuable insights into customer behavior and potential opportunities.

It further exemplifies the power of integrated AI solutions, achieving impressive results in a pilot program by driving conquest customers and increasing revenue. In just three weeks, participating dealerships saw a significant increase in both service repair orders and vehicle sales, with the majority of new business coming from conquest customers.

Choosing the right AI solution

Selecting the right AI tool is crucial. Executives, managers, and owners need to factor in many considerations when selecting the right provider.

Features: Dealers should be certain that the AI solution has the features it needs. Does the solution offer the necessary functionalities, such as personalization, automation, and lead qualification?
Integration: Seamless CRM and DMS integration is essential for maximizing efficiency. STELLA integrates with many existing dealer systems with its flexible API.
Pricing: Look for pricing models that make sense for your dealership.
Vendor reputation and support: Choose a reputable vendor with proven experience and excellent customer support.
Automotive-specific capabilities: Dealerships need auto dealer AI because it’s designed specifically for use within the industry by people with experience in it. This is the case with STELLA Automotive AI.