The Role of AI Chatbots for Dealerships: Enhancing Sales and Customer Engagement
- Marette Flora
- Mar 4
- 3 min read
The automotive industry is rapidly evolving, and dealerships must keep pace with changing consumer expectations. A recent Salesforce report found that 67% of American consumers are “frustrated when customer service can’t resolve their issues instantly.” Today’s car buyers and service department customers demand quick responses, seamless online interactions, and personalized service. This blog outlines the role of AI chatbots for dealerships in bettering customer engagement and boosting sales.
What are AI-powered chatbots?
AI-powered chatbots are intelligent virtual assistants that use natural language processing (NLP) and machine learning to engage in real-time conversations with customers. They provide instant responses to inquiries, assist with appointment scheduling, and guide customers through the vehicle purchasing process. Chatbots and similar tools can provide support via multiple communication channels, including voice, web chat, and SMS. This gives customers some flexibility in how they want to obtain the service they are looking for.
How can chatbots improve customer engagement?
A November 2024 Statista survey found that 96% of shoppers think more companies should opt for chatbots over traditional customer support representatives. Why? Customers are open to chatting with chatbots and voice agents as long as their needs are being met quickly.
Traditional customer support models often struggle to keep up with the demands of today's consumers. Consumers “walk away from 31% of their customer service interactions without getting what they need,” according to Salesforce.
To avoid this, it’s essential to embrace AI technology for customer engagement. Conversational AI provides a significant upgrade, offering 24/7 availability, reduced staffing pressure, and consistent communication. This translates to shorter wait times, more efficient BDC teams, higher customer satisfaction, and a more consistent brand experience for customers.
Leveraging AI chatbots for dealerships
AI chatbots don’t just answer questions; they can actively generate and nurture leads. Another Statista report from November 2024 found that “36 percent of shoppers reported to always be influenced by chatbots in buying decisions.” Plus, an additional 25% of shoppers said they are frequently influenced by chatbots. That makes leveraging conversational AI a vital part of the lead nurturing process for dealerships.
Car buyers nowadays often research online before visiting a dealership. AI-powered chatbots ensure a seamless transition from online browsing to in-person visits.
Choosing the right AI solution for your dealership
Not all AI chatbots are created equal. Choosing the right solution requires careful evaluation to ensure it meets your dealership's unique needs and delivers a strong return on investment.
STELLA Automotive AI, an advanced AI-powered virtual assistant designed specifically for car dealerships, is a cutting-edge solution. By leveraging conversational AI, STELLA enhances customer interactions, improves lead conversions, and optimizes dealership operations.
Unlike traditional chatbots with scripted responses, STELLA Automotive AI understands complex customer queries and provides human-like interaction.
Key functions:
Automated lead follow-ups: STELLA sends reminders and follow-ups via text or email to keep potential buyers engaged.
Seamless handoff to sales teams: STELLA AI qualifies leads and transfers high-intent buyers to dealership representatives.
Multilingual capabilities: STELLA understands Spanish and can respond to bilingual customers promptly.
Integration with existing systems: STELLA seamlessly integrates with popular CRM and DMS platforms, ensuring a smooth workflow and eliminating data silos.
Data security: STELLA is SOC 2 compliant, with robust security measures to protect sensitive customer information.
Voicemail by agent: STELLA captures messages conversationally and ensures timely follow-ups by team members.
SMS booking: STELLA empowers customers to book appointments instantly via SMS. With a 98% open rate, SMS ensures your message gets seen, and the ability to switch between voice and SMS adds flexibility and convenience.
Dashboard reporting: STELLA offers real-time insights into conversation analytics that help managers and OEM executives make data-driven decisions.
Opcode recognition: STELLA understands more than 270 opcodes, automatically interprets customer requests, schedules appointments accurately, and updates the DMS in real time. STELLA can directly translate customer requests (like "I need an oil change") into the corresponding opcode and schedule the appointment in the DMS without human intervention. This speeds up the scheduling process and reduces wait times for customers.
Is your dealership ready to embrace AI-powered automation? Request a demo of STELLA AI today and experience the future of dealership customer engagement.
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