Why Smart Dealerships Are Switching to AI Voice Assistants from IVR Systems

Every missed call is a missed opportunity, and traditional phone trees, aka Interactive Voice-Response systems, are missing plenty. It’s estimated that one-third of phone calls to a car dealership go unanswered, leaving millions on the table for the industry. According to Car Guy Dealership News, 85% of customers who don't get through the first time they call will take their business elsewhere. Dealerships can’t afford to lose that much business in a competitive sector. AI voice assistants and conversational artificial intelligence solutions are the answer to these challenges.

The problem with traditional phone trees vs. customer expectations

Typical IVR systems lead to customer frustration because of long wait times, complex menu navigation, repetitive options, and dead ends or disconnections. 

The inability to get their needs met leads to customer dissatisfaction, which has a significant business impact. Problems with IVR systems can result in lost leads, decreased customer satisfaction, missed service or sales appointments, and staff burnout from managing calls.

Today’s customers have higher expectations of the companies or dealerships they frequent. They expect 24/7 availability and quick responses to their questions. Multiple negative experiences lead them to switch to a competitor, per Zendesk Benchmark data.

To combat issues with dealership call centers or IVRs, many savvy dealership managers are turning to conversational AI. Technological advancements have made it so that artificial intelligence solutions can have a humanlike conversation with customers, quickly addressing their concerns and answering their questions. According to Zendesk research, nearly 7 in 10 consumers believe that more natural-sounding AI via phone would enhance their experience. That intuitive, humanlike interaction is precisely what STELLA Automotive AI delivers.

Customers also want immediate, personalized service when they call businesses, especially car dealerships. According to Hyken, more than half of customers say this type of great service is more important to them than price. This means switching to a more effective answering system for businesses is the way to go. 

Key benefits of AI voice assistants

AI voice assistants offer a diverse range of benefits that streamline operations and enhance interactions with customers.

Operational efficiency

A key advantage of an AI voice assistant like STELLA AI is automatic call routing. STELLA knows when to route calls to a human if escalation is needed because the conversational AI tool is trained to conduct humanlike interactions and understands key automotive terms. 

STELLA also offers simultaneous call handling, meaning it can handle a high volume of calls at the same time, ensuring no call is missed. This gives dealership groups a chance to scale as they grow. Dealerships also can rest assured that calls are being answered on the first ring during peak hours when they use a solution like STELLA AI’s Reception or Service. 

Another advantage of using artificial intelligence for car dealerships over a traditional phone bank is data collection and analysis. At a time when 76% of customers expect personalization, per Zendesk, data is key. STELLA AI, for example, integrates with dealer systems and can recognize a customer who is calling, having information on their vehicle and history. This seamless integration makes it easy to provide the personalized service that dealership customers expect when they call while also keeping service bays scheduled and efficiently running.

Customer experience

It’s been reported that nearly two-thirds of consumers say they expect more personalized service with AI. Here’s how these AI virtual agents accomplish that:

• Natural language processing: STELLA AI uses natural language processing to provide seamless customer engagement across multiple channels, including live chat, text, and voice interactions.

• Contextual understanding: STELLA harnesses enhanced language capabilities, increased computing power, intelligence, and predictive resources to deliver a continuous and seamless consumer relationship. The tool understands what customers are saying and handles their calls appropriately. Having been trained on more than 270 opcodes, STELLA can then book an appropriate amount of service bay time for the appointment.

• Personalized interactions: Thanks to integration partnerships, STELLA can provide personalized experiences by leveraging customer data and generative AI to deliver tailored recommendations and targeted communication that resonate with individual preferences.

• Multiple language support: STELLA provides support for Spanish-speaking customers as well, ensuring they receive efficient, tailored service in their native language and expanding the dealership's reach to a broader audience.

Revenue impact of conversational AI for dealerships

Customers who receive satisfactory, quick, and personalized service are more likely to spend more at a business. Zendesk data found that three in four consumers will spend more with businesses that provide a positive customer experience. Thus, switching to AI voice assistants that offer conversational AI for car dealerships yields many benefits, including a significant revenue impact that more than offsets the cost of implementing the AI technology. This comes in the form of increased appointment bookings by avoiding missed calls, better lead capture, improved service department efficiency, and enhanced sales follow-ups that lead to more business.

In one customer example, a dealership implemented STELLA AI and logged a 35.5x ROI vs. their initial investment in the platform. This is achieved by booking 226 appointments.  

Making the switch: Key considerations

While implementing an automotive AI solution might seem intimidating for some dealership managers, the process is more straightforward than expected. The transition is designed with ease in mind, ensuring that your team experiences minimal disruption while quickly reaping the benefits of advanced technology. Here are some key considerations:

• Easy integration: STELLA is designed to merge seamlessly with your existing systems, making the integration process smooth and efficient. STELLA’s partnerships include Xtime by Cox Automotive, Tekion, CDK Global, and Reynolds & Reynolds.

• Simple Installation: The setup process is user-friendly and requires minimal management oversight, allowing you to focus on running your dealership.

• Staff training: No additional staff training is needed to use STELLA; it works in the background while your staff focuses on other work.

• Timeline expectations: Customers can expect to see an immediate impact. One dealership activated STELLA on a Friday night and witnessed dozens of appointments booked by the following Monday morning, a fast turnaround that highlights the solution’s effectiveness.

• No long-term contracts: STELLA offers the flexibility to adapt to your business needs without locking you into long-term commitments.

This approach not only simplifies the transition but also ensures that your dealership can immediately focus on delivering enhanced customer experiences and operational efficiencies.

Future-proofing your dealership with STELLA AI

Preparing your dealership for the future means equipping your business with adaptive, innovative solutions that grow with you and keep you ahead of industry shifts.

Scalability

To ensure long-term success, your dealership's systems must grow alongside your business needs. With a focus on scalability, STELLA's platform is designed to seamlessly expand as your operations evolve, whether you're increasing your service offerings, opening new locations, or adapting to dynamic market conditions. This adaptive approach not only supports current goals but also prepares your dealership to respond efficiently to future trends and challenges.

Competitive advantage

Competitive advantage in the automotive sector is all about proactive innovation and customer focus. By staying ahead of industry trends, dealerships can innovate and adapt swiftly, setting themselves apart from competitors. Embracing evolving customer expectations means creating tailored experiences that resonate on a personal level, ensuring that every interaction exceeds modern standards. 81% of consumers now believe AI has become part of modern customer service, according to Zendesk, meaning customers are ready and willing to interact with these systems to get their service needs met. Over time, this customer-centric approach builds long-term relationships and reinforces loyalty, placing your dealership in a strong position to succeed in a rapidly changing market.

Switching to AI voice assistants like STELLA AI transforms how dealerships handle customer interactions, addressing long-standing issues with traditional IVR systems by ensuring every call is answered and every customer’s needs are met. This transition not only minimizes missed opportunities and boosts efficiency but also builds a competitive edge by delivering personalized, humanlike service. As dealerships continue to evolve, adopting conversational AI is a forward-thinking investment that results in stronger customer relationships and a measurable impact on the bottom line.

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