How Chatbots Create Value for the Automotive Industry
Published by
James Rice Mcaulay

It was unthinkable 20 years ago that test drives and cars could be booked and reserved online, but this is now a reality. Despite this, the automotive industry isn’t completely immune to the same challenges that e-commerce faces; namely, that a large portion of visitors may never convert into customers.

Choosing cars is a highly personal activity that often involves lots of research (sometimes taking months), spreadsheets, and seeking expert recommendations. Due to the amount of work that goes into choosing a car, and the potential complications that can arise from a subpar brand, people tend to be loyal to one particular car brand for a very long time.

That’s why customer service is crucial for the automotive industry. You have to do a lot of upfront work to gain a potential customer’s trust and business, but once you do, the rewards are big and recurring.

So how do chatbots fit into the automotive industry?

Chatbots deliver a personalized experience in the digital showroom

Think about the traditional shopping experience for someone who’s interested in buying a new car. The first thing they do is conduct their own research into particular brands, their makes, models, and combine all of that analysis with any personal recommendations from friends or family. Then, they visit a showroom to get a feel for particular cars that tick off all the items on their checklists so they can make an informed buying decision.

Chatbots fill in as showroom sales representatives in the digital showroom. With their ability to gather data and make use of algorithms, they’re able to give expert recommendations to prospective car buyers. Chatbots can also be programmed to engage in humanlike interactions and one-to-one dialogue with prospective buyers, ensuring people receive answers tailored to their particular needs and interests.

Chatbots automate loyalty programs

A big advantage that the car industry has is brand loyalty. Some brands can be seen as being associated with safety, while others are associated with raw power, and others are associated with reliability. Those perceived strengths are recognized by consumers who have enjoyable shopping experiences and retain many good years out of the car they buy. As a result, they become brand loyal and will buy their next car from the same company.

This behavior incentivizes many car companies to create loyalty programs that play off the perceived strengths of the brand identity. Loyalty programs are a great way to provide additional value to brand loyal customers, and they provide added incentive for people to engage in an ongoing relationship with the car company for many years.

Chatbots are also able to drive brand loyalty by forging and maintaining conversations with return customers. By analyzing trigger behaviors, chatbots can determine high-value customers and give them premium service. They can also be programmed to tailor rewards programs into certain tiers, offering the most exclusive packages to the most valuable customers. This allows people to feel extra special as they consider all of their options when purchasing or upgrading a vehicle as a reward for the loyalty program.

Chatbots help automotive businesses scale

Kindly is working with a number of major companies in the automotive sector, helping them to understand their users online, and target these users with the right messaging. By using AI and machine learning technology, automotive brands can interact with online shoppers and boost purchase intent for their models with a higher volume of interested buyers.

Chatbots are able to give a personal experience to multiple customers at one time. With their ability to decrease customer acquisition costs and drive brand loyalty, they give automotive businesses tools to scale. They’re also able to help the sales and customer service teams put their human resources towards more effective use, ensuring the brand achieves much higher business objectives while still maintaining the degree of quality service necessary to drive up car sales and establish brand loyalty with customers.

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