It’s like having a coach come up to you and say, “Today you had some great plays but also several miscues and errors.” Then it reveals specific areas to work on before the next game—which in a dealership is tomorrow. The information CI provides is direct and unambiguous.
Dealership service departments are losing market share. In 2023, dealerships accounted for 30 percent of all service visits, down from 35 percent in 2021, according to a recent study by Cox Automotive. The top reasons cited by vehicle owners for not going to a dealership were a lack of trust, a perception of higher prices, and previous negative service experiences.
The study results are surprising because virtually every dealer I talk to believes the service experience they deliver is at least adequate, if not excellent. It is understandably frustrating to learn that this gap exists between what dealers and their customers believe.
How can a dealer find out where their service department is going wrong? No matter how much data is entered into the dealership management system (DMS) or service CRM, there is an intangible aspect to delivering an excellent experience that data and reports cannot shed light on.
Fortunately, there is an alternative technology that reveals where problems exist and guides how to fix them.
Conversational intelligence (CI) is a form of artificial intelligence (AI) that listens to and transcribes every phone call in the service department. Not only can CI understand the literal words spoken, but it can also comprehend nuances, emotions, and underlying sentiments. Its goal is to extract critical data and insights that can then be used to train employees and develop more effective processes.
While dealers are familiar with the benefits of call monitoring, CI is a whole new ball game. Instead of receiving transcripts and summaries from a sampling of calls, CI can listen to every phone call and provide real-time alerts when a customer is unhappy. This allows service advisors or managers to address problems before the customer has a chance to go elsewhere.
One of CI’s most significant advantages is its ability to analyze reams of call data in mere seconds. This analysis can help dealers quickly identify trends related to customer pain points, preferences, and expectations. For example, if multiple customers express concern about long wait times, service managers can use this information to identify where bottlenecks are occurring. If the volume of status check calls spikes suddenly, managers can drill down to find out if the problem is due to a person or process.
This immediate feedback is priceless. It’s like having a coach come up to you and say, “Today you had some great plays but also several miscues and errors.” Then it reveals specific areas to work on before the next game—which in a dealership is tomorrow. The information CI provides is direct and unambiguous.
The most powerful benefit of CI is its role in improving the customer experience. Dealerships must evolve beyond transactional engagements to build more meaningful customer relations. When a customer calls, thinking about more than just answering questions and scheduling appointments is essential.
Think about a favorite restaurant—the one you love to go to on special occasions. When you walk in, the Maître de knows who you are and is delighted to see you again. The staff knows your favorite table and bottle of wine, and they bring you a little something complimentary to nibble on before the meal. They make you feel special, and that’s why you keep returning. If it costs more than the restaurant down the street, that’s okay because it’s worth it.
Dealers need to create this type of experience in their service lanes, starting on the phone. When customers call, they should be made to feel special. This can only be accomplished with smart technology because employees cannot be expected to remember everyone. This is where the real power of AI shines. It helps employees anticipate customer needs and prompts them to express gratitude, provide personalized experiences, and tailor recommendations.
If dealerships can accomplish this successfully, I guarantee they will grow market share again. It starts with the first conversation between a customer and an employee. With CI acting as both a tool and coach, that positive first impression will build a strong framework for a loyal and lasting customer relationship.
