Q&A: Beyond the forecourt - unlocking the potential of tech in auto retail

Ecommerce consumer platforms (think Deliveroo) have developed simple and frictionless digital experiences that have changed how people expect to interact with retailers. Buying or servicing a car is very different to ordering a takeaway, but automotive retail can and should be easier to deal with. Customers don’t want to feel under pressure to make a decision at a dealership forecourt. They want to be able to use a website or app to compare or research different models, do virtual tours of cars before booking a test drive or compare financing options.

We believe the opposite is true - technology can help retailers to reinvigorate relationships with customers by creating thoughtful interactions and joyful experiences. The days when retailers were able to check in personally with customers on an annual basis to review their needs are gone, because customer behaviour has changed. 

Instead, digital interactions (including email) can provide regular, personalised communications based on previous purchases in a way that isn’t intrusive and deliver relevant and useful advice. Tech also reduces friction. If your car needs a service, push notifications can alert you ahead of time and help you book in and understand the price. Then when the car is on the service ramp, if it needs a new set of brake pads, a simple approval button via an app can save time, rather than arranging a phone call. We’ve seen this digital approach implemented by other sectors, such as the mortgage industry. This has made it easy for consumers to apply for a mortgage without needing to book an in-person meeting or a call with a broker.

Definitely. Currently, retailers struggle to advise consumers on whether they’re a good candidate for an electric vehicle (EV) or not. This is because getting data around people’s driving habits, for example the number of long journeys they make or where they live and work in relation to charging infrastructure, can be difficult to acquire. However, most of us have location and journey data already in our phones and we’d be happy for that to be used responsibly to give us the right advice on what car to buy. 

The EV transition also presents a huge opportunity for retailers to win customer loyalty. According to McKinsey, the proportion of owners willing to change their car brand for better technology and performance, has grown from 33% with internal combustion engines (ICE) to 66% with EVs. This means that whenever there is a technological improvement in vehicles, there is double the propensity to change amongst buyers. And with EVs improving their technological specs all the time, the challenge and the opportunity for retailers is clear.

The industry is heading in that direction. In other industries, such as insurance or mortgages, we used to have a community of brokers, because the customer found it hard to understand the market. The broker explained it to them. Now, we see price comparison websites with real information, real guidance and content to educate customers so they can make informed decisions, with less intervention. 

A car is obviously a physical product, which brings differences. But in car retail, we are moving in that same direction. Dealers are becoming consultants and not just salespeople. Now, their remit isn’t to just sell a car or strike a deal, it’s about capturing the customer by providing educational content and advice to build lasting human relationships, assisted by technology.

Keyloop’s technology is so powerful that it kicks into action the minute someone thinks about buying a car and connects the whole customer experience until they consider trading it in or upgrading.

It is end-to-end technology, meaning it’s there every step of the way - from discovery, to intent, to purchase and then ownership. Every single one of these moments can be fueled and joined up by technology that’s focused on improving the customer experience and making them advocates. Our tech and Experience-First approach is 100% focused on delivering this.

One thing leaders need to do is explain to their staff that AI or technology will improve the customer experience and, ultimately, sales and retention. If their business doesn’t adopt end-to-end technology, their competitor is likely to and that could mean they’ll lose market share. 

Leaders also need to reassure staff that tech won’t take people’s jobs away. They need to show that it will elevate everybody’s performance by giving them the tools to do their jobs better. Importantly, it will also give them the time to do the areas of the job they’re best suited to. If they don’t, there is a risk that workers will reject change, so leaders need to advise and educate to make the transition as smooth and effective as possible.

Technology will make owning a car a more joyful experience. Tech can really enhance the buying experience by making it much easier for consumers and by building trust through quality, detailed advice. But it also has the potential to transform aftersales. 

Our online booking system technology makes it quicker, easier, and more convenient for people to book their service online at a time that’s convenient for them and the retailer. We know that this is key to building loyalty. A study by McKinsey showed that 53% of customers consider a better aftersales experience to be more influential than the purchase experience in the entire customer journey.