Across every industry, technological advancements have led customers to expect more convenient, personalised experiences. From flexible purchase options to intelligent campaigns that deliver value beyond lead generation, convenience has swiftly become the norm. And, while retail giants like Amazon and sectors such as travel spearhead evolution, the automotive industry remains burdened by complexity.
“Automotive retail is a multi-layered industry,” says Tim Smith, chief strategy officer at Keyloop. It is powered by multiple point solutions limiting its potential to deliver true personalisation and amplify customer lifetime value.
In automotive, the lack of effectively integrated systems prevents seamless data flow, leaving retailers to work in silos and customers unable to have their preferences follow them from channel to channel.
This fragmented infrastructure forces retailers to rely on inefficient manual, error-prone processes, a top frustration for 69% of them according to Keyloop-commissioned research. This falls narrowly behind concerns about conversion rates (77%) and the disjointed online to instore journey (85%). But consumer frustrations go deeper. In fact, 83% are concerned about inaccurate data, with 72% finding feature information unclear and 76% not trusting online data as much as in-store information.
“Data inaccuracy damages consumer trust. At its core, effective proprietary integration is designed to increase this accuracy, making the journey transparent and consistent at every touchpoint. But that’s just the beginning. Seamless integration has the potential to enhance every part of the experience, not just data accuracy,” says Smith.
The omnichannel opportunity
It’s one thing to enhance your online experience. After all, 62% of shoppers typically start their customer journey browsing online rather than in-store, according to a 2024 retail ecommerce report. Yet retailers who wish to maximise customer lifetime value - over just transactions - should leverage omnichannel-enabled, data-driven technology to personalise the experience and build trust with their consumers.
Brick-and-mortar retail remains a crucial part of both the car-buying and ownership experience. As Smith explains, “consumers still lack trust in the car buying and ownership process”. In fact, Keyloop-commissioned research states 83% of customers still worry about being ‘ripped off’ and 76% worry about making the wrong decision.
Therefore, dealerships remain the primary gateway to customer loyalty. Face-to-face interaction can deliver a lasting impact on your customer base. And data-driven technology can be used to amplify that impact online to instore, and back again. It can be used to personalise interactions throughout the journey – whether online during research and purchase, or in-store for servicing and repairs – to unlock greater customer lifetime value.
Experience-first innovation
Smith advocates for an ‘experience-first’ approach, where technology and data pave the way for innovation, allowing sales teams to shift from transactional deals to quality relationships that drive customer lifetime value.
Technology like robotic process automation (RPA) is already streamlining key aspects of the automotive retail ecosystem, such as inventory management, vehicle financing and onboarding across the entire dealer network.
More importantly, RPA is also ensuring customer data is accurate and kept up to date, reducing rekeying and maintaining compliance, as well as sincere, ongoing engagement throughout the ownership experience.
At the heart of delivering exceptional automotive experiences is the ability to harness data in a way that feels personal to every customer
Artificial Intelligence (AI) is further enhancing personalisation by providing tailored content to the right customer at exactly the right time. AI virtual assistance helps customers refine their search, compare vehicles, answer queries and provide personalised support at every stage of the purchasing journey.
Meanwhile, AI-driven propensity modelling is helping automotive retailers to understand which customers are perfectly placed for a new vehicle purchase, allowing them to send tailored vehicle upgrade offers based on their existing vehicle, monthly repayments, typical upgrade paths and propensity to switch to electric. This is driving better conversion rates and ensuring a more efficient use of marketing spend.
By investing in intelligent, data-led solutions like these, retailers can elevate their experience, keeping customers open throughout the ownership phase and ultimately maximising their lifetime value.
Data: the foundation of exceptional experiences
Smith believes that exceptional experiences are “truly about data and the flow of information from one system to another.” He notes that “both the customer-facing journey and the internal sales process need to be aligned in their simplicity” to enhance the experience for both parties. “If a sales process is disjointed, arduous and involves a lot of rekeying, how can you expect that to translate into a transparent, positive and memorable experience for the customer?”
Finding a supplier with expertise in unlocking your data’s potential is essential. In automotive retail, multiple data sets – from vehicle, finance and customer data to performance and reporting – must intersect to give retailers a 360-degree view of their operations. “Only with a complete view of customers and vehicles, can retailers proactive, personalised outreach and make data-driven decisions,” adds Smith.
One Supplier. One platform.
Keyloop’s newly launched automotive retail platform (ARP), Fusion, connects every phase of the vehicle sales process, maximising both customer and vehicle lifetime value. Fusion is organised into four core domains to ensure its endless capabilities are easily accessible.
By harnessing Fusion’s domains - Supply, Demand, Ownership and Operate – automotive retailers can ensure a connected journey from inventory management and customer conversion to aftersales and dealer operations. This seamless integration enables data to pass freely from one domain to another, making automation and personalisation possible at every touchpoint.
Fusion utilises the latest advancements in technology, including AI, to unlock valuable datasets and provide retailers with the necessary insights to stay agile in this ever-changing industry. This ability to gather and apply real-time data enables retailers to meet evolving customer expectations for a convenient, personalised experience.
“At the heart of delivering exceptional automotive experiences is the ability to harness data in a way that feels personal to every customer. When retailers can connect systems seamlessly and use that data to personalise interactions, they move beyond one-time transactions to building lasting relationships. It’s this shift - from transactions to tailored experiences - that ultimately drives customer lifetime value,” concludes Smith.
For more information please visit keyloop.com
