Top 5 technology advancements in motor retailing
Change is inevitable and brings with it progress and advancement. There can be no doubt that the pace of change in motor retailing, as in many business areas, is continuing to move forward. In this post, we showcase five digital innovations that we’re likely to see more of in the months and years ahead.
Digital self-serve capabilities
Self-service is on the increase, providing motor dealerships and their customers with more efficient ways of transacting car purchases. We've long used self-service technology in the showroom to finalise documentation and in our sign-up and post-sale journeys, to enable customers to self-manage their accounts online securely 24x7.
Other digital options are also emerging with customers able to manage their car servicing needs online and even, in the case of EVs, download software updates to ensure their car’s technology is up to date..
Biometrics
Biometric authentication, commonly using facial or fingerprint recognition, is gaining momentum in car financing. It enhances the customer journey and tackles identity fraud.
As part of the e-sign process for their car finance, customers may be asked to complete a biometric identity and verification check; our MotoClick service has adopted this approach. Customers are asked to take a ‘selfie’ on their mobile device to initiate a secure facial recognition process. With identity theft leading to increasing car fraud, biometrics is a powerful tool that protects buyers and lenders.
In another imaginative use of biometrics, last year, Mercedes-Benz joined up with Mastercard to introduce embedded in-car payments at the point of sale. Customers in Germany can use a fingerprint sensor in their cars to make convenient and secure digital payments at more than 3,600 service stations in the country.
AI
The use of artificial intelligence, or AI, is set to accelerate in showrooms. One area of interest right now is Conversational AI, which can enable dealerships to engage with potential customers 24x7 in highly personalised conversations across various channels, including web chat, SMS, email, WhatsApp, and even voice interactions.
Machine learning
Machine Learning, which is part of the AI revolution, is starting to predict vehicle prices accurately. By analysing vast amounts of data, algorithms can forecast car prices based on factors like model, year, mileage, and more. This technology helps car buyers and sellers make informed decisions, saving time and money. In a similar fashion, machine learning is being used to identify when customers may be back in the market for their next car.
Virtual showrooms and augmented reality
Virtual showrooms and augmented reality (AR) experiences have the potential to reimagine the way some buyers discover their next car by enabling them to interact with vehicles. Using virtual reality tools, dealerships can showcase their stock dynamically and engagingly, attracting tech-savvy consumers who value innovation. Looking ahead, such technology could be adapted to promote car finance, enabling customers to discover finance highly transparently.
