Revolutionising automotive after sales: The game-changing role of AI


The winds of change are blowing stronger than ever before the automotive industry. With the enforcement of ‘Fit for 55’ regulations in Europe and the consequent focus shift to Battery Electric Vehicles (BEVs), automotive retailers are faced with a paradigm change. According to AlixPartners research, the industry is racing toward a future where BEVs are expected to claim a significant 50% market share by 2035, reshaping not only the vehicles on the roads but also the essence of after-sales services.

How to profit in tomorrow’s automotive industry: it's not just about sales

One of the key advantages of BEVs lies in their minimal after-sale maintenance requirements. While these vehicles often come at a higher price point, the reduced need for after-sale services creates a unique opportunity for dealers to rethink their business strategies. The rise of connected vehicle technology, inherent to BEVs, opens doors to a multitude of possibilities. These vehicles provide plenty of data, offering insights into user behaviour, preferences, and usage patterns. This wealth of information forms the basis on which personalised, high-value services can be built. Stepping up in the value proposition to customers can also help to face the challenge of non-EU manufacturers progressively increasing their market share when it comes to the electrification business. Chinese brands already account for a significant portion of EU battery-electric car sales; they possess a competitive advantage which is hard to counteract. In this scenario, what can retailers do to stay on top of the electrification game? It’s key for them to shift focus from a one-time sale to the entire vehicle lifecycle and customer lifetime value. Here’s where Artificial Intelligence (AI) steps in as a game-changer. According to Marco Marlia, CEO of MotorK, “AI is not just a buzzword; it is a transformative force amplifying the potential of existing solutions and processes”. Marlia describes AI as a ‘superpower’ working behind the scenes to offer the greatest added value to the end consumer: “By applying AI capabilities to insights coming from connected vehicles as well as traditional processes, dealers can create customised actions and engagement campaigns which can lead to optimised revenue streams”

Leveraging predictive marketing for post-sale optimisation

Predictive marketing, powered by AI, has emerged as a key tool for automotive dealers to improve and streamline customer retention and long-term loyalty. By analysing historical data, dealerships can proactively shape marketing strategies to align with future behaviours and ensure that the customer experience goes beyond the purchase. A remarkable 30% surge in post-sale and accessory sales has been observed in dealerships that embraced predictive marketing strategies, according to MotorK internal data. This impressive growth underscores the huge impact of AI-driven insights in enabling targeted marketing efforts. Also, dealerships implementing predictive marketing witness tangible transformations within their daily operations and post-sale activities, such as:
  • Behavioural pattern analysisAI delves into historical customer data, such as past purchases, services, and vehicles data, unveiling purchasing patterns and trends. By identifying common behaviours, dealerships can tailor their marketing strategies to target specific customer segments more effectively.
  • Smart feedback analysis: AI stands out when it comes to understanding customer feedback, whether from surveys, reviews, or direct communication. This enables dealerships to identify recurring pain points and areas for improvement, so they can proactively address concerns and enhance satisfaction.
  • Automated customer communications: AI-powered automation facilitates seamless post-sale communication, keeping customers informed about vehicle updates and upcoming service appointments. These personalised and timely interactions strengthen customer relationships and keep them engaged.
  • Purchase likelihood prediction: AI’s predictive capabilities extend to estimating the likelihood of a customer making a purchase. This insight allows dealerships to allocate resources strategically, focusing on individuals who are more inclined to convert.

Harnessing the power of AI with PredictSparK

PredictSparK by MotorK is the pioneering tool specifically designed for the automotive industry which has anticipated the AI hype and applies artificial intelligence to predictive maintenance in the after-sales service. Currently at the core of various pilot projects, it is a powerful solution in the hands of automotive marketing professionals to design targeted campaigns and anticipate customer needs.

How PredictSparK works

PredictSparK operates on a colossal scale, analysing vast datasets comprising millions of invoices, customer profiles, and vehicle data. Leveraging its advanced algorithms, it generates around 60 million predictions daily, based on over 2 billion unique calculations. In the pilot phase alone, PredictSparK sent almost 3 million communications, including text messages and emails, to more than one million customers. This impressive outreach demonstrates the tool’s potential in creating tailored engagement campaigns for users in the after-sales phase. By using PredictSparK, dealers get the capability to strategically plan revenue streams, which enables them to invest resources wisely and optimise internal operations, enhancing the overall customer experience with minimal effort.

SparK Platform: revolutionising the automotive industry

PredictSparK is part of the SparK Platform, the first Software as a Service (SaaS) platform in the automotive industry that integrates multiple solutions. This innovative all-in-one platform includes PredictSparK as well as WebSparK, a digital showroom optimised to acquire traffic and generate leads. Additionally, WebSparK integrates solutions based on OpenAI technology, further enhancing its capabilities.
As the automotive industry heads towards a future dominated by BEVs and increased competition, AI emerges as a catalyst for change. Tools like PredictSparK and the SparK Platform open the way to a new era, where dealers can thrive by embracing AI-driven strategies. By harnessing the power of AI, dealers can not only survive the challenges of this changing landscape but also prosper by offering unique services and experiences to their customers. The future of automotive after sales is here, and it’s driven by the transformative power of Artificial Intelligence.
If you are interested in knowing more about the features of PredictSparK, feel free to send us a contact request.
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