Driving Solutions with Jim Fitzpatrick, powered by CBT News

AI's Impact on Car Buying Satisfaction

• CBT News • Season 1 • Episode 10

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Car buyer satisfaction has reached record highs as dealerships focus on every segment of the consumer journey, embracing AI and personalization to meet customer expectations. Four key factors driving this improvement include better-informed consumers, transparent communication, knowledgeable staff acting as partners rather than adversaries, and customers feeling more in control of their purchasing experience.

• Dealers must evolve to match innovation pace across all retail experiences, not just automotive
• Consumer expectations are shaped by seamless experiences with companies like Amazon and Target
• Cox Automotive partnered with Kenan Thompson on a campaign showing car shopping can be enjoyable
• Trade-in process remains emotionally charged, with 25% of shoppers dropping out during this stage
• Transparent tools like Kelley Blue Book Instant Cash Offer help explain vehicle valuations
• F&I experience is improving through consumer-centric solutions and collaborative conversations
• AI and automation reduce friction points while giving consumers control over the digital experience
• Reducing idle time through proactive communication builds trust with shoppers
• Contrary to dealer fears, giving consumers more control actually increases profitability
• The win-win approach creates lifetime customers while maintaining healthy margins

Driving Solutions is the go-to podcast for dealership professionals who want to stay sharp, informed, and ahead of the curve. Hosted by Jim Fitzpatrick and powered by CBT News, each episode brings you real strategies, smart tools, and expert insights to help you run a more profitable operation.

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Announcer:

This is Driving Solutions exclusively on CBTNews. com.

Jim Fitzpatrick:

Today we're joined by Greta Crowley, who's Vice President of Retail Marketing at Cox Automotive, to explore how AI is reshaping the car buying experience. Greta leads the B2B and B2C marketing strategy across Cox Automotive's retail brands, including AutoTrader and Kelly Blue Book, and is at the forefront of aligning product content and media to drive transformation. So you must be one very busy young lady to handle all of those initiatives. So thanks so much for taking the time out of your schedule to join us.

Greta Crowley:

Well, thank you for having me. Yeah, the job is always busy and always fun. It's a fun industry to be in.

Jim Fitzpatrick:

Sure, sure. So, Cox Automotive's latest research shows that car buyer satisfaction is at record highs. Many attribute this to smarter use of AI, personalization and automation. What do you see as the most pivotal factor driving this shift?

Greta Crowley:

Yeah, I mean, I think obviously AI is the hottest topic there, is right now in the industry that we're in and just in general, for everyday consumers Even us, Jim, I'm sure and AI and personalization certainly play a role in increased shopper satisfaction, but truly, I mean the big shift that we're seeing is that you know our dealers are actually focusing on every segment of the consumer journey to really embrace, you know, what consumers want in a different way, and that's actually what our study showed that there's four main drivers of shopper satisfaction that you know we're excited about that we're seeing technology really play in and the focus.

Greta Crowley:

The first one's you know, consumers are feeling much more informed than ever before. They're building trust throughout the process. They're understanding expectations in a different way. The second thing that we see is that they're also receiving more transparent communication. So dealers are setting expectations of what comes next, how many steps are in the process. That starts to really build up confidence in the process for the dealer and the consumer. Now, third was something, Jim, I was actually really excited to see pop this year and that was truly around, you know, consumers are starting to feel that they have a partner in dealership staff and you know, actually quoted, that they have knowledgeable staff that is partnering with them on their deals and I think, that, to me, is something really different than what we've seen in the past where right I mean dealers are starting to understand like they can't just sell to a consumer. They have to be seen as a partner. It's such a huge purchase for them, so it's not something they're doing often, it's something that will impact their monthly bills every month. So how do they really start to partner in a different way? And last, and you know, the fourth and not surprising is you know dealer or consumers, excuse me are feeling more in control than ever before.

Greta Crowley:

So you know they've got the transparent information, they're more informed and they feel like a partner. That's where we're starting to see satisfaction really drive up in a great way.

Jim Fitzpatrick:

That's fantastic, you know. As you know, consumers would always, you know, look at the dealership staff as adversaries, which is a very unfortunate situation. So you're right, that is great news to hear that they've turned the ship on that. So, as consumers become more empowered and digitally savvy, how should dealerships evolve their approach to match the pace of innovation, not just in automotive, but across AI driven retail experiences?

Greta Crowley:

Yeah, I think you hit on it. It's not just automotive. I think about my day-to-day activities for shopping and buying. I mean, we recently just bought a car in the Crowley household. But I can tell you my expectations were shaped on what I can do on Amazon and having packages delivered day up or next morning that I can order from Target and pick up, you know, in my car and go in the store that my groceries are being delivered.

Greta Crowley:

All of that is really the embrace of technology and AI and that's where we really need to see. You know, our industry and dealers embrace that in a huge way. You know, at Cox Automotive we've been really focused on making that shopping experience relevant, seamless and even enjoyable. Jim, we were talking as we were prepping today, but you know, from an auto trader perspective and Cox Automotive, we've been partnering with Kenan Thompson and just launched a new consumer campaign.

Greta Crowley:

The whole idea is that showing shoppers that it can be enjoyable that auto trader has the tools and the personalization and the technology to really lead them down that journey and find the right dealer that will match, you know, the car of their dreams. At the end of the day, they're feeling more in control, like the study is starting to show.

Jim Fitzpatrick:

That's right. You couldn't have, you know, gotten a better spokesperson there with Kenan. I mean, who doesn't love Kenan Thompson? He's just an amazing young man and he's just so likable and believable.

Jim Fitzpatrick:

So that's awesome.

Greta Crowley:

We agree, yes, we agree.

Jim Fitzpatrick:

Yeah, your study highlights three persistent friction points in the car shopping journey trade-in offers, , and idle time. Let's start with trade-in. Why is this step, I should say, so emotionally charged, and how can AI tools help it become more transparent?

Greta Crowley:

Yeah, well, I think trainings is a great place to start because, you know, you said it, emotions are there. We all love our car and we value our car a certain way, and that's really what the study was showing is that buyers want a fair evaluation. They want it quick, but they really want to understand how their vehicle is being valued. And so when that process is long, or when the shopper gets an offer that is lower than what they expected because again, we all, we all love our car same from a home right it starts to undermine that trust in a different way, and so that's where we really have to focus on. You know how can we provide more transparent, you know conversations and tools, because in our study, what we saw is that a quarter of shoppers will actually drop out during the trade-in process because that trust has been broken.

Greta Crowley:

And that is not what we want to see. So you know what we're really recommending is driving transparency at this step. Consumers want to know exactly why and how you know their vehicle is being valued a certain way, and that's where data and intelligence, with tools like Viato or Kelley Blue Book Instant Cash Offer those tools, deliver those insights on how that offer was generated and create that transparent conversation for the consumer.

Jim Fitzpatrick:

F&I has long been a stress point for buyers, for sure. What are some of the most effective ways that dealers can use AI and automation to simplify this process and build trust with the consumer?

Greta Crowley:

Yeah Well, I think you know the F&I experience gets a bad rap. When you've you found the car, you're so excited it's getting detailed. And then you got to go back in that office and you're like I don't want to.

Jim Fitzpatrick:

I'm a recovering five year F&I manager, so I know what you're talking about.

Greta Crowley:

So so you created. You know that we're we're trying to debunk, but I mean, in all seriousness, it really has evolved so much and I think that's something that we need to tell shoppers in a bigger way. And we need dealers to say that too. But you know, traditionally consumers have felt that pressure. They get in that office, they're pressured to buy add-in products.

Greta Crowley:

They don't understand the price is high and they're already paying so much. And so what we've really found is that, if you can, you know, center around consumer-centric F&I solutions and you really start to emphasize and double down on clear breakdowns of cost, honest explanations, and one of the things we've really seen is the collaborative conversation rather than that confrontational tone of like you've got to get this. It's only going to be the best deal for you, and that's why, at Cox Automotive, we've really been focusing over the last 24 months on really embracing AI and automation and the F&I experience, because we believe that we can reduce and we've seen that we can reduce friction points for consumers and dealers. Consumers, like we said, they want to be in control, so we want to give them that completely digital experience where they can do the deal and finish all the F&I products and add-ons at the end by how they want to do it. So that flexibility matters.

Greta Crowley:

And then for the experience. Jim, you can give me some examples, but what we have seen is that there's so many manual tasks and that when you're having to manage all of that, make sure you're building a relationship. Those two points are at friction a relationship. So what we have been focusing on is intelligent automation that removes those manual tasks and our tools like Deal Central. That's where we can really start to embrace this idea of like and eliminating some of those manual tasks so that you can build a relationship with the consumer in a different way.

Jim Fitzpatrick:

Yeah, yeah for sure. Um, idle time, those moments of waiting during the shopping process. I'm joking because it, or laughing rather, because this is a killer for CSI, for ESI, for everything. This idle time is just something that has got to be fixed. But during that process, when you're waiting between yes, I'll take the car and getting in to that F&I office, you know, can it erode satisfaction? How can retailers use technology to turn those moments into opportunities for engagement and efficiency If you've got the key to that, man, I got to hear this.

Greta Crowley:

Yeah, we can ink the deal and get out of there I think you know that is- The idle time is something that's often overlooked, because it's somewhat expected, which stinks, because that's exactly what you said. I'm waiting during paperwork and vehicle inspections, or I'm literally waiting, and I don't know why I'm waiting.

Greta Crowley:

So now I'm frustrated.

Greta Crowley:

I want to get out of there, I want to have dinner, I got to get to my kids. So our study really indicates that if you can have proactive communication and engagement, that is what will start to build the trust with consumers in a different way. And I mentioned Deal Central, but that really is our AI-powered tool that helps that interaction and transparency throughout the entire process. It reduces that idle time because it allows the consumer to start their deal online and then literally pick it up in the dealership. But, like we talked about that collaboration, if you can sit side-by-side with a dealer with the iPad and you're going through it and penciling out as a shopper and the dealer understands are you focused on a monthly payment, a specific car? Are you worried about insurance? Like, how can I help you and start to understand and have a normal conversation?

Greta Crowley:

that doesn't put the consumer in a defensive place. That's where you know, collaborative conversations help two things it builds trust with shoppers at the end of the day, which is important to satisfaction, like we talked about. And then really and Jim, this is what's interesting in all my conversations with clients they have been saying you know, if you give the consumer control, won't I lose out on profitability. It's the complete opposite. It really does give dealers the most control and drive profitability at the end of the day. So it's the complete opposite. It really does give dealers the most control and drive profitability at the end of the day. So it's that's what we want a win-win for the consumer and the dealer to drive that lifetime shopper.

Jim Fitzpatrick:

Right. It's funny because just generations of dealers and managers. If you've been in the business any longer than 10 years, you're so afraid to trust that consumer with information. And what we learned during COVID was the fact that as more and more people were given the opportunity to choose what they wanted in and such we saw that PVR go up, not down, that's right.

Greta Crowley:

Profitability goes up, sales goes up, then you have a service client for life. That's exactly right. It does feel counterintuitive to give up control and we're knowing consumers want control. So, yeah, I think it's something we're going to have to continue to balance.

Jim Fitzpatrick:

Exactly. I think F&I managers or dealers have to be in therapy over this. They go. It's okay, it's all right. You just got to trust them. The consumer knows what they want and they're going to like you more for this and you you'll probably make more money.

Jim Fitzpatrick:

So just stay with us on this...

Greta Crowley:

We need some case studies, we need some fellow f and I yes, you can work your network network after this and we'll get some good testimonials,

Jim Fitzpatrick:

That's right, that's exactly what we need.

Jim Fitzpatrick:

Greta Crowley, Vice President of retail marketing at Cox Automotive. Thank you so much for stopping by. CBT News. This, this is kind of information and content that we love sharing with our dealer viewers and F&I managers for that matter. Yes, great.

Greta Crowley:

Well, thank you for having me. I appreciate it.

Jim Fitzpatrick:

Absolutely.

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