Q In this advertisement feature we ask Tim Smith what does today’s customer journey look like and how might it change in the years ahead?
It’s disjointed. It’s frustrating. It’s not good enough. Over the last 20 years, the world has become digitised. If you don’t know that the vast majority of car buyers conduct online research before visiting dealerships, it might be time to get online yourself! According to The Marketing Blog, it’s 97%, but whatever the latest percentage is, this has led to a fractured buying journey between online and the showroom. Siloed systems, trapped data and numerous platforms that perform highly specific functions mean 69% of consumers think there is too much back and forth. 76% feel frustrated the data isn’t comprehensive, or worse still, inaccurate (OC&C 2024).
This is being solved right now. These independent systems and datasets are being connected. Dealers and OEMs are focusing more and more on creating seamless workflows and consistent messaging for car buyers. Keyloop is committed to doing this through Fusion, our Automotive Retail Platform. We have split this complex ecosystem into four key capability domains (Demand, Supply, Ownership, and Operation) to enable a fully connected buying journey and a deeply personal buying experience.
Q What challenges and opportunities do retailers face when trying to connect these touchpoints?
People, tech and complexity. These three factors create significant challenges and opportunities for retailers trying to create a seamless buying and owning journey for their customers. People need to be able to use tools quickly and efficiently, and given the high turnover of dealership staff, it’s critical the tools they use are intuitive so they can be used without lengthy training to ensure fast starts.
Technology often acts as a barrier to fast-starting, either because it’s clunky or, worse still, doesn’t perform or manage full workflows that reflect a person’s day job. For example, managing a full sales enquiry to order or a customer’s service journey means using many systems or rekeying data. This results in process complexity and the cost of managing complicated ecosystems. It also causes significant customer frustration as what they do online doesn’t seamlessly transfer in-store and vice versa. This is why at Keyloop, we’re developing our Sales Hub product suite, putting customers and vehicles at the heart of the transaction to avoid duplicated processes and enhance the journey wherever and however a customer chooses to transact.
By delivering comprehensive solutions built on a common platform through our Active Data Core, retailers can break down these data barriers, allowing information to move freely between systems to unlock real-time insights and enable automated, seamless integration. For example, our Sales Hub solution extends beyond the vehicle purchase to the ownership and renewal journey with dedicated user account features to drive conversion. This connection between systems helps to eliminate inefficiency, making the day-to-day experience for retail teams less challenging and more enjoyable, undoubtedly translating into a better customer experience.
Q How does Fusion build upon your already-established DMS capabilities?
For over 40 years, the DMS has automated key functions in automotive retail, and we’re proud to be an industry-leading provider of Dealer Management Systems for retailers across the globe. But, as the industry evolves, so must the technology that supports it. Fusion is not a replacement; it’s an evolution. It builds on the resilience and robustness of your DMS, enhancing your entire software ecosystem to deliver greater connectivity, efficiency, and flexibility. With Fusion at the core, your DMS becomes part of a fully connected Automotive Retail Platform designed to eliminate rekeying, personalise the customer journey, enhance customer engagement and boost profitability.
Q While we all like the convenience provided in the digital world, many consumers still favour an in-person car-buying experience. How does Fusion support an omnichannel customer journey?
One of the most important components of a successful omnichannel experience is ensuring a consistent, satisfying, and connected journey, regardless of how a customer wants to purchase their vehicle. Data connectivity enables personalisation at every touchpoint, online, in-store, or using a combination of the two.
Fusion uses a blend of personalisation and automation to allow customers to carry their preferences from channel to channel, ensuring they never have to restart their journey. Be it through connected user accounts, QR code technology, AI or showroom and aftersales integrations, Fusion allows customers to self-serve at every point of the journey and transition smoothly to dealership intervention when and if required. The key is to build trust and loyalty throughout the relationship and empower them to confidently make informed decisions.
Q Attitudes to ownership are changing. Why is aftersales an often-underestimated opportunity in automotive, and how can technology help dealers capitalise on this opportunity?
Despite its potential to improve profitability and customer loyalty, aftersales is often underestimated as a revenue driver, despite contributing 40-60% of a franchise dealer’s bottom line. We see Ownership as a way of classifying aftersales solutions that are traditionally internally focussed. We expose these services and the data that supports them throughout a customer’s ownership cycle. Many retailers still rely on disconnected systems and manual processes to engage with customers and conduct workshop activities. This leads to inefficiencies that slow down service teams and create customer friction. By automating routine tasks, integrating data, and streamlining workflows, businesses can reduce inefficiencies, enhance experiences, and unlock new revenue opportunities.
A great example is Service Hub, part of Fusion’s Ownership domain. Brought to market rapidly, it is already delivering tangible results by connecting key elements of the aftersales process. Results include, technicians saving up to 45 minutes per day, and 30% of online check-ins leading to upsell opportunities. By optimising your aftersales workflow, you can drive greater efficiency, improve customer retention, and maximise profitability.
Q What impact can Fusion have on lifetime value?
Fusion maximises customer lifetime value (CLV) and vehicle lifetime value (VLV) by providing 360-degree visibility into both. By combining customer and vehicle data, Fusion enables you to target the right customers with the right messages at precisely the right time. This level of personalisation maintains ongoing engagement and encourages customers to return for future purchases and services, ultimately driving higher CLV.
In addition, with full visibility of your stock through Fusion’s Supply domain, you can optimise VLV by making more accurate pricing and stocking decisions. By optimising stock turn and ensuring vehicles are always in customers’ hands, you reduce overhead costs and generate a consistent profit. This real-time insight helps you move inventory more efficiently and maximise the profitability of every vehicle throughout its lifecycle.
Q How is Keyloop helping dealerships to leverage data to build stronger, omnichannel customer relationships?
In many industries, businesses know their customers inside out. From past purchases to browsing habits, they use data to ensure every transaction is tailored to the individual. The key is to collect data and use it in meaningful ways to improve every interaction with every customer.
Keyloop helps retailers leverage deeper insights to enable a hyper-personalised experience, driving loyalty and increasing lifetime value. Built with Experience-First at its heart, Fusion enables retailers to move away from managing transactions and towards fostering relationships. It prioritises both experience and operational efficiency, delivering exceptional outcomes for customers and retailers alike. Similarly, our Sales Hub product offering will put customers behind the wheel of their transaction, tailoring the journey around multiple data points to create a personal experience for every customer.
Q What role does AI have in the future of automotive retail solutions and how does Fusion deliver this in the retail experience?
AI is transforming the automotive industry by enabling personalised customer experiences and improving efficiency. Fusion uses AI, particularly within the Demand domain , to personalise the customer experience and optimise marketing costs. It provides 24/7 virtual assistance and powers propensity modelling, delivering targeted renewal offers and helping retailers identify those ready to transition to electric vehicles, supporting sales goals in line with ZEV mandates.
Additionally, AI cleanses data for ultimate consistency across systems and accelerates media asset creation. For instance, it can reduce time-to-market for vehicle photography by 95%, from three weeks to under one day (Source: Phyron). Like others in the industry, Fusion is ultimately leveraging AI to enhance customer engagement and operational efficiency, helping retailers stay agile and competitive.
Q How can retailers optimise the transition from internal combustion engine (ICE) vehicles to electric vehicles (EVs) while maintaining profitability?
Aftersales presents a significant opportunity for retailers to sustain profitability while continuing to meet evolving customer expectations. While traditional servicing needs may decline, battery maintenance, recalls, and software updates will become critical revenue streams. Retailers can optimise workshop efficiency and long-term customer engagement by restructuring service models and ensuring technicians are equipped with EV-specific expertise.
Meanwhile, data-driven marketing is key to EV acquisition sales. By leveraging AI and propensity modelling, retailers can identify customers most likely to transition and target them with tailored campaigns . Providing the right content and tools, such as Total Cost of Ownership (TCO) calculators, helps inform customers of the financial and environmental benefits, addressing common hesitations around EV adoption.
Ultimately, the transition to EVs is not just about selling new vehicles. It’s about reshaping the entire journey, from education to servicing, to ensure long-term profitability while delivering a seamless customer experience.
Q Mindful of new market entrants, the shift towards electrification and increasing economic headwinds, are there any specific areas that retailers should be focusing on to future-proof their business?
Economic pressures and shifting market dynamics mean retailers have to do more with less, be it automating processes, consolidating technology, or leveraging data for smarter decision-making. We believe they can do just that by focusing on three key areas: Time, Money, and Risk.
First, time: Automate the tasks that take the most time. This will make operations more efficient and create a more streamlined, seamless customer experience. By reducing manual work and increasing automation, retailers can deliver faster, more responsive service.
Second, money: Consider innovative ways to reduce costs through personalisation and automation. For example, you can optimise marketing efforts through tailored, data-driven outreach using first-party data to maximise deal profitability.
Finally, risk: Harness data to minimise your exposure to risk. Whether it’s through forecasting residual values or improving vehicle visibility, relying on data to drive decisions will help you stay agile and reduce uncertainty.
Check out the video interview with Tim Smith
This is a Motor Trader The Bottom Line advertisement feature with an accompanying video with Tim Smith