The cars we drive today have become as digital as they are mechanical. The integration of this digital technology makes it possible to collect large volumes of data from the many different monitoring and connected devices within the vehicle.
By 2020 IHS Automotive is predicting 152 million connected cars will be on the road generating 30 terabytes of data every single day. Small businesses in the automotive industry can use this information to deliver better services for the repair and maintenance of their customer’s vehicles.
With cloud-based machine learning (ML) and artificial intelligence (AI), auto parts stores and repair shops, as well as other related automotive businesses, have become more efficient than ever. Everything from their backend to customer-facing operations is being optimized to provide the best service possible.
This is driving the market for automotive AI and ML hardware, software, and services segments to grow to $14 billion by 2025, according to Tractica. In the Original Equipment Manufacturers (OEMs) segment, McKinsey is projecting it will grow to $215 billion annually by the same forecast period.
So how can small businesses start using cloud-based ML and AI solutions now and be future ready as the technologies become more integrated into the automotive industry, consumer devices and society as a whole?
How Machine Learning Can Transform Your Automotive Business
Here are five ways they can be deployed.
Predictive Maintenance
The purpose of predictive maintenance systems is to predict failures and even take corrective actions to fix problems — BEFORE they happen! This can include everything from preparing the necessary safeguards for even a planned failure to replacing a potentially defective part ahead of schedule.
This higher predictability means the customer will know when they need to bring the vehicle in for repairs. They will not be caught off guard and they can make plans ahead of time so they won’t be inconvenienced by missing work or by a break down in the middle of the highway with additional costs.
Predictive maintenance will completely avoid or minimize downtimes as well as greatly improve customer service, save costs, and possibly save the lives of your customers and the public on the roads.
Condition Monitoring
As a repair shop, you can now start offering condition monitoring processes to make sure your customers’ vehicles are in tip-top shape. This is an added value service which will give drivers peace of mind knowing their car is actually being monitored regularly.
Whether with existing sensors or the installation of new oil pressure, oil temperature, oil leakage, thermostat, air pressure or other types of sensors, some very important functions can be monitored remotely to warn your customers right away of trouble.
Customer Communication and Engagement
All of these interactions will naturally increase customer communication and engagement, and with cloud-based ML and AI solutions, you can stay in touch with them seamlessly on their smartphones, tablets, PCs and even in their cars.
Small businesses in the automotive industry can now provide highly personalized experiences today’s customers demand. With machine learning, businesses will be able to deliver a personalized customer experience at scale without the traditional cost of call centers or other labor-intensive operations.
Users can be engaged with chatbots and AI systems by sending queries, making and verifying appointments, reminding them of scheduled maintenance or repair, conducting surveys and much more.
Accurate Repair Estimates
Getting a uniform estimate from auto repair shops is a challenge. With ML, it is possible to develop a solution which can identify the damaged parts, evaluate the damage, calculate what kind of repair is needed and estimate the cost. Estimates can be produced quickly and accurately for more professional appraisals.
If a shop has this technology in place, customers will know the damage is being evaluated objectively. This feature alone is enough to drive more customers to your doors and increase sales.
Sales and Marketing
If you are running an auto parts store, you can use machine learning models to predict the products your customers want most and create personalized marketing campaigns. With ML, you can use data such as recent purchases, social media presence, and other customer activity with personal details to gain insights into customer preferences and buying behavior.
When it comes to sales, you can determine the right price to charge your customers at the right time with dynamic and optimized pricing. Add a cloud-based CRM solution to the mix, and your marketing efforts can be optimized by improving customer and employee communications across all channels with real-time availability.
Why Machine Learning?
Machine learning gives you access to the data in your company and industry. With this data, the technology is able to come up with insights to improve the way you carry out almost all of the different daily operations of your company.
If properly implemented, a cloud-based ML solution will provide the transparency you need to see and understand the complexities of your industry so you can thrive.
For more on how cloud-based services can help your business, contact Meylah today.
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