ATLANTA -

As advanced data techniques have made harvesting and management of vast amounts of personal data possible, some consumers get nervous about privacy issues related to personal data. 

However, 68% of consumers in a recent survey don’t mind dealers using personalization technology if it improves the overall vehicle-buying experience. And that number jumps to 76% among ages 18 to 34.

In fact, the survey — Cox Automotive’s Technology and Transformation of Retail Study — indicated that just as consumers have some contradicting views in the area of personalization enabled by automation and artificial intelligence, or AI — such as nervousness about privacy but wanting the personalization — dealers also faced some challenges, according to the study.

Sixty-three percent of dealers say that to adapt to changing pressures they face, adoption of automation or AI is necessary. However, only about half of dealers know “a lot” about these technologies. That makes adoption more challenging, according to the study.  

Many obstacles are slowing the adoption of automation and AI technology at U.S. dealerships, the study shows. Some of the top challenges dealerships mentioned were, “not worth the cost,” “staff resistant to change” and “wouldn’t fit in current process.” 

But the study showed good news in the area of dealers’ views of AI technology. Seventy-two percent of dealers say that technology is a tool that can help improve efficiencies and can help staff focus on other areas of the dealership. But only 28% of dealers believe AI adoption will lead to reductions in staff. Just over half of surveyed dealers said adoption of automated processes can help them bring a better experience to customers and deliver improved retention and loyalty. 

Personalization will be the biggest priority as the car buying and owning process transforms, according to the study, which described personalization as the ability for dealers to deliver an experience that feels unique for each consumer. 

A personalized experience at the dealership is important to 74% of those surveyed. Younger people especially like that personalization, with 87% of people ages 18-24 and 81% of people ages 25-34 saying a personalized dealership experience is important.  

Most respondents believe human interaction is a “necessary and irreplaceable part” of the vehicle buying and owning experience, according to Cox Automotive. Sixty-two percent of respondents, for example, want to review and sign the final documents and contracts face to face with a dealership representative.

“In other words, a 100% online buying experience is still not the preference of the majority,” Cox Automotive said.  

Consumers also want to stay in touch after the purchase, according to the study. After a vehicle purchase, more than 80% of consumers want to see some communication from their dealership. 

According to the study, AI technology can automate that process.

A service department should use automated and/or AI technology for an improved service process, said a majority of surveyed vehicle owners. Almost 90% of them say a dealer’s service department should know something about them when they contact the department for service.

What are some of the things they should know? Sixty-eight percent said vehicle make and model, 64% said vehicle year, 56% said service history of the vehicle, 47% said approximate vehicle mileage, 41% said the “features of my current vehicle,” and 30% expect the dealer to know the trade-in value of their current vehicle.

Personalization is worth the investment if done right, according to the study. Sixty-six percent of respondents said dealerships that implement personalization technology offer a more expedient customer service experience. Sixty-four percent said it resulted in a more efficient customer service experience, and 62% said it resulted in a more relevant customer service experience.

For typical new-car owners, they would like to receive information about special service promotions by e-mail every three to six months. They also would prefer receive advice on the best trade-in time for a vehicle and would welcome alerts on open recalls.  

Senior vice president of Cox Automotive Dealer Software Solutions and general manager of CRM provider VinSolutions Lori Wittman said dealers should carefully manage customer interaction.

“This new study clearly underscores what we see with CRM usage every day: New-car owners do not want to be spammed or stalked by their dealership,” Wittman said in a news release. “Having the right data at the right time to be relevant instantly is paramount to successful personalization.” 

Cox Automotive’s VinSolutions team conducted the survey from April 30 to May 23 and compiled results from responses from 532 franchised dealerships and 2,032 recent automotive consumers.