12 • October 2023 • Powersports Business

FROM THE EDITOR

With AI coming into prominence in the media and for businesses lately , could it also help powersports dealers and manufacturers with their companies ? With that in mind , we went straight to the source first by asking this simple question to ChatGPT . Here ’ s

BRENDAN BAKER what it came up with , virtually unedited :

Artificial Intelligence ( AI ) can play a significant role in the powersports dealership industry by enhancing various aspects of the business . Powersports dealerships typically sell vehicles such as motorcycles , ATVs , snowmobiles , and watercraft . Here are several ways AI can benefit powersports dealers : Customer Engagement and Support :

Chatbots : AI-powered chatbots can handle customer inquiries 24 / 7 , providing information about products , pricing , and availability .

Virtual Assistants : Virtual assistants can help customers with scheduling test drives , service appointments , and answering frequently asked questions .

Sales and Inventory Management :

Demand Forecasting : AI algorithms can analyze historical sales data and market trends to predict which models will be in high demand , helping dealerships optimize their inventory and pricing strategies .

Inventory Management : AI can monitor inventory levels and automatically reorder popular models when stock runs low .

Customer Relationship Management ( CRM ):

Personalization : AI can analyze customer data to create personalized marketing campaigns and recommendations , increasing customer retention and satisfaction .

Lead Scoring : AI can help prioritize leads by analyzing their likelihood to convert , allowing sales teams to focus on the most promising prospects .

Maintenance and Service :

Predictive Maintenance : AI can analyze vehicle data to predict when maintenance is required , enabling dealerships to proactively reach out to customers for service appointments .

Service Recommendations : AI can provide customers with tailored service recommendations based on their vehicle ’ s usage and condition .

Marketing and Advertising :

Targeted Advertising : AI can help dealerships target their advertising efforts more effectively by identifying potential buyers based on their online behavior and interests .

Ad Content Generation : AI can assist in generating compelling ad copy and visuals for online and offline advertising campaigns .

Price Optimization :

Dynamic Pricing : AI can adjust pricing in realtime based on factors like demand , competition , and inventory levels , maximizing profit margins .

Market Research and Insights :

Competitive Analysis : AI can gather and analyze data from competitors ’ websites and social media to help dealerships stay competitive .

Market Trend Analysis : AI can track industry trends and provide insights into emerging technologies or customer preferences .

Security and Fraud Detection :

Fraud Prevention : AI can help detect and prevent fraudulent transactions and activities , ensuring the security of online sales and payments .

Data Analytics and Reporting : Performance Metrics : AI can generate reports and dashboards that provide insights into sales performance , customer behavior , and operational efficiency .

Voice and Image Recognition : Powersports dealerships can use AI-powered voice and image recognition systems for vehicle diagnostics , security , and customer interactions .

Implementing AI solutions in a powersports dealership requires careful planning , data integration , and staff training . However , when properly implemented , AI can streamline operations , improve customer experiences , and boost profitability in the powersports industry .

It ’ s pretty scary that a computer can develop these things with very little input . But that is the world we live in . There are far more things that AI can do today and will be able to do tomorrow . Many of the pioneers and engineers of these computer systems are worried , as is this journalist and writer . If AI can be used for good , it can also be used for evil , as simplistic as that sounds . The world has become a giant global web of information at your fingertips , and some of it is very frightening , i . e ., the dark web .

I recently sat in on an AI webinar hosted by Canadian investment firm Stifel . They had Hugues Foltz , EVP at Vooban , on to discuss the potential of generative AI in the retail industry . For some , generative AI is a tidal wave akin to the arrival of personal computers , browsing the internet for the first time , or the development of smartphones . Powersports retailers could benefit from generative AI using customer databases to build algorithms that forecast sales and inventory levels , personalize customer experiences , and optimize pricing . Stifel notes that consulting firm McKinsey estimated that generative AI could increase profits of the global apparel sector by at least $ 150 billion .

According to Stifel ’ s expert , using artificial intelligence models to forecast sales would require at least two years of data and several sources of internal and external data from structured ( i . e ., economic data ) and unstructured ( i . e ., social media and texts ) sources . With this , companies can build AI-powered models , drastically improving predictive accuracy .

Stifel ’ s panelist discussed the case study of a client that has seen the accuracy of its 12−month sales forecasts increase from 55 % ( when done by the sales team ) to 85 % using generative AI algorithms . The improvement in demand forecasting translated into improved supply chain management , better-managed inventory levels , and more efficient operations . The 30 % improvement was achieved within three months and under a very reasonable budget , creating a high ROIC .

According to McKinsey , companies that excel at personalization increase their revenues by 40 % vs . those that do not . From using AI-powered chatbots to interacting with customers online to tailoring customer interactions based on individual consumer profiles , companies can use AI applications to create a personalized customer experience .

Like most of you , I ’ m skeptical about AI and suspicious of the type of harm it may do if it gets into the wrong hands . But there are also some significant upsides to employing it on the business analytics side to see where efficiencies and profits can be made . We ’ ll keep a close eye on this one .

INSTA TIPS

Is your dealership capitalizing on the top-of-mind marketing ease that Instagram offers ? Did you come up with an ideal way to showcase your customers in an effort to help spread the word about your shop and its employees ? If so , let us know . Powersports Business will highlight Instagram posts from a variety of dealerships in upcoming editions of the magazine .

Dealerships featured all follow the Powersports Business Instagram at @ powersportsbusiness . All posts featured will be photo or video in nature , with content from Instagram Stories not considered for this piece .

Got an Instagram tip that works at your dealership or one with which you do business ? Feel like raising the collective industry tide ? Let us know at mhubbard @ epgacceleration . com .

SCOTT POWERSPORTS @ scottpowersports

Followers 1,622

Share the fun that your team has like Scott Powersports recently did ! The dealership posted a short video sure to get a little laugh , while drawing attention to the Kawasaki Elektrode electric balance bike . The video is short and goofy , but it also illustrates the personality of the dealership and its team and shows off what product it carries as well . The caption reads , “ Is an explanation even necessary ? These little @ kawasakiusa Elektrodes are super fun !” This video provides a great example of how to keep posts creative without over complicating content .

MIRACLE CITY HARLEY-DAVIDSON @ miraclecityhd Followers 1,071 Keep your inventory flowing with the help of daily , weekly , or monthly Instagram posts dedicated to showing off your used units . Posting regularly is a key practice , so if you ’ re in need of content ideas , snap some pictures of the used units in your facility . Miracle City Harley-Davidson does this once a week and one of their recent posts says , “ We have a HUGE selection of PRE-LOVED inventory ! Check out our pre-loved bike of the week ! Schedule a test ride ! # harleydavidson # harleydavidsondaily # harleylovers # motorcycles # harleydavidsonaddicts .” Don ’ t forget to throw hashtags in your caption too !

RIDENOW POWERSPORTS CHANDLER @ ridenowchandler Followers 3,684 Where is your team and what have they been learning ? Keep your customers updated like RideNow Powersports Chandler has . While the dealership ’ s team was attending a dealer show , they kept their customers in the loop by posting a slideshow of photos from the event . They kept their customers up to date about new and updated product as quickly as they could . Part of the caption reads , “ Check out some shots of the All-New Can-Am Maverick R from the dealer show being held in Atlanta ! # RideNow # CanAm # MaverickR # DealerShow # SxS # SidebySide .”