Artificial intelligence continues to gain traction in the industry and is growing in importance to ensure the automotive distribution and retail market is successful.
Peter Leger is the newest board member for Aclaro Inc., an Artificial Intelligence software company that provides disruptive technologies to the automotive, financial and government sectors. The company also recently announced the release of Aclaro EcoSystem 3.0 (ES 3.0).
Leger, who is also CEO/President of IVSG LLC , which provides cutting edge ETL solution integration solutions and software platforms spoke with Aftermarket Business World about the AI in the aftermarket at Aclaro's drive to lead in the AI segment.
Tell us about the importance of artificial intelligence in the ever-changing automotive industry.
Artificial Intelligence(AI) platforms are becoming extremely critical as the backbone foundation behind data analytics in automotive retailing. Dealers and their retail partners including the aftermarket segment want quick, accurate and complete actionable data to support key decisions regarding customer acquisition and retention programs to grow their revenues at the highest margins.
AI and machine learning is becoming more dynamic and faster than human analysis producing behavioral buying patterns of vehicles, parts and service that clearly outperform legacy analytics and systems.
How is Aclaro serving as a leader in this AI drive?
Aclaro has recently created the Aclaro Marketplace for the subprime segment connecting in real-time finance companies, dealers and consumers to generate benefits for all three constituents.
We use Aclaro's AI platform to risk profile a participating finance company's customer/borrower's portfolio to identify customers with the low-risk propensity to borrow and buy a vehcle and aftermarket products (GAP Insurance, Extended Service Contracts and Appearance Products).
- Aclaro's managed services offering generat higher customer/borrower retention rates at current industry levels at less than 10 percent to potentially 20 percent and greater
- Aclaro guarantees against consumer first payment default for the finance company
- Finance company pays Aclaro a fee of $399-$699 on closed consumer vehicle purchases
Consumers get pre-approved loans from the participating finance company to then browse online with the Aclaro mobile inventory app to input 12 personal buying attributes (Using Aclaro’s NANO profile Tool) to be matched to available real-time vehicle inventory from participating dealer inventory
- Dealers' available vehicle inventory is extracted/updated daily from the dealer DMS using Aclaro's GlobalConnectPlatform.
- Aclaro's AI platform is the backbone that matches in real time the consumer's affordability and preferences generating a menu of three vehicles to review with participating dealers in the Aclaro Marketplace
- The easiest way for a consumer to buy a vehicle and aftermarket products with less than perfect credit
- Aclaro's Marketplace ensures the consumer/borrower/buyer is treated with the highest customer experience, focused on speed, convenience, fairness and value.
Dealers get in-market consumers—not just browsers or lookers- with pre-approved loans to be matched against the participating dealers’ available inventory
- Lowest cost of customer acquisition with ability to upsell aftermarket products
- Dealers increase turnover of their vehicle inventory at a fee of $199 per closed vehicle sale transaction
Can you tell us about Ecosystem 3.0 and how this will change the market for your clients?
- Aclaro’s Ecosystem 3.0 for the automotive retail sector is unmatched in leveraging AI software/tools, data integration and connecting the three primary constituents in the underserved subprime market segment—win-win for all 3
There are approximately 31 percent of automotive loans are subprime which have a low rate of customer retention and life-cycle management, poor customer satisfaction in the loan and car buying process and ultimately causes higher costs for the constituents
- Aclaro’s Ecosystem 3.0 eliminates the transaction friction, lowers costs for all three constituents and increases customer satisfaction while finance companies and dealers (and aftermarket partners) generate higher revenue at higher margins