The automotive aftermarket is rising in rank in terms of market size and public popularity. After being valued at $390.10 billion in 2020, the auto aftermarket market size is expected to grow at a CAGR of 3.8% from 2021 to 2028.
The reasons behind this rise include the production of high-quality products at affordable rates that are at par with the standard of the products produced by Original Equipment Manufacturers (OEMs). The use of advanced technology in the production of parts is another factor to be considered here.
If you are heading an auto aftermarket company or are a sales or retail manager in the auto aftermarket, boosting your revenues might be one of your primary goals. Did you know that Artificial Intelligence (AI) can help you achieve this goal? Let’s find out how!
While the auto aftermarket is known for quality products at low costs, there are a few issues that can hamper your business’s revenue growth.
Stock Keeping Units (SKUs) are codes that help you identify a particular product. It contains all the information about that product. The biggest problem that companies face in the auto aftermarket industry is the high volume of SKUs.
Distribution of parts in the aftermarket sector happens through distributors or retailers. With thousands of SKUs for different products and thousands of outlets, distributing the right product to the right retailer becomes an issue. Furthermore, maintaining inventory and planning for the future also gets complicated with too many SKUs.
Another issue in the auto aftermarket is losing out on sales due to a lower understanding of the customer’s buying patterns and a few market factors. One such factor is the lack of knowledge of how an influencer’s behaviour (mechanics) can impact the buying decisions of your users.
Here are three reasons why you need AI to elevate your revenues in the auto aftermarket.
Having the right products for the right market is critical for SKU optimization. It helps organize the products and keep the ones that are relevant to the market and the customer’s interests. For instance, having the right and relevant parts for automotive vehicles in your geographical location can help in SKU optimization.
Through AI, you can analyse such market factors to identify the most relevant products and parts. This way, you can limit your costs and boost your revenue.
Apart from insights, managers will get real-time recommendations on whether to upsell or cross sell a product, recommended product bundles, part groups/SKUs and recommended quantities and attrition alters. This will enable them to take corrective actions.
There are over 70 million searches for automotive parts on Google every month. Having an online presence with a website for your auto aftermarket company can be essential for growing your business. Personalized recommendations can enhance your customer’s experience and further boost your sales.
Again, by analysing and understanding the market, AI can better display recommendations to sales manager.
Creating a buyer persona that resembles your targeted customer is another crucial element that you must focus on to develop your sales and enhance your revenue. Buyer persona entails details like the category and background of your customer and their interests.
With the help of a buyer persona, AI can then identify the buying patterns of your customer. These patterns include the different factors that your customer considers before making a purchase.
Once the AI identifies the customer’s shopping pattern, it can provide insights and analytics that you can use to make better decisions on your automotive parts, SKUs, and marketing strategies.
Influencer marketing is a form of pull marketing strategy through which you can bring in more customers to your business with the help of influencers such as mechanics. Influencers play an integral role in influencing the purchasing decisions of customers.
Using AI, you can digitalize the entire onboarding process for the influencer with your aftermarket company.
Digilytics AI is a tech-based organization that leverages the power of artificial intelligence and machine learning to design and develop easy-to-use SaaS AI products.
One such product of Digilytics AI is RevUP, a revenue growth management product that uses AI and implements it into the auto aftermarket industry.
RevUP is your one-stop solution that tackles all the problems mentioned above. With the help of AI, RevUP revolutionizes auto aftermarket and provides granular understanding through which you can analyze and understand minute details.
RevUP comprises three modules that can help you elevate your sales and revenue.
Digilytics RevUP is a proven solution in the auto aftermarket sector. After integrating RevUP into their business, a few Indian aftermarket companies have experienced the following benefits,
These three things are essential parts of every business. Achieving them can help you scale your auto aftermarket business.
Digilytics AI’s RevUP helps you achieve all these things through its easy-to-use and efficient SaaS product. Feel free to leave a message or contact us at our India or UK office to find out more!
While you are here, other top articles you might be interested in