3 reasons why you need AI to elevate your revenues in the auto aftermarket?

Auto aftermarket

Introduction

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!

Issues that Hamper Your Revenue

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.

1. Too Many SKUs

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.

2. Lack of Knowledge in Buying Patterns

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.

AI to the Rescue

Here are three reasons why you need AI to elevate your revenues in the auto aftermarket.

1. Delivering the Right Product to the Right Retailer with SKU Optimization

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.

2. Personalized Recommendations for Managers

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.

3. Creating New Sales Opportunities Through Buyer Persona

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.

4. Influencer Marketing

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.

Scale Your Aftermarket Business with Digilytics RevUP

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.

  • 1. RevUP Drive - Conducts the plan-do-check-act, or the review-understand-recommend-act (RURA), on your buyer persona.
  • 2. RevUP Promote - Helps you manage, simulate, and optimize your promotion strategies.
  • 3. RevUP Influence - Assists you in digitally onboarding influencers, like mechanics. You can also set up the influencers’ pre and post-purchase journey with your business.

Benefits of Using RevUP

  • 1. To begin with, RevUP is a simple plug-and-play bolt-on product that you can integrate into your business without making any changes to your current systems.
  • 2. The product offers a safe and secure way to scale your business.
  • 3. With RevUP, you can gain a granular and deeper understanding of various factors in the auto aftermarket.
  • 4. Offers actionable insights and real-time analytics that you and your sales team can leverage to improve your auto aftermarket business and elevate revenue.
  • 5. RevUP helps you manage and organize large volumes of SKUs.
  • 6. Helps in onboarding influencers to drive more customers.
  • 7. It helps you recognize and identify automotive parts, retailer locations, and market areas that are not delivering optimal results and that require more attention.
  • 8. It contains a chatbot built into the system to solve all your problems and queries.

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,

  • A 5-10% growth in revenue.
  • Reduction in the amount spent on promotions by 5-10%.
  • Higher ROI by 7-10 times.

Conclusion

  • Better management and optimization
  • Growth in revenue
  • Understanding buying patterns through actionable insights and analytics

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!

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