Our licensing structure for car dealerships

Navigating the world of customer service solutions can be daunting. With numerous options available, choosing the right chat service for your car dealership can be a bit like finding the right car: you need something reliable, cost-effective, and suitable for your needs.

Over the past years we have helped several dealer groups, like Nefkens, van Mossel en Louwman, to select the right solution for them, among which ABC. In this blog, we delve into how AutoChat’s licensing structure works, the costs involved, helping you understand whether it is the perfect fit for your dealership’s needs.

By the end, you’ll have a clear understanding of our pricing, your possible return of investment and what makes AutoChat a valuable tool in enhancing your customer interactions. This allows you to make a decision that’s right for your business.

The roadblocks in dealership customer service

Dealerships often face the challenge of managing customer inquiries efficiently. Traditionally, customer service within car dealerships faces their share of speed bumps, leading to long wait times as staff need to check information or return calls later. This can cause frustration for customers who want quick answers. High costs are also a concern, especially for larger dealer groups that need many employees to handle customer communication.

For instance, Louwman Dealer Group experienced significant improvements after switching from a manual chat solution to AutoChat. They realised an annual savings of € 250.000,- and are now focused on saving millions in the future, with the first significant reduction already achieved.

Solutions like this underscore the value of modernizing customer interactions in dealerships. They streamline operations, cut costs, boost sales conversions, provide valuable analytics, and allow for scalable growth—ultimately enhancing overall business efficiency and growth.

Understanding Licensing Structures and Cost Efficiency

There are primarily two types of licensing structures utilized by digital customer service solutions in the automotive industry:

Paying per chat

The ‘pay per chat’ model charges dealerships a fee for each customer interaction handled by the service, which can quickly accumulate costs depending on the volume of customer traffic.

Paying per profit centre

In contrast, the ‘pay per profit centre’ model applies a fixed monthly fee per profit centre, such as a showroom or service workshop, regardless of the number of chats. This model tends to be more economical for businesses with high customer engagement, as it caps monthly expenses while providing unlimited service interactions.

Our approach focuses on the ‘pay per profit centre’ model, which is generally cheaper for dealerships, particularly those with multiple profit centres and substantial customer interaction, offering predictable pricing and better cost control. This structure not only simplifies budgeting but also enhances operational flexibility without the worry of escalating costs per chat.

Breaking down AutoChat’s licensing structure and costs

AutoChat’s financial model is built to be as straightforward as driving on a clear road. The journey begins with a

• one-time setup fee of 2.500 setting the stage for two profit centres, such as your showroom and service workshop, at a monthly rate of 500.
• Should your dealership wish to expand this service to additional profit centres, an extra 75 per month for each will be added to the tally.

This modular pricing is designed to grow alongside your dealership, ensuring that the service can adapt to your evolving business needs without overtaking your budget.

What is a profit centre?

A profit centre is essentially any department within your dealership that directly contributes to your business’s profitability, for example

• A showroom
• A service workshop
• Different locations

Recognizing and managing these profit centres effectively is crucial for your dealership’s financial health. AutoChat’s flexible licensing allows these individual departments to harness the power of AI to enhance customer service, making each a more efficient contributor to your dealership’s revenue.

The expected ROI from implementing AutoChat

Integrating AutoChat into your dealership’s operations is like investing in a high-performance vehicle expect significant quality and returns. AutoChat’s core value lies in its efficiency to reduce the manpower and time required to manage customer inquiries, which translates directly into cost savings and often results in higher sales due to improved customer engagement and satisfaction.

A compelling example of its effectiveness can be seen with a large VW Audi dealership in The Netherlands , which replaced its traditional test drive form with AutoChat. This change alone led to a remarkable 70% increase in conversion rates, demonstrating the tangible impact AutoChat can have on dealership operations.

Taking the next step with AutoChat

As we cruise to the end of this guide, the key question is whether AutoChat is the right passenger for your dealership’s journey. It’s a tool that brings a suite of benefits to the table, from cost savings and 24/7 customer service to deep customization and robust analytics. The decision, much like selecting a car, will depend on your specific needs, goals, and current service structure.

Interested in seeing how AutoChat can rev up your customer service engine? Considering a live demo could be your next best move, providing you with a real-world look at AutoChat in action within your dealership’s environment.