Dave AI, a leading platform for developing Artificial Intelligence solutions, is poised to leverage its expertise from the passenger vehicle sector to broaden its client base in the commercial vehicle (CV) segment. Its goal is to enhance the connection between offline and online experiences, particularly in complex product domains like automobiles.
Despite the distinctive nature of OEMs, dealers, and customers in the CV sector compared to passenger cars, the company remains confident in delivering tailored solutions. Sriram PH, Founder of Dave AI, expressed assurance, drawing from the platform's extensive experience in supporting automakers.
Speaking to Mobility Outlook, Sriram PH, Founder, Dave AI, said, 'We're now starting to see interest in the commercial vehicles segment. For instance, we were one of the finalists in the DICV-IITM incubation pitch. This segment represents a unique challenge as the end user and the buyer are distinct entities, often discussing the total cost of ownership (TCO),' he said.
The sales process is more prolonged, requiring continuous engagement with customers and the sharing of pertinent information. While the technology itself isn't overly intricate, its application is deeply human-centric. 'In all our deployments, the primary emphasis is on 'humanising digital conversations for improved revenue outcomes,'' he mentioned.
Solutions Offered By Dave AI To Sell Cars
In a traditional showroom setting, the customer typically interacts with a salesperson, examines the car, and departs. However, when customers prefer to explore online, there exists a significant disparity between assisted sales encounters and self-service online experiences. This is precisely where Dave AI steps in, offering tools designed to influence buyers' decision-making processes during their discovery journey.
According to Sriram, this process comprises two key components: the salesperson's expertise on the product, which can be relatively straightforward to achieve. However, the more challenging aspect lies in swiftly assessing and adapting the sales approach to each individual customer's preferences and needs upon their arrival. Dave AI's technology is engineered to leverage minimal data and personalise this interaction as extensively as possible to drive desired outcomes, namely, bolstering revenue and ensuring a healthy bottom line. Essentially, it predicts the most effective course of action for each customer, thereby optimising the chances of a successful sale.
Traditionally in the auto industry, the typical process involves either booking a test drive or visiting the showroom in person. However, when customers need to interact with someone and complete the purchase, the process becomes more intricate. This complexity arises because discussions often revolve around physical aspects of the car, such as the boot space or other features. Visual aids can significantly enhance these discussions, as they provide a clearer understanding of the vehicle's attributes.
Dave AI's technology addresses this need by creating immersive visual conversational experiences for buyers, even in the online space. These features can be seamlessly integrated into OEMs' websites or incorporated into virtual reality devices within showrooms or mobile apps. 'We've developed an AI sales brain technology coupled with visualisations that allows OEMs to create and customise experiences for various touchpoints,' Sriram explained.
Empowering OEMs
Currently, vehicle manufacturers typically experience a conversion rate of 3% to 4%, highlighting a significant challenge in the industry. Despite substantial investments in digital marketing, achieving a satisfactory return on investment (ROI) remains uncertain. The primary issue lies in the fact that while millions of visitors frequent OEM websites, only a fraction of them engage with sales personal in person and are influenced to generate leads.
Although the car itself is a crucial aspect, constituting about 90% of the decision-making process, the remaining 10%, which includes test drives and interactions with salespersons can significantly impact finalising a deal. This challenge persists despite extensive training of sales personnel. In contrast, AI systems continuously interact with individuals, gathering valuable insights into their preferences and behaviours, thereby generating more qualified leads with refined data. By engaging with customers based on their intent, the AI tool aims to guide them towards purchasing the car and determine the next best course of action to influence their decision.
'Our tool operates on the assumption that a customer's presence indicates interest in the car, leveraging their intent to facilitate the purchase process. It analyses data in real-time to predict the most effective actions, using a patent-pending online learning genetic algorithm,' he clarified.
Ultimately, Dave AI's success can be measured by its impact on OEMs, as they have access to tangible results. Compared to other channels, the company provides buyers with an exceptional experience, resulting in greater satisfaction and increased likelihood of purchasing a car.
Competitive Landscape
According to Sriram, Dave AI competes with two types of companies. Firstly, there are traditional AI Bots, which are conventional ChatBots primarily used for general customer service interactions. Then, there are companies that enable creation of digital avatars, albeit solely for videos or answering inquiries without actively driving sales. He said Dave AI stands apart from these competitors due to its use of avatars with a captive sales brain, AI agents that facilitate personalised visual conversations, offering a unique, engaging and influential experience.
'We can also collaborate with companies operating in similar fields, where our system can customise the content based on the user, ensuring a tailored experience. Our avatars are adept at explaining the intricacies of cars in a comprehensive manner,' he explained.
Maruti Suzuki stands out as one of Dave AI's prominent clients in the automotive sector. The OEM not only utilises the company’s services but also supports it through its innovation fund and programme. It also works with Suzuki’s global digital initiatives and has started its deployment in three countries, underscoring its international reach. Additionally, it has initiated engagements with Skoda, Volkswagen, BYD and Hero MotoCorp in the automotive sector. While the company also collaborates with Bharat Petroleum, its primary focus remains on providing solutions to vehicle owners.
Key Drivers
Dave AI's relevance stems from broad marketplace trends that OEMs are adapting to. A significant shift is observed where fewer people physically visit establishments for product discovery, spanning beyond automotive to various industries. This trend has accelerated over the past 3-4 years, especially in the aftermath of COVID-19.
Prospective car buyers now predominantly initiate their purchasing journey online, seeking reviews and eventually landing on their preferred brand's digital channels. However, failure to engage effectively at this crucial stage can lead to a lost opportunity. Conversely, channels that provide a seamless brand experience and align with the customer's mindset stand a better chance of generating leads.
Traditionally, OEMs expected customers visiting their websites to proactively reach out, typically for contact details. Dave AI challenges this notion by recognising the importance of delivering relevant information when customers are in the discovery mindset. By catering to their information needs effectively, customers are more likely to engage positively. This strategic approach represents Dave AI's sweet spot.
Moreover, studies indicate that over 50% of individuals are open to interacting with automated systems. With advancements in Artificial Intelligence, it's now possible to seamlessly integrate this technology into the sales process, offering a sophisticated and user-friendly experience.
Today, Chat GPT has become ubiquitous, prompting every brand to invest in building their own intelligent systems. Over the past five years, Dave AI has amassed expertise and developed a model trained with industry-wide information, including the definitions of various terms and can then be leveraged by enterprises to create their own models with their enterprise data. The company calls this framework, ‘The Gryd’. 'The Gryd encompasses its own models with generic intelligences that we have compiled, empowering us to secure enterprise data but approach new customers armed with a comprehensive understanding of the industry,' he said.
This knowledge repository acts as a black box, capable of assisting sales personnel by providing a wealth of information. The system can accurately select the most suitable response for a customer with a similar mindset from the vast dataset. Analogous to the 'Program Mode' found in digital cameras, which selects the appropriate scenario from millions of stored images along with their respective settings to achieve optimal exposure, Dave AI refers to this as an ‘affinity graph.’
This capability, one of the four IPs the company has patented so far, utilises a genetic algorithm to adjust weightages based on provided information and make precise recommendations. Through analysing thousands of conversations, the system constructs this multi-dimensional graph.
Now, sales personnel can leverage the system to inquire about the most suitable model for a customer with specific preferences , to which the system will respond aptly or marketing team members can run personalised campaigns. With this capability, Dave AI aims to revolutionise the sales process, enhancing customer engagement, experience and satisfaction, Sriram signed off.
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