Automotive Business Magazine – Q3 2026 – Digital edition - Flipbook - Page 22
INTE RV I E W
AUTOFLOWS
vehicle lifetime value is just as interesting
to look at."
Just as it does with humans working
in a contact centre – where good, up-todate insights on customers can make a
key difference to motivation and morale
– this is the foundation of strong AI
implementation.
Economic pinch
While exceptional humans may
outperform an AI agent, in a time of
tightening margins and heightening
customer expectations, is that enough?
Malcolm points out that the “lower bar
for what a human can deliver has now
been raised,” even when it comes to
crafting emails. This, he says, will be to
the benefit of customers.
“There's maybe a reason why we all
have these frustrating experiences with
dealers,” he explains. “If the margin
is 2%, who’s paying the bill to create a
better service? What do you expect when
you buy a car? That you can always just
call them, 24/7, and get a service within
two hours? No. Not unless you pay extra.”
Laredius adds that if an agent is
picking up calls and enquiries over lunch
or late into the evening, that creates a
better experience for the customer, but
costs the dealer – either in overtime or,
more nebulously, in employee burnout.
Malcolm continues: “If we go back to
the metaphor about what you would do
if you only had one customer, I would like
them to always know that they can reach
me. If I'm away on holiday, for example,
I would like to train my agent to do the
stuff that I couldn't do.”
Even working with a partner business,
this might sound like an additional
burden for a stretched business.
However, Malcolm explains that there
is a long-term value. AI, he says, is just
a tool like any other. Businesses must
ask themselves what outcomes they
are looking for. Implementing the right
systems could mean increased retention,
more bookings and higher average
booking values, if done correctly. The
specific model being used is, all in all,
less important than the value created.
Aftersales as an asset
As the automotive market adjusts
during a period of economic turbulence,
shifting demand and customer patterns,
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Q2 2026
If we go back to
the metaphor about
what you would do
if you only had one
customer, I would
like them to always
know that they can
reach me. If I’m
away on holiday, for
example, I would like
to train my agent to
do the stuff that I
couldn’t do”
supply chain pinches, and more, it is
not the front-end vehicle sales that will
save the day. The needle will shift for
businesses in this space that properly
see the value of aftersales, and do the
work to make it profitable. This is where
concepts like customer retention become
an important baseline.
“If you improve this one number, then
you are on the right track,” Malcolm says.
“Then, the gross profit from aftersales
is covering the cost of the dealership.
Then, we are more safe in terms of the
structural shift.”
Laredius adds: “Aftersales departments
– the story should be that they are the
heroes. If we don’t start to treat them
as such, then it could be bad for the
industry.”
He adds that an increased focus on
tracking data within a business should
help brands understand that, while car
sale margins might be limited to 1% or
2%, the route to a stabilising profit lies in
another department. Managers can only
truly be held accountable and enabled
to do their work best with the right data
measurement and analysis.
Malcolm also argues that “retention
is exponential,” and that failing to keep
