McDonald’s Is Going AI. Should Your Dealership?
Even traditional brands are using artificial intelligence to find new ways of selling.
Despite its homespun image, McDonald’s has dominated the worldwide burger game for decades in no small part due to aggressive innovation.
Almost 50 years ago, McDonald’s was an early pioneer of the economically spelled drive-thru windows that literally changed how we ate our meals. Now it is jumping head-first into the digital age to sell you those meals by using technology that’s similar to what’s fueled the growth of e-commerce giants.
The House That Ronald Built recently announced the acquisition of artificial-intelligence startup Dynamic Yield for a whopping $300 million to implement AI technology in its stores and app. With the new technology, McDonald’s drive-thru screens will tailor the customer experience by updating menu items based on the time of day, other trending purchases — even the weather. Scheduled to go live this year, the menus can even go “full Amazon” (our term, not theirs) by suggesting other options after a customer adds an item to his or her shopping cart.
Does it seem like a lot to spend for fancy menus? Actually, that might end up being a small price to pay to create a sales experience that mirrors the other digital interactions modern consumers have grown accustomed to. And it’s a lesson that car dealers can’t afford to ignore.
“It’s going to be essential for dealers to embrace artificial intelligence, automation and enhanced digital marketing going forward if they want to stay ahead of their competitors,” said Will Craig, Managing Director and CEO of LeaseFetcher. “You only have to look at the last century of capitalism to see that those businesses which don’t adapt to changes in their marketplace and those which don’t seize advantages are the ones which get left behind.”
Yeah, But AI? Really?
As a term, “artificial intelligence” can sound a little intimidating. But in practice, it really just refers to a machine doing a human’s work. In marketing, AI technology gives companies an effective and efficient way to continually collect data, analyze it, and learn from it. And once that treasure trove of information is harvested, it can be utilized to improve digital strategies by offering valuable insights into consumer behavior.
As an example, AI powers the chatbots and voice assistants playing an increasingly important role in putting customers at ease across numerous industries, including automotive.
“Users [can] get the information they need without any pressure from a salesperson, real or imagined,” said Alan Majer, CEO of GoodRobot.
But beyond the benefits of using AI, there are numerous risks in not adopting it alongside other digital capabilities. Namely, as modern consumers grow used to interfacing with AI, there will be an increasingly noticeable gulf between those offering it and those still operating in the past. In other words, failing to put digital selling solutions in practice could leave you with a negative feeling similar to the one you get when you visit a company website that hasn’t been updated since 2005.
McDonald’s is Not Alone
Of course, the McDonald’s move toward artificial intelligence follows several other leading companies employing AI during customer interactions. Internet giants Amazon — alongside media powerhouses Netflix and Spotify — have collectively pioneered the AI-driven personalized recommendation model. But other more conventional business models have already been wading into the AI waters.
From apparel to beauty to hospitality, traditional industries are increasingly recognizing that the future of marketing is in AI. Nike’s launch of a service allowing customers to design their own sneakers in store was not only popular with consumers, but created an opportunity to collect massive amounts of data that could be used in future product design and targeted messaging. Levi’s has a “Virtual Stylist” that fits users in jeans based on their preferences. Fashion and beauty brands, like cosmetics institution Estée Lauder, continue launching AI-powered chatbots to help build consumer profiles. Even in the traditional home improvement space, Lowe’s unveiled the AI-based “LoweBot” to help customers navigate stores.
What Does This Mean For Dealers?
As with the examples above, AI offers an exciting opportunity for car retailers to harness emerging technology to get in touch with consumers’ needs and interests in a changing digital world.
And the time is now for automotive players to capture today’s increasingly impatient customers, according to a February report from global management consulting company McKinsey & Company.
“With today’s overflow of information and consumers’ attention spans decreasing, advertisers need to engage them at the right moment, with the right message, and in the right environment to market effectively and efficiently,” according to the report.
One of the easiest ways for a dealer to implement AI in their customer marketing is simply by signing up for free with Fair. Not only does Fair use artificial intelligence to match users with vehicles that make sense for their budgets and match their preferences, it provides a fully digital customer experience that eliminates the negotiation and physical paperwork of the traditional process and allows customers to sign with their finger in the Fair app.
It’s a turnkey way to transform your business the same way McDonald’s is doing — a move that should be a clear signal to other industries to follow suit.
“Dealers who don’t embrace this kind of technology run the risk of missing the mark — implementing a strategy based on gut feel rather than data — and wasting significant time and money in the process,” said Briana Brownell, founder and CEO of Pure Strategy.ai.
