Consumers are becoming surprisingly comfortable with the idea of buying high-ticket items through online platforms. From luxury jewelry to the newest electronics, a wide array of higher-priced merchandise gets purchased — sight unseen — via the Internet.
But is the world ready to take this type of selling up a notch? Are we actually moving closer to a time when people will buy almost any product, regardless of cost, through e-commerce channels?
Yes, and it’s being done today with high-end vehicles.
The Age of Purchasing a Car by Text
Throughout the nation, many auto dealerships have begun to open untapped sales funnels by moving the sales experience entirely (or almost entirely) online. It’s a seismic shift, given that car buying has historically been a hands-on process. Only a generation ago, few people would have entertained the idea of going through the car-buying steps without entering a physical building. Now, the idea is gaining momentum.
What’s the driving force behind this shift in consumer behavior? Namely, it’s the advent of ultra-sophisticated automotive sales software capable of interacting with consumers in completely digital forums.
For example, let’s say a prospective car buyer wants to trade in an old-model truck for a newer (and greener) electric SUV. The buyer can get in touch with a local dealership through email or text. Once the inquiry is received, an AI-based “agent” begins a conversational thread with the buyer.
As the discussion goes back and forth, the agentic AI solution begins to piece together exactly what the buyer needs and wants. By the end of the conversation, the buyer may know which electric SUVs are available for a test drive, as well as the estimated trade-in value for their current truck.
What’s remarkable about this situation is that it doesn’t require any human intervention until absolutely necessary. On the contrary, the AI agent can move the buying process quickly through the sales journey, right down to overcoming objections and making customized recommendations. While the buyer may still want to schedule a test drive or meet with a human, the large-ticket sale has mostly been made.
Of course, a big question remains: What makes this possible? There are many answers, but three stand out right away.
1. Consumers are prioritizing time over money.
Since the late 2010s, consumers have begun to get stingier with their time. In fact, a relatively recent survey showed that 38% of individuals valued time more than they valued money.
Given that fact, it’s easier to understand why consumers would be open to avoiding the need to physically go to a dealership — or even a regular store — to shop. Travel takes time, as does waiting to see an available team member. Carrying on a conversation via text, even if it’s with an AI agent rather than with a human, can be both efficient and convenient.
In other words, people are willing to spend a little more to be able to free up their limited hours. And this makes them exceedingly open to alternative ways of buying all the items they need, regardless of price point.
2. Agentic AI solutions sound impressively realistic and human.
It’s worth noting that a key component of the success of AI agents as “sales machines” is their ability to mimic natural language processing. Far from sounding stilted or robotic, the most advanced agentic AI products are capable of bantering in a surprisingly normal way.
For instance, Impel’s agentic AI software, which is trained for use by car dealerships, can communicate effortlessly. The software uses the inputs from a human buyer as prompts to move the dialogue from one topic to the next. At the same time, it can show empathy when appropriate or even make lighthearted jokes.
This isn’t to say that the agentic AI products are being used to somehow fool consumers, because most consumers know they’re speaking with an AI tool. However, research shows that around six out of 10 people are comfortable speaking with chatbots. Consequently, they’re welcoming of any agentic AI product that can assist them 24/7.
3. Many consumers have already done their homework.
A third reason for the “$50k car purchase through text” phenomenon is that most consumers already have a familiarity with the high-ticket items they’re considering. That is, they’ve gone through websites and perhaps even talked with friends, family members, and coworkers. They may not know all the specs, but they have a general knowledge of the items they want to buy. Oh, and they’ve gotten over any initial sticker shock.
Essentially, this means that consumers don’t really need to see and touch the actual end product until right before the sale. They just need to get narrower answers to their pressing questions.
Similarly, buyers may be ready to purchase but want extra advice, such as how to navigate complex financing so they can pick up the latest model of their favorite sedan. As soon as they get that advice, they’re fine with buying the product they believe will suit their needs.
There’s little doubt that it’s a virtual world, right down to the selling of high-end merchandise, goods, and even vehicles. Companies that thought they could never sell their higher-priced offerings through e-commerce platforms might want to think again.
Photo by Tao Yuan; Unsplash
