BACK ON the road
Inchcape is using acquisitions, innovation, and new AI techniques to develop the used car market in Colombia.
What advantages has Derco’s acquisition brought to Inchcape in Latin America?
We are always on the lookout for opportunities, and we recognized significant ones when Derco was the leading distributor in Latin America, focusing on Chile, Bolivia, Peru, and Colombia. The acquisition process, spanning two to three years, marked a major transaction. Presently, Latin America is Inchcape’s primary region in terms of revenue and overall impact. With Inchcape’s substantial support, including investments in technology and resources, we are enhancing performance at DercoCenters. In 2023, Inchcape acquired Derco and brought all its global expertise and technology to improve DercoCenter customer experience and operations, leading to a notable increase in our market share in Colombia from 7-8% to around 12%. This scale enables us to negotiate favorable logistics terms, reducing costs and boosting our competitiveness, which we reflect in our prices. Our focus on technology aims to improve the customer experience, covering pricing, service, and the entire vehicle life cycle.
How does BravoAuto build trust with used car buyers?
BravoAuto’s core concept revolves around addressing the buyer’s insecurity prevalent in the used car market. In contrast to the confidence associated with purchasing new cars from showrooms, buying a used car often sparks concerns due to the vehicle’s history. BravoAuto’s significant commitment lies in building trust with customers by offering a clear promise: if any issues arise, we have no hesitation in refunding your money. This guarantee extends to a week after purchase, allowing customers to return the car if it doesn't meet their expectations. Our aim is to instill confidence in used car buyers, and many of our customers opt to trade in their cars, receiving proposals that lead to increased sales of new cars.
Inchcape incorporates AI to predict profitable used car purchases demand
Is Inchcape using AI to optimize lead generation?
Inchcape is indeed incorporating AI for enhanced lead generation optimization. Specifically, in the used car domain, we utilize a model to predict favorable purchases. Additionally, for our automotive and spare parts business, AI plays a crucial role in predicting the demand for the vast range of 20,000-25,000 SKUs, a task impossible to achieve manually. In the automotive sector, our focus is on refining lead generation processes. By placing ads on social media, we swiftly obtain customer contact details, and AI enables us to initiate contact within 20 minutes. Utilizing a bot, we make initial contact within 10-20 seconds, asking quick questions to understand the customer. If identified as a potential buyer, digital agents reach out within 20 minutes, conducting a thorough analysis. This strategic use of AI enhances our customer outreach, recognizing the substantial investment required to acquire leads.
BravoAuto aims to establish trust with used car buyers
What are your strategies for 2024?
Our strategies for 2024 revolve around resilience in economic cycles. We are optimizing on scale for efficiency and exploring alternative revenue streams, such as financing and insurance. Recognizing the diverse aspects of car purchases, including accessories and supplementary products, we aim to tap into these opportunities. Our focus in 2024 is on fortifying the company, preparing for the expected market growth at the close of 2024.