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CARS24 lowers agent costs by 60% by automating car discovery and test drive bookings

Discovery bot handles 80% of inquiries, resulting in industry-leading 8% conversions with Gupshup Conversation Cloud and AI recommendations

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8%

Industry-leading conversion rate

60%

Lower agent effort

"Buying a car is a big decision for most families. Partnering with Gupshup has helped us create a 24*7 channel to serve customers. Given our large and ever-changing inventory, we realized the need for an AI-powered discovery bot. Our goal was to reduce the workload on human agents and provide a reliable experience to customers. Thanks to the Gen AI bot and Gupshup Conversation Cloud, we have reduced inquiries by 60% compared to our previous chatbot."
Ayush Gupta
Senior GM - Growth Marketing, CARS24

About the brand

CARS24 is a leading AutoTech company founded in 2015, with operations in India, UAE, and Australia. Currently, they are operational in 100+ cities in India. Besides used car sales, CARS24 also handles vehicle financing. Being in a high-value category like vehicles, the brand has often leaned on innovative approaches to drive (pun intended) car purchases and create brand recall amongst its customer base.

Objectives

The goal of the CRM and growth marketing team at CARS24 is to get conversions (test drive bookings). They wanted to upgrade from their simple chatbot, which was leading to heavy dependence on agents to provide relevant car recommendations and book test drives, with over 50% of inquiries still needing agent assistance. They were looking for a smarter discovery-focused chatbot to help them scale and optimize costs while providing a more reliable customer experience.

To maximize test drive bookings via WhatsApp, CARS24 partnered with Gupshup for a Gen AI-powered commerce chatbot to aid vehicle discovery. This Gen AI bot now handles 80% of customer queries, with only 20% requiring human agent intervention, a significant lift compared to their previous chatbot.

“The CARS24 Gen AI-powered discovery bot handles 80% of inquiries, compared to only 50% with the earlier vendor.”

The Solution

To ensure that CARS24 could effectively engage every potential customer that landed on their WhatsApp bot, they deployed Gupshup’s fine-tuned ACE LLM that understands industry nuances. The discovery bot uses CARS24’s comprehensive catalog and is regularly synced to ensure only the available cars are shown to customers.

CARS24 encourages customers to use their WhatsApp bot in a few different ways. First, through a WhatsApp widget on their website, second through marketing messages to their user base (reaching 5-10 lakh unique customers every month). The Gen AI bot is then able to pick up and automate incoming inquiries ensuring every single customer finds the right vehicle for their needs.

Since this is a high-value category, customers seek information and expect immediate assistance, and the AI bot’s accurate product recommendations help in the discovery process. Its ability to narrow down a customer’s search results based on their inputs leads to an enhanced experience and more test drive bookings.

The marketplace also uses the latest and rich WhatsApp elements like carousels, that showcase the vehicle options in a highly visual card-like format. Using Gupshup’s dashboard, CARS24 also tracks customer journey completions and milestones efficiently.

Recognizing the value of human agents, CARS24 also allows its customers to shift from AI chatbots to live agents at any stage of the journey. Gupshup Agent Assist platform connects with chatbots, providing agents with complete customer context to take over the conversation seamlessly.

Solution

Conversational Commerce, Conversational Support

Channel

WhatsApp

Industry

AutoTech

Continuous innovation

To keep up the momentum achieved with the Gen AI discovery bot, CARS24 is next keen to adopt new capabilities including smart failover to other messaging channels and conversational advertising to improve new lead generation using click-to-chat ads. WhatsApp Flows is also in the pipeline for their car finance division, aiming to simplify the application, eligibility, and approval process.

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