Customer data has in recent years led to profitable business decisions and identification of sales patterns for almost all industries. The automobile industry is no different, as users continue to make automobile purchases based upon income level, neighborhoods, or age. Hence, although many dealerships rely solely on their gut instinct on what users prefer, it is time to move towards a more robust data-driven approach that has led to the success of almost of essential industries across the country.
In the past, dealerships only had access to very limited customer data such as buying preferences of a certain demographic, or the most popular brands. However, using an intelligent data source can help identify critical customers patterns based on customer profile, their unique segment, and their level of income. Additionally, social media provides for more robust ways to reach customers and market certain products and associated discounts that were earlier hard to achieve. A dealership can now use social media ads and banner ads to market their brands, in contrast to old sponsorships, radio spots, print media ads, and newspaper ads.
Although it may be impossible to know how many individuals saw a TV commercial, it is easier to measure how many viewed, clicked, or shared a social media ad. If email marketing isn’t getting enough clicks, it can be modified with a better call for action. Only measurable data can help market brands in a more diligent manner.
Helps Chose the Right Stock
For many dealerships, it important to buy the right stock from the right manufacturers to return a profit on their investment. The data-driven approach helps forecast the growth rate of the most valuable brands and helps decide the right discounts and price that gives their dealership an edge over others. it also helps identify how much to order, or hold before the next models are sought. Without an intelligent sales forecasting model, identifying the right mix of models and manufacturers may result in losses or unsold inventory.
Help Make Relevant Appraisals
The use of big data and sophisticated vehicle appraisal systems can help make accurate price points for used or old cars. There is a high market for vintage cars, but finding the right market value for them can be hard. A well-balanced vehicle appraisal system based upon the previous pricing data, fluctuations in repair costs, the overall condition ratings, years of ownership, and miles are driven can help provide for a more relevant and accurate market value that can be very appealing to consumers.
There is always a high demand for vintage cars and using the right price with appropriate service miles can help increase sales, and overall marketing efficiencies. It also helps dealerships provide consumers with the right financing packages that suit their needs. Using data to market products can make a dealership look more responsible, and appealing to the first time, or experienced buyers. Moreover, it also helps provide for a more customized relationship with positive and current customers who prefer a trusted partner when making automobile buying decisions.