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July 20, 2018

How to Use Predictive Analytics at Your Dealership

by automotiveMastermind

The Benefits of Data

If you work at a dealership, chances are you’re leveraging the uses of big data to help make the sales process faster and friendlier. Using data to predict and anticipate customer needs is already a part of the journey. Just think for a minute about how customer and vehicle data can help with everything that factors into a customer’s purchase journey and dealership customer experience — you will be amazed by how much data you are capturing. 

Consider these simple steps to capture and record data on actions you are already taking: 

  •  Mining driver’s license (DL) information: Scanning a customer’s DL is a common practice and one that nets significant predictive opportunities, from geographic targeting, to behavioral tendencies based on social media footprints. From their pocket to your CRM system, the details on that little card can help your sales team create a more proactive marketing plan and improve the predictive customer experience.  
  • Adjusting price and floor plan strategies: Most dealerships have pricing and inventory systems that help managers zero in on the best price and inventory mix, selling models before they age and fine-tuning vehicle model and trim selection. This analysis is inherently predictive, in that it attempts to identify price and customer preference trends. The objective is to use a collection of data to identify the sweet spot between time on the lot and profit.
  • Maximizing the service drive: Savvy dealerships use service records to market new vehicle sales to existing customers, whether that’s lease pull-ahead offers or incentive programs. Many are connecting the dots between sales and service to predict preferences and anticipate trouble spots. 
  • Creating optimized aftermarket sales presentations: Syncing customer preferences around lifestyle and vehicle preferences helps the F&I team create a better, more relevant experience that is bound to increase your dealership’s CSI score. 

The list goes on and on. It’s not surprising when you think about how much data dealerships actually have in their possession. The challenge is that it can be overwhelming. The typical store holds information such as basic customer details, service records, vehicle interest indicators and purchase history. On top of that, there’s a windfall of vehicle data that can be used to match up with customer details. What can do you with all of this data?

Impactful Uses of Big Data

The point is, you have data that can predict customer behavior right now. The challenge lies in harnessing it easily. Here are three simple ways you can take the data you already have and make it work harder for you, improving loyalty, sales, and your customer experience management: 

1. Personalize your outreach: Customers want a personal experience – and they don’t mind sharing data to get it. In fact, PwC recently found that 63% of consumers surveyed said they’d be more open to sharing their data to allow for a more personalized, customized experience. This shows that customers require engagement that matters – and you have the data to do it. But don’t wait for the customer to arrive at the dealership. Integrate personalized automotive marketing materials and strategies into your email and direct mail campaigns.

2. Create customer profiles: One challenge for dealers is how to streamline and personalize the in-store dealership customer experience. There’s so much data that it’s virtually impossible to leverage all of it in a single, powerful way. automotiveMastermind’s automotive data mining algorithms and and intuitive dashboard helps to solve that challenge by creating 360-degree views of each customer leveraging thousands of data points to assign a Behavior Prediction Score – a ranking from 0-100. The higher the score, the more likely the customer is to purchase. In addition, built-in talk tracks are provided. They’re personalized to each customer and include motivational purchase drivers specific to that customer.

3. Maximize your service drive: According to a recent Automotive News survey (conducted by DealerRater.com), 47% of respondents cited dealership expertise as the reason they’d come back for post-warranty service. That’s a great way to start a sales conversation – and it’s happening right now at your service drive. This is where vital customer relationships are made, in a data-rich and consultative setting. 

Customers Want Customization

Customers have made it clear: personalization is a key must-have feature to the sales and service experience. Forrester found that 77% of consumers have chosen, recommended, or paid more for a brand that provides a personalized service or experience. 

Stats like that make one realize how important it is to leverage predictive analytics for a superior customer experience. The bottom line? Use the data you already have, get a little outside help, and with some additional steps your dealership can harness the power of personalization and predictive profiles. 

Ready to maximize the power of your data? Schedule an automotiveMastermind demo today.