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Hunter Swift

Hunter Swift Manager of Market Development

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Dealers Still Not Embracing Data Mining

According to new data compiled by DealerSocket, dealers are still focused on driving new traffic into their stores from webleads.

The issues with webleads:
-Cost $20-$50 per lead
-No exclusivity
-Little info, lucky if you get a phone number
-Low gross
-Low CSI

Benefit of using CRM/Data Mining:
-Low cost, dealers already own customer
-Use data to find people in equity, lower payment, etc
-They know you
-Send relevant message to right person, at the right time, for the right reason
-Exclusivity and ability to pull customers into the market before they submit a weblead
-High Gross
-Higher CSI

While dealers are seeing the advantage of Data Mining and using tools to do this, data shows that dealers still have yet to embraced it.

Marketing spend by dealers is as high as 70% directed to drive new traffic to the store and as little as 5% on repeat customers.

Many dealers using Data Mining tool still don't have a great appointment process in place. Average dealers only have 7% appointment set with Data Mining vs 36% of webleads that had an appointment sceduled.

To further show the lack of process for Data Mining is shown by the average response time for Data Mining notifications of 117 minutes versus 16.4 minutes for new webleads.

This data shows that dealers are not embracing Data Mining and still focused on leads (the low hanging, low gross fruit).

Maybe this data will convince dealers to focus more on Data Mining…

Visit to Sold Percentage by Source:
-Data Mining 70%
-Internet 58%
-Phone 51%
-Floor 30%

 

About Hunter Swift 
Hunter Swift is the Director of Sales Development at DealerSocket and has been with the company since 2005. In addition to his current role, he has fulfilled the responsibilities of customer support, consulting, training, and sales. Hunter specializes in helping dealerships improve sales and follow-up processes through the use of CRM technology. Hunter honed his dealership skills as a salesperson prior to joining DealerSocket. He has earned a Business Degree from Pepperdine University. Hunter can be reached at hswift@dealersocket.com and on social media at @HunterSwift.

Megan Barto
Hunter, you & I have discussed for YEARS the importance of Data Mining - it baffles me why even to this day dealers don't do it. Great post. I'd rather have less leads & higher quality than more leads & crappy quality. Who's with me?
Alex Lau
Dealers aren't embracing a load of digital marketing services, not just data mining. However, I agree with your statement. Additionally, there are a lot of marketing groups out there that give dealers bad advice and don't follow up properly on how to properly execute data modelling.

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