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By Boyd Warner, CEO, AutoAlert, Inc. -- I like bing.com’s definition of mother lode – “a plentiful supply of something.” That’s what data mining technology for your dealership should provide you, a plenty supply of sales opportunities.
Data mining describes methodologies for analyzing data to find valuable nuggets. If you’re going to analyze your customer database, the nuggets you hope to unearth are consumers whose vehicle profiles, equity positions and vehicle histories make them prime prospects for your sales calls.
Yet knowing this rich vein of potential car sales is there and extracting its value are not the same things. As in any endeavor, success is borne of ambition supported by the right tools. In fact, some data-mining ideas available today only identify the data; how to convert it into cash is up to you.
Data mining to increase vehicle and service sales should not only help you find your own mother lode but give you the tools to extract the gold easily enough that even novice miners will produce great results. Fortunately, these tools exist:
Data mining’s not for everyone: You can buy all the right equipment and look like a miner or you can roll up your sleeves and be a miner. The latter is work. It’s effort. It’s fruitful. While the data mining technology itself is important, it’s what you’re willing to wrestle from it that matters. Dealers who generate additional car sales month after month using the data mining processes embrace the concept fervently and work the process. Their results are telling, up to 100 or more additional vehicles sold a month.
The right equipment matters: A lot of products today promise “data mining” functionality. That a technology can analyze data isn’t necessarily data mining. The right data mining equipment helps you dissect your database to find the right customers who are interested at the right time to buy from you now. The right data mining equipment is like a treasure map – it tells you where the gold is, but doesn’t help you dig it up and carry it way.
A strategy for success: Without a strategy for putting data mining to work for you, what it often produces is mere slag. Look carefully at the data your process produces. What does it tell you? Now develop a strategy for putting that data to use. For instance, if the data’s to uncover out-of-warranty owners, what’s the strategy for converting the facts into cash?
Finally, as you move you’re your data into action, carefully consider using written talk tracks to guide your prospectors carefully through the nugget extraction phase of the process. Consider how this track might be worded so customers called clearly understand the value of your offers. Dealers using scripted calls for data-mining marketing say sticking to a written phone script is the straightest path to customers saying “yes.”
Data mining is a great way to strike your mother lode – a plentiful supply of customers simply waiting for your team to call them. The right data mining strategy equips your team to best present welcome news to your customers to help you carry away this found treasure to the bank.
Boyd Warner is CEO of AutoAlert®, Inc. (www.autoalert.com), the most advanced lead generation solution available on the market today. Contact him at firstname.lastname@example.org