Making the effort to understand how “Big Data” can be utilized in the dealership should be a priority.  As our consumers evolve, our approach to marketing and selling them new vehicles needs to change. 

At the recent Digital Dealer 23 Conference in Las Vegas, there were several good speaker sessions that addressed how dealers should be leveraging big data into their marketing efforts.  As a marketer for a data driven organization, I fully agree with my industry colleagues. 

While I was listening to one session focused on Big Data, I overhead a dealer’s conversation.  He confined to a friend, “I’m just a small business, not a large enterprise; I don’t have the bandwidth to incorporate this into my business.”  For any dealer that has these thoughts I’d like to say to you, yes you can and no it doesn’t have to be overwhelming or complex. 

Data analytics is a powerful tool.  It’s not costly, nor does it require a SWAT team to understand or implement.  What it does take is your commitment to think differently and use the value of this information more effectively, which will result in strategic target marketing that delivers stronger results and will save you money.  This is not an initiative you have to take on by yourself.  Dealers have a variety of vendor options that you can consider; business partners who can help guide and assist you with this effort. 

A byproduct of big data, is predictive analytics.  Predictive analytic marketing is a highly effect method to identify active in-market buyers based on an analysis of thousands of big data touchpoints and having the ability to rank their propensity to buy.  Utilizing predictive analytics to target market enables you to focus and engage with the right customers when it matters most.  Here are 5 reasons for using predictive analytics to drive customers to your dealership:

1. Improve Customer Intelligence.
   Your CRM or DMS does not contain all there is to know about your customers.  Use a predictive analytic solution that utilizes data science to aggregate thousands of data points that will provide a higher level of customer intelligence based on – garage data, credit and financial attributes, demographics, life events and behavioral information. 
2. Create Customer Profiles
   Leverage the information you receive from your big data analysis to better understand your customer, their buying needs and ability.  Developing customer profiles will enable you to market the right vehicle to the right customers for a higher conversion. In addition, profiles provide consumer insights which empower Sales to be more consultative in how they interact with each consumer.
3. Access Higher Quality Sales Prospects
   By identifying active in-market buyers, you can be more strategic in how you market and engage with each customer.  Knowing who is in market and who has the highest propensity to buy will allow you to be more effective in attracting their attention and ultimately converting them into a sale.
4. Create More Impactful Marketing Campaigns
   Not all customers are the same.  Tailor your target marketing to your audience’s needs, affordability, life situation etc.  Be more effective with your messaging to drive higher results.
5. Increase and Sustain Brand Loyalty
   Just because you may have them in your DMS, doesn’t mean you know they are in the market to buy.  Be proactive and use the information available to you and include them in your strategic marketing efforts.  In addition, because you familiar with them, you can position your dealership to be at the forefront in their decision making process, opposed to being left in the dark.  Sustaining customer loyalty can be fragile in our new era, treat it with care.

In the last six months or so, Google, Yahoo, Cox Automotive and others have been providing some insightful data on the reality of today’s new consumer.  With 60 percent of car buyers spending almost 15 hours researching and window shopping online, our approach to face-time is evolving. It’s safe to say, that today’s car buying experience is drastically different than it was say 5 years ago.

Autotrader reports 30 percent of buyers who walk onto the lot know exactly what they want to buy - new or used.  They further report, 38 percent of car buyers only visit one dealership, and 52 percent only test drive one vehicle.  These individuals are laser focused and may be more knowledgeable about your inventory and pricing then you are. 

However, not everyone is completely prepared or has a real understanding of what they can afford, which model would best suit their needs or which route should they go – new or used.  How you approach these buyers should not be taken for granted.  You should still consider them savvy buyers who want a personalized experience.  To create a more embracing interaction consider approaching the customer and sale as a consultant.  Leverage the information that you have available to create a positive engagement that will lead to a satisfied sales experience.

Leverage Soft Pull Information to your Advantage

As you know, a soft pull can provide a glimpse into the type of customer you may be conversing with – excellent credit, subprime candidate, or possibly a first time buyer with OEM incentive options.  Running a soft pull credit report at the start of your conversation will quickly provide you the necessary insights as to how you can approach this opportunity.  Leverage this information to your advantage and use it as the foundation for developing a customer profile.  A customer profile will act as a guide in how you navigate your conversation, provide recommendations, and hopefully end with happy customers driving away in a new purchase. 

Develop Customer Profiles to Guide the Conversation

Understanding your customer’s ability to purchase can take some of the pressure off both you and them.  By running a quick credit check and taking the time to talk to your customers about what brought to the dealership will enable you to create a customer profile that you can use as a roadmap to steer the conversation, enable you to make recommendations and finance the purchase. 

Customer profiling is comprised of both financial insights and developing a needs assessment.  Asking the right questions in a manner that is positive, open-ended will provide opportunity for you understand how you can best service this buyer.  Open-ended questions begin with words like Who, What, Where, How, Why and When.  They require explanation, such as: 

• How do you typically finance your car purchase - buy or lease?
• What lifestyle change has put you in the market for a new car?
• What type of vehicle are you interested in?  Now this might seem like a no brainer, however you may be able to provide suggestions based on your data assessment and current inventory.
• What features matter most?  Features over model might be what they are shopping for – this too can help with your inventory recommendations.
• Would they be open to your entire inventory that will meet their needs and desires – or are they interested in something specific? 

Avoid questions that lead to yes or no answers, such as Do, Are, You and Can, which will limit your ability to create a strong profile.

Be a Good Listener

The most important discipline you can master is listening. Ensure you are carefully listening to your customers, thus paying attention to them.  An avid listener will quickly pick up nuggets of information that will be vital for your customer engagement.

Guide Not Dictate

As you listen and capture your data points, engage in conversation that is relatable to their interests that you captured from your initial needs assessment.  Relating to them on a more personal level creates a more easy-going atmosphere and removes some of the dread they may feel when they decide to walk onto the lot.  A more pleasant experience is going to play in your favor.

To Be or Not to Be

Qualifying your lead is always part of the sales process.  Qualified leads have goals, challenges, timelines, and budgets; and not always come with a plan.  Just because a customer may not be ready to pull the trigger, don’t dismiss it.  I know it’s hard to let the customer walk away so they can “think about it”, but being patient, helpful and friendly are sales traits that create a more memorable customer experience either by winning the customers loyalty or getting referred.  Have confidence in the process and your consultative style.

Making it a Reality

With the amount of research and time invested by today’s car buyers, consumers are not in the market to be sold.  No matter how prepared your customer may be, taking the time to create a customer profile with the financial attributes and needs analysis will enable you to have a more relaxed approach, engage with a consultative manner and empower you to ask for the sales with confidence.  Being better informed, doing your diligence and being a good listener will provide a better customer experience that will instill more assurance in the car buying process and develop stronger customer loyalty.

Buying a car is a major financial investment.  As we know, many buyers come to the dealership “ready to battle”.  Homework is done, they know what they want, they know what they are willing pay and have a pretty good sense of what their credit score is.  However, not everyone is so prepared.  The process is overwhelming, frustrating and confusing.

For this audience, I advise to take this as an opportunity to ease the anxiety and create an experience that is stress-free, encouraging and hopefully ends with sending them home in a new set of wheels.  Leverage the credit and financial attributes that you have at your disposal to offer a more consultative approach. This method will help you provide better service, understand their buying power and can help you present your best inventory options to suit their needs and wants. 

Once introductions are completed, and you’ve followed your initial sales process of swiping the driver’s license to create a CRM entry, take this opportunity to run a soft credit report that will give you a starting point on how you drive the conversation and possible vehicle options.  As you know, a soft credit report does not have a negative impact on a person’s credit score – no social security or birth dates are required to access this information.  Information provided will include credit score, payment history, debt management, and any potential derogatory marks against their financial history.

Once armed with this information, take the time to do some investigative questioning that will help you filter through your inventory options for consideration.  Even if your customer isn’t fully prepared as others are, they do have a type of purchase in mind, otherwise they wouldn’t be there.  Use their credit information and your needs assessment to steer the conversation that is both favorable to the customer and the dealership.

Finally, don’t assume they understand the pros and cons between a New or Used purchase.  Take the time to highlight their options – as they will find it helpful and considerate on your part.  Understanding the benefits of each option may enlighten them that they can receive more value and benefits with a used purchase opposed to an entry-level new one.   Areas to consult include:

• Value and Depreciation
  • Cons - A new car’s value can depreciate by as much as 30% as soon as you take it home; and by as much as 50% in three years. 
  • Pros - With care and maintenance, used cars can increase in value.
• Safety and Insurance
  • Cons – New cars have higher insurance premiums than older vehicles.
  • Pros – Good driving and credit records can help reduce insurance payments.
• Monthly Costs
  • Cons – Repairs may be needed sooner, unless it’s a certified pre-owned car.
  • Pros – Free maintenance may be available following the first few years after purchase.
• Down Payment
  • Cons – Poor credit may require a down payment that is unaffordable for a new car.
  • Pros – With good credit you may be able to purchase a new car with no money down.

No matter what the end purchase is, if you take the time to learn what your customers’ needs and aspirations regarding their purchase; you can present yourself and the dealership as a trusted resource who is eager to help them make their dreams come true.  Sounds simple I know, but never underestimate the WOW factor and what a little extra care can do to your customer loyalty and retention efforts.