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.

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.