If you are evaluating Data mining for your dealership, the technology is a profitable servant only when integrated into the correct selling process and executed by properly trained users. The right training makes this process second nature to users, which means their interaction with customers will not sound over-promising or like a sales pitch. A data mining based selling strategy will assist consumers in getting the most value from their vehicle investment.
Here are 5 Critical areas to focus on as you implement your program...
1. Strong engagement from the Top Down: If the dealer principal and the management team don't understand the tool you're using, how can you train and educate the sales staff to properly execute the dealerships data-mining strategy. John Wooden once said "Failing to prepare is preparing to fail", this is certainly true of your data-mining tool. The first question I ask my new dealers is always "How many sales would you like this to generate?" We don't leave anything to chance, if you want 20 deals from your data-mining tool, how many calls need to be made? Of the calls made, how many of those will need to result in appointments? Of the appointments that show, what percentage will need to close to meet your sales goal? Plan you success!
2. Source low-mileage, single owner trades: Make sure your pre-owned manager understands the benefits of your data-mining tool. Money and time can be saved by searching in your own database for low mileage, single owner vehicles with a service history at your dealership.
3. Call Clients early in their term, Seriously!: The average car loan in America has reached 67 months but the average American only keeps their car 42 months. The key to your data-mining success is interrupting the buying cycle of a significant amount of your current clients, by doing so you catch those clients closer to the peak value of their vehicle, allowing them to keep their payment the same no money down. This is a huge win win, the client gets a newer model vehicle without putting any money down and you get the client into a new car while they aren't shopping and you can make a healthy gross on the deal. 48% (almost half!) of consumers are spending between 1-3 months shopping online before they enter your dealership, these are the hardest clients to produce a reasonable gross because they come to the dealership armed with education and information.
4. Make the service drive a part of your larger Data-mining strategy: Most dealers have realized the profit center that the service drive offers but many have yet to establish a strategy or lent the resources needed to truly capitalize on the opportunities. Clients in an opportunity position who are also coming into your dealership are the lowest of the low hanging fruit. Having a data-mining tool that easily allows you to locate these folks and having the personnel in place to have a no pressure intelligent value driven discussion with your customer is a MUST! Some Data-mining providers even offer free mobile apps with Vin scanners that can instantly scan a customer’s Vin number and determine if they're an opportunity, what kind of opportunity and therefore what kind of conservation you should have.
5. Use the available training your Data-mining provider offers to improve the effectiveness and ROI of your program: Any Data-mining provider worth their price will provide training and support to help your team deliver effective value driven messages to your existing customers. As the old saying goes "Practice makes perfect" and data-mining is no different, sales people are trained to sell and assist clients from the up's list and the internet department but they typically aren't trained on how to buy a client’s car and help them find a suitable replacement in a timely manner that makes the client's time at the dealership a "VIP" level experience. The client experience is an often neglected key to success with your data-mining tool and it's an incredible benefit if your provider can help you in the process.
If you have further questions or would like to share some simple best practices for making your Data-mining program an instant success reach out to me, I'd love to share ideas that help you move the needle.