28 June 2019
Data Analytics have been taking the automotive industry by storm ever since car dealerships went on the lookout for solutions to drive down costs and simultaneously spin more revenue. Using analytics data more actively to understand their potential customers better and engage more with them provides a way for car dealers to scale greater heights.
Consumer Analytics: How Does it Work?
The process of consumer analytics involves taking raw customer profiles as well as demographics and other data, putting it all together, comparing it with current client data sets, and then obtaining results that display the behavior of prospective car buyers.
Consumer analytics reveals information about the purchasing power of your potential customers, their inclination to buy a new car, how likely is your chance of retaining them, their personal preferences and dislikes, their spending habits and willingness to spend, and several other parameters that otherwise usually remain hidden.
What Can Car Dealers Do With It?
The information that you can potentially collect from consumer analytics reports will prove to be a treasure trove for your auto dealership’s sales and marketing teams, since it reveals the personal wants and desires of prospects, their ability to purchase and so on.
Having access to such data allows dealers to fine-tune and target sales efforts on consumer retention, brand loyalty, and building a long term referral base.
Benefits of Consumer Analytics
Data analytics provides vehicle dealerships with direct access to a large amount of information, which enables them with a better idea about their customer pool. Concepts such as the spending trends of their customers, their preferences, likes and dislikes are all measured by a scoring system that tells the auto dealer the business potential of these prospects.
Having this data in hand provides vehicle dealership owners the power to negotiate deals from a higher vantage point. They can now engage customers in a non-invasive discussion rather than in bare-knuckle negotiations.
Most customers will spend their money at dealerships that connect with them on a personal level, and car dealers that don’t show any interest in buyers’ interests and values usually will never see a customer return. This information can be obtained from consumer analytics, as it answers many important questions, including:
- Are your prospects ready to buy?
- What are your customers’ spending habits?
- Which products are your potential customers interested in?
Determine Which Marketing Practices Aren’t Working
Data analytics can also help car dealers to accurately identify which segments of their marketing budget is under-productive, and re-orient the budget for optimal ROI.
Taking your Dealership Forward
There are mountains of data all around us. But, finding a place to store all your customer data, and hiring data scientists or software engineers to make sense of enormous amounts of information can be very time consuming, not to mention extremely costly as well.
Most dealers don’t have the tools or resources readily available for this purpose.
Data analytics solutions like FrogData could well be the way out for auto dealerships. For someone who sells cars, there’s no greater advantage than knowing your customer even before they walk onto your car dealership’s showroom floor.
For more information on How Consumer Analytics can help your Dealership, Contact Us.