How data can help car dealerships
The automotive industry is in a period of great transformation and data consolidation will help your business by maximizing its productivity, keep reading to find out how Data consolidation for car dealerships is beneficial for your business.
Data consolidation is about bringing all your car dealership’s data sources together.
Read more about what consolidated data is here.
It will help you by providing increased visibility and greater accuracy of customer information. Understanding the data in more detail will help the dealership carry out sales and marketing activities more efficiently and profitably.
Research has revealed that the price of disconnected data is high. The result of wasted time and resources, duplication of work and missed opportunities caused by disconnected data can cost a business over $140 billion, which shows just how important data consolidation really is.
Overview – How can data consolidation help in the dealership business
Running an efficient and profitable business relies on having a 360-degree view of the different parts of the organisation. It can be achieved in a dealership if the data is collected from customers, suppliers and employees.
Having that complete picture enables you to make decisions that are effective, timely and profitable.
Note that a great amount of data is collected by dealers from their customers.
Often, this increases the inefficiency due to the presence of unwanted data. Data consolidation and analysis help in providing a solution. It will help your business in bringing all the dealership data together and eventually increasing the visibility and accuracy of customer information.
Understanding the data in detail helps us in carrying out sales, marketing and after sales activity profitably and efficiently.
Here are 2 reasons that will persuade you to consolidate data in the dealership business.
1) Predictive marketing
Data gives a clear picture of how, when and which customers to approach. Predictive marketing data will help you in reaching out a potential customer at a given time, along with what the marketing message should be.
Predictive marketing data will help the dealers to retain customers and have an attentive after-sales service.
2) Customer satisfaction monitoring
Consolidated customer data when categorized well can be very helpful in creating a Customer Satisfaction Index, enabling a dealership to monitor performance and set KPIs for every department.
In-Depth : Benefits of consolidated data for car dealerships
Data consolidation is hot right now. The efficiencies and cost savings it represents are so attractive.
Here are 5 benefits of data consolidation in an Automotive industry
1) Maximizing productivity
Consolidating data centre facilities offers the ability to enhance operations, improve redundancy and flexibility, deliver higher availability and better use of resources in automotive industry.
By streamlining critical infrastructure, firms can do less with more, ultimately helping improve the end-user experience and maximizing the productivity levels.
Having data all in one place helps in improving productivity and efficiency.
2) Impactful marketing
Consolidating data across marketing platforms enables car dealers to seamlessly engage customers regardless of where they are in the dealership.
Data consolidation helps dealers even outside of the dealership, with relevant and personalized communication through the auto dealer website, promotional ads, and social media channels.
To get there, dealers need to invest in tools and platforms that can connect the data across all dealer touchpoints, and make it easily accessible. This will help dealers provide customers with intimate dealership experience.
Data consolidation with the help of Automated Metrics can help you in choosing the right to invest in.
3) Unlock the dealership’s true potential for high ROI
In order to increase ROI in any department of your dealership, you have to start by categorizing consolidated data.
For examples, in case of a used car NADA research shows that the average used car cost (investment) is about $13,300 and sells for around $15,000 resulting in a gross profit of $1700 which is a ROI of 13%. ($1700 divided by $13,300 = $13%).
A dealership’s true potential for a high return on investment is met when all the departments perform in the most economical way.
4) Stop bleeding revenue
The automotive industry is a highly operationally geared business. A small change in revenue makes a huge difference to profitability because of the high level of fixed cost and working capital employed.
To stop the revenue from bleeding it is vital to consolidate data and understand which could be the potential reasons or departments leading to this bleed.
After analysing the data we can make possible changes and repair potential damages. This will ensure that is the is Future-Fit
5) Efficient improvement
With the advancement in technology systems and the continuous collection of data, we can now predict sales and automatically recommend which parts should be reordered.
When we can predict the future, we automatically make efficiency improvements in our business.
Data consolidation for car dealerships can be used to monitor stock levels, ensuring that the servicing departments have the right stock in place to meet future demand, without tying up cash in over-stocking.
Bottom line | Data consolidation for car dealerships
The key to the service is Data consolidation! Data consolidation for car dealerships are the future and every business should be benefitting from it.
If you have been wondering how to use your data right then – At Automated metrics, our software will check the quality of data, identify data which is missing or is incorrect. It is the process during which we extract data in different formats from multiple systems.
Automated metrics use such data to create regular reports which are tailored to a dealership’s individual requirements.
For more information on data consolidation and to know how Automated metrics can support your dealership, contact us.