Data management is a crucial aspect of running any business, and car dealerships are no exception. Based on our recent LinkedIn survey, 36% say that data management is one of the biggest challenges of the digitisation of car dealerships. Though the survey was not representative of the entire dealer network, the figures are no surprise. In today’s digital age, data is more abundant than ever before, and it’s essential to effectively manage and analyse data to stay ahead of the competition.
So, the big question is, how does data management impact your success, and how can you utilise all your data effectively and efficiently?
Improved customer experience
One of the most significant ways to impact business success is by improving the customer experience. By gathering and understanding customer data, dealerships gain insights into their preferences, behaviours and needs. This information enables you to personalise the sales process and create an improved online experience.
Following a recent Cox Automotive digital retail report, used car buyers are demanding when it comes to what they expect from their digital experience on dealer websites. 75%* of consumers say a quality website influences their decision to buy.
By using data management in a smart way, you will be able to cater to the unique demands of your customers. Offering an omnichannel approach and a variety of digital tools will help with their search and decision-making.
Effective data management can also help increase sales. By analysing sales data, dealerships can identify which cars are selling well and adjust their inventory accordingly. This helps prevent overstocking of slow-selling models and ensures that popular models are always available. Data also allows to identify potential customers who are most likely to make a purchase and target them with personalised marketing campaigns.
To support this process, dealerships may integrate well-established digital tools like Live Chat or a Reserve Online function on their website to encourage the consumer towards purchasing a vehicle online. From appraising and value solutions to financing and buying tools – everything is possible.
Data management also supports dealerships in saving money by reducing unnecessary expenses. By analysing data on expenses such as advertising and marketing, areas can be identified, such as overspending and be adjusted accordingly. Data also helps them recognise inefficiencies in processes and make changes to reduce costs.
A vehicle management solution stores and organises data, making it easy to share with different members of the team, and implementing it costs less than running multiple systems. It allows you to maximize your inventory performance, analyse the stock and easily send your vehicle listings to and from third-party websites.
Improved operational efficiency
Finally, effective data management improves operational efficiency. By collecting and analysing data on processes such as inventory management and sales performance, areas are identified to streamline operations and increase productivity, leading to a more efficient and profitable business overall.
Around half of the new or used car transactions involve a part-exchange, and as many as a third of potential deals fail due to a disagreement on the value. 63%* of consumers expect to be able to get a part-ex valuation on a dealer’s website. Connecting digital and physical part-ex processes would help dealerships avoid disagreements on the value and save repetition which is highly frustrating and inefficient.
Demand for a simple and joined-up experience is universal. No one enjoys the repetition of processes, whether consumers or car dealers. 94%* of car buyers say they expect their interactions with a dealership to be simple and joined up, and most car dealers are already on the way to improving their online experience for them.
By effectively managing and understanding data, dealerships will improve the customer experience, increase sales, save money, and enhance operational efficiency. With the abundance of data available today, it’s more important than ever to prioritise data management to digitise your business.
Did you know…
how to apply current search trends to capture the attention of tomorrow’s buyers? In our next blog post outlines three key channels that every dealership should know.