What Information From Big Data Actually Helps Dealerships Sell Cars?
With the world swimming in big data and dealerships looking for any marketing advantage they can get, what data actually works? Having provided data on hundreds of thousands of leads to numerous dealerships over the last year, here are a few takeaways that we have found.
No one data segment is the panacea
Sales can come from numerous data segments. For example, geo-location data on people visiting another dealership within a 25-mile radius is just as strong a signal (if acted on it quickly) as people whose lease is about to expire a few months from now.
The important thing is to be able to aggregate numerous data sources and act on them in appropriate fashion.
Don’t expect one ideal way to reach the customer
The key to success is to be able to reach consumers through numerous channels.
For example, when a person steps into your competitor’s dealership, you need data that allows you to reach that customer by email, regular mail, social media, and mobile or display ads, or reach them through telemarketing in compliance with Do Not Call Registry.
Success varies based on the type of customer, however. Younger customers tend to perform better when reached on social media, while an older audience responds better with physical mailers.
Data overlays provide lift
We found that combining numerous data segments provides a more actionable sales opportunity compared to using just one.
Combining data segments such as "people who are in the market for a new vehicle over the next six months" and "people who visited auto shopping sites" provides a better conversion than any of the individual data segments alone.
The overlap of numerous segments allows for a better way to find the needle in the big data haystack.
Custom marketing works
The ideal solution for any marketer is to anticipate customers’ needs and present the perfect product to them while making it seamless. Be prepared to use other data segments besides auto-related ones to make this strategy work.
For example, when we know that a person within a 25-mile radius of a dealership is using car-searching websites, a lift can be provided if we add another data segment that tells us more about that person.
By checking in real time another data segment, such as “parents to be” or “baby shower registrant,” you'll get hints that the customer is likely looking for either a minivan or an SUV.
Targeting these types of vehicles to the potential customer not only anticipates the demand, but allows you to provide a custom offer for people in market.
Your best customer already came to your site
Don’t ignore the thousands of people who come to your website but do not take any action. Even though they may not have left their email address, these people can still be reached through a number of channels, including email, if they are properly tracked with the right tools.
Using intelligent data segments allows you to reach your ideal customers with the offer they are looking for at the time when they are most likely to buy. As we head into 2018, having big data is not enough: The data also has to be smart.
Michael Aronov ([email protected]) is a co-founder of BDEX, a data company providing access to unique data across numerous verticals including auto by utilizing real-time data from over 100 data providers in over 5,000 data segments.