To date, the phrase data mining has often translated to simply equity mining when describing the practical tools and applications that existed for your dealership. The difference between the two phrases is one of sophistication and, more importantly, one of actionable intelligence and total sales opportunity.
For now, let’s assume equity mining is simply targeting those customers in your database that have positive equity in their current vehicle. Although I would argue effective equity mining math is not as simple as A minus B, we will assume that it is for now.
With equity mining defined, how would we define data mining? For the purpose of this discussion, I would define it as additional data and insight we can add to equity mining to create more sales opportunities. By this definition, one example of data mining beginning to emerge in automotive is tracking customer-specific online shopping behavior.
Although shopping behavior insights, retargeting campaigns, and personalized websites are standard practices across the Web, their practical application has been limited, especially within automotive. Fortunately, those anonymous and generalized insights can now be tied to specific customers, allowing you to engage with deep, actionable intelligence.
For example, by analyzing the data trail your known customers create as they shop online for vehicles and dealerships, we can identify when they are in market—before they ever submit an online lead, pick up the phone, or drop by the dealership. In addition, these new online tracking tools provide the brands and models they’re considering, and the opinions they’re arriving at based on their online travels through social media, dealership review sites, and your dealership website.
These data mining insights enable you to provide the efficient and personalized experience today’s consumers expect from their dealership. Now, instead of beginning the intelligence-gathering phase at the meet and greet or via a lead submission, you’ll market to and engage shoppers at their most recent shopping- journey mile marker.
This newly available consumer shopping data combined with equity mining data provides you with some of the most powerful insights available in the market that drive incremental sale opportunities. The benefits:
- Be alerted every time anyone who has interacted with you is in the market and ready to buy
- Know deep detail about their existing model, their equity in that model, and months remaining on their contract or lease
- Know which models your customers are researching and at what intensity
- Know whether they’ve engaged the competition
- Know who they’re already in contact with in your dealership, through social media sites or dealership review sites
Simply put, moving beyond traditional equity mining to advanced data mining creates new and personalized marketing opportunities that today’s consumers expect from their dealership. Embracing these technologies allows you to provide that experience while driving new sales, customer retention, and profit.
Brian Skutta is CEO of AutoAlert, Inc., North America’s premier data mining, lead generation, and sales opportunity provider. Skutta brings to AutoAlert more than a decade of leadership in helping auto dealerships sell more vehicles and retain more customers. He has a proven history of successfully managing innovation and growth, most recently at VinSolutions and Autotrader.com’s Trade-In Marketplace. Reach him at [email protected] or visit www.autoalert.com.
Latest posts by Brian Skutta
- Make the Leap From Equity Mining to Advanced Data Mining - January 27, 2016
- Increase Service Drive Sales With Data Mining and Soft Credit Pulls - October 12, 2015
- Leasing and Millennials: Gateway to Customer Retention - September 21, 2015