Big data analytics has been an emerging market in the automotive industry ever since dealerships began looking for solutions to cut costs and generate more revenue. Data mining can help dealerships increase their revenue and improve their return on investment. The increased use of consumer analytics data to better understand and engage potential customers provides a way for dealers grow their business to greater heights than ever.
What are consumer analytics?
The process of consumer analytics involves taking raw sociometric and psychographic data, compiling it, then comparing it to current client datasets and returning a result of 360-plus characteristics of more than 220 million adult Americans. This type of analytics goes beyond collecting and analyzing online automotive shopping activity, emails, websites, and traditional sales and service data.
It reveals additional information about consumers’ buying power, propensity to purchase, likelihood of customer retention, personal likes/dislikes, spending habits, and much more. This data provides a huge arsenal of information for your sales team about consumers’ personal needs, wants, desires, ability to purchase, and other characteristics. This allows you to focus your sales efforts on consumer retention, brand loyalty, and building a long-term referral base.
Benefits of analytics
Data analytics give business-to-consumer companies such as auto dealerships direct and real-time access to a wealth of information to learn more about their consumer pool. Consumers’ spending trends, habits, likes, and dislikes are calculated into a scoring system that indicates their potential to be a future buyer from your dealership.
This data provides you with the power to negotiate from a position of strength with these potential customers. This information allows you to engage in a diplomatic discussion, rather than a fierce negotiation battle, with the customer. You can better engage with them by focusing on topics of interest such as their kids and pets, or even their travels, instead of the vehicle’s purchase price.
At the end of the day, all things being equal—including price—we all want to do business with someone who engages in us personally, rather than haggling over price. Most consumers are going to spend their money at businesses that engage with them personally, not the ones that don’t have a clue about them or their interests and values.
From consumer analytics, you can learn:
- Are consumers ready to buy? You want to focus on customers that have the capacity, propensity, and lifetime value to be your customer, today, tomorrow, or the next day—and those who can also bring in referrals.
- What are the consumers’ spending habits? Consumer analytics vendors provide in-depth information about the consumer that is highly likely to match the profile of your top existing customers.
- What products are potential customers looking at? By drawing from a dataset of more than 360 consumer characteristics, you can appeal to the specific needs of even the pickiest customers.
Consumer analytics reveal in-depth profiles of current and future prospective consumers, from their shopping activities to charitable donations, demographic data, and much more.
Moving your business into the future
Data seems to be popping up all around us. Finding a warehouse for all your client data, purchasing separate datasets from third-party listserv vendors, and hiring data scientists or software engineers to calculate enormous amounts of data can be very time-consuming and extremely costly.
Most dealerships don’t have these kinds of tools or resources available. This makes vendor-provided dynamic consumer analytics a valuable tool to empower your sales and marketing efforts, and ultimately, increase revenue.
Consumer analytics are an emerging and innovative resource for auto dealerships. Imagine knowing your customers before you lay eyes on them.
Peter Lee is a data analyst at Analyze Corporation (www.analyzecorp.com) and a graduate of Syracuse University with a B.S. in cybersecurity and information assurance. He is an innovative software marketing consultant with experience in the IT industry and expertise in direct and interactive marketing, behavioral monitoring, and CRM. Analyze Corporation’s Clientell is a user-friendly consumer analytics platform, providing direct-access analytics marketing tools. Contact him at [email protected].
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- Use Consumer Analytics to Build Lasting Customer Relationships - August 10, 2015