Big data and data analytics has become the new power source for the auto industry, which will lead the sector to gain profit in business.
FREMONT, CA: Earlier, the concepts of the internet of things, automation, or connected devices were only limited to some sectors; but now it is spreading to leverage different Industries. Nowadays, big data, including customer data, have become new fuel for the auto industry. Dealers are creating a new connection to get trusted and correct data from the third parties. It will also help them to grow and adapt the analytic skills that they lack. They are becoming a part of the emerging data landscape.
What exactly is big data?
Big data is a third-party data set that is too vast to be analyzed using conventional means. All of the customer’s information is combined with the dealer’s in-house data to create a bright mosaic of customer needs. It also shows real insights that can be applied by dealers to business to enhance success. The best data is that which fits into these three V’s: volume, variety, and velocity.
Why dealers need big data?
Dealerships need data To survive in the competitive market. The big data helps the dealers to understand their customers well, and they can easily engage them with offers that are relevant to them. It will also increase the cost-effectiveness of dealership operations. Dealers can future-proof their business by understanding potential changes going on in the market.
What is the accurate way to use big data?
Big data is used to become faster, smarter, better, or more effective in the market. The data is useless until it is accurate and error-free. While piling up data, it is the job of dealers to ensure its accuracy and authenticity, because duplicate data can mislead to colossal liability. Before collecting the data, it should be tracked and reported correctly, because raising the irrelevant data will not help the dealers in any sense. Inadequate and irrelevant data can lead to risky business decisions and loss. A dealer must keep three things in mind before compiling data. First, the dealer must have a clear objective, and the second thing is to prepare a clear plan on how to achieve the goal. The third thing is to make sure the support throughout the organization.
Here are the benefits auto industry dealerships can gain from big data analytics:
Build customer loyalty: Data analytics will help the dealers to understand more about the customers. The customer data related to income, current family status, and behavioral patterns helps the dealer to predict the persons need when they return to buy a new car. Dealers can attract customers by offering relevant offers to gain trust and to build loyalty.
Identify the Right Prospects at the Right Time: Automobile industry has a vast amount of data piled up in the house, and the data is useful to understand the customers’ needs better. Data analytics can analyze these data sets; it can identify forthcoming buyers who are about to buy. It also helps the dealers to segment prospects better and to improve the targeting of their marketing efforts.
Increase online marketing edge: By adopting online marketing strategy by and optimizing the auto dealer website, dealers can gain profit over other competing dealers. They can make the website interactive and more personalized with the help of insights derived from website data analytics.
Increase ROI: Data analytics can help to develop a marketing budget, inventory management, and sales investments. It can create the cost-effectiveness of dealership operations.
Promote effectiveness across departments: The customer data will benefit all the departments of the dealership one-way or the other. For instance, the sales team can figure out the best offer that keeps the customer happy and the finance and insurance department can use it to show prospective customers specific offers and promotions that are most interesting and relevant to them.