Car dealerships have come a long way since the days of pushy salespeople and cheesy TV commercials. In today’s world, car dealers are using sophisticated business analytics to sell more cars.And it’s not just the big-name dealerships either.
Even small mom-and-pop dealerships are taking advantage of the power of data and business analytics to improve their sales strategies. We at Leadfire are data junkies, and we know how to use data to drive sales.
Today we’re going to discuss:
- How you’re sitting on data gold mines
- How you can leverage customer data to get more sales
- And how to use AI and machine learning to make smarter decisions
How You’re Sitting on Data Gold mines
Every decision you make is based on data.
You brush your teeth with the data from your last dental check-up. You plan your vacation based on past experiences and research. However, the difference between an amateur and a professional is someone who uses data to make business decisions versus someone who guesses and hopes for the best.
As marketing extraordinaire Seth Godin once said, “Data beats feelings.”
The same is true for car dealerships. You can access data points like customer demographics, buying preferences, and sales trends. This is called dealer management systems (DMS).For example, if data shows that a dealership’s customer base is largely made up of families with young children, your dealership may focus on selling more SUVs and minivans with ample space and safety features. This is called Behavioural Analytics. On the other hand, if the data shows that a dealership’s customers are mostly single professionals, they may focus on selling sleek sports cars or high-end luxury vehicles. That’s data 101, now, here’s a masterclass.
The Best Tools For Leveraging Customer Data
Now that you know the importance of data, let’s talk about how to use it.
Customer Relationship Management (CRM) software is the best way to leverage customer data. A CRM is a powerful tool that allows you to track customer information, buying patterns, and preferences.
Here are the 3 best CRMs on the market:
- 1. Salesforce – This cloud-based CRM offers a variety of features like lead and customer tracking, automated campaigns, and analytics.
- 2. HubSpot – This all-in-one platform helps you manage your customer relationships with powerful tools like marketing automation and reporting.
- 3. Zoho – This comprehensive CRM helps you manage sales and marketing with features like lead scoring and team collaboration.
Car dealerships are also using data to optimize their marketing. If data shows that most customers are finding the dealership through online search engines, the dealership may invest more in search engine optimization (SEO) or search engine marketing (SEM) to increase their visibility in search results. Alternatively, if data shows that most customers are finding the dealership through word-of-mouth referrals, the dealership may invest more in referral programs or social media marketing to encourage customers to spread the word.
Sales Funnels Are Money Trees
Sales funnels without data analysis are like building a house without a blueprint. You may get it done but won’t get the full benefits of building correctly.
Your sales funnel is the path your customers take from discovery to purchase. With data analysis – that you can gather through Leadfire or a CRM – it will show when customers are dropping out of the sales funnel at the financing stage, for example. You can then adjust your strategy accordingly to reduce drop-outs and increase conversions.
Alternatively, if data shows that customers are spending a lot of time in the negotiation stage, the dealership may train their salespeople on negotiation tactics to help speed up the process.
It’s like the wise old saying: “You can’t manage what you don’t measure.”
Using AI and Chat Bots to Make Smarter Decisions
AI has never been easier to use. AI-powered chatbots can be used to provide customers with personalized advice or helpful information while they are browsing the dealership’s website.
We asked Microsoft’s ChatGPT, an AI-powered chatbot, how the dealership can use it to make smarter decisions.
ChatGPT replied, “AI auto will be the driving force behind a new era of retail experiences in the automotive industry. One potential application of ChatGPT in auto retail is through the use of chatbots, which are computer programs that can simulate human conversation. Chatbots can be integrated into website or mobile apps, allowing customers to interact with the dealership or automaker in a conversational way.”
Additionally, AI tools like predictive analytics can be used to identify customer trends and preferences and predict future sales. This data can then be used to optimize marketing campaigns or create more targeted products.
A Final Thought on Business Analytics
As a car dealership, data analytics will help you to:
- Use it to pinpoint the perfect prospects
- Build strong relationships with customers
- Boosting ROI while improving efficiency
- Gain an edge in online marketing
- Make smarter decisions based on customer trends and preferences.
The possibilities are truly endless when it comes to leveraging data analytics to increase car sales. Start using data analytics today to help your dealership reach new heights and make more sales than ever before!
Good luck!