Auto dealers, like most businesses today, have access to a lot of data, but many find it challenging to put it to practical use, according to a new Cox Automotive study, which found that those that have succeeded at doing so reap rewards.
Obstacles for many dealers, the research showed, are inconsistencies and slow data updates. Others are concerned that tapping into data could compromise privacy and their regulatory compliance.
“We found that seven out of 10 dealers say lags in data make their insights less useful,” said Cox Vice President of Sales Chase Abbott, who indicated that more than half of dealers say related data they get from multiple sources sometimes conflicts.
The study showed that though 83% of dealers regularly get customer data, less than a third are satisfied with the results. And 69% said they would likely drop a vendor if they failed to get reliable data access.
Dealers that regularly leverage data shared with Cox that they take advantage of technology that keeps data updated and synchronized across departments and between the store and the consumer.
Cox said dealers can use artificial intelligence-controlled technology to pinpoint which information they should put to use and get more of. It also advised them to conduct a vendor audit to determine the shoppers to follow up with.
“Data is worth doing right,” said Abbott, who emphasized that AI can help dealers achieve a new level of customer satisfaction and profit.
