Now so more than ever, the auto industry is in a state of constant flux. With concerns over the economy and the Covid crisis, consumer preferences are rapidly changing. Some consumers are holding off on purchases, others are looking for older cars, and those who are in-market for a new vehicle are conducting research and transactions on an increasing percentage of online channels.
Although change is inevitable, there is no shortage of opportunities for dealers to acquire new customers and sell more cars. By getting more strategic and using data-driven techniques and insights, dealers can soon see more cars driving off their lots.
The Data-Driven Approach to Car Sales
1. Know Customers and Prospects
First and foremost, you need to know who your customers and prospects are. With a data-driven understanding of who you are targeting, experiences can be personalized based on where they are at in the purchase journey.
91% of consumers are more likely to shop with brands who provide relevant offers and recommendations and 80% of customers are more likely to purchase a product or service from a brand who provides personalized experiences (source). Consumers are also increasingly choosing dealerships that cater to their needs and preferences, often over dealerships that offer a lower price. To provide this level of personalization, you must have a thorough understanding of your customers and prospects—demographics, preferences, contacts information, lifestyle, past interactions with your dealership and so forth.
Most dealerships have pieces of this information sitting in multiple systems. For example, a prospect may have completed a form on your website, so you have the contact information in a CRM system. This same person may have also contacted your customer service department, so additional details are sitting in another system. Data is often stored in multiple systems such as billing systems, marketing programs, customer service departments, maintenance records, and other sources.
Each of these customer data sources must be integrated into a single database to achieve a 360-degree customer view. Marketing technology such as a Customer Data Platform is increasingly becoming the go-to method for data integration. In the past, data management was a cumbersome process with labor-intensive processes. Today, customer data platforms build customer profiles by integrating data from numerous sources and channels. This includes your CRM and DMP, transactional systems, web forms, email and social media activity, website and ecommerce behavioral data, and more. Once integrated, a CDP can offer predictive analytics for engaging with customers and prospects.
By understanding what your customers want, who they are, their channel preferences, and other important details, dealerships can create truly tailored customer experiences based on individual preferences.
2. Append your Data
In addition to internal sources of customer data, third-party data should be appended for richer insights and more targeted offers. This includes adding or correcting missing or inaccurate contacts details and demographical insights such as age, income, lifestyle, gender and more. V12’s VIN marketing database also provides additional insights into a consumer’s current vehicle including make, model, year and more.
If using a Customer Data Platform, third-party data can be appended quickly and efficiently as part of the integration process. V12 offer a deep catalog of data assets and offers third-party data as part if it’s CDP unlike many vendors in the space.
3. In-Market Leads Data
Sourcing internet leads from third parties is nothing new for dealerships but it’s important to be aware that not all lead sources are created equally. V12’s in-market Signals leads are based on consumers who have recently visited a dealership or who are browsing online for vehicles.
We utilize geolocation data to identify in-market shopping activity. However, unlike traditional mobile marketing, which only identifies the device, V12 Signals identifies households and the individuals in them. Our solution provides household contact information complete with a wide variety of consumer attributes allowing you to create a highly targeted offer across multiple channels.
We also provide solutions to reach consumers browsing online. V12 collects online behavior data in real-time, leveraging a broad network and innovative techniques to discover behavioral keywords, phrases, and terms. Using this intelligence, we use a cookie-less targeting solution to deliver campaigns.
4. Data-Driven Experiences
According to an Autotrader study, 54% of consumers would buy from a dealership that offers their preferred experience, even if it didn’t have the lowest price. Part of this experience may involve tactics such as online financing and paperwork options or online digital platforms that allow consumers to select vehicle options. Beyond this, consumers are also looking for personalization in their experiences.
This data-driven experience includes personalized offers and strategies designed to engage customers or prospects and drive them through the sales funnel to purchase. Consumers today expect highly personalization interactions with brands. By communicating with messaging that is relevant to their unique needs, you can show prospects they matter to you, which will go a long way in keeping your dealership top of mind throughout the purchase journey.
Interested in learning how V12 can help boost your dealership’s success? Complete this form for additional information.