Data Analytics Trends for Car Dealers in 2019

Predictive Analytics

Predictive analytics provides customized insights that can enable car dealerships to promote cross selling opportunities and generate new customer responses or purchases. Using this technology, auto dealers can even integrate into diverse domains. Unfortunately, many dealerships suffer from the issue of misinterpreting their data, resulting in it becoming more of a liability than an asset.

If used correctly, predictive analytics has the ability to boost profits and revenue. Dealers can combine their years of experience with the right data outputs in order to pinpoint appropriate actions that will guide and improve decision making processes.

IoT is Growing Fast

Internet of Things (IoT) is a trend that is poised to create well over $300 billion annually by the year 2020. Auto dealers will begin to rely significantly more on having access to increased numbers of data points and they will include real-time data from vehicles. This will in turn have a positive impact on turnover and profit margins.

However, mainstream analytics techniques will still hog the limelight, as they continue to be useful in scenarios such as business dashboards, ad-hoc analysis, time series analysis, and so on.

More Availability of Open Source Software

2019 will certainly be witness to more open source software becoming available for use on cloud platforms. Open source analytical languages such as R have seen remarkable adoption already, and this trend will only continue to become stronger in the coming years.

With more such software solutions becoming increasingly accessible to auto dealers, even smaller dealerships will stand to benefit a lot.

The Rise of Edge Computing

Edge computing enables data to be handled and stored closer to the actual end users with processing taking place either on the device itself or within the edge data center.

Edge computing helps auto dealers manage large heaps of data cost-effectively. Thanks to this technology, data storage becomes significantly more cost effective as well.

Better Data Retention Techniques

The current thought structure of saving all dealership data forever will soon be done away with, thanks in part to machine learning. Due to this technology, dealership systems can be digitally taught to take care of and protect the integrity of data that is stored in it.

Additionally, it can even be trained to get rid of data that is no longer required, provided that things that are important to the operations of the auto business don’t get compromised. Any data that is irrelevant will be disposed of in a completely automated process, keeping the system clean and optimized at all times.

Revisiting Dark Data for Insights

Digital information that is currently not being used for business analysis is referred to as dark data. Several different types of network operations that are not used in a way that provides business insights or decision-making points are what results in dark data.

However, as big data and data analytics processes are becoming increasingly accepted and put to better use at auto dealers, the need to explore unused data becomes higher.

For more information on upcoming data analytics trends in the automotive industry in 2019, Contact Us.