Powering Your Car Dealership with Predictive Analytics
Data Analytics for auto dealers is in the limelight for all the right reasons. Dealers are more and more entrapped in vast amounts of data. As a result, they are often unclear about the actionable steps that they can take to improve their dealership, with the data available to them.
As the usage of data by car dealers continue to evolve, dealership owners now have immense opportunities to exploit the power of data analytics, and it can actually drive sales and profits unlike practically anything else.
The Past: Pricing Analytics
Less than a decade ago, analytics for auto dealers came in the form of tools that could display vehicle pricing, which allowed dealers to see the prices of vehicles in and around their markets, thereby enabling them to price the cars in their lots relative to their rivals, giving them a much needed competitive edge.
The Present
The next wave that dealers are riding now, is buyer analytics. Understanding who the right buyer is for your specific dealership, and using that information to align the inventory in the stockyard is a critical step that helps sales and profitability.
Auto dealers who actively work on implementing and using buyer analytics will be in a much better position to leap ahead of their competition and watch their bottom line climb.
The Future
It is clear that the next big wave of data innovations for car dealerships will be predictive analytics. Using this type of data analytics, car dealers can quickly determine which vehicles they need to stock up.
Predictive analytics also showcases other relevant information, such as how likely you are to sell the pre-owned vehicles in your stockyard within a price band, and more.
In Conclusion
Predicting market trends and figuring out the direction in which it is moving is the key to forecasting opportunities that bring new business to your dealership.
In a nutshell, this is the capability of predictive analytics and what it can do for your auto dealership. It shows you clear indicators and trends, making it possible for you to take informed decisions that can set your dealership up for booming business.
For more information on how predictive data analytics can help your dealership, Contact Us.