Understanding Big Data Analytics for Auto Dealerships

At the just concluded NADA 2018 show in Las Vegas, the one term that we heard a lot was "big data”. It is quite clear that data analytics for auto dealers is here to stay and more and more auto dealers are putting it to good use with each passing day.

In this article, we'll help you understand what big data is all about and how it can help your dealership scale new heights.

Basics of What Big Data Does

Dealers can put their own in-house data sets to use with a big data platform, in order to optimize their sales, revenue streams, marketing, margins, operating expenses, and what not.

In dealer sales and marketing, big data analytics can spot shoppers who are currently in the market and have a high inclination to buy. Once these prospects are identified, dealers have the opportunity to reach out to them before they back out.

This way, auto dealers get better insights into leads and the inclination to purchase of each lead, leading to higher chances of converting them into customers. In a nutshell, one of the big advantages of data analytics is that it provides dealers with the timely business insights they need to close sales successfully.

How Can it Help You?

Big data also helps auto dealers understand all that transpired with buyers since their last purchase. For instance, did they get married, or did they move to a different city, etc. Even a basic idea of changing client preferences can give dealers a significant advantage when new buyers in the same strata enter the market for buying or leasing a new car.

In addition to helping dealers offer more relevant deals and promotions, having access to this data can also help build a bond with the client and gain their long term loyalty, as customers will feel that the dealer understands their specific needs quite well.

The business insights that big data reveals about your marketing dollars, sales investments, inventory management, etc. can be important not only in increasing the cost effectiveness of your dealership, but also in creating immersive customer experiences.

The dealership that wins is the one who can engage and convert consumers the fastest, and the data analytics tools employed at your auto business enables you to do just that. Big data can collect, process and understand information at lightning speeds, and then give you timely insights on how to monetize it.

How to Implement Data Analytics

Accuracy and automation are the golden rules of big data, and it takes the right platform to deliver specific insights which dealers can monetise. Solutions like FrogData deliver ready-to-deploy data analytics packages which help dealers save tens of thousands of dollars every month.