MEASURE THE RIGHT PERFORMANCE METRICS There are a variety of ways you can use data at your dealership to improve processes, drive more revenue, and meet changes in the market. Here are some ways you can use data to measure and impact revenue at your dealership:
1. Set key performance indicators for your dealership: Track your results in key areas such as total sales, gross margin, revenue per work order, recovery rates, tech efficiencies, etc. 2. Determine the effectiveness of a promotion: Review data from previous years to determine if the current promotion is moving the needle. 3. Review the effectiveness of any new policies or procedures: If you change the intake process for service, and if you have the data, you could continue to monitor it to confirm if it affected the desired results. 4. Forecast based on factual, historical data: Forecasting is not just about gut feeling. Use actual data as the foundation for your forecast. 5. Spot trends early to effect change in business strategies: Having recorded data points over time allows you to spot trends that may have been previously unknown to you and that can directly impact business strategies. 6. Compare your results to your peers: Utilize outside data sources to add real-world context to your decision- making. Compare your results to other similar operations with tools such as the Dealer Industry Insights report or survey statistics.
DON MILLER Senior Data Consultant at Constellation Data Solutions
HITTING THE TARGET WITH DATA-DRIVEN MARKETING Dealers can also leverage the power of analytics for more effective customer management and targeted marketing. Detailed customer data enables dealership sales and marketing teams to develop detailed customer personas based on demographic factors like location, age, gender, and more, as well as buying habits like buyer journey, previous purchases, etc. But beyond the potential for targeted marketing, dealers increasingly need to collect more first and zero-party data using their dealership management systems.
Consumers have become more cautious about sharing their information, which threatens third-party data solutions. It will become more important for dealers to leverage customer data collected through their websites and dealer management systems. By creating digital touchpoints for customers to interact with your brand (ex. an online shopping cart, an email promotion, or a website chat box), you can collect data and utilize it in an impactful way to create a better buyer experience.
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