It is finally 2021 and there are endless opportunities for the new year. Many auto dealers have reported having some of their best sales months in 2020. And while many things in the world, in the industry, and with consumer behavior will continue to change, there are a few lessons we've learned that are here to stay. Primarily that dealerships who tap into the opportunities hidden in their own database will most likely find their best customers and begin to duplicate marketing efforts essentially clone that type of customer for greater lifetime value.
More sales. More retention. More revenue.
Personalization is the underlying key to all of this. It delivers emotional connection, influences faster conversions, drives more revenue, and in the end leads to loyalty.
Untapped Potential
According to Gartner, almost 97% of data sits unused by organizations. Read that again.
Dealerships have access to multiple sources of valuable customer data. They work hard, and sometimes pay a lot for the ability to acquire it. Hopefully they are able to retain it as the most valuable asset the own. But knowing utilize the information to increase retention, leads, and more....can be daunting. There are many models and theories on how to maximize the data, but unless you have a platform truly capable of blending multiple sources of data, you aren't able to benefit from its full potential.
Data Blending
In short, data blending is the process of combing large buckets of data from multiple sources into a single data set; taking into consideration the merging of different file formats, disparate sources, and all the code variances coming in.
For instance, here at 3 Birds, we combine both CRM and DMS data. Our fully-integrated customer data platform allows us to consolidate the data into a user-friendly interface for our dealerships. The ability to blend data not allows us to personalize marketing strategies to meet dynamic individual interest, intent, and purchase behavior above-and-beyond demographics and assumed algorithms, it helps us understand the unique data sets for every dealership in order to find patterns of profitable success and ultimately personalize the customer experience.
Personalization
According to McKinsey, organizations that leverage customer behavior data to generate behavioral insights outperform peers by 85 percent in sales growth and more than 25 percent in gross margin. This is due, in part, to your ability to reach untapped potential in your own database.
Take your aging or lost leads, for example. Understanding your data sets and personalizing your marketing message can inject new life into your pipeline and spark interest beyond what’s expected for returns beyond what is currently accepted. It's smart sales acceleration..and it just makes sense. Revive leads you've buried and increase your revenues.
P.S. our Blue Sky Dashboards help successful auto dealers find these opportunities already hidden in their own data!
"To make emails more relevant for consumers, marketers must make personalization investments that leverage live data readily available at the moment of open to optimize the customer experience and advance results." -David Daniels, CEO and founder of The Relevancy Group
P.S. our Blue Sky Dashboards help successful auto dealers find these opportunities already hidden in their own data!
Driving Revenue
In 2018, 77% of businesses that exceeded their revenue goals have a documented personalization strategy according to Monetate. The key to driving your sales is through centering around the customer experience. This is certainly important in all stages of the customer lifecycle and not just the initial vehicle purchase.
Personalization allows dealerships to win back lost customers in sales as previously described, but from individual and chain mechanic and tire shops, too. As you know, service generates almost 50% of a dealership’s gross profits - so it's important to retain customers and keep them coming back to your service drive. Multiple messages across multiple stops that meet the customer automatically with dynamic messaging along their entire journey and vehicle lifecycle help ensure your dealership is always their next stop. Just because they decline a recommended service now, doesn't meant we can't recapture that RO at a later date when we have the right data to inform the right communication at the right time.
Personalization is the key to revenue growth, especially in the automotive industry. 3 Birds provides that lift dealers are requiring, especially in today's world changing the way everyone, including car buyers, make purchases and interact. According to Autotrader, car buyers spend 60% of their time online. With over half of their time spent online, it is important to use as much of your digital information as possible to attract more leads, reclaim lost leads, and turn intent into purchase. We can help.
Submitted by:
Destiny Chafin
Staff Writer