What Data Can be Mined in Data Mining and How to Leverage it in Your Dealership?
Uncover the potential of data mining in automotive sales. Learn what data can be mined and how to effectively use it to boost your dealership’s success.
Dealerships have heaps of valuable information waiting for use. Data mining extracts collected data from various sources within your dealership. Each piece of data can drive informed decisions and enhance dealership performance. We’ll explore what data can be mined in data mining and how dealerships can leverage it to thrive in a competitive market.
Some of the benefits of mined dealership data we’ll explore include:
- Insights into purchasing trends
- Options to segment and filter your customer base
- Personalized marketing efforts
- An enhanced shopping experience
- Improved customer retention
- Optimized inventory management
- Improved service and maintenance efficiency
- Fostered long-term customer relationships
Better Data Equals Bigger Success
Powerful data and algorithms make it possible to know what consumers buy. From there, you can determine all kinds of lifestyle factors and compile a history of your customers. Better data means more accurate understanding. You will understand their preferences and current needs. When it comes to lead and sales generation, embracing the future of data mining is key to success.
Automotive Equity mining filters for customers who have equity in their vehicles. Which means they could be good candidates for buying a new car. However, the depth and breadth of this kind of research only goes so far and limits your sales revenue. AutoAlert’s automotive data mining greatly increases your leads. It mines all shopping and behavioral channels. These include the service drive, point-of-sale materials, customer relationship management (CRM) software, inventory management systems, and proactive marketing platforms. By combining all data sources, dealerships can see all their operations and customer interactions in one place inside the customer profiles.
CE/Customer Retention
UPGRADE ALERT
Clients who can get out of their current vehicle and into a new one while keeping their payment about the same.
MILEAGE ALERT
Clients who have reached or are nearing their lease mileage allowance.
FLEX ALERT
Clients who can get out of their current vehicle and into a new one while keeping their payment about the same, but requiring flexible terms.
CONTRACT ALERT
Clients with a contract that’s nearing its maturity date.
Sales on the Service Drive
PENDING-SERVICE ALERT
Clients with upcoming scheduled service appointments.
WARRANTY ALERT
Clients who have standard warranties that are about to expire and no extended coverage.
SERVICE ALERT
Clients who have recently been in your service lane.
IN-MARKET ALERT
Clients with a high likelihood of buying within 90 days, based on purchasing patterns and demographic data.
ENGAGED ALERT
Clients who are engaging with your website, inventory, emails, or other assets.
Let’s look at a few examples from some of these additional channels.
The service drive is an ideal place to reconnect with a current customer or interest new customers with personalized sales offers. Is a lease about to expire? Do today’s repairs indicate a possible trade-up? Gathering this information lets your staff start the right conversation at the right time and present a relevant offer.
How about mining leasing opportunities? Data mining can alert your staff when a customer’s lease is ending. It can also find customers facing mileage penalties. Mileage alerts are among the best-converting alerts today. Helping a customer avoid penalties will build a good relationship.
Use data mining to improve your used car sales and relationships with customers who only buy used. You build a good stock by data mining leased cars. They are relatively new and in great shape, increasing your dealership’s reliability with customers who want those cars. You can also use data mining to help a customer find a specific vehicle that another customer has and might be ready to trade in.
Automotive data mining can also find customers with warranties that are nearing expiration. Then, you can offer them different retail, lease, trade-up, and cash-back opportunities.
Making Data Come to Life with Marketing
Data analytics alone are not enough. The data must be made actionable to efficiently provide a seamless customer experience regarding sales opportunities available today and customer retention tomorrow.
Marketing data includes information from various marketing channels, such as website traffic, social media engagement, email campaign performance, and advertising metrics. By analyzing marketing data, you can assess the effectiveness of different marketing strategies, allocate resources more efficiently, and tailor campaigns to specific customer segments.
Marketing using data mining and behavior-predicting software tools allows a dealership to communicate timely, relevant offers to consumers in the ways they prefer to be reached.
Automotive AI & Automation Creates Consistent Victories
If your dealership is new to this type of mining for information, it may seem intimidating or overwhelming. That’s where some great news comes in. One of the best parts of data mining with AutoAlert’s software tools is that much of the work is automated for you.
AI takes care of the tedious and monotonous customer outreach that can be time-consuming and frustrating to keep up with. If a customer doesn’t answer the first or second time, a sales employee might give up. But, the AI will continue to reach out until a connection is made. This allows the employee to better use their time and not let potential sales slip through the cracks.
Data Tells the Story that Your CRM Can’t
An ideal CRM platform leverages customer data in various ways to reach the right person with the right offer. Combining data mining and AI with intelligent marketing and sales on the Service Drive gives the dealer the knowledge of who to reach, how to reach them, what they are looking for, and exactly when they should.
Go beyond basic CRMs’ repetitive time-based tasks and empower your sales personnel to contact customers with relevant information on how they prefer to be reached.
When evaluating the right data mining platform and automotive CRM, certain aspects should be considered to ensure you maximize your time and money.
Right Message, Right Customer, Right Time
You can’t perform this sophisticated profiling from your old CRM. You need an automated data mining service, especially since data mining is an industry in a continual state of change.
The speed, accuracy, and detail will only get better. This means your response will also improve as you target customers with exactly what they need when they need it.
AutoAlert’s data mining algorithms know when and what customers need. They use service-drive data, shopping and behavioral patterns, and other profiling methods.
Data mining can pinpoint the motivated customer, know the exact reasons behind the motivation, when to communicate, and tell you exactly what to say to have the right conversation.
“The secret sauce for AutoAlert is its ability to compile data in unique ways. And to put it in an easy-to-understand framework. The best is yet to come with AutoAlert.”
– Bob Tasca III
Data mining holds immense potential for dealerships seeking a competitive edge in today’s automotive market. By understanding what data can be mined in data mining and harnessing the power of that data, dealerships can unlock valuable insights, optimize operations, enhance customer satisfaction, maximize profitability, and help dealers sell that extra car each day!
To leverage data effectively in your dealership, investing in a dealership data mining or CRM platform that offers a pathway to success for forward-thinking dealerships ready to embrace a data-driven future is imperative.
