What percentage of accurate data do you believe that you’re receiving in your CRM system? When I ask this question to dealers, I often get a laugh or a “probably 60%.” When I ask why, the typical type of response is: “Well, as you know, we have to depend on people to input the correct customer information, and specifically with salespeople, they forget, lose information or are just too lazy to input the customer data.” How do you think that affects your business? “We are most likely losing deals and not building good relationships because we don’t have the data to professionally follow up with customers.” Do you think not having the correct data/information affects other areas as well? “It touches lots of areas; service, sales, parts, etc.”

One of my favorite quotes comes from Ben Franklin:

“Half of Knowledge is Knowing Where to Find it!” – Benjamin Franklin

It all boils down to this: How you gather and use data determines your success or failure.

But with so much data, numbers, colors, percentages, variables, and charts…conversations in dealerships are starting to sound more like a NASA shuttle launch instead of a dealership plan. So, does this mean you need to be a rocket scientist to turn data into dollars? Thankfully, no. The good news is that plain-old common sense is your best guide through the truckloads of data available at your fingertips. The most crucial thing to do right now is to filter out useless data and capitalize on valuable data, to grow the business properly.

What is Data Anyway?

The experts define data as; From the Latin datum, meaning what is given (this is important – because the question is, is it given correctly or incorrectly?). What is known, upon which conclusions can be drawn (here is where we react or not). Factual key information in a form that can be input to, created by, processed by, stored in, and outputted by a computer (or, smart device). Data can take the form of characters such as letters, numbers, facts, figures, information, evidence, reports, details, specifics, matters of direct observation, known facts, information base, statistics, measurements, numbers, results, findings, circumstances, experiments, knowledge and/or proof.

So, how do you make money or save money by using data? It boils down to this key phrase constructed from the abovementioned definitions; “Factual key” information upon which conclusions can be drawn.

Once it becomes factual, both our leadership and vision have to draw conclusions and then act upon it.

I see two problems here; first, factual does not mean, “I think we handled around 20 incoming telephone inquiries yesterday and sold a couple that came in on an appointment.”

What factual should consistently represent or imply is: “We handled 23 incoming telephone inquiries yesterday and converted 14 of those into appointments of which eight showed and four of those were turned into deliveries. We’re following up on the six no-shows (in an attempt to reschedule an appointment) and with the four who did not purchase. We have a solid follow up strategy for four of the 23 inquiries that held potential for a future appointment.”

The first example statement above has no act or action process associated with it. However, the second is a rock-solid business initiative which provides clear and precise information and how it is being acted upon. We could camp out here for a couple of days discussing methodologies of what constitutes good follow-up and phone skills. And yes, phone skills require a different selling skill set and fundamental processes.

Here is the formula for data success: AD + T+ A = C (Accurate Data + Thought + Action = CASH).

Accuracy and action are the key components for success. You can look at data all day long and have nothing to show for it unless you develop a proactive action plan towards using it.

The question then is, how do you implement an action plan to put things in motion? With all this confusing data, where do you start?” As any good rocket scientist would tell you, you start at the end. What do you want to know and about what? A good follow-up question would be; why do you want to know this, and how will you use it? But the best question and one that does not get asked enough; what actions will you commit to undertaking once you find the answers? If you cannot specifically define what you want to know and why, and then commit to taking action; don’t waste time dabbling with your data.

You Must Have a Planned Initiative

Data does not work well with big broad questions such as how can I sell more cars? Data works very well with specific questions such as what type of consumers are purchasing trucks or specifically F-150s in the 3 zip codes around my dealership? This is a good data-driven question as is; does my CSI rating vary depending upon the day of the week or month? Like the proverbial 10-day month crunch where everyone is out of their skin to get deals booked. Or, what were the top 10-selling used vehicles by make, model, year, and sold price we booked over the past 90 days?

Good data can help you make sound buying decisions when you consider taking in a particular trade or going to the auction. Of course, one can argue that we have now succumbed to assumption, making decisions based on what will sell in the future, but when you focus on factual information for the primary inclinations of what a good course of action is, it is ok and frankly, the crystal ball is still not working. Your basic premise is based on “factual” data and certainly helps in moving away from total guesswork.

Situational Awareness

What if you had a tool that used your existing dealership’s Wi-Fi to pick up all cell phone beacon signals from anyone on your dealership’s property to then provide you with accurate real-time data 24/7/365 – with a zero margin of error because it eliminates human input? And what about if that information would then get organized in a dashboard on your computer or smart device and interface/reconcile your CRM component?

There’s a company that actually has been doing this in various vertical markets for a few years now, and I feel it is something the auto space can really benefit from as well. It is referred to as Situational Awareness. (See chart 1).

This is a pretty impressive big data information-gathering solution to manage any business. But hear this; this is exactly what Big Data looks like, and it is happening right now in many vertical markets like hotels, conventions, agriculture, and retail establishments. And we all need to get ready because this is the future for the automotive field too.

If you shoot me an email requesting “Big Data” I would be happy to send you my investigative research so you can understand what new data technology is available and how to get it before your competitors.

As a business owner or manager, you are not looking for more data, instead, you are seeking accurate actionable and usable data, real-time intelligence and knowledge. With knowledge comes the power and confidence to make better decisions than your competitor across the street, which equals more money in your pocket.

The good news is, as a business owner, you don’t care about all that data, you care about results. Results move the profit needle. But you must have timely, accurate data to empower your people to make decisions and talk openly about data-related items in manager/sales meetings to gain ideas and strategies. Most Fortune companies do it this way and do very well with it.

Some will refuse to bust through their paradigms, but I will tell you that a consensus style of management will beat any old-school bureaucratic style hands-down most days of the week.

Again, Ben Franklin said, “Half of knowledge is knowing where to find it.” The other half of knowledge is doing something with it. Your people must have good information if you want them to grow the store.