Every auto dealer is quickly becoming a digital business in response to the drive from leaders to access integrated data and gain greater oversight of operations. That plus the pressure to use AI to improve performance are key drivers in the analytics and insight boom.
Along with those pressures comes an increased reliance on cloud systems, network infrastructure and worker understanding of IT to keep the wheels of the auto dealership spinning.
The Power of Data Insights for Car Dealers
From understanding the needs of buyers to improving stock control and refining pricing, car dealers can benefit from data insights across the entire dealership, and throughout the network for larger dealers. Key benefits for car dealers from data analysis and insight generation include:
- The ability to better manage inventory and dynamically adjust pricing as markets and demand change.
- Improve customer engagement, offering the right cars to the right audience through data for a better customer experience.
- Optimize financing and deals to grow sales through insurance, upselling, maintenance and other aspects.
- Manage sales teams’ goals and gain stronger insights into their performance by tracking performance metrics.
- Streamline business operations: Use data-driven insights to get both a higher overall and more granular view of all activities, across sales and servicing.
How Data Insights Deliver on Those Benefits
Through the use of dealer management software (DMS) and customer relationship management (CRM) platforms, most auto dealers already have a bedrock of data to access. However, many dealerships keep data in silos; departments do not communicate, and leaders are only focused on their own team’s data.
By taking a joined-up approach to data, through an insights engine or AI tool present in most modern cloud software, they can generate automated insights based on rapid analysis.
These provide faster business opportunities that the dealer can use to revolutionize their business, getting ahead of competitors. Using dashboards and KPIS, they can see the detail behind a star performer’s sales, deep into the process from appointments, opportunities, closures and other outcomes.
The Rise of AI in Automotive
Leaders can try to spot trends, or AI can highlight them faster than a human would notice. Sales managers can identify strengths and weaknesses, sharing the best approaches. Finance teams can ensure the company is meeting its objectives at a strategic and operational level. Marketers can ensure their campaigns reach the right audience, that they are in tune with customer needs, and see the results as they come in, not months down the line. AI in the workplace can truly be a major benefit.
While AI might be new for many dealers, it will soon act as a co-pilot in most businesses. An automotive specialist AI will help train new staff with multiple-choice quizzes, complex buying paths, and highlight best practices. It can track live sales and send out automated but personalized reminders to customers about the latest events, maintenance schedules and other opportunities.
Keeping the Dealers’ Lights Running
As part of running a digital car dealership, security and business continuity are key aspects that must be addressed by the management and IT team.
This can include cybersecurity to protect the network, data and applications, especially among users who are not technically aware. Security training, real-world testing and constant reminders are all part of keeping the team and your data secure.
Business continuity requires having a plan for when the IT does fail, be it for a day or longer, especially when a cyber-attack or major service outage occurs. It requires accessible data backups, emergency access to spare hardware or the use of personal devices, and the ability to stay in touch with customers and suppliers.
As Esteban Rodriguez of Redline Auto Parts explains: “Dealerships thrive on trust and reliability—without strong cybersecurity and continuity planning, even a short outage can damage customer confidence and disrupt operations.”
Another issue you can manage across the business is downtime tracking, identifying delays and stoppages for machinery, systems and delays in processes. The cost of these can be identified to the car dealer along with broader impacts on the business, helping drive the use case for modernization or replacement of old machinery.
The Rise of Technology in Car Dealerships
Younger generations of employees and customers are already used to engaging with all types of technology in every aspect of their life. So, it will come as no shock for them to see AI, modern SaaS, downtime and tracking applications being used alongside traditional sales techniques and information.
Only the most traditional brands, high-touch dealers for luxury vehicles or similar setups will bury their technology out of sight. Others, especially online-focused dealerships will rely on it more than ever. They will keep taking advantage of data insights to deliver the best service and keep ahead of their competition.
If your business has a problem with technology, finding a reliable IT partner, integrator or hiring the right in-house knowledge can help create a platform that puts your business on par with rivals and ahead of those who don’t take their data seriously.
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