The days of making company decisions purely on a whim are long gone. In the current data-based era, companies can make swift decisions based on more than just intuition and observation. Data-based decision making is becoming increasingly popular amongst businesses. Although data-based decision making originally became popular amongst educators, it has reached nearly every industry including automotive. Without a doubt, the concept of data-based decision making is fueling the competitive advantage companies seek in today’s economy.
Only one-third of enterprises currently use information to identify new business opportunities and predict future trends and behavior, but most of the remaining two-thirds plan to do so in the future. – (bi-survey.com)
Since harnessing the power of data, car manufacturers have been able to offer desirable cars in a variety of makes, models, and prices while offering incentives to boost sales.
Let’s look at the rise and decline of the SUV model as an example. While around 2.1 million units were sold in 2000, crossovers became more popular and nearly doubled those numbers in 2013. Paying attention to these changes in trends in very important for effective decision making. Brands who implement data-driven marketing and decision making in their overall strategies can offer enhanced customer experiences, leading to higher revenue.
Although the automotive industry has somewhat adopted the data-driven trend, there are more opportunities to use these data-based decision methods.
When it comes to automotive inventory management, data-driven decision making can be implemented in a few different ways. A full-circle business plan starting at the vehicle stocking level can be created using data-based methods. In order to stock for success, one must consider that the year’s top seller may not be the top seller in your market. Using data, like that available in Dominion Cross-Sell Reports, your dealership can drill down to your local market and identify the best sellers for your area. Knowing your area’s top-selling vehicles allows your dealership to get the right mix of trending new and used vehicles.
The best-selling model in 2017 was the Ford F-Series, but that doesn’t mean you should go out and stock your used lot with only all Ford F-series trucks.
Automotive inventory data also helps make decisions concerning your competition. Most dealers offer a quick answer to the question, “Who is your biggest competitor?” But do they really know the reasoning behind the name they blurt out? Is it because they are bigger, or because they sell the same make, or maybe because they have a higher advertising budget and win more online deals.
In order to combat your competition, you have to know who they really are. Get your hands on data that shows you who your competition is based on sales and pump-ins. That small store in the next county might actually be taking more sales from your market than you realize! Harnessing this essential data can help you identify actual competitors while also making decisions on how to win the sale.
Data’s endless possibilities can help you tailor your advertising budget to focus on your pumped-in competitor’s market and the vehicles that sell around you. You’ll want to arm yourself with data that can answer critical questions like: Is one zip code selling more than another? If so, what are the hot vehicles there? Determining these answers will help ensure you put your dollars where they have the biggest impact.
Automotive inventory solutions that implement data-based decision making in your dealership’s processes can give your inventory mix the competitive edge needed to surpass other dealerships. Stay tuned to learn how data-driven decision making can help in other areas of your dealership. Are you ready to start driving your decision making with actual data? Give us a call at 877.421.1040.
