Less than 33% of dealers are happy with their data insights

Author

Colin Velez
July 30, 2024

Most dealers know why they should use customer data but new research suggests that many are struggling with how.

Why this matters: Data can open doors to growth opportunities few other tools in a dealership’s kit can match. With the car business growing more technologically advanced by the day, it’s crucial for retailers to get the hang of this fundamental asset as soon as possible.

The big picture: Businesses tend to rely heavily on vendors for data collection and analysis. Unfortunately, it seems this habit can cause problems for dealers.

  • In a new study, Cox Automotive reports that less than 33% of dealers are happy with the data insights provided by their vendors.

  • Speed is vital when it comes to analyzing real-time data to ensure accuracy, but many dealers encounter delays in the reporting process. Around 70% say lags make their insights less reliable.

  • Dealers are deeply worried about privacy and compliance. Nearly half (44%) admitted to putting off using new data tools over cybersecurity worries.

The intrigue: Although these issues are shared by many, the best dealers are overcoming these challenges by using proactive measures to improve the validity of their data.

  • While dealers are careful about trusting third-party data insights, tools that predict the market can provide an additional layer of validation. Some storefronts compare forecasts with actual results from vendors, removing a lot of the guesswork.

  • Artificial intelligence is being used to analyze data and identify the main takeaways. This speeds up the analysis process and helps prevent lags.

  • Dealers are also conducting audits of their vendors' data to stay on top of their information. By familiarizing themselves with the pros and cons of each platform, they can make their insights more useful.

“Data is worth doing right. With high quality, accurate, and secure data delivered in real time, dealers can unlock powerful insights that improve customer satisfaction, employee satisfaction, and profits.”

Chase Abbott, Vice President of Sales at Cox Automotive

Bottom line: Data collection can be unfamiliar territory for dealers, who risk feeling overwhelmed by the sheer volume of vendors and tools in this space. Yet, common sense practices can help them use this tool to the fullest while keeping customer info safe.

Become an automotive insider in just 5 minutes.

Get the weekly email that delivers transparent insights into the car market.

Join 73,000 others now, it's free:

The Auto Hauler Exchange has revolutionized the way vehicle haulers and vehicle shippers collaborate. AHX's B2B marketplace connects vehicle haulers directly to shippers in a frictionless manner.

The Exchange helps vehicle haulers maximize their capacity while limiting empty miles. The Exchange is the first true B2B marketplace of its kind in the vehicle logistics industry.

By connecting carriers and shippers directly, carriers can save time and choose which opportunities fit their needs each day.

At the same time, shippers can rest assured that their vehicles are being moved by qualified, vetted carriers who fit their vetting program.

The Auto Hauler Exchange has democratized the vehicle logistics industry by eliminating the middleman and connecting shippers directly to available carriers.

Get off the vehicle hauling roller coaster today with Auto Hauler Exchange.

Reply

or to participate.