Predictive Analytics Enhances the Car-Buying Experience

Dealers can use modern data analysis to help tailor the customer experience for every potential sale that walks through the door.

August 2017, Auto Dealer Today - Feature

by Marco Schnabl

Getty Images
Getty Images

As technology changes, so do customer expectations. Convenience and efficiency are the norm, and buyers want the instant gratification of a sale paired with high-level customer service. And that is not limited to ecommerce; it extends to the car-buying experience as well.

Limited Contact

On average, research shows that car buyers visit just 1.6 dealerships before making a purchase, so it is important to ensure the customer has a positive impression. With the implementation of big data and behavioral analytics, dealers are able to target who is most likely to buy and what they are looking for, ensuring each customer receives a personalized buying experience.

Consumers visiting a dealership today walk in armed with prior online research and knowledge. They are not looking to be educated upon arrival. Eighty-eight percent of car buyers have done research online before even setting foot in a dealership, and 79% expect the purchasing process to be completed in less than two hours. Everyone benefits from technology that provides customized selling points catered to each individual, resulting in a personal and efficient sales process.

Behavioral analytics for the automotive industry are now making their presence known by providing a dealer with detailed insights on each customer. This changes the game for a sales executive looking to close a deal.

New Sales Tool

Those over 25 years old make up the majority of the traditional car buyer market today. They tend to be wary of how much personal information is publicly available. They may use social media less frequently, share much less information on future purchases online, and respond more favorably to traditional marketing.

That is why behavioral analytics is so important for every dealership. Emerging technologies allow you to access social media feeds, purchase history, sociodemographic queues, and vehicle lifecycle information. In addition, the vehicle purchase experience can be further enhanced by producing a customized predictive marketing campaign that outlines all the benefits of the proposed offer, ensuring a smarter and more sophisticated sale.

By leveraging behavioral analytics and producing customized marketing campaigns, dealers can be certain they are giving their sales teams the best tools possible to understand each customer and produce a more substantial sale. The key to success in this evolving market is to not just sell cars, but to do everything smarter: think smarter, sell smarter, and predict smarter. 

Marco Schnabl is CEO of automotiveMastermind, a provider of predictive analytics and marketing automation technology for the automotive industry. Email him at [email protected].

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