Three Big Data Trends Dealers Should Know About

by Jon LeSage, edi­tor, Used Car Mar­ket Reports

This is the year of Big Data for dig­i­tal mar­ket­ing strate­gists and deal­er man­age­ment. It’s been a sweet year for new and pre-owned vehi­cle sales, loans and leas­es, sched­uled main­te­nance, and after­mar­ket. Big Data is becom­ing some­thing like the blood­stream for all of it. It’s built into third-par­ty dig­i­tal mar­ket­ing part­ners, upstream remar­ket­ing chan­nels, and deal­er man­age­ment sys­tems. The trick is bal­anc­ing some­where between “no duh” for tech­nol­o­gy process­es that are built into every­thing we do today and a “Rubik’s Cube” for man­agers over­whelmed with data sources and fig­ur­ing out what to do with them. Stay­ing cur­rent on the issues is a good way to do it.

Here’s the lat­est on what ana­lysts are say­ing about Big Data….

1. Big Data is messy for man­agers, but can show you how cus­tomers will use your ser­vices in unex­pect­ed ways. Forbes inno­va­tion colum­nist Rich Karl­gaard learned that Big Data is show­ing com­pa­nies how to improve their soft­ware, com­mu­ni­cate with cus­tomers, and build loy­al­ty. For deal­ers this can mean fol­low­ing up with cus­tomers in prod­uct and ser­vice offer­ings that were invis­i­ble before Big Data report­ing was cus­tomized and made action­able. There are bet­ter ways now for not los­ing leads in your cus­tomer data­bas­es by inte­grat­ing and clar­i­fy­ing the data.

2. Auto insur­ance com­pa­nies are rely­ing more on Big Data for track­ing dri­ving habits and offer­ing dis­counts to cus­tomers. Allstate’s “Dri­ve­wise” and Progressive’s “Snap­shot” have been avail­able for some time on a strict­ly vol­un­tary basis. Dri­vers who sign up and fol­low sug­ges­tions can see pre­mi­ums drop 5% to 10% and some­times up to 30%. There is also con­cern from con­sumer advo­cates that some cus­tomers may be very con­cerned about their pri­va­cy and send a back­lash to what auto insur­ers want to move for­ward. The point here is to look for cost sav­ings and giv­ing cus­tomers a clear choice to opt out.

3. Big Data is worth $1,400 a year per con­nect­ed car. Andreas Mai, direc­tor of prod­uct man­age­ment at Cis­co Sys­tems, advo­cates mar­ket­ing Big Data’s ben­e­fits to car shop­pers and to the econ­o­my. This means that the con­nect­ed car can save the motorist $550 a year with fuel econ­o­my ben­e­fits; automak­ers can save $300 in low­er war­ran­ty costs and prof­itable apps; telem­at­ics ser­vice providers will gain rev­enue and soci­ety at large will gain from bet­ter flow­ing traf­fic. This might be a great mar­ket­ing mes­sage to deliv­er.

Sources:
Forbes

Time

Auto­mo­tive News

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