What IT people nowadays call “Big Data” is what CEOs and leaders – including Dealer Managers – describe as Data Investment Management, and Britisher Sir Terry Leahy is considered the Godfather of Big Data. Why? Because he made it work in favor of his company to increase profits by at least 25 percent.
What does this mean for Auto Dealerships?
With the acquisition of sophisticated software that dealerships use today, an enormous amount of customer data is being accumulated – but it is hardly being put to use.
Sir Terry Leahy is the former CEO of Tesco’s, a British retail industry that grew its market capitalization 10-fold in eight years while its chief competitors’ market value fell.
Says Leahy: “The hardest thing to know is where you stand relative to your customers, your suppliers and your competitors.” Therefore, it is imperative that auto dealerships should be investing in their own Data Investment Management strategies.
Takeaways from Leahy’s Analysis of Customer Insight:
- Customers are the best guide – they have no axe to grind.
- Follow the customers – but learn from the competition.
- It is cheaper and more profitable to hold onto existing customers than to lure those of competitors.
- Customer data is priceless – a better understanding of customer data improves productivity and helps retain wavering customers.
Actionables for Your Dealer Manager Right Now:
- Collecting, analyzing and acting on the insights revealed by customer behavior, both at the dealership and online, is the best guide to decision-making.
- Get relevant data into the hands of decision makers at all points in the dealership.
- The more data shared among staff and suppliers and customers, the more trust is established – and trust is the most productive commodity in business.
- Good data and good processes work hand in hand with transparency and consistency in motives and values – a policy that brings customers back, and according to Leahy, “If you do that they will stay with you for a lifetime, and that’s where you get your return on investment.”