Mining the Modern Dealership

November 14, 2016

Old Vs. New

Mining earth for valuable resources is very different than mining the information in your DMS for equity opportunities. They do, however, share one thing in common.

In both processes, there’s an old way and a new way — aided by technology — to get the job done. New technology helps make the process of mining easier, faster, and more targeted. It helps extract the valuable materials (whether data or precious earth materials) more efficiently and cost-effectively.

Mining in a Modern Dealership

Although data-mining technology has existed for a number of years, very few dealerships take advantage of it. According to our Dealership Action Report (DAR), which surveyed more than 6,500 dealerships, only half are using data-mining technology to identify business opportunities. Additionally, in those that do, only 17 percent of data-mining leads generated are actually contacted. This means that half of today’s dealerships continue to lose out to competitors by identifying leads the “old way.”

We have found that the old way of doing business, to say it frankly, is inefficient. Sales teams either blast communications to all of their leads, hoping one bites, or they try to sift through seemingly endless information, manually determining which leads are right for which communications. Either way, they run the risk of spamming inboxes with non-targeted messages or reaching prospects that aren’t in the right place in the buying cycle. In either case, dealers are just guessing or wasting a whole lot of valuable time.

Whether change management or upfront costs are hindering dealerships from adopting new technologies, the ROI and numerous advantages that come with it are certainly hard to ignore.

No More Guesswork

With modern data-mining tools, you don’t have to play the guessing game. You can be certain that the communications you send reach the appropriate contacts, and you can craft their messages to meet their particular wants and needs.

DealerSocket’s data-mining tool, Revenue Radar, works by scanning the wealth of customer information in your DMS, highlighting customers in a favorable position to spend money at your dealership, and then dripping updated equity information, bank programs, incentives, and vehicle evaluations through your CRM.

Revenue Radar then “pings” your BDC or sales team with opportunities that deliver the best grosses, trades, and closing percentages. Once this valuable information has been extracted, you can confidently contact customers with relevant and beneficial sales and service opportunities.

Not only will your marketing efforts produce a higher ROI, but your customers will appreciate the tailored sales and service messaging and will be more likely to remain loyal to your store.

Mining Matters

Dealerships that establish a process to communicate relevant, personalized messaging to their customers — both digitally and in person — are more likely to have long-term satisfied, loyal customers.

With these discernible benefits, dealerships that are still operating “the old way” should be throwing their mining picks in the trash and upgrading to an advanced, technology-based sales and service goldmine.

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