Many car dealers are having a difficult time using data insights from automotive research successfully because of a range of different problems, according to new research by Cox Automotive.Â
The Cox research – part of the 2024 Power of Data study – suggests that at least 70 percent of car dealers are unable to make best use of the data available to them, as “seven out of 10 dealers say lags in data make their insights less useful.”
While data lag can be corrected by picking software tools that offer real-time updating of information, this isn’t the only informational challenge car dealers are experiencing. Fifty-four percent are receiving conflicting data from various sources with no indication as to which info is reliable, and 44 percent don’t use some of the data available because they are unsure about privacy rules relating to it.
These figures indicate the majority of car dealers are having trouble getting good, reliable data on automotive sales, since 83 percent are using data insight services or tools of some type. Out of those using these information sources, only a third are pleased with the outcomes that they’re getting.
Cox points out that artificial intelligence (AI) seems to be one of the most effective tools for picking out and highlighting good data that car dealers can use for marketing from the background noise. With the right AI tools, Cox sales VP Chase Abbott says, “dealers can unlock powerful insights that improve customer satisfaction, employee satisfaction, and profits.”
GM appears to recognize the potential for increased profits through good, reliable data analysis and handling with its recent partnership with Vehlo. This new alliance provides access to Vehlo’s Dealerlogix platform for dealership car repair and servicing across all of The General’s brands. The automaker is looking to win back business from independent mechanics and garages, which have overtaken dealership service in popularity this year.
Cox notes that car dealers will find that “AI can pull data and insights together to provide a new level of intelligence and analytics the industry hasn’t seen before.”
Subscribe to GM Authority for more GM dealer news and around-the-clock GM news coverage.
Comments
My vehicles never go back to the dealer except for warranty issues.
Until dealers treat customers with respect and make them feel valued AI and data collection are useless. People want to feel like their business is appreciated. It is that simple.
My Cadillac dealer always has a greeting for me and asks how things are going in general for me. A little effort in communication with the public goes a very long way to satisfying both parties.