The Critical Foundation for AI Success in Auto Retail: Data Strategy First

I was pleased to see Jade Terreberry from Cox Automotive recently highlighting a message that we at BrainTrust Partners have been emphasizing throughout 2024: AI success in automotive retail depends entirely on having the right data foundation in place. Her insights from Cox's latest consumer study reinforce what we've been seeing in our work with dealers across the country - AI adoption is accelerating, with over 44% of consumers now trusting AI recommendations over traditional salespeople, and more than half expecting AI-powered financing solutions.

A Timely Industry Discussion

This growing industry recognition of AI's importance validates what we've been sharing with our automotive clients. While AI tools offer exciting possibilities for enhancing customer experience and operational efficiency, implementing them without the proper data infrastructure is a recipe for disappointment.

For dealership groups looking to act on these insights, it should be encouraging for you to know there's already a team of experienced professionals ready to help. At BrainTrust Partners, we've been focused on helping organizations across complex, customer-focused industries build the robust data foundations necessary for successful AI implementation.

The Real Challenge Behind AI Success

Through our work with dealership groups, we've consistently found that the biggest hurdle isn't selecting or implementing AI tools - it's ensuring those tools have access to clean, unified, and reliable data across all systems. When your DMS, CRM, inventory management systems, CDP and others aren't properly integrated and harmonized, even the most sophisticated AI solutions will struggle to deliver value.

Learning from Cross-Industry Experience

Our experience working with banking, healthcare, and other complex industries has given us valuable insights that directly apply to automotive retail. For instance, a regional healthcare system we supported achieved remarkable improvements in patient satisfaction and operational efficiency by first establishing a solid data foundation. The similarities to automotive retail are clear - both industries deal with complex customer journeys, multiple touchpoints, and the need for personalized experiences.

Implementing a Methodical Approach

The path to successful AI implementation in your dealership group should follow a proven approach:

1. Start with a comprehensive assessment of your current data ecosystem
2. Develop a strategic roadmap for data unification and governance
3. Implement the right systems and processes to maintain data quality
4. Build on this foundation with targeted AI initiatives

Significant Returns from the Right Approach

When organizations follow this structured approach, the results are significant. We've seen:

• 47% increase in customer lifetime value
• 38% improvement in operational efficiency
• 42% better service utilization

These aren't just numbers - they represent real business transformation that comes from doing things in the right order.

Your Partner in This Journey

As more industry voices like Terreberry highlight the importance of AI in automotive retail, it's crucial to remember that you don't have to figure this out alone. BrainTrust Partners has been helping organizations navigate this exact journey, and we understand the unique challenges and opportunities in the automotive retail space.

A New Mindset for Long-Term Success

One of the most crucial lessons we continue to share is that comprehensive data management isn't a one-time project or occasional effort - it requires a fundamental shift in how dealerships think about and handle their data. This shift needs to become part of your organizational DNA, and that's where many software-only solutions fall short.

At BrainTrust Partners, we don't just provide software licenses, login credentials, and basic training. We become an integral part of your team, working with you on a regular cadence - weekly, monthly, and quarterly as needed. This ongoing engagement ensures you're not just maintaining good data practices but continuously evolving and improving them.

Our team provides:

• Regular strategic reviews and insights
• Proactive recommendations based on industry trends and your specific needs
• Technical expertise when you need it
• Guidance on next best actions for your business
• Continuous support in developing and maintaining your data-first mindset

This level of partnership is what transforms data management from a technical challenge into a strategic advantage.

Moving Forward Together

The automotive retail industry is at a pivotal moment. The potential of AI is clear but realizing that potential requires the right foundation. If you're thinking about your dealership group's AI strategy, let's start with a conversation about your data infrastructure. We can share specific examples of how we've helped organizations like yours build the foundations for lasting AI success.

This isn't about implementing a solution and walking away - it's about building a lasting partnership that helps your dealership group stay ahead in an increasingly data-driven industry. Whether you're just starting to think about AI implementation or looking to improve the effectiveness of your existing solutions, we're here to help you build and maintain a sustainable, scalable approach that drives real business value.

Let's connect and discuss how we can help your dealership group build the right foundation for AI success. With the right partner by your side, you can create lasting value for your business and your customers.