Making data work for you

A few days ago, Cox Automotive released its annual ‘Power of Data Study’ and there were some very surprising results.?

The study surveyed 393 franchised dealers and 191 members of their leadership teams to determine the usage and value of data currently available to dealers, the potential impacts of optimizing data in dealerships, and what (if anything) is holding dealers back from currently using data today.

Overall, the survey showed that while dealers understand the power of data, they have trouble understanding and implementing this information into actionable insights that drive revenue.?

Turns out the goals for data usage mirror the same goals that all dealers champion on a daily basis:?

• Increase revenue/profitability
• Improve the customer experience
• Improve internal operations

Things get interesting when we start to examine the disparities between the number of dealers who subscribe to data services and the number who actually use the data to make decisions.?

For example, 96% of dealers use vehicle data, but only 70% of dealers would implement change based on the analysis and insights developed from their data.?

Some of this disparity can be attributed to a lack of trust in third-party data. In fact, 54% of dealers have experienced conflicting data across multiple sources, making it difficult to determine which data is accurate. Throw in a lack of real-time data, and it’s just not hard to see why dealers find it so difficult to actually trust all the information that’s thrown at them.?

So, dealers are paying for services that they don’t trust and don’t use to make decisions? Despite this seemingly illogical conclusion, this is exactly what is happening.?

What can dealers do?

Keep in mind that every dealership is different, but here are some best practices you can implement right now to start getting a handle on actually using data to drive results.?

Identify Data Quality Issues

• Conduct a comprehensive audit to pinpoint specific data quality problems.

Implement Real-Time Data Update Tools

• Use tools that update data in real time to ensure the most current information is always available.
• Implement real-time validation to catch and correct errors immediately as data is entered or updated.

Leverage AI for Continuous Improvement

• Implement AI-driven analytics to continuously improve data quality processes.
• Use machine learning to adapt and refine data quality standards based on emerging trends and historical data.

Establish Data Quality Standards

• Define clear data quality standards and metrics (accuracy, completeness, consistency, timeliness).

Implement Data Cleaning Processes

• Use data cleaning tools to correct errors, remove duplicates, and fill in missing information.

Centralize Data Management

• Consolidate data from various sources into a single, centralized system.
• Ensure consistent data entry practices across all departments.

Improve Data Entry Procedures

• Train staff on accurate and consistent data entry methods.
• Implement validation rules to catch errors at the point of entry.

Use Automated and AI-Powered Data Quality Tools

• Deploy automated tools, including AI-powered solutions, to monitor and maintain data quality.
• Utilize AI algorithms to detect patterns and anomalies in data and provide predictive insights for preemptive corrections.

Regular Data Quality Audits

• Schedule periodic audits to review and assess data quality.
• Address any new issues promptly.

Enhance Data Integration

• Ensure seamless integration between different data systems.
• Use APIs and other tools to synchronize data across platforms.

Monitor Data Quality Metrics

• Track key data quality metrics regularly.
• Use dashboards to visualize data quality performance.

Foster a Data Quality Culture

• Promote the importance of data quality throughout the dealership.
• Encourage employees to take responsibility for maintaining data integrity.

Data is the future

There is no time like now to get your dealership's data processes right.?

First off, having a solid data system in place means you get real-time, accurate insights into your sales trends, inventory, and customer behavior. Imagine being able to quickly adapt to market changes and meet customer needs with ease. Sounds great, right?

By centralizing your data and ensuring its quality, you can streamline your processes, reduce errors, and save a lot of time. Plus, with advanced analytics, you'll uncover patterns and trends that can guide your strategic decisions, leading to more sales and better profitability.

At the end of the day, setting up and utilizing data insights helps you stay competitive, adapt to industry changes, and deliver a top-notch customer experience.?

It's all about working smarter, not harder.

Good luck this week!