Digital Dealer - August 2019 - 33

all available data that's available to the (additional data
that customers are willing to
share to best customize the
buying experience). These
customer insights, like knowing why the customer wants
to buy and what factors
influence their decision, in a
world when the customer is
armed with all the info while
the dealer is left guessing,
help level the playing field
for the dealer.
The closer that dealers
can get with their automated
marketing (with personalization being key), the better
the chances are of winning
their business. Cumulative
data helps dealerships gain
more insightful and meaningful information about their
customers and anticipate
their needs - leading to a
better overall experience on
the showroom floor.
FOCUS ON CUSTOMER
EXPERIENCE AND
PERSONALIZATION

Although customers
spend less time in the
showroom, today's customers care about more than
just the product, they care
about the entire experience
and want to feel valued
and familiar. Nearly 72% of
consumers say they now
only engage with marketing
messages that are personalized and tailored to their
interests.
Implementing a predictive
data science strategy makes
it possible for dealers to create unique customer profiles
that anticipate their needs
and addresses their reasons
to buy. Accompanied by
the data that customers are
willing to share, dealers are

sure to be empowered and
able to focus on the customer experience.
In short, data gives dealers the power to create that
more personal and trusted
experience customers are
looking for, even as they
spend more time shopping
online and less time in-store.
However, by building that
digital footprint, dealers can
gain valuable insights about
their customers from the
get-go, creating a stronger
connection with the customer from the very beginning.

SHIFT TO CUSTOMER
LOYALTY

With more vehicles to

a 15% increase in retention
sales.
Once a dealership harnesses predictive data and
is able to focus on the customer experience, it's then
necessary to shift prioritization to customer retention,
which can lead to increased
profits of 25 to 95%. The
key is determining what
customers will need once
they leave the lot. A predetermined strategy will help
encourage them to return to
the dealership for service or
their next purchase.
When margins tighten, the
dealerships that built loyalty
through excellent customer

A RETENTION
STRATEGY WILL HELP
DEALERS PROTECT THEIR
EXISTING CUSTOMERS
AND CONQUEST NEW
CUSTOMERS WHILE
INCREASING PROFITS."
choose from, more ways to
buy them, and more power
in the hands of the customer, dealerships must work
harder than ever to retain
customer loyalty. Predictions for 2019 U.S. auto
sales show a decline for the
first time in five years, and
more than halfway through
the year, analysts are still
predicting sales below 17
million units. This is even
more reason for dealers to
consider a retention marketing strategy to help protect
existing customers and
conquest new customers.
Results show dealers who
have implemented a predictive analytics strategy see

experience have a measurable advantage over those
waiting for the phone to ring
or door to open.
KEY TAKEWAYS:
 Today's car buyers are
driven by digital and mobile
technology. Dealers should
acknowledge that research
and aggregate their data
to create a personalized,
trusted customer experience
that also addresses their
reasons to buy.
 Predictive data strategies enable dealers to
aggregate the data they
already have and turn it into
relevant, actionable customer insights.
 Dealers must antici-

D I G I TA L D E A L E R . C O M

pate consumer needs and
behaviors before they start
their journey.
 A retention strategy will
help dealers protect their
existing customers and conquest new customers while
increasing profits.
Leveraging data allows
you to reach customers first
through more relevant and
personalized customer outreach, which will ultimately
help drive sales and gross
profit.
With more vehicles to
choose from, and so many
ways to buy, make sure to
attend "You Keep Talking,
But Do They Hear You?"
at Digital Dealer 27. This
session (presented by
Steve DeWitt, director of
business development for
automotiveMastermind),
will help you to learn how
to use data to create more
personalized custom offers to increase customer
engagement.
SOURCES:

Car Buyer Journey, 2018,
Cox Automotive
Experience is everything: Here's
how to get it right, PWC, 2018.
4
Majority of consumers will
only engage with personalized
marketing messages,SmarterHQ,
April 8, 2019
5
NADA Forecasts 16.8 Million
New-Vehicle Sales in 2019, NADA,
December 13, 2018
6
Crowded Car Lots Spur Discounts,
But Auto Sales Keep Slipping,
Bloomberg, May 31, 2019
7
Mastermind vs Non-Mastermind
dealer retention sales, 2017 IHS
Markit
8
4 Key Strategies for Customer
Retention, Automotive News
1
2

ANTHONY GJONAJ serves
as a regional manager at
automotiveMastermind,
the leading provider
of behavior prediction
technology and marketing
automation technology.
AutomotiveMastermind is part
of IHS Markit.

AUGUST 2019

33
http://www.DIGITALDEALER.COM
Digital Dealer - August 2019

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