Automotive dealers recognize the power of data but face significant challenges in leveraging it effectively. This insight is drawn from the comprehensive Cox Automotive’s 2024 Power of Data study, a crucial resource that gathered feedback from franchise dealers and their management. The study found that while data is abundant, extracting actionable insights remains a hurdle. However, dealers who heavily utilize their data report a greater positive impact on business outcomes.
These issues erode dealers’ confidence and often result in underutilized data, leading to missed opportunities for efficiency and enhanced customer experiences. However, despite these challenges, an omnichannel approach not only emerges as the best strategy for dealers to harness data’s full potential but also promises a brighter future with enhanced customer experiences and operational efficiency.
Key findings from the study include:
- Dashboard Insights: While 83% of dealerships have access to data insights via dashboards or reporting tools, less than a third are satisfied with the insights vendors provide.
- Conflicting Data: 54% of dealers experience conflicting data from multiple sources, complicating the accuracy of their data.
- Vendor Reliability: 69% of dealers are inclined to discontinue using a vendor if they cannot ensure reliable customer or lead data access.
- Data Privacy Concerns: 66% of dealerships are worried about data privacy and compliance, with 44% delaying the adoption of new data solutions due to these concerns.
The study also highlighted best practices among heavy data users. Dealers can address data lag by implementing real-time update tools that synchronize all departments—marketing, sales, fixed operations, and the back office—with shoppers at every step. AI-powered automation can restore confidence by identifying actionable data and providing predictive insights to overcome third-party data quality concerns. An audit of vendors can help prioritize shopper follow-ups based on data coverage, update frequency, and the speed of insight translation.
Chase Abbott, VP of sales, noted, “As dealers explore data usage for current and future needs, AI has and will continue to significantly enhance dealer-buyer connections.” He continued, “AI can integrate data and insights, offering unprecedented intelligence and analytics. The potential of AI to revolutionize dealer-buyer connections is an exciting prospect that can boost customer satisfaction, employee satisfaction, and profits.”
