Car dealerships generate huge amounts of data on a regular basis, but the sheer volume often presents a problem. Moreover, not every dealer knows how to utilize that same data to capitalize on sales, build rapport with consumers, and offer an incredible automotive buying experience. This time we’re having a look at some of the biggest data challenges that dealerships face.
Storing and managing data
It is no secret that cars are becoming “smarter” with new and improved features, which greatly contribute to the growing amount of data. Features like adaptive cruise control, parking assist, and partially automated highway driving, produce tons of data to process and analyze for future improvements. with this however, come a lot of data challenges. Dealership management software (DMS) not just stores data but also ensures it is available via a centralized dashboard. You can access all kinds of information related to new features and updates, and use it to ensure customers have the best experience.
Inventory management at car dealerships
Another one of data challenges car dealerships face is inventory management. It is vital to maintain an updated and accurate inventory that complies with current regulations. Dealerships should implement standardized procedures for tracking vehicle inventory, managing customer disputes, and handling operational tasks to avoid discrepancies and inefficiencies. Conduct regular audits to identify bottlenecks and areas for improvement. Using a DMS, it is possible to track sales, service, and delivery related data, so nothing falls through the cracks. Ensure your staff can communicate in real-time – it helps to address issues and coordinate activities.
In-vehicle subscriptions
Subscription based in-vehicle services provide new opportunities for auto manufacturers, as they capture new revenue streams and data. This concept is indeed a total game-changer when it comes to redefining how customers interact with car dealerships while experiencing mobility. Although subscriptions are tied to a vehicle, it is the owner who pays for them. Once the car is resold, the new owner has to pay the ongoing cost of these subscription services. This model replaces the commitment of buying or leasing with a flexible service offering that allows customers to switch between car models as their needs change. Use a customer relationship management (CRM) software to maintain this data, so you can access it whenever there is a trade-in or change of ownership.
Financial transactions
Ensuring financial transparency in all transactions is important for car dealerships. They have to comply with anti-money laundering laws and cash reporting requirements. Smart financial controls must be maintained, while due diligence on customers is needed to detect and prevent money laundering activities. For instance, large cash payments have to be properly documented and reported to the IRS without any delay. Following these regulations not only safeguard the dealership’s financial reputation, but prevent legal and financial risks associated with non-compliance too. Educate employees about the importance of cash reporting, maintain detailed records of transactions, and audit your books regularly to identify discrepancies. Choose a software that lets you establish robust controls for managing financial transactions and cash reporting.
Security issues at car dealerships
With data breaches going up tremendously, it is necessary for dealerships to protect customer privacy. They have access to vast amounts of sensitive personal and financial information, developing robust cybersecurity policies to safeguard this data, is a must. Dealerships should not only implement extensive data protection measures, but also conduct risk assessments and develop protocols to handle data and manage breach response. Failure to comply can result in severe financial penalties, legal repercussions, and loss of customer trust. Integrate an advanced cybersecurity software into your dealership model that alerts and protects against data breaches, so your customer remains safe and secure.
Big data is of immense importance to dealerships as it can be used to analyze customer behavior, track leads, maintain detailed records, identify trends in the market, and much more. Make sure you select the right software as per your requirements and specifications to address data challenges accordingly and reach out to us if you need some support.
