Dealership Turns To Data Analytics To Build Ideal Customer

In any business, a very significant portion of revenue is brought in through repeat customers. This is even more so true at car dealerships where the majority of revenue is from very big ticket items. Losing a single customer at an auto dealerships hurts their bottom line far more that losing a single customer at a coffee shop. That is why one car dealership in Minnesota turned to data analytics to try to identify the common characteristics of their repeat customers. They ended up being quite successful for the following reasons:

Valuing Repeat Customers
Analyzing Large Data Sets

Valuing Repeat Customers

While some businesses may seek to treat every customer alike, others recognize that a high percentage of their revenue comes from repeat customers and thus they can cater advertising to this demographic. By valuing their repeat customers they can avoid advertisements that will more than likely fall on deaf ears.

Analyzing Large Data Sets

The dealership analyzed over 700 different aspects of thousands of potential customers as well as their existing repeat customers. They used this to look for commonalities between the two groups and if a strong enough one was found, they made sure to highlight it as part of their next advertising campaign. By marketing to those who are more likely to buy a car from your dealership, you are able to increase profits in no time at all.

It is quite possible that this will continue to be a trend not only with dealerships but across all industries sooner rather than later.

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Joel Stocksdale
Joel Stocksdale has more than a quarter century joined car industry and car news coverage encounter that he conveys to Green Auto Shop perusers. Over the thirteen years that he possessed a car business, he worked straightforwardly with each significant auto mark in the vehicle business and got comfortable with all makes and models of autos. His energy for autos drove him to put over the most recent twelve years in car news coverage where he conveys all that experience to his perusers as he expounds on the vehicle business and the most recent test autos he drives.