As AI continues to evolve, we can expect further advancements that will shape the future of auto sales and marketing. It’s an exciting time to be part of the industry, and the journey has just begun. By embracing the power of AI, professionals in this field can drive innovation, forge stronger customer connections, and lead the way in an ever-changing marketplace.
Customer Behavior Forecasting
Indeed, understanding customer behavior has always been crucial in the business world. However, with the advancements in AI, businesses, including those in the auto industry, now have access to powerful tools that take this understanding to new heights. By leveraging vast amounts of data and utilizing sophisticated algorithms, AI enables insightful analysis of customer motivations, desires, and even predicts their future actions.
The ability to forecast customer behavior has proven to be invaluable for dealerships in adapting their sales strategies and products. With AI-driven insights, businesses can stay ahead of consumer trends, ensuring they offer the right products and services that align with customer preferences and expectations.
By integrating AI into their operations, companies can make more informed decisions, optimize their marketing campaigns, and even personalize their customer experiences. The auto industry, in particular, can benefit greatly from these AI-driven insights, as it allows for the development of innovative and responsive strategies that cater to the changing demands and preferences of consumers.
AI’s role in understanding customer behavior is truly transformative, empowering businesses to not only analyze historical data but also anticipate future trends. As technology continues to advance, we can expect AI to play an even more significant role in refining sales strategies and products across various industries, including the auto sector.
With the help of AI, dealerships can analyze customer preferences, behaviors, and online interactions to create messages that truly resonate with each customer’s unique interests and needs. This could involve offering special discounts on a preferred car model or suggesting related accessories that complement their purchase. By using personalized marketing, dealerships are fostering a deeper connection with their customers, resulting in happier buyers and more successful marketing efforts. If you want to learn more about how AI is revolutionizing personalized marketing.
PREDICTIVE ANALYTICS
Your dealership probably possesses an abundance of data. If your sales, marketing, service, and F&I departments utilize a Customer Data Platform (CDP), it’s likely that you find yourself immersed in a vast amount of data.
The implementation of predictive analytics has revolutionized sales and marketing strategies. Through analyzing historical data and identifying patterns, AI algorithms are capable of predicting future sales, optimizing inventory levels, and even forecasting which customers and demographics are most likely to purchase a particular vehicle.
This predictive capability empowers dealers and Original Equipment Manufacturers (OEMs) to make well-informed decisions, reduce costs, and customize their approach to cater to specific customer segments.
The NADA is one of the largest gatherings for automotive industry professionals and provides a platform for dealers, manufacturers, and other industry stakeholders to come together and discuss various topics. Let’s connect in Vegas!
A local dealership has been using our Lead Program for over 20-years.
Our Bankruptcy Leads help them sell an average of 15 additional cars a month.
They spent less than $60K (including postage) and generated over $360,000 in profit last year using our Bankruptcy Program.
We just completed a test program with another local dealership. We mailed 1,526 letters to people recently discharged out of bankruptcy. That generated 11 calls from 8 prospect which resulted in 3 cars purchased. That’s a 37.5% close rate! Cost per closed deal, including postage was only $522.
Our Special Finance Lead Program Works!
U.S. Postal Service Announces Proposed Temporary Rate Adjustments for 2021 Peak Holiday Season
WASHINGTON – The United States Postal Service filed notice the Postal Regulatory Commission (PRC) regarding a temporary price adjustment for key package products for the 2021 peak holiday season. This temporary rate adjustment , which was approved by the Board of Governors Aug. 5, will affect prices on commercial and retail domestic competitive parcels – Priority Mail Express (PME), Priority Mail (PM), First-Class Package Service (FCPS), Parcel Select, USPS Retail Ground, and Parcel Return Service. International products would be unaffected. Pending final approval by the PRC, the temporary rates will go into effect on Oct. 3, 2021, and remain in place until Dec. 26, 2021.
The planned price changes include:
Priority Mail, Priority Mail Express, Parcel Select Ground and USPS Retail Ground:
• $0.75 increase for PM and PME Flat Rate Boxes and Envelopes.
• $0.25 increase for Zones 1-4, 0-10 lbs.
• $0.75 increase for Zones 5-9, 0-10 lbs.
• $1.50 increase for Zones 1-4, 11-20 lbs.
• $3.00 increase for Zones 5-9, 11-20lbs.
• $2.50 increase for Zones 1-4, 21-70 lbs.
• $5.00 increase for Zones 5-9, 21-70 lbs.
A full list of commercial and retail pricing can be found on the Postal Service’s Postal Explorer website https://pe.usps.com/text/dmm300/Notice123.htm
In the past, dealerships haven’t considered using their customer data as a source for advertising. That data was primarily used for sales follow-up calls or service inquiries.
That’s because third-party cookies (small pieces of text sent to your browser that remembers information about websites you visit on the internet) are becoming extinct. Privacy regulations and laws are driving digital giants to stop the use of them. Apple’s latest update allows users to opt out of ad tracking, Firefox and Safari have already stopped storing cookies, and Google will phase them out of Chrome by 2023.
The loss of cookies will make it more difficult to target people who previously visited dealership’s websites making digital ads less personalized.
The good news is that dealerships have a treasure of data of their own. Customers’ emails, addresses, phone numbers, details of their automobiles and more. This data is collected through CRM systems and dealership websites. It’s known as first-party data.
Social media companies can continue to track their user activity within their own platforms which helps to build an audience and allow for retargeting through advertising directly through the platform such as Facebook or Instagram. Social media is facing extreme challenges with the newly introduced privacy options as Apple user opt out of ad tracking, social platforms lose their ability to identify their user locations.
With the recent change in size regulation for First-Class postcards (from 6 X 4.25 to 6 X 9), dealers are beginning to revisit direct mail.
Data compilers can help to “fill in” missing data from dealers first-party data through a reverse append. You provide us with your data, name/address/city/state/zip and we can append phone numbers, email addresses, and run the data through cleansing software that will update records based on the National Change of Address Database, standardize the address information, and check the addresses for accuracy.
To learn more about reverse appends contact us today.
Consumers snapped up new autos at pre-pandemic rates in the first quarter of 2021 by more than 8%.
The gain was powered by higher demand in anticipation of a return to offices and everyday travel as vaccination rates exceeded one-quarter of the population. Also, fear of lower supplies of cars because of chip shortages has left consumers scrambling for any car that they can get, which means accepting less-than-optimal colors, features and even swapping to a different model entirely if needed.
The projected sales acceleration is part of a trend that began soon after factories reopened last summer and has persisted in the months since then. This year’s gains come from retail buyers, whose purchases soared 20% compared with a year ago — a period that largely predated the onset of shelter-in-place orders. Retail deliveries are forecast to have reached 3.16 million vehicles in the quarter, the second-highest total ever.
Wishing you a very safe and happy Halloween from all of us at BEBdata!