Cox Automotive Study Reveals Dealers Data Utilization Challenges and Opportunities

(Source-www.autonews.com)

Struggles with Data Utilization

A recent Cox automotive study reveals dealers data utilization, highlighting the persistent struggles and opportunities automotive dealers face in leveraging data effectively. The 2024 Power of Data study, which surveyed franchise dealers and their management teams, reveals that although dealers are aware of the potential benefits of data, many still encounter significant hurdles in transforming it into actionable insights. The study highlights that while data is widely available, extracting meaningful and practical insights from it remains a substantial challenge for most dealers.

These difficulties often lead to underutilization of data, resulting in missed opportunities for improving operational efficiency and enhancing customer experiences. Despite these obstacles, the study suggests that dealers who invest heavily in data utilization tend to see more favorable impacts on their business outcomes.

Key Findings and Data Utilization Issues

The Cox Automotive study reveals dealers data utilization issues, identifying several critical factors affecting their effective use of data. It reports that while a notable 83% of dealerships have access to data insights through dashboards or reporting tools, fewer than a third are satisfied with the quality of insights provided by their vendors. Additionally, over half of the dealers (54%) face complications from conflicting data originating from multiple sources, which undermines the accuracy and reliability of their data.

Vendor reliability is another concern, with 69% of dealers expressing a willingness to discontinue the use of a vendor if reliable access to customer or lead data cannot be ensured. Data privacy and compliance issues further complicate matters, as 66% of dealerships voice concerns about these aspects, leading 44% of them to delay the adoption of new data solutions.

Best Practices and the Role of AI

Despite these challenges, the study highlights best practices for dealers using data. One recommended approach is to implement real-time update tools that synchronize various departments—such as marketing, sales, fixed operations, and back office—with shoppers throughout their journey. Leveraging AI-powered automation can also help address issues related to data quality by identifying actionable insights and offering predictive analytics.

Chase Abbott, Vice President of Sales at Cox Automotive, emphasizes the potential of AI in transforming data utilization. Abbott notes, “As dealers explore data usage for current and future needs, AI has and will continue to significantly enhance dealer-buyer connections.” He adds, “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.”

In conclusion, the Cox Automotive study reveals dealers data utilization challenges but also offers a hopeful outlook, suggesting that adopting advanced tools and AI technologies could significantly improve data utilization, leading to better customer experiences and enhanced business performance.