We grabbed some insights from Cox Auto's Power of Data Study conducted in late 2023 and early 2024. The study takes a close look at how U.S. auto dealers are using data to run their dealerships, make decisions, and boost customer value.
Deets:
Data Usage: Nearly all dealers use Customer/Lead Data (96%), Vehicle Data (94%), and Dealership Data (96%). It’s clear that data is a big part of our operations.
Benefits of Data: Over 80% of dealers see the upside of using data. They mention things like more accurate forecasting, better trend monitoring, higher revenue, and increased efficiency.
Confidence in Data: However, confidence levels vary. While 72% trust their in-house data, only 66% trust third-party data. Many have experienced conflicting information, especially since OEM and third-party data can be outdated.
Challenges with Real-Time Data: A big issue is the lag in real-time data. Most OEM and third-party data runs on 30, 60, or 90-day trends, which isn’t always helpful for day-to-day decision-making.
Privacy and Compliance Concerns: Data privacy and compliance are major worries. About 66% of dealers are concerned about ensuring data privacy, and 44% have held off on adopting new tools because of these fears.
Operational Goals: The top goals for using data are to increase revenue, improve customer experiences, and enhance internal operations. This includes everything from tracking employee performance to managing inventory more effectively.
