Data and Deets

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 Many have experienced conflicting information, especially since OEM and third-party data can be outdated.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.

What about you?