Disrupting Data Analytics with Kea
Today’s automobile dealers have it tough. The number of challenges is innumerable. The number of challenges increases if the dealer is a multi-brand with more than 500 used car sales per month. Collecting data insights to make data-driven decisions becomes a major challenge but that’s not the end of it. Some common challenges are listed below.
The availability of used and new cars, and relevant parts is a significant concern for dealerships. This leads to lost opportunities with customers and excess inventory creating a shortage of floor space and tying up the capital, thereby affecting the margins of these dealerships.
Lowering Dealer Loyalty
Many customers are looking for dealerships that can provide a seamless pick-up and drop option while servicing their vehicle, adequate financing and mortgage options, and, more importantly, health certificates for the used cars they’re buying. Even if the dealership falters in one of the points, customers easily switch the dealership. Not having the best-in-class customer experience is indeed a deal-breaker.
The online marketplace has emerged as a strong competitor for used-car dealerships. The sellers can initiate conversations from the comfort of their homes. Prospective customers can select, shortlist, negotiate, and close deals faster. They also eliminate the “middle-man” from the equation, ensuring both parties’ profitability. Dealerships are coming up with their own websites and platforms to counter this and give value-added services for free.
The Predicament at Hand
Jake Hallson, the sales manager was looking to maximize revenue for his car dealership and liquidate his used cars inventory. The dealership is based in a bustling city in the American midwest. A multi-brand showroom will have walk-ins of a variety of people with varied backgrounds and to cater to a wide variety of users, he had to come up with interesting campaigns, understand where to place his ads, and ensure that his team has up-to-date information in terms of the cars in the warehouse, and make sure that his customers walk out of the dealership with a smiling face, assured that they have the best deal.
To ensure he achieves the target and delights his customers, Jake must depend on data and metrics. He must clearly understand the brands that move fast, the transmissions preferred by different customer segments, and other important information such as the power train, engine capacity, fuel type, etc.
However, the dealership doesn’t have the budget to set up a big team of data analysts crunching through the data in hand and producing dashboards. Also, Jake is not a technology expert, nor does he have the luxury of time to learn and prepare such effective visualizations.
Here’s where he turned to Kea – Our Next Gen Virtual Data Analyst capable of mining millions of rows of data in microseconds, and producing relevant actionable insights at a moment’s notice.
Next “Action” Plan – Maximizing Sales & Revenue with CI
The dealership needed to plan for maximizing sales and liquidating existing inventory. An effective campaign plan in line with the cultural aspects of their target audience can turn the tables around for them, especially with the rising loss of customers to the online marketplace. It was imperative for the dealership to come up with personalized campaigns that would attract people to walk into their stores.
Conversational insights come to the rescue here. It is employed by used-car dealers to plan better using data insights having a simple language-driven interface. Jake sorts out the plan with instantaneous insights derived from Kea where he asks simple data questions in their natural language and gets pointed answers with visualizations.
Scenario – 1: Jake knew that sales of blue Audi cars were slow compared to black Audi. However the recent “Blue is not only for boys” movement is expected to increase sales among working women. Hence, he wants to understand how many Audi blue cars with the purchase year 2018 are still in stock.
Impact Campaign – Created a social media campaign in alignment with “Blue is not only for boys” with the image of different Audi cars from the warehouse. Erected a hoarding with the message “Prove the boys wrong 2745 times” and improved the footfall of working women in the demographic of 30-35.
Scenario – 2: The last few accidents in and around residential neighborhoods have suddenly raised demands for Swedish brands like Volvo who are focused on safety. Volvo XC90 used to be a crowd favorite, followed by XC60. Many families have enquired about them including their price, transmission, and power train. So Jake wanted to understand the top 10 models in Swedish cars with automatic transmissions and rank them price-wise.
Impact Campaign – Executed a “Safety has no Price” campaign with a safety message in and around residential neighborhoods. Demonstrated the safety features of XC90 and XC60 in those neighborhoods and improved the sales of Swedish brand cars.
Scenario – 3: Power couples are the ones where both work in high-paying jobs or run a business together. They’re a creamy layer of the upper middle class of American society, and to them, a good car is a status symbol along with mobility. Audi is a favorite among such customers. However, there is always ongoing confusion about settling for a hatchback like Audi A1 or buying a sedan like Audi A8. The upper middle class is rising in these neighborhoods given that many tech companies are setting up their offices here. So Jake wanted to get comparison info on the inventory of the Audi A1 to the Audi A8.
Impact Campaign – Introduced a “Be the Face of New America” campaign targeting power couples. Rolled out specific feature videos and explained additional value add services that they get from the dealership. This led to clearing out the existing Audi A1 and A8 cars inventory.
Scenario – 4: Lamborghini, a performance car has always been the favorite of the Europeans who have settled in the American midwest for employment purposes. To them, Lamborghini helps them get from point A to point B fast, and in style. Rolling in a Lamborghini is definitely an eye turned, and to the suave European men, that’s a must-have. Thus, the sales manager wanted to know more about their imported Lamborghini stock and break it down by fuel type.
Impact Campaign – Planned and executed “Feel right at home in your Lamborghini” targeting bachelors living in the European quarter. Gave the customers tailored experiences and explained how the dealership partners directly with Automobili Lamborghini to get trained on service engineering directly from them thus assuring best-in-class care for their cars. Improved the sales of Lamborghini by roughly 40%.
Scenario – 5: Jake had faced many instances where French model budget cars like Renault, Peugeot, etc. were preferred by students. However, they will look for cars with shoestring budgets, and they cannot afford to overprice them. Jake wanted to understand which of his French cars are priced above $200000 not to suggest them to potential university student customers.
Impact Campaign – Set up “Make your first car memorable” stalls across different universities. Ensured the students who came to the dealership from the stall references got an extra 5% off, thereby improving budget French car sales amongst students.
Kea – Ensuring Instantaneous Insights!
Kea helped Jake get all the information they needed in a jiffy instead of fiddling around in a cluttered dashboard loaded with information. Time was really on Jake’s side because the insights were instantaneous, and timing is everything in a field like Sales and marketing. His campaigns were successful, ensuring a good flow of revenue to the dealership.
Jake depended on data insights and did not get stuck in the usual rut of collecting data, preparing dashboards, deriving insights, and then executing the campaigns. Frankly, Jake is not supposed to do that because he is a salesman, and his role is to improve sales. However, in many organizations, many salesmen are still trying to make sense of their data spread across multiple spreadsheets.
Now, I leave the decision to you, the reader. Do you want to empower your sales team with a state-of-the-art next-gen conversational insights platform like Kea? Or, do you want them to be stuck in the vicious cycle of data collection and dashboard preparation?
Head over to our webinar to learn more about how conversational insights simplify information access and what happens behind the scenes.