Client Tips

Why Car Dealerships Should Not Rely on Data Mining Software or Programs?

Posted by Manuel Soto Wednesday, June 12, 2013

Yes, data mining is part of our EDGE Service Turn program and yes we are telling car dealerships that they should not rely on data mining services. You see, data mining is only "part of" our program as we offer clients a full-service, technology-driven program.

Here's what's wrong with most data mining services and software...


1. Data mining software and data mining services are great at identifying prospects who should be in the market for a new car – but they leave sales executives hanging afterward.

There are many reputable data mining services, programs and solutions that help sales executives at car dealerships identify the best service prospects that should be in the market for a new car. They provide sales executives with all the information they need including:

  •  The car owner’s current interest rates – and the rate they can be getting right now if they got a new car
  • Book values and auction market reports so sales executives can offer their clients appealing trade-up values
  • How much is being spent on the car for maintenance issues so sales executives can show clients the maintenance savings they’d be experiencing if they got a new car

However, what good is this information if your sales executives do not know how to use this information to turn service customer into new car buyers? You see, data mining companies that offer their tools as a solution for car dealerships (rather than part of a solution that offers support to a process) enables car dealers to continue the traditional sales approach in the service department that's converting less than 1%! In fact, the industry average for selling new cars from the service drive is .5%, while our clients are experiencing an average of 3% to 5% closing rates from the service drive.

It’s not your sales executives’ faults that you are not selling more cars from the service drive. They do not know any better. Instead of adapting to a new environment where customers are not looking to be sold, they are relying on the same strategies that worked on the sales floor as all they are given is data.

We offer clients an entire process that helps car dealers sell cars through service by providing:

  • Complete manager's report
  • Appointment confirmation phone scripts
  • Merchandising that lets customers know that the dealership is interested in buying high quality cars
  • Letters from the GM that provide a highly personalized customer experience
  • Client information worksheets that are designed to demonstrate your genuine interest in getting to know about the customers while showing the customers that they really need to get a new car now
  • Rep training as sales executives need to know how to use the data to provide service customers with a unique customer experience that focuses on quality assurance first.

I’m revealing our 8 step quality assurance process that helps Kelly Nissan sell at least 25 additional cars per month (from the service drive) that they would not have gotten otherwise. Not only is Kelly Nissan getting more cars sold but they’ve also increased their CSI & SSI!

Register for this webinar now! https://www2.gotomeeting.com/register/970279266

 2.  Data mining tools help you find the people that might be interested in buying a new car for a variety of reasons but then you have to get them into the dealership somehow.

On average, car dealerships are paying $400 per car sold on advertising to get people inside their doors. Their spending money on telemarketing, sales reps performing cold sales calls, radio/TV/newspaper/magazine/internet marketing and now even social media marketing.

Car dealerships are spending all this money on lead generation – and they’re totally forgetting about the leads that are already at their dealership. That's why I help clients focus on the customers already coming in for service (maintenance and repairs of their current car). You don't have to worry about getting them to the dealership - as they already have scheduled appointments (meaning existing new car sales opportunities.)

3. Car dealerships are only taking advantage of 30% of new car sales opportunities using data mining tools.

Data mining tools like Auto Alert can't help car dealerships with customers that come in without an appointment. That means dealerships miss out on 40-50% of the opportunities, as that is the typical percentage of people that come in for service without an appointment. You need specialized car dealership software and technology that allows your dealership to quickly identify prospects for a new car and put them through the new car sales conversion process whether they have a scheduled appointment or not.

4. Because of the financial crisis – the data can be inaccurate

After the global banking and financial crisis, banks are making their own decisions on the residual value of the car and their estimated current value of the car in order to reduce risk and cut their losses. This is resulting in inconsistent information and inaccuracies that sales executives would be unaware of if they do not have a process to evaluate the customer’s current situation.

You see, the data and the technology should not be the end solution. You need a complete process that offers a personalized, human touch that gives customers the service experience they are looking for while letting them know about their options.

To see how your car dealership can sell at least 20 to 25 new cars per month from the service drive (while simultaneously increasing your dealerships CSI and SSI) – register for our next case study webinar where we show you how the Kelly Group  gets a 5% sales conversion from their service drive month-after-month.

Register for this free webinar now! https://www2.gotomeeting.com/register/970279266


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