The modern dealer needs to transform into an internet car retailer in every sense if they want to succeed in a digital age where consumers are powered with more information than ever, according to Deltapoint’s Tim Marriott.
An attractive and interactive website or online showroom is just half the battle, today’s dealer needs to analyse the data trail their customers leave during their extensive online activity. Their used car operation must have the stock customers are actively searching priced to attract the quickest sales and highest profit.
Marriott, head of i-Control at Deltapoint, will illustrate how this readily available ‘big-data’ can be harnessed to staggering effect. He will also show how applying the most accurate information available at local market level can transform a dealer’s retail strategy ensuring maximum returns when he speaks at AM’s Hit for Six Conference which takes place at Cedar Court Hotel in Wakefield on November 19.
AM’s Hit for Six Conference, now in its second year, tackles six hot topics facing today’s franchised dealer and grapples with issues in new cars, used cars, aftersales, finance, insurance and digital.
Marriott said: “Automotive’s High Street retail counterparts have been exploiting big data for years and are evolving ever sophisticated methods of tracking and targeting the right profile of customer with the product they are most likely to buy or with the promotion which is most likely to appeal with impressive results.
“Franchised dealers are only at the very start of this digital journey and have yet to fully grasp its possibilities. Those who do so sooner rather than later will be ahead of the game and find their stock profile better matches local demand, which in turn will result in more sales, increased stock turn and improved profitability.
“By taking a more scientific approach to used car stocking and pricing, these dealers are less likely to fall victim to the challenge of a shortage of good quality stock because they are able to capitalise on the volatile market and find the best opportunity.
“Far from driving prices down, the transparency of the internet has created a well-informed customer who pays a fair price. The more accurately dealers can price their vehicle the quicker it will sell – as long as the right product has been sourced for the particular forecourt in the first place. Our experience tells us consumers are more likely to buy a highly desirable vehicle at a slightly above market price. ”
Statistics gathered from Auto Trader will reveal the product portfolio and pricing of a large number of forecourts to be completely out of kilter with local market forces which means gauging stock and price tags according to competitors will further skew the market.
Marriott will be joined by an early adopter of Deltapoint’s i-Control system which allows dealers to grasp the intricacies of their local market and plan their used car strategy accordingly. East Midlands Hilton Garage Car Supermarket owner Richard Manning will reveal how ‘big data’ has enabled the business to focus on competitive pricing. The used car supermarket retails 1,200 vehicles at any one time and Manning will illustrate how the ‘easy to use’ system has helped streamline his operation.
He said: “The appraisal tool is a great plus for us. It saves us time in researching price to market, and also gives us added information such as desirability, burn rate and days in stock in other dealerships. This has been a great help for our business to weed out the slow selling stock, and to focus on the desirable stock. Also it has showed stock that we would never normally have bought which we have sold well.”