Business Intelligence – Opportunities for the trans­formation of the car trade.
Customer & Business Solution.
Insight.

Business Intelligence – Opportunities for the trans­formation of the car trade.

According to a ZDK study, many car dealershipsare still in the early stages when it comes to digitizing business processes. Only 70 out of 1,000 car dealerships surveyed have a strategy for digitizing their own business. The focus here is on communication, i.e. topics such as websites, social media and online appointments.

However, the great opportunity for a successful future lies in the analysis and use of existing corporate data. Using business intelligence on this matter can lead to cost reductions, streamlining of processes and increased efficiency in some business areas.

By implementing a Business Intelligence (BI) solution, company data is not only stored centrally, but also edited in detail and this without high administrative effort. Statistical and stochastic procedures make it possible to carry out meaningful analyses for each business area and its business environment, showing new perspectives and possibilities for action.

According to a recent study by the Business Application Research Center (BARC), the three most importantbenefits of a BI solution are

  • faster and more precise reporting
  • the analysis and planning of business areas
  • better decision making

The Munich Consulting Group deals with the possibilities of Business Intelligence in all business areas. Highly interesting is the application of BI in our focus topic automotive. Automotive dealers are currently facing strong competition and high volatility. Car dealers can efficiently increase their sales by means of predictive* and prescriptive** analytics, by merging individual data from customer satisfaction studies, competition analyses, car dealership and after-sales analyses, as well as special dealer management systems.

By means of data modeling and data visualization, the management receives clear dashboards as well as meaningful reports and can thus derive suitable measures at an early stage. Through historical customer and business data, such as the last car purchase, the number of repairs to the vehicle, the current mileage and user information from social media, the purchasing behavior of different customer groups is identified and analyzed based on the customer lifetime value. Marketing campaigns can then be optimized so that existing customers are better informed and appropriate services are offered in good time. Potential new customers can be identified, enabling retailers to proactively approach prospective customers and choose an individualized consulting approach.
This improves customer loyalty, creates competitive advantages and leads to cost optimization for the dealers.

Through data modeling and data visualization, the management recieves clear dashboards as well as meaningful reports and can initiate qualified steps at an early stage. Using historical customer and business data, such as the last car purchase, the number of repairs to the vehicle, the current mileage and user information from social media, the purchasing behavior of various customer groups is identified and analyzed by means of the customer lifetime value. Marketing campaigns can be optimized so that existing customers are better informed and appropriate services are offered in time. Potential new customers can be identified, enabling retailers to proactively approach prospective customers and choose an individualized consulting approach.
This improves customer loyalty, creates competitive advantages and leads to cost optimization for the dealers.

Source.
1. https://barc.de/news/kaufer-von-business-intelligence-software-sollten-ihre-prioritaten-andern
2. https://www.forbes.com/sites/danielnewman/2020/01/02/why-the-future-of-data-analytics-is-prescriptive-analytics/#1ed0d25f6598
3. https://www.onedealer.com/de/plattform/onedealer-platform-analytics-de/
4. https://www.automotivemastermind.com/blog/predictive-analytics/future-of-predictive-analytics-for-dealerships/
5. https://predictiveanalyticsworldindustry40.eu/
6. https://www.kfz-betrieb.vogel.de/zdk-studie-kfz-betriebe-ohne-digitale-strategie-a-847663/
7. https://www.infsoft.com/de/use-cases/auslastungsanalyse-von-hebebuehnen
8. https://www.accenture.com/_acnmedia/accenture/conversion-assets/dotcom/documents/global/pdf/industries_18/accenture-automobilwoche-beilage-2015-german.pdf

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