At vAuto, data science has always been part of our DNA. Years ago, we knew that truly understanding the automotive retailing market required access to data. And so we developed inventory management solutions that gathered data to help dealers like you make better, market-informed decisions about vehicles to stock and how to price them.
But that was just the beginning. Today, vAuto has developed the ability to dissect and understand data well enough to provide predictive analytics with the power to transform the way you manage your automotive inventory. Read on to learn more about how industry leaders have incorporated data science into inventory management and optimization—and how these advancements can benefit your dealership.
Today’s Solutions Deliver Actionable Intelligence
In the past, vAuto and other software providers developed inventory management solutions that simply presented data. But today’s solutions distill the data even further, through data science, to recommend specific appraising and pricing recommendations. This way, you can use the software to manage your used car inventory as well as your new car inventory with truly actionable insights. If you’re in the process of evaluating today’s software solutions, here are a few tips for choosing one that turns data into actionable intelligence:
- Ensure the quality of the data. Not all data is the same. The highest-quality data is deep, timely and broad — like the consumer, retail and wholesale market data that Cox Automotive leverages throughout its ecosystem.
- Use solutions that convert data into real intelligence. Not all data-driven insights provide timely, relevant and reliable recommendations to aid your decision-making. Be sure you’re using solutions that use the right sources and technologies to translate high-quality data into actionable intelligence. Accurate predictive analytics depend on accurate data.
- Verify application integration. Data and actionable intelligence aren’t useful unless they’re integrated in the applications used for decision making. For example, personalized websites and targeted ads leverage data and intelligence to drive engagement and positive business outcomes.
Data Innovation Impacts the Bottom Line
Better data enables better business decisions, especially in terms of automotive inventory management and retailing. In the past, data might have helped you make a few smart decisions, but real innovation today requires using data consistently to make every decision smarter for real business impact. This level of innovation drives bottom-line results. For example, you can use solutions from Cox Automotive to:
- Personalize online car buying. The Esntial Commerce® solution from Cox Automotive uses artificial intelligence and machine learning to help consumers find the right vehicle for their needs, along with tailored payment terms. Personalization builds trust and increases the chance of closing a deal — boosting the profitability of your automotive inventory.
- Maximize profitability from vehicles you wholesale. Cox Automotive’s Upside™ solution uses industry-leading market data from across wholesale and retail markets to provide you with a baseline wholesale value for a vehicle, as well as a guaranteed minimum profit for its sale. With this data, you can make the right exit decision at the time of acquisition — whether you’re acquiring a vehicle as a trade-in or through another channel. And if the sale doesn’t hit that profit baseline, Upside covers the loss. It’s a great way to acquire used car inventory without risk.
- Boost confidence in electric vehicles (EVs). Battery health is a key consideration regarding maintenance and residual value of EVs. That’s why Cox Automotive gathers battery data from Manheim, Autotrader, Kelley Blue Book and Spiers New Technologies to embed EV-specific information into its products. This insight can help you know which EVs to add to your used car inventory.
Growth-Minded Dealers: Use Data to Overcome Common Challenges
As dealership groups acquire new stores with their own unique personalities and ways of operating, they face some common challenges that today’s data science can solve. Many dealers mentioned these challenges to Dale Pollak at Access: Innovation this year. If you’re in the position to acquire new stores, here’s how to use data science to help you optimize your growth:
- Standardize a data-based process and strategy. Processes and strategies vary by rooftop. It’s helpful for managers across a dealership group to standardize how they price, appraise and acquire vehicles. vAuto’s ProfitTime® GPS makes it easy to use data science to help all your stores optimize the way they manage used car inventory. And vAuto’s Conquest™ gives you 100% of the data you need for new car inventory management and pricing.
- Use data to make better staffing decisions. If you track staff members’ performance, you can use that data to help you solidify your teams across rooftops.
It’s important to be aware of how today’s data science can deliver actionable intelligence, bottom-line results and solutions to growth-related problems. Keep this in mind if you’re considering software providers for predictive analytics or new vendors of inventory management solutions. Using the best available data science can have a huge impact on your success.
To learn more about how vAuto’s tools incorporate data science to benefit your dealership, request a demo today.