Automotive Equity Mining
If you work at an auto dealership, you might already be familiar with the term “data mining,” which describes the process of digitally combing through vast amounts of information on potential car buyers to more accurately assess if they are ready to buy. Data mining is a crucial part of modern auto sales.
However, another method that car sellers would be well-served to remember is automotive equity mining, a subset of data mining that allows dealerships to strengthen existing customer relationships. But how does equity mining differ from typical data mining, and how does it benefit your dealership?
Let’s take a look at the basics of automotive equity mining, automotive data mining, and what your dealership can gain from using these tools.
What Is Data Mining?
Data mining is the process of extracting and analyzing a large amount of information about your potential customers. When data mining, you’ll look at the publically available data, trends, and factors that influence whether or not a customer is likely to make a car purchase. This data comes from a variety of sources, including
- Financial status
- Credit reports
- Driving records
- Social media history
- & more.
Advanced software and processes sift through this data to make predictions for the market as a whole while also giving each potential customer a rating, allowing sellers to know at a glance which customers’ behavior has the strongest indication of a potential purchase.
What Is Equity Mining?
The key difference between data mining and automotive equity mining is that the latter is primarily focused on your existing customers. While both methods utilize large datasets to gain valuable insights, equity mining is used to identify the customers in your CRM who have positive vehicle equity while using factors like trade-in value, interest rate differences, factory incentives, and others to determine if a customer’s situation allows them to profitably buy a new vehicle.
What makes automotive equity mining tools so useful is the ability to determine not only which of your existing customers is most likely to make a new purchase but also those who are the most well-positioned to do so with positive equity.
Limitations of Data Mining and Equity Mining
Data mining and equity mining are effective strategies for increasing sales, but they have their limits when used on their own. To get the full punch of these techniques, they need to be used in conjunction with a truly all-inclusive dealership sales platform.
To improve equity mining and your other dealership processes that involve automotive data mining, you’ll need a sales platform that focuses on analytics, combining data from your personal CRM with outside data. This data comes from a variety of public and proprietary sources to paint a fuller picture of a customer’s demographic data, financial situation, and data about the vehicles themselves. With all of these sources to draw from, equity mining can bring the best possible trade-in prospects into your dealership.
How Do Data Mining & Equity Mining Fit Within the Sales Process?
Though an impressive tool for dealerships, data and equity mining are only the beginning. The sales journey still requires top-notch salespeople who are well-informed about their products and have the communication skills needed to help customers through the often confusing and complicated process of buying a car.
Luckily, with a comprehensive dealership retailing system™ like CarNow, you can accomplish more than just equity mining. You can also use a built-in customer messaging platform, full to the brim with handy integrations like real-time vehicle inventory, knowledge centers, and vehicle info to enrich your communication with customers and improve the buying experience.
By plugging in automotive equity mining methods, you can attract the most qualified leads at the beginning of the sales process before providing comprehensive service through engagement tools like CarNow’s Real-Time Retail™ and Real-Time Messaging™ platforms.
Schedule a Demo With CarNow
Are you ready to take your dealership’s sales process to the next level? If so, it’s time to schedule a demo with CarNow and see how our comprehensive dealership platform, complete with automotive CRM equity mining tools, can revolutionize the way you do business.
So why wait? Book a demo today and see for yourself how CarNow can help you attract more qualified leads, close more sales, and deliver top-notch service to your customers every step of the way.