The Importance of Automotive Analytics in Lead Generation
June 9, 2023
Just about 20 years ago, the thought of purchasing a vehicle online like a pair of pants would be inconceivable. These days, that concept isn’t just a reality, it’s gradually becoming the norm. Approximately 8% of Canadians purchase a vehicle online and have it delivered straight to their doorstep.
Every data analyst in the automotive industry knows one thing: online marketing is where it’s at. Practically every industry has seen its brick-and-mortar sales convert steadily to online retail purchases. The auto industry, despite what conventional wisdom may dictate, is no different.
All of this begins with automotive analytics. Data analytics is the key to understanding how your digital side of the business is performing. Read on as we discuss how lead generation for the automotive industry and analytics work in tandem.
Key Analytics for a Data Analyst in the Automotive Industry
Big data is a mainstay in every industry, from social media to online retailers. Even small businesses are analyzing customer behaviour both with their own services and with the market in general. It is safe to say that analytics tools are the key driving factor behind all modern market predictions and analyses.
That said, the automotive industry has its own tendencies. Let’s discuss some of the core analytics that pertains best to this market.
Car Ownership Status
Used cars have always been a foot in the door for fresh car owners who can’t afford a brand-new vehicle. But in recent years, used vehicles have skyrocketed in value. So much so that they sometimes cost more than their same new counterpart.
Hence, a core analytic is whether or not the customer is searching for a new or used vehicle. As you hunt down customer leads, this will be the first question you need to answer. It will determine not only your capacity to meet their demands but also a means of sifting the wheat from the chaff–i.e. whether you plan to prioritize new or used markets.
On top of this, some buyers may be amenable to a for-sale-by-owner contract. Others would prefer to purchase directly from the dealership.
Times are getting tough, and many people are turning to loans to finance their vehicles. Canadian drivers are no different. Many will make their purchasing decisions based solely on the availability and options that car loans offer.
Many people have accumulated a significant amount of debt. They cannot afford loans with high-interest rates, even in the event that they have a low credit score. Depending on what sorts of loans you plan to offer, you can target certain customers–and not waste your time with others.
Buyer Credit Score
Thanks to online credit score checkers, this piece of data is easier than ever to collect. You can easily differentiate between those with high or low credit scores. Credit scores can be the basis on which you funnel certain customers into your lead pipeline.
Demographic information will always come in handy no matter who you’re selling cars to. Most importantly, it tells you who is buying your cars. With this information, you can target specific markets and generate more effective leads.
After all, leads are about a template for your ideal customer. The better you understand your demographics, the more you can hone in on that ideal customer profile.
Why Are Data Analytics Crucial for Automotive Lead Generation?
The sales pipeline for the automotive market has always been straightforward: people drop by a dealership if they want a car. But believe it or not, lead generation for the automotive industry streamlines that process and leads to higher sales.
Let’s discuss some of the reasons why data analytics will play a key role in your endeavor to create leads.
Take Advantage of Targeted Marketing
Advertising in the past was far less precise. At best, marketers could pitch to a very broad segment of their target demographic. These days, algorithms allow you to push advertisements to your target customers and none else.
This means that you can be far more efficient with your marketing dollars than ever before. You know that your leads will be more responsive and engaged. In the end, you spend less time chasing leads that will go nowhere.
Cultivate Quality Leads
Finding leads is only part of the process. The next step is lead nurturing. These are the overtures that take you from a prospective customer to a complete conversion.
It’s here where the rubber meets the road. You may learn a great deal about your customer base through this lead nurturing process. This will help you pre-select leads with better accuracy and efficiency in the future.
Score Leads More Effectively
Once you have a decent logbook of leads, it’s essential to rank them from most probable to least. Lead scoring is the process of assigning values to different metrics and analytics. Leads that score the highest are the ones that you spend the most time wining and dining.
Evaluate Your Advertising Campaigns
After deploying a new advertising campaign, it’s essential to see how it’s performing. Data analytics can help you achieve this. Not only that, they gauge how effective your new strategies are with current and future leads.
If something isn’t working, this is the perfect time to remedy it. If you experience a decline in leads or customer conversions, you can trace it back to specific changes in your campaign.
Market with Accumulate
Every data analyst in the automotive industry knows that the key to modern online marketing depends on automotive analytics–particularly how it relates to lead generation. Data analytics doesn’t just teach you important things about your customer base. They show you how effective certain outreach methods are, and allow you to fine-tune new advertising campaigns.
Accumulate serves as your go-to solution for digital marketing and lead generation strategies in the digital era. But don’t just take our word for it. Book a demo today and see it in action.