Knowing Your Customers Pays Off With Model Shake-Ups Coming
The fresh wave of car models slated for discontinuation in 2023 is the most recent proof that nothing endures forever in the automotive retailing industry.
Some of these are merely getting a revamp and a slight rebranding rather than truly disappearing. Others, such as the Volkswagen Touareg and Ford Fiesta, will actually no longer exist and have no similar replacement inside that brand. According to Forbes, 13 different models are actually expected to vanish
This occurrence occurs at a time of even greater industry disruption, as major companies like Ford indicate they will completely phase out sedans in response to the explosive growth of crossovers.
What does this ongoing lineup change mean for dealers, then?
First, you still need to market the available goods, even though manufacturers may be concentrating on the choices they believe are best for them.
Second, many customers are forced into a shopping mindset since they simply won’t be able to get the same automobile they had or even a comparable vehicle from the same brand.
That presents a chance if you have the expertise to respond to the following crucial question:
What will they probably purchase next?
Knowing Your Customers Is Important
In order to understand your customers and predict what they will want in the future, you must first understand your current customers.
What precisely does smart analysis entail? Predictive analytics, a fancy term for utilizing computers to determine the likelihood of future outcomes based on historical data, would be one example.
In other words, the analysis gives you the ability to market proactively by making accurate projections of future customer behavior or wants.
How is that analysis carried out? Consider examining similar populations and the activities they took in response to a particular circumstance. Then picture a system that can examine past outcomes that have occurred frequently and provide a probability that the same outcome will occur again in the future.
It’s vital to remember that you might receive more precise and unique outcomes from such a system the more specific data you provide.
Let’s return to the topic of changing vehicle lineups. You can draw trustworthy conclusions that aid in directing the buyer into their next model by utilizing detailed client data for a predictive analytics method.
When you no longer sell the vehicle a customer drives, how do you keep them from defecting? By identifying their underlying wants and behavior patterns based on the available data, you may present them with a solution that makes sense to them and satisfies their needs.
When we break down predictive analytics to this level, some of the concepts may seem obvious, but mastering them and putting them into action will set you apart:
The available data contains these insights.
It is possible to use the data to draw consistently accurate conclusions about potential future behavior.
It’s crucial to use tried-and-true targeted marketing that is individualized at the individual level in response to actionable insights.
The advantage of understanding your clients is this. It’s the only way dealers can reliably keep customers who wish to be devoted to a brand or model but find it difficult due to aging models and shifting lineups.
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