Customer data and digital marketing are crucial tools for running a profitable dealership. On this episode of Inside Automotive, host Jim Fitzpatrick is joined by Glenn Pasch, the CEO of PCG Digital and auto marketing expert, to discuss data in the car business and highlights from the recent Digital Marketing Strategies Conference (DMSC).
During the conference, Pasch notes that speakers focused on two key digital marketing tools. The first was artificial intelligence, which promises to drastically alter the way brands and consumers interact. However, its uses have yet to be fully defined. “One of the biggest points that we all walked away from was: it is here, technology is here, it can be useful, but it should be your copilot,” he explains. “It shouldn’t be the pilot.” Attendees were also excited to learn more about customer data platforms (CDP) and their ability to identify and unify information from a vast number of resources.
On the automotive side, Pasch believes dealerships are taking the proper steps to understand and utilize digital marketing and customer data. “I think what’s happening is people are starting to realize that their data is truly an asset,” he explains. However, while marketing managers are spending more money on data collection, they may need help to understand what exactly they can use the information for and what the rules are around data sharing.
In fact, laws governing data security are becoming more strict and complex. By failing to comply with these rules, car dealers risk lawsuits and federal fines. To ensure bad actors cannot access their customer’s sensitive information, Pasch advises that retailers perform security checkups. “It really should be an audit of…who has access into my data, and should they?” he remarks. Dealerships should look for vendors specializing in cybersecurity to conduct these audits on a regular basis.
With COVID no longer getting in the way of business, car dealers are beginning to spend more on advertising and online campaigns. Rather than employing the same digital marketing strategies they used pre-2020, however, Pasch urges the automotive industry to remember the lessons they learned during the pandemic. “During COVID, a lot of the customer service…steps were taken out and moved quicker because we had to,” he notes. “[Shoppers] were dealing with managers, customers could get answers right away, decisions didn’t take [a] back and forth…” Today, he concludes, vehicle buyers want that same expedited, transparent experience. By focusing on how their service has adapted, dealerships can continue to drive demand in the post-pandemic market.
