Car dealers have navigated a pandemic, high interest rates, inflation, and fluctuating demand with relative ease, underlining the strength of the retail automotive sector. However, with consumer preferences evolving and the world becoming more technologically advanced by the day, store owners will have to face plenty of headwinds before things return to normal.
On this episode of Driving Solutions, host Jim Fitzpatrick is joined by Aaron Baldwin, chief product officer at automotiveMastermind, a dealership-focused data analytics firm. For over ten years, automotiveMastermind has helped car dealers maximize profits with industry-leading behavior algorithms, artificial intelligence-powered software, and in-depth data insights. Now, Baldwin discusses the challenges facing the retail automotive sector in 2024 and how his company works to solve those issues.
Key Takeaways
1. The questions posed by electric vehicles and first-party data should be front of mind for every dealer in 2024. With S&P Global Mobility reports showing days’ supply for EVs has increased 340% year-over-year, dealers face a problematic market landscape. Conversations on range anxiety, market demographics, and vendor solutions will be critical to navigating this difficult segment.
2. On the other hand, first-party data has become a crucial asset for car dealers, but many are ill-equipped to leverage consumer information correctly. To stay competitive, retailers will need to learn more about Customer Data Platforms (CDPs) as well as digital security in the coming months.
3. To help car dealers gain traction in the EV market and use their data effectively, AutomotiveMastermind will be at the 2024 NADA Show demonstrating its Electric Vehicle Behavior Driver, a platform capable of predicting the likelihood a customer purchases an EV based on their shopping patterns.
4. AutomotiveMastermind plans to continue equipping dealers with the insights and tools they need to grow their businesses and serve their customers. However, Baldwin notes the company will focus more on fixed-ops and sales in the coming months to help store owners maximize their profits from both departments.
5. Although brand loyalty improved slightly in 2023, Baldwin notes that six out of ten consumers are “nomads”(shoppers with no preferred franchise), causing growth for many brands to stagnate. Car dealers, vendors, and automakers will need to work closely together to solve buyer pain points and improve customer retention. Data will be an important tool for winning back buyer trust.
To learn more about the relationship between dealership success and data insights, visit automotiveMastermind at their website or catch them at booth #2927W at the 2024 NADA Show.
"Six out of every ten shoppers right now are nomads. We are starting to see some upticks in loyalty, but we have a long way to go to get back to where we were." — Aaron Baldwin
