Customer data platforms (CDP) have quickly become an important part of automotive retailing, with the number of storefronts using this crucial technology growing on a daily basis. However, many dealers lack familiarity with the finer points of data management, reducing the effectiveness of their marketing.
On this episode of Auto Marketing Now, host Brian Pasch, founder of PCG Companies, discusses the importance of maintaining data and keeping consumer records up to date. To learn more about customer data platforms, their relevance to the car industry and the data partners best positioned to serve dealers, read Pasch’s report, “The Rise Of CDPs In Automotive Retail,” at his website here.
Key Takeaways:
1. Customer data platforms are only as good as the data fed into them. Dealers must be careful to maintain data “hygiene” and keep in mind that these platforms do not cleanse or improve data on their own.
2. Dealers often reduce the accuracy of their data by failing to update information. Before sending consumer information to a CDP, retailers should first identify whether the car buyer still owns their vehicle.
3. Some providers can update data for dealers before it is sent to a customer data platform. However, dealers should work with CDPs that carry open APIs so that data partners can access and update information as needed.
4. Whether working with a partner or on their own, dealers should do periodic audits of their data to ensure the information is “clean” and accurate.
5. Dealers will need to adopt different data strategies moving forward to get the most from their customer data platforms and provide a better car-buying experience.
"When we consider building a CDP, we really should be talking about: how do we cleanse the data from the DMS before we bring in the CDP, to reduce the number of broken vehicle-customer pairs?" — Brian Pasch
