As dealerships navigate the complexities of digital marketing and customer data, many are turning to Customer Data Platforms (CDPs) for a more streamlined approach. April Simmons, Corporate Internet and Marketing Director at Horne Auto Group, joins us on the latest episode of CBT Now to discuss the role of CDPs in modern dealership operations, the risks of outdated data, and why a clean data strategy is critical for compliance and marketing efficiency.
According to Simmons, business at Horne Auto Group is strong, with Phoenix’s winter season bringing an influx of customers. However, like many dealerships, they are facing gross profit compression and increased expenses. Used car acquisition is also a major focus heading into 2025 as the market normalizes.
Simmons underlined that traditional dealership systems—Customer Relationship Management (CRM) and Dealer Management Systems (DMS)—often create “walled gardens” of data, limiting how dealerships can act on valuable customer insights. A CDP, on the other hand, consolidates data from multiple sources into a single platform, allowing dealerships to execute more efficient, compliant, and personalized marketing strategies.
One of the biggest challenges Simmons spotlighted is the risk of non-compliance with data privacy laws. If a customer requests to be removed from marketing lists, that update may not automatically reflect across all platforms, exposing dealers to potential legal issues. In addition, outdated data leads to inefficiencies, such as marketing campaigns targeting customers who no longer own certain vehicles. She shared a personal example of receiving two mail offers for service on cars she had traded in years ago.
The issue extends beyond dealerships to OEMs, which often pull customer information from outdated DMS records rather than more accurate CDP or CRM sources. This disconnect results in poor customer experiences and wasted marketing spend.
Furthermore, Simmons advocates for better data-sharing practices across the industry to prevent these issues.
For dealerships looking to take control of their data, Simmons advises implementing a CDP that centralizes all marketing efforts, ensures compliance, and prevents costly inefficiencies. She also noted the importance of tracking data sources and using clean, updated information to avoid marketing missteps that can damage customer relationships.
"Having a CDP is really about saying, where can I get all of my data for a dealership in one place for two purposes? One, to make it actionable for every marketing source that you use, to create a true life cycle marketing strategy. And two, to ensure compliance, because we have a responsibility to control that data and follow privacy laws." – April Simmons
