Data Mining - A Great Strategy for Automobile Marketing

Data Mining - A Great Strategy for Automobile Marketing

Now-a-days, most customers perform an online search before buying an automobile or any other motor vehicle. Online research is conducted to analyze brands, product features, trim levels, prices, place of availability, and much more before the purchase decision is made. The fact is supported by a recent survey for the automotive dealership industry conducted by Pepper Gang, a Boston-based digital marketing agency. The aim was to determine how people use mobile and digital technology to conduct research for their next car purchase. According to the survey report, 83% of respondents admitted that they start researching a new purchase online, 64% consult online review sites, and 58% read reviews and compare cars and prices while at a dealership using their mobile device.

Data Capture All this has obvious implications for automakers and dealers. They need to understand what their target market is looking for and show up well in the comparisons to improve their market share and sales, says a recent article published

by Dell. Auto manufacturers and dealers need to understand customer needs by mining big chunks of customer data collected from social media portals, surveys, and customer feedback.

Data capture is the first step in data mining and customer tracking. Advanced software tools are now available to collect data from a dealer’s customer database, search engines, and social media. Other sources for data include search sites like Edmunds, Carfax, Vast.com and their own digital stores. Price comparison websites,

consumer forums, and shopper reviews at social media sites can have a great influence on conversion rates.

Digital retailing and marketing by demographics are two main methods to improve customer awareness about a product and to improve sales. For example, the Dell report quotes an auto and transportation program manager at Frost & Sullivan as saying that digital marketing was responsible for the increased sales of new cars (around 55 to 70 percent) at Audi City Digital Car Showroom during the first quarter of 2013.

Marketing by Demographics Auto dealers should investigate buyer segments and their clout in local markets.

Comparing total brand sales with that at a zip code level makes it simpler to understand the performance of dealers at specific geographies. Automotive research sites like Vast.com offer applications that that allow dealers to look at specific information related to cars, including mileage, features, popularity, price and availability. Sharing such information helps customers make improved purchase decision.

When it comes to mining and analyzing huge volumes of data from various sources, many car manufacturers and dealers rely on a professional data mining services. With advanced data mining software and teams of experts trained in data capture, data cleansing and data mining, an established service provider can help them identify patterns, trends, rules, and relationships from large volumes of information.

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