Earning profits lies at the core of all businesses. The revenue you make determines your overall success and competitiveness in the industry. This is why, as an automotive dealership, your primary focus should be on increasing revenue. In this day and age, efforts to grow revenue are not limited to simply catering to clients that walk in through the door. Modern automotive businesses go the extra mile and look for various options to increase their revenue potential; data and equity mining is one such option.
One of Professional Success South’s clients, the owner of an automotive dealership in Los Angeles, used data and equity mining to boost revenue. The dealership used those insights to make impactful decisions targeting the customers. The efficient use of the equity mining process enabled the dealership to increase its revenue by 42%.
As partners of the dealership, we noticed the change in numbers first-hand. We decided to impart this knowledge to all of our clients and community members. This blog post lists down the benefits of equity mining which helped our client navigate the shores of success.
What Is Equity Mining?
Automotive equity mining is a form of data mining that targets clients who are likely to purchase a car. The program selects potential variables such as residual values, the existing car’s equity, interest rates, and company incentives. The findings of the process are forwarded to the sales department, which then proposes offers to the specific customers.
The Magic Number
Our client was successful as a renowned dealership in the region, thanks to their professional and efficient services. However, the changing trends in the industry convinced the car dealership to try something different to enhance revenue.
The business decided to join our equity mining program after realizing the significance of data. As a result, the dealership recorded a significant (42%) increase in revenue. Here are some factors that led us to the magic number; these factors are also why equity mining is a significant hit with automotive dealerships.
The results of equity mining help automotive dealerships in implementing targeted marketing. Adding incentives for a unique demographic or owning a particular car helps attract a specific audience to the dealership.
A Versatile CRM
Customer Relationship Management is at the core of equity mining. Identifying customer trends and targeting them helps businesses enhance their revenue. Incorporating a versatile CRM, DMS, and platform integration aids in effective customer management.
Equity mining also helps in optimizing sales by efficient price analysis. Identifying the right price and increasing availability are some factors that contribute to improving sales.
If you’re looking to increase revenue for your automotive dealership in Los Angeles by efficient use of data, then equity mining is the name of the game for you. At Professional Success South, we help dealerships increase their revenue by assisting them in digitizing operations and incorporating technology in their day-to-day operations.
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