Sales,  Strategies

Predictive analytics: Sales driven by data

In sales, we are used to overcoming any obstacle in order to achieve our sales goals. However, the best decisions are those that anticipate adverse situations and predict results, which increases our sales effectiveness.

In this article we will look at two types of indicators that allow the Sales Manager to be proactive with their decisions and analyze available information in order to find ways to sell more:

  • Time-based indicators
  • Event-based indicators

Days before the next service

This time-based indicator is obtained by comparing two pieces of data: the date of purchase of each vehicle and the average date of its service. This difference in days can be used to calculate how far in advance each customer should be called to offer a service.

 Customer
 Date of purchase
 Date of next service
 Days
 Dan Wilson  March 02, 2019  February 27, 2019  362
 Francis Robinson  April 20, 2019  February 10, 2019  296
 Ann Jameson  April 22, 2019  March 17, 2019  330
 Mia Thomas  May 02, 2019  May 28, 2019  392
 Average days:  345

Why is this information useful?

Customers whose next estimated service date is coming up can be invited to book a workshop appointment.

 

Days after purchase

This time-based indicator averages the days elapsed between customers’ first and second vehicle purchases. This indicator is similar to the previous one, but is applied to the purchase of vehicles and parts; this indicator is subject to other customer-based variables.

Customer
First purchase
Second purchase
Tiime
 Mike Lopez  March 02, 2019  February 27, 2022  3 years
 Rich Hart  April 20, 2019  February 10, 2023  4 years
 Danielle Sullivan  April 22, 2019  March 17, 2024  5 years
 Julia Marquart  May 02, 2019  May 28, 2023  4 years
 Years average:  4.25

Why is this information useful?

Depending on the type of purchase being analyzed, you can organize contact actions with customers who are close to meeting their next expected purchase date, and offer them products before they look for them at other dealerships.

 

Average kilometers at time of purchase

Imagine the following situation: a customer buys a new vehicle. A few years later they trade that vehicle in and buy a new one. We can use the trade-in’s odometer reading to calculate the customer’s vehicle usage average.

Why is this information useful?

Your DMS can show you a list of customers whose vehicle mileage is, for example, between 100,000 and 200,000 km. You can then launch a targeted marketing campaign aimed at those customers to offer them a new vehicle.

This same indicator can be used to plan Upselling campaigns. Taking the previous list, you can filter by vehicle model to offer them newer models of the same brand.

Predictive indicators are the key to success for proactive dealers who do not sit and wait for opportunities, but instead seek them out. The opportunities are there as are the tools to take advantage of them, the question is: what are you waiting for to sell more by using your data?

If you want to know how we can help you implement predictive indicators, please contact us.

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