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Car Dealer: Become a Complete Data Driven Dealer Group

“If we have data, let’s look at data. If all we have are opinions, let’s go with mine.”

- Jim Barksdale, former Netscape CEO

Too often, decisions taken in multi-outlet franchised dealers are made by gut feel backed up with incomplete data. There are reports coming out of the DMS and other 3rd party applications but there are just so many transactions and other activities that it is difficult to get the information presented in an understandable format within the timelines required. Dealerships are drowning in their own data.

Some of the largest auto dealer groups’ business performance suggests they get it right more often than they get it wrong. However, increasing competition, the change in the way consumers buy, EVs, and external factors such as Covid and Brexit etc mean this is no longer sustainable. On top of this the sales channel to the consumer is changing. In May, PSA dealers received a 2 year termination notice and other manufacturers have signalled they will be changing their route to market too.

Up to half of UK car dealerships will close by 2025, according to respondents to KPMG’s Global Automotive Executive Survey 2018.

Does this mean that there is no hope? Is it time to throw your hat at it?

Other sectors have gone through disruptive changes and there have been big winners at the end. One consistent characteristic of these winners is the way they use data differently from those that don’t.

Just a few examples:

Increasing the accuracy, quality and yield of biopharmaceutical production.

  • Increased the vaccine’s yield by 50%, worth between $5M to $10M in yearly savings for a single vaccine alone.

Production metrics.

  • Better forecasts of product demand and production + 46%
  • Understanding plant performance across multiple metrics + 45%
  • Providing service and support to customers faster + 39%

Source: McKinsey & Company - How big data can improve manufacturing July 2014

Automotive Business Intelligence (BI) has been around for a long time. So why haven’t we seen more solutions in the Auto dealership space and why are they appearing now?

  • Transaction software suppliers generally have not been successful at providing BI or analytics solutions. Their architecture, tools and skill sets are not an ideal mix for analytics solutions.
  • Modern tools developed for Big Data have become easier to use and provide visualised outputs so that information can be absorbed more effectively and quicker.
  • Analytics requires significant hardware resources and recent performance advances in technology has been an enabler.
  • Cloud solutions have become more acceptable and are cheaper to build.
  • The need is greater now.

Real World Analytics has built a secure cloud-based BI solution specifically for franchised dealers which is used by 3 of the largest dealers in the UK and other dealerships with as few as 4 outlets. It is the one place they go to manage their whole business. The CEO can see everything that is going on in one graphical dashboard. Function heads have drillable dashboard which bring data in from their DMS and their third-party applications and these are blended with their budgets and targets. Exceptions are dealt with on the fly at all levels in the company. Automated DOCs for Sales and Aftersales give the branch managers and their people the information they need to deliver on the daily objectives set.

There are unique modules for sales of new and used vehicles, stock management for vehicle & stock and service managers. There are multiple business development tools for each department. Visit for more information and our customers’ successful story.

Watch our Webinar with Car Dealer on why you need to be using analytics to help your business: