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Sponsored post: Real World Analytics explains the truth about data analytics in the motor trade


Time 7:20 am, June 29, 2021

All too often decisions taken in multi-outlet, franchised dealers are made by gut feel backed up with incomplete data.

Reports come out of the DMS and other third party applications but there are 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 mean this is no longer sustainable.

On top of this the sales channel to the consumer is changing. In May, Stellantis dealers received a two-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.

Here are a couple of 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 per cent
  • Understanding plant performance across multiple metrics + 45 per cent
  • Providing service and support to customers faster + 39 per cent*

Data Analytics or Business Intelligence (BI) has been around for a long time. So why haven’t we seen more solutions in the car 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 three of the largest dealers in the UK, and other dealerships with as few as four 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 a 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.

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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 and stock and service managers. There are multiple business development tools for each department.

Visit for more information and our customers’ stories.

Dealers could be losing vital profits every day by not using analytics to correctly price used cars

*Source: McKinsey & Company – How big data can improve manufacturing, July 2014

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Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.

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