- Nov 10, 2015
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- Mark
Steve is spot-on in a number of things:
1. Many vendors slice data so small as to make it meaningless. They latch on to cool terms like "big data" without even a basic understanding of the math behind it. The next time a vendor touts their big data solution, ask them how they calculate statistical signifcance. If you're a vendor and you're going to brag about your cool data tool, then be prepared to explain what a p-value or null hypothesis is and how your software leverages it. #NerdRage
2. There are far more ways to screw up your profit margin than not using analytical tools. It's already been mentioned, but it's worth repeating that dropping the ball on basic buying decisions, poor customer service, etc are going to be bigger problems than deciphering data analytics.
Now..all that being said, good analytics tools have their place. Assuming you've covered the basics, tools that can help you quickly spot trends in a digital vendor's performance can help save a dealer a lot of time and money. Being able to easily size up a vendor's contribution to your overall sales and being able to compare them to another is a very useful thing indeed. It gives you the ability to move some marketing spend from one channel to another and measure the results instead of just guessing if it's making an impact.
There are tools that can help you make better decisions; which will help you sell more cars and/or save you money. But there is usually some "low hanging fruit" at many dealerships that can be focused on first.
1. Many vendors slice data so small as to make it meaningless. They latch on to cool terms like "big data" without even a basic understanding of the math behind it. The next time a vendor touts their big data solution, ask them how they calculate statistical signifcance. If you're a vendor and you're going to brag about your cool data tool, then be prepared to explain what a p-value or null hypothesis is and how your software leverages it. #NerdRage
2. There are far more ways to screw up your profit margin than not using analytical tools. It's already been mentioned, but it's worth repeating that dropping the ball on basic buying decisions, poor customer service, etc are going to be bigger problems than deciphering data analytics.
Now..all that being said, good analytics tools have their place. Assuming you've covered the basics, tools that can help you quickly spot trends in a digital vendor's performance can help save a dealer a lot of time and money. Being able to easily size up a vendor's contribution to your overall sales and being able to compare them to another is a very useful thing indeed. It gives you the ability to move some marketing spend from one channel to another and measure the results instead of just guessing if it's making an impact.
There are tools that can help you make better decisions; which will help you sell more cars and/or save you money. But there is usually some "low hanging fruit" at many dealerships that can be focused on first.
