The conversation surrounding connected vehicles in the automotive industry sparked a frenzy in the last ten years, with manufacturers competing for the next greatest technology. In the last year alone, 91 percent of vehicles sold in the U.S. were connected cars, each collecting granular car data with the potential to positively impact both drivers and dealerships at scale.
With connected vehicle technology (CVT), every oil change light notification and even certain movements such as exiting a designated geo-fence are able to be transmitted to a device or app. Though car data often sits idle and overlooked, it can be significantly valuable when creatively and strategically applied.
The information automatically collected by CVT can be leveraged by dealerships to make operations more efficient and enhance the entire customer experience.
The Basics Of Connected Car Technology And Car Data
Connected vehicles on the road operate as mobile computers and are equipped with internet access with the ability to collect, store, and even send computerized car data. Data can be collected from the vehicle’s Electronic Control Unit (ECU), Controller Access Networks (CAN), and any external connected device installed in the vehicle.
Car data can communicate anything from vehicle functionality and diagnostics, such as battery or transmission fluid levels, to driver interactions with the vehicle. The collected data is being strategically used by a number of manufacturers, but it is proving to be especially valuable for dealerships.
Value for Dealerships
Car data can assist dealerships in managing their lot’s operations in a number of ways.
Inventory Lot Management
Car data can be used in lot management to track inventory location and run diagnostics scans, providing dealerships with the ability to identify and locate which cars are fueled, charged, and ready for a test drive.
Analytics For Sales, Promotions, and Marketing
Data can be analyzed to inform how drivers buy and use cars. Which promotions correlate with more test drives? How do test drive duration and frequency impact sales? Which models go on the most test drives? Car data can answer these questions to assist dealerships in making better-informed business decisions.
Theft detection capabilities place security in the hands of dealerships. Geofencing technology and real-time location data allow dealers to know exactly where a vehicle is on the lot at any given time.
Creating a Better Customer Experience
Research has shown time and time again that an elevated purchasing experience significantly impacts satisfaction and sales.
Automotive industry surveys find that less than 1 percent of consumers prefer their current vehicle purchasing process and that 66 percent of consumers are more likely to purchase a vehicle from a dealership that changed to meet their preferable purchasing experience. Car data provides dealerships with the ability to understand preferences and enhance the consumer experience.
Online Inventory Management
Inventory visibility and marketing are essential parts of ensuring a successful purchasing experience. It is critical for dealerships to confirm that website-listed inventory parallels actual inventory.
Less than one in every three vehicle service visits are conducted at dealerships. Among those who do visit dealerships, 85 percent of car owners surveyed indicate that their experience getting their car serviced at the dealership has directly influenced their willingness to purchase another vehicle from that dealership.
Connected vehicle devices gather car data and send service reminders about vehicle health. Certain devices, such as Elo GPS with CarRx, enable users to receive alerts and schedule service at their dealership directly from the app, creating a seamless and simple experience for the driver while driving business back to the dealership.
Collecting Car Data from Connected Vehicle Devices
Elo GPS with CarRx is a vehicle maintenance software that collects car data and communicates maintenance needs directly to the user. Our solution provides dealerships with the ability to manage lots, assess inventory, and maintain a direct connection to the driver’s vehicle and its service needs.
To learn more about CarRx for dealerships, schedule a solution demo with one of our experts.