Download - BIG DATA - The Killer App for Motor Dealers
BIG DATA...The killer app for motor dealers?
How BIG DATA is quietly transforming the
dynamics of the motor retail industryIan TomlinSponsored by:
What is ‘Big Data’ all about?
BIG DATA describes data sets with sizes beyond the ability of commonly used software tools to manage or make sense of. It’s the result of a proliferation in digital media, social networking, sensor networks, auto-ID and
databases used to gather customer likes and behaviors.
People know that knowledge is power. So do businesses. So do governments.
According to IBM, 90% of the data in the world today was created in the last 2 years alone (wow).
The BIG DATA explosion of has led to innovations in technology to capture, hoard, assimilate, analyze and act on lots of data from different
places for the purpose of accelerating business innovation
CAPTURE
HOARD
ASSIMILATE
ANALYZE
ACT
For example: Sensor networks and telematics mean that vehicles can travel around road networks and drivers are automatically charged for their road usage. And: Today, online customers enter their own orders. At one time sales administrators would do this for them.
Hadoop is a new kind of data hoarding repository; a rapidly scalable filing system capable of managing vast amounts of structured and unstructured data. Just getting data into a relational database is time consuming and technically challenging - Hadoop make hoarding data easier!
Operational Analytics take over from where Business Intelligence (BI) left off. BI platforms organize data into structures that make it easier to source dashboards and reports people need. But they are expensive, difficult to change and normally harvest ‘known’ internal company structured data. The operational analytics world is more like exploring for oil: There’s no point spending money on infrastructure until you know you’ve struck oil! These new tools give people the ability to assimilate data and make sense of it – without buying BI platforms.
Generally called middleware, new technology platforms enable people to connect to data painlessly and mash it up. Companies like Encanvas, Tibco and others make it possible for data to be harvested from practically any data source (including sensors and telematics) without having to do any of the clever coding stuff. These platforms extract, transform, normalize and generally organize data so you don’t have to do it manually on a spreadsheet ;-) Assimilation technologies are SO powerful these days, often you don’t need to hoard data at all – you can just use the data you need, when you need it, and leave it where it is.
Once individuals realize they have an opportunity to improve their customer experience, sales approach, operational or financial systems this creates a demand for new software applications to turn BIG IDEAS into ways to accelerate business innovation. Systems like Encanvas remove 90% of the work needed to turn a big idea into better IT systems and processes. This places more resource focus on innovation and less cost and risk towards ‘putting good ideas into practice’.
What it looks like
Private Cloud
Customers Manufacturers Dealer Workforce Partners
DMSWebsite eVHC Showroom Contact Centre
Service Plans
MarketingAgency
Lead Mgmnt.
BIG DATA has transformed the nature of competition
In its report of the same name, McKinsey&Co
suggest that big data is - “The next frontier for
innovation, competition, and productivity.”
Business leaders today know their competitive advantage
depends on how quickly (and how well) they act on insights.
They need to support an end-to-end process of accelerated
innovation and answer three key questions (see right):
How do we
trial quickly?
How do we
learnquickly?
How do we
adapt quickly?
PeteThe Finishing Line
Blue Ocean Strategies
How accelerated
business
innovation manifests
change
Customer Insights
Sales Engagement
Operating Behaviors
According to research conducted by the University of Texas,
Median ROIs from big data analytics are in the region of:
Customer Analytics 55%
Operational Analysis 277%
Financial Analysis 139%
Companies capture and assimilate all of the data they can glean about their customers to understand them better…
Realizing what customers like and how they prefer to be engaged, companies find better ways to sell their products and services…
Knowing what customers care about and how best to serve them enables businesses to adapt their internal processes to work better…
Business leaders enjoy a richer appreciation of markets, opportunities and threats that encourages entrepreneurial endeavor!
What BIG DATA means to Motor Dealers
Super-driven Marketing
BIG DATA systems gather data from all disparate systems to build a joined-up
view of data. Dealers use it to better understand their customers. They
integrate deferred works, service reminders and ad-hoc DMS campaigns into
an integrated campaign pipeline. Then they automate multi-channel
marketing campaigns via SMS, web, email, letter-post and call centre.
MOTOR DEALERS have suffered from separate online (web-site) and back-office
(DMS) systems. Usually a dealers’ data environment is further complicated by
separate showroom, eVHC, lead management and call centre systemsCH
ALL
ENG
EB
IG D
ATA
VA
LUE
Super-driven Marketing
Service Manager
Managing Director
Marketing Manager
Sales Manager
Customer Service Manager
“BIG data lets me coordinate
campaigns and measure campaign
ROI. We don’t over-market to
some customers at the expense of
others.”
“Big data means my teams spend time on calls that
matter. We only see outstanding calls and spend less time on organizing and
closing calls.”
“Big data means I get to see a single view of customer
activity and interactions.”
“Big data means I see all key pipelines of
activity and can measure performance across the business in real-time – on mobile,
laptop or tablet.”
“Big data means I spend less time
on marketing and sorting out data,
more time managing our efficiency and
improving processes.”
BIG DATA systems mine key data from existing systems using either database
or web service integration or ‘flat’ reports like .CSVs. Then they cleanse and
normalize data. Then they build relationships between the data resources to
create the integrated views of data User Groups need.
MOTOR DEALERS have many ‘reasons to engage their customers’ that are held
in data on systems (such as vehicle birth-dates, expiries, renewals etc.). It’s not
easy to get access to this data, manage data quality – or manage the flow of data to sales teams so they’re not overwhelmed.C
HA
LLEN
GE
BIG
DAT
A V
ALU
E
Lead Generation
Lead Generation
Service Manager
Managing Director
Marketing Manager
Sales Manager
Customer Service Manager
“Big data brings us more reasons to
speak to customers when they want us to –
and it gives me the tools to optimize use of our data!”
“Big data means I can boost the productivity of
my team by concentrating on the best opportunities. It brings a single version of customer interaction data so we don’t end up calling
people we’ve already spoken to.”
“Big data means I can prioritize
reasons to speak to customers and not miss out on good opportunities to
engage customers.”
“Big data means I can profile our customers and
better understand how to better serve
their needs.”
“Big data means I can work with
marketing colleagues to make optimal use of our
capacity.”
Operational Analytics
BIG DATA cloud systems can be updated every minute, hour, day (you get
the picture). You can even update data by creating a watch folder and
popping your reports into it. This makes it really easy to create DOC and
other reports on the powerful operational analytics tools in the cloud.
MOTOR DEALERS struggle to gain real-time operational analytics across their
business to keep pace with activities happening in all disciplines and in all
dealer locations.CH
ALL
ENG
EB
IG D
ATA
VA
LUE
Operational Analytics
Service Manager
Managing Director
Marketing Manager
Sales Manager
Customer Service Manager
“I use big data analytics to pinpoint
which marketing tools and
campaigns work best for us.”
“I use big data analytics to balance our
resource pool and prioritize.”
“I use big data analytics to view our customers on maps and focus my
micro-campaigns on people that are near-by. I have so many good
reasons to call customers I only need to call customers when they
get a clear reward.”
“I use big data analytics to gain a single page view of performanceand to prioritize
our process improvements.”
“I use big data analytics to keep
our ramps full and optimize our deferred works
pipeline.”
Blue Ocean Strategy
BIG DATA systems gather market data from different places to build
‘opportunity profiles’ for new BLUE OCEAN strategies. The data gathered can
compared regional variances on buyer profile, engineer early stage
marketing plans and build compelling business cases.
MOTOR DEALERS are entrepreneurial. Some have diversified into parts
distribution while others service motor speed boats! Like all entrepreneurs,
owners and leaders need to gather facts about their local opportunities in
order to surface new opportunities for businesses, products and services.CH
ALL
ENG
EB
IG D
ATA
VA
LUE
Blue Ocean Strategy
Managing Director
Marketing Manager
Sales Manager
Customer Service Manager
“Big data helps me to understand
regional market opportunities to
develop more targeted,
personalized marketing plans for
new products.”
“Big data helps me to work with marketing
colleagues to optimize marketing spend and
choose the best medium for our
communications.”
“Big data helps me to develop sales strategies to get the best performance from my sales teams by
concentrating on the most important opportunities.”
“When I’m considering strategic decisions I have access to facts
that reduce influence of opinions and emotions from the
decision making process.”
In Summary…
Hoards, assimilates, analyzes and acts on data from lots of places for lots of reasons WITHOUT big up-front IT spend
Uncovers SLEEPY DATA to source more reasons to engage with customers when they’re ‘interested’
Presents landscape views of activity pipelines
Creates a unified campaign management capability across all functions and channels
Brings richer customer profiling that leads to improved customer experience, better marketing outcomes
Installs real-time operational analytics to drive process improvements across dealerships
Exposes BLUE OCEAN entrepreneurial opportunities to grow business through up-sell, cross-sell, new ventures
..and that’s why everyone is talking about it.
Thank You.
Article Sponsors:
Data Innovation Management software www.encanvas.com
Customer Science and Big Data Consultants www.ndmc,uk.com
Ian Tomlin is a management consultant and
author. He's written several books and
hundreds of white papers and articles on
the subject of customer science,
organizational growth, technology and the
evolution of the workplace.
Books by Ian Tomlin:
Agilization – The regeneration of
competitiveness
Cloud Coffee House – The birth of cloud
social networking and death of the old
world corporation
SOS - Social Operation Systems – What
happens when BIG DATA and SOCIAL
NETWORKING transforms computing