Over half of all customer records in dealer databases are not updated and may be incorrect, according to Auto Data Solutions (ADS).
Dealers may be wasting time and money in their communications, and squandering chances to increase revenue. The research suggests that this inaccurate data could squander millions in missed profits for dealers.
Jon Sheard, operations director of ADS, said: “There are many reasons why dealers often fail to grasp the nettle of cleansing their customer databases.
“These range from simply not realising how poor their records are, to difficulties in re-importing a fully accurate customer database into their DMS without expert help, or mistakenly believing that they can only perform the data cleansing themselves.”
ADS used the databases of several major dealer groups by using its advanced real-time data checking system.
Dealer databases contained a high proportion of incorrect addresses and customers who no longer have the car originally supplied, failed to reflect VRM changes, MOT dates, alerts to written-off, scrapped or stolen vehicles and even the deaths of some customers.
Based on the experience of dealers who have opted to cleanse their databases, ADS estimates that correcting 1,000 MOT data discrepancies can bring an additional £40,000 of workshop revenue, based on just a 30% booking rate at 35% profit margin.
Sheard said: “Our analysis reveals a lot of low-hanging fruit available simply by knowing the basics, such as where people live, whether they still have the car and when its MOT is due.
“Research consistently demonstrates that if the right customers are contacted at a relevant moment a significant proportion of them will book service work or begin a conversation about changing their car. But that’s not possible if you’ve lost track of them.
“By allowing customers to drift away, while wasting time and money sending communications to incorrect addresses or to customers who have moved on to another dealer, countless opportunities are missed every day.”