Today, big data is more than a fad or buzzword. In fact, in 2018 more than 90% of businesses reported that they are planning to harness the power of big data for their work. Coupled with the advent of new technologies like machine learning and computer vision, everything we thought we knew about creating a better customer experience has been turned inside out.
Recently, I had the opportunity to share my thoughts on this topic at the Automotive Intelligence Summit — taking a look under the hood at how data is helping auto remarketers like KAR reduce friction and add convenience into every interaction. Here are my top three takeaways of how data is helping us solve for efficiency in the auto remarketing industry — now and in the future.
Recommendations & Lot Optimization for Dealers
Consumers are accustomed to recommendations in their everyday life — from product recommendations on Amazon based on past purchases to binge-worthy show recommendations on Netflix. Similarly, the automotive remarketing industry is tapping into data to provide this seamless experience, too.
At KAR, we’re putting our data to work so customers don’t have to — with OEM-sponsored email programs, recommendations on OEM private-label sites and on ADESA.com. The goal is to make decision-making clear and easy, flagging under-supplied lot-specific and under-supplied local market vehicles. Data helps us alert dealers of new recommendations based on past purchases or recently viewed vehicles.
We’re also taking it a step further to help dealers with lot optimization, identifying hot cars and providing recommendations to move what cars and at what price, helping to build a sense of urgency and save them valuable time. These are the experiences dealers and OEMs are familiar with in other facets of life — and now, thanks to data, our customers can experience a more efficient wholesale purchasing experience, too.
Pricing & Portfolio Insights
KAR’s industry-leading digital platform gives us access to millions of data points to deliver the richest analytical solutions and market intelligence. These are unique resources that allow us to help customers optimize in a way that others can’t — using our proprietary algorithms to deliver actionable intelligence for commercial consignors through our DRIVIN Insights™ product suite. From our Pricing Insights product (which produces predictive models for determining VIN-level market channel and pricing) to our Portfolio Insights product, soon to be in pilot (which provides real-time data visualization on the value of a commercial consignors vehicle portfolio), data is changing the game in auto remarketing. In essence, data is helping to take what was once considered guesswork out of complex business decisions.
Automotive Inspection Processes
One of the next-generation applications of data in auto remarketing is enhancing the automotive inspection process and applications. By using data science to analyze millions of images through computer vision technology, we’ll be able to not only reduce the time it takes to conduct a thorough inspection, but also reduce the error rate in identifying damage. The future potential of using data to reshape auto inspection apps is exciting — presenting a very real likelihood of virtual reality inspections and the ability to connect damage detection to pricing.
These are just three examples of how data and analytics are influencing the auto remarketing industry; in reality, they will impact each and every facet from physical auction to transportation. KAR is full-speed ahead on finding new ways to utilize this data to provide valuable solutions for our customers — and I’m confident that the future of auto remarketing is bright with a seamless, personalized and more connected customer experience.