It is only the enlightened ruler and the wise general who will use the highest intelligence of the army for the purposes of spying, and thereby they achieve great results.
– Sun Tzu: The Art Of War
Competitive intelligence is much more than simply collecting your competitors’ prices and then reacting to them on a weekly or monthly basis. Sophisticated competitive intelligence software helps dealerships gather information, spot trends and develop insights — and then set the most effective strategies and tactics.
Here are some of the ways auto retailers are leveraging their competitive intelligence solution for both savings and profit.
Ways Dealers Use Competitive Intelligence Tools
1. Calculate Optimal Pricing. It’s a foregone conclusion that a dealership must have the right price for optimal sales and inventory turnover — but how does a retailer arrive at that ideal number? Sophisticated pricing intelligence provides insights gained as it analyzes the data and aids you in making tradeoffs between price and turnover calculations.
2. Benchmark. Benchmarking is the ability to compare your performance verses others along key operating metrics in order to improve performance. Your competitive intelligence tool shows you how often your competitors stock new inventory, change prices, or change their advertising strategy; and you can chart your own progress against them over time.
3. Know Your Competitor’s Inventory Cycle. How often do your competitors cycle through their inventory? Do you have the intelligence to know when your competitor is out of inventory on specifically equipped vehicles, so you can raise your prices?
4. Know Your Competitor’s Prices / Including Lowest Competitive Price Offered. Sophisticated pricing intelligence gives you insight into all of your competition’s prices. Collecting data on the most competitive price they offer allows you to react in real-time with a more attractive price to their consumers.
5. Determine Your Most Efficient Marketing Spend. Sophisticated competitive intelligence helps dealers spend (not waste) their marketing dollars:
- Know to stop advertising when the demand for a particular product is high, i.e. you’re likely to sell it without the advertising (avoid the pay per click fee).
- Know to stop advertising when your products are priced higher than the competition (and get a signal to adjust your prices).
- Avoid advertising when competitor is out of stock; reduce your search keyword bids.
6. Feed Competitive Pricing Data to Salespeople on the Floor They Can Use To Help The Customer and Negotiate Sales. Information is power, and expect consumers to know more about local market supply of vehicles and prices than your salespeople. Providing salespeople with local inventory at their fingertips enables them to diffuse tough conversations with consumers, handle objections in real time, and be better informed and prepared.
7. Plug Competitive Data Into Your Own Algorithms to Update Prices. Whatever your current pricing process for new and used vehicles, having all competitor inventory and pricing at your fingertips means that you’ll be more responsive to market shifts, and thus more attractively priced for your customers. Better pricing intelligence means more leads and converting more of those leads to sales.
8. Make Better Stocking Decisions for Both New and Used Vehicles. Know what’s selling quickest in your market, and which vehicles are being discounted most/least. Order and stock hotter vehicles that are likely to turn quicker and deliver higher profit per unit.
9. Better Intelligence to Share With Your Marketing Personnel/Agency. Having visibility into each of your competitor’s monthly website visitors and engagement metrics (bounce rate, time on site, pages per visit) and keywords purchased to drive traffic, allows you to have a much more sophisticated conversation with your marketing personnel or agency.
Overall, the use of sophisticated competitive intelligence solutions provides the following advantages to dealers:
- Real-time access to data;
- Scientific approach;
- Labor savings;
- Edge over the competition;
- The most advanced technology;
- Information distilled down to actionable insights
CompetitorPro is the industry’s first competitive intelligence tool built specifically for automotive dealerships.
As dealers look for ways to compete more effectively, advanced competitive intelligence solutions provide accuracy, analytics and actionable recommendations missing in the market today. CompetitorPro‘s competitive intelligence solutions utilize complex algorithms that summarize insights so dealers can perform at the highest level of effectiveness in today’s dynamic marketplace.
It’s not just having competitive intelligence…it’s what you do with that knowledge that counts. Let us show you how you can keep on top of the competition in 5 minutes a week with our automated dashboard and alerts.
It’s getting harder out there, and today’s automotive dealer must have the latest and best strategy, tools and tactics for success. CompetitorPro is that solution.