On the last episode of Auto Marketing Now, automotive marketing expert and founder of BPE Enterprises, Brian Pasch discussed the three levels of functionality in hybrid customer data platforms (CDP). In the conclusion to our series on digital retail, marketing automation, CDPs and hybrids, Pasch wraps up the discussion by advising car dealers on who they should involve in the process of selecting and integrating a CDP.

Pasch notes that technology decisions, both inside and outside the automotive industry, are often made without considering every aspect of the business. “The big money is going to be in using unified customer data to transform the customer experience at all touchpoints of the dealership shopping, purchasing and servicing experience,” he explains. CDPs are more than automotive marketing tools; they can impact all steps in the car buying journey, meaning the discussion goes beyond storeowners or, on a dealership group scale, c-suite executives. To ensure they get the most from a CDP, car dealers must include the input of their marketing managers, technology advisers, service directors, BDC directors, general managers and so on. Because each of these individuals covers a specific touchpoint and knows exactly how a digital retailing platform could benefit their operations, they can accurately guide the selection process and brainstorm excellent ideas for integration. Pasch recommends asking each of these department leaders for ways unified data can help them improve their customer experience before interviewing a potential CDP partner.

Once car dealers have obtained input from all of their directors and managers, the next step involves prioritizing the different ideas into a list based on their impact on the customer experience and the company’s finances. This list of use cases is essential to informing the overall automotive marketing strategy, as it guides the process of selecting and interviewing CDP providers. Having this in hand, business owners can proceed to interview their prospective data service partners.

Finding and selecting a CDP partner should be done with the goal of achieving the best results, given the list of ideas. Pasch notes that picking the right provider requires asking thorough questions: can they actually implement the strategies pitched by the different department leaders, what will their timeframe be, what kind of budget is needed, etc. However, he cautions against taking a CDP representative at their word, since salespeople may not always accurately describe their organization’s capabilities. To double-check a potential service partner’s answers and to oversee the implementation of unified data into their automotive marketing, Pasch recommends dealers hire a consultant specializing in digital retail and customer data. 

Customer data platforms are indispensable tools for growing a car dealer’s business and improving the customer experience. By understanding the principles, concepts and guidelines discussed in this series, retailers can confidently find the right business partners and create successful automotive marketing campaigns. To continue the CDP conversation and to learn even more about unified data, check out Pasch’s report “The Rise of CDPs in Automotive Retailing.”

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On the last episode of Auto Marketing Now, host Brian Pasch, founder of PCG Companies and auto marketing expert, provided updates on the launch of Google Analytics 4 and the work of the Automotive Standards Council to prepare dealers for a new internet. In this edition, Pasch covers key differences between customer-data and marketing-automation hybrid platforms and what dealers should look for in their digital retailing partners.

Real-time identification

Previously, identity resolution was often managed through website cookies, which could track and store customer data. With the arrival of new technology and Google Analytics 4, however, data collection is now conducted through special software. While most hybrid platforms now use the more modern pixel or tag identification techniques, Pasch emphasizes that not all companies are capable of real-time analysis and resolution. This means features that customize the website experience to the customer, such as relevant pop-ups and search recommendations, during their first visit are useless. When picking between different CDP partners, dealers should ask whether they offer real-time capabilities and prioritize them over competitors with less functionality.

Level of identification

Another way hybrid platforms differ is the extent to which they de-anonymize website users. While some CDP platforms can identify users by name, phone number and address, even going so far as to share this with the dealer, this is not always reasonable for retailers nor is it 100% legal. First and foremost, Pasch encourages business owners to seek legal counsel prior to selecting a partner to ensure their data collection methods are in compliance with regulatory guidance. However, when it comes to choosing between competing but above-board, providers, dealers should choose the ones whose level of identification suits their needs. Not every organization will need to know what city a user resides in, but they may want to determine what storefront they are closest to. Pasch recommends sticking to whatever feels most comfortable.

Third-party connectivity

Hybrid platforms can also vary in their third-party connectivity. This function can be an important component of re-marketing strategies, as higher functionality allows dealers to attract users visiting other websites. Furthermore, advanced systems can target local consumers, allowing retailers to develop highly-customized ads to attract nearby shoppers. When interviewing potential data collection providers, business owners should ask the company how well they can identify and reach users on third-party websites.

To recap, CDP and MAP hybrid platforms can vary in the ways they can identify and provide user data. Dealers should prioritize those with real-time customization abilities, suitable and compliant data-sharing practices and high levels of third-party connectivity.

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On the last episode of Auto Marketing Now, host Brian Pasch, founder of PCG Companies and auto marketing expert, discussed the importance of merging customer data platforms (CDP), customer relationship management (CRM) and digital retailing tools. In this edition, Pasch pauses his discussion of CDPs to deliver some important updates on Google Analytics, soon to be in its fourth iteration (GA4), and the work of the Automotive Standards Council (ASC) to create a unified specification for GA4 across all online platforms.

The single purpose of the ASC is to ensure that dealers are ready for the arrival of GA4 this July. The reason such efforts are needed is that this new version of Google Analytics effectively replaces its outdated predecessor, meaning retailers will need to be prepared to adopt new standards of data collection, campaign tracking and other aspects of internet marketing.

Unified standards have more benefits than simple data analytics, however. Pasch notes that the ASC’s work with Cox Automotive to produce a more accessible version of XTime, one of the most widely-used tools for dealership service scheduling, has yielded a test version capable of showing retailers every step a customer takes in the scheduling process. The changes to the platform were as simple as adopting the standardized naming conventions recommended by the ASC.

The ASC has also created educational resources for dealers to understand the new configuration options in the GA4 update, which you can find on their website. The council is also participating in the Digital Marketing Strategies Conference on May 21-23, 2023 in Austin, Texas. Attendees will have access to a one-day workshop discussing the nuances of the upcoming Google Analytics revisions.

The ASC will also post a template from Looker Studio, formerly Google Data Studio, a reporting platform for GA4 developed by Colleen Harris, principal product manager of business intelligence and reporting strategy at Ansira and a member of the Automotive Standards Council. Dealers can use this to gain a better understanding of how their data will look once the new version of Google Analytics drops this summer.

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On the last episode of Auto Marketing Now, host Brian Pasch, founder of PCG Companies and auto marketing expert, took a closer look and digital security and proprietary access for Customer Data Platforms (CDP). In this edition, Pasch is joined by Sam Vukas, COO of Dealer eProcess, to discuss data unifying strategies for dealers using CDPs to improve their customer experience.

While CDPs are excellent tools for making a business faster and more profitable, they are equally as effective at reducing strains in the vehicle shopping experience for consumers. However, most Customer Relationship Management (CRM) software is incompatible with the majority of data processing platforms. The reason this is an issue is that CRMs own one dataset, people who have visited, registered or shopped on a dealership’s website, while CDPs own another, customer profiles pulled from across the web. Trying to integrate one dataset into another without the right tools can lead to errors and lost records. Dealers should focus on systems that can properly share and unify data between a CRM and CDP, like the one developed by Dealer eProcess.

By marrying the two platforms, dealers have the ability to fill in missing gaps on their customer profiles and track the buyer journey once they leave the business. The benefits of unified data, however, extend beyond simple record-keeping. Retailers can also use CDPs to tailor their digital retailing (DR) experience to individual consumers.

Dealers can implement personalized greeting messages, customized offers, search engine results based on the user’s history and more. Once a consumer purchases a car from a dealer, CDPs can automatically update the website to push repair and maintenance services or even show trade-in values for their used vehicle on their next visit. With unified data, websites can automatically guide users to actionable items, reducing the amount of time they need to spend looking for the right products and increasing the chances of making a purchase.

In conclusion, dealers should begin their data activation journey by finding CDP systems that integrate with products they already use. Platforms which can unify data between CRM software and digital retail tools are ideal for automotive retail.

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On the last episode of Auto Marketing Now, host Brian Pasch, founder of PCG companies and auto marketing expert, discussed how marketing automation platforms (MAP) and customer data platforms (CDP) work best when used together. In this episode, Pasch takes a deeper look at digital security and the questions dealers should ask before they select their CDP partners.

When using hybrid platforms (a service with both CDP and MAP functions), dealers need to ensure they retain ownership of the marketing accounts used for these programs. For example, many businesses use a Google Ads or Google Analytics account to track and launch digital campaigns. When working with a third-party agency to outsource online initiatives, the company owner simply gives their representative access to their profile. However, certain marketing service providers, including data and automation platforms, require proprietary access, meaning they have sole administrative control over said accounts. Pasch urges dealers to avoid relinquishing any form of authority on their online accounts.

There are multiple reasons for avoiding companies or platforms which demand this kind of control. First, marketing accounts allow dealers to create and file records detailing the performance of different advertising initiatives. Maintaining a history of prior campaigns is essential for optimizing advertising strategies, but such records become inaccessible when working with a service provider that requires proprietary access. Another reason to partner with an accountable CDP provider is to retain ownership of dealership and customer data. Many marketing programs actually share information between companies to expand their databases, a move that gives retailers less oversight in how their information is handled.

To find the right CDP for their needs, Pasch recommends that retailers ask several questions when interviewing different partners. First, ask if the CDP provider will work out of the dealer’s account. Companies that create their own marketing accounts for the business should be avoided since these profiles are almost always proprietary. 

Second, ask if the CDP brand uses API’s that give other partners direct access to customer databases. This question allows dealers to know which third-party programs, if any, they can integrate into the system: marketing partners which allow dealers to use their own software are more convenient and can be used for a wider variety of tasks. 

Finally, dealers should ask CDP partners how strong their data security actually is. Effective protection of customer information is both an ethical responsibility and an integral component of satisfying compliance regulations. Retailers can ask what protections the platform has for cloud-stored data, what access non-business-partner parties have to consumer information, and what cyber security insurance policy the CDP offers. Pasch also recommends that dealers request to see any data security certifications the company may own.

Pasch encourages dealers to review the latest CDP research by visiting PaschGroup.com and reading “The Rise of CDPs in Automotive Retailing.” In the report, Pasch breaks down the nuances of customer data collection and weighs a multitude of solutions on the market.

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Welcome to another episode of Auto Marketing Now, with Brian Pasch, founder of PCG Companies and auto marketing expert, who continues his original series exploring customer data platforms (CDPs). In this episode, Pasch explores the various activation routes available to organizations with a CDP. 

During Pasch’s research into CDPs, or customer data platforms, he discovered platforms that solely focus on the normalization and unification of customer data into audiences and segments. He continues by explaining that other solutions and businesses specialize in marketing automation, called marketing automation platforms (MAPs). These businesses will extract data from anyone’s CDP and distribute it to outside parties. But according to Pasch, “The automotive sector and OEMs have specific fonts, images, and image libraries that dealers like to watch videos with pricing on top of discounts or vin-specific ads.”

Therefore, hybrid platforms play a crucial role in these functions because they create templates for the automotive library and other third-party advertisements. “These hybrids play a pivotal role in activating clean data in the CDP for automotive-specific marketing,” Pasch says.

Customer preferred challenges

However, Pasch notes that once dealer groups combine their data, duplicates will be eliminated, and “you’ll be sending out the right campaigns to the right sources.” However, he predicts that rather than marketing, CDP’s main source of income will come from altering the user experience. Pasch highlights amazing digital experiences, like when a customer receives a personalized text message with current recall alerts or an integrated AI tool helps to schedule an appointment.

He continues, “When someone goes back to the website, these AIs should refrain from refilling forms or re-entering vin numbers.” Since CDPs should be aware of the preferred pain points of their consumers, the best time of day to respond, and when to automate outbound contact, an ideal communication segway for data activation is created in two areas: marketing and communication. 

While making targeted offers based on credit profiles, removing duplicates, and reducing your reach are great, dealers continue to have retention issues. Therefore, Pasch suggests, “They need to manage their customers as portfolio loan-to-value (LTV) increases, and they’re going to accomplish it by closing the gaps in current sales and service that are making consumers feel like numbers.”

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On the last episode of Auto Marketing Now, we discussed the differences between the most common CDP systems in the auto industry, along with their associated strengths and weaknesses. For this installment, host Brian Pasch is joined by special guest Aaron Baldwin, Chief Product Officer at AutomotiveMastermind, to discuss how dealers can use their CDP’s data activation tools to create a better customer experience.

While other industries have been using unified data systems for a considerable length of time, CDPs only became available to automotive retailers in recent years. As such, dealers are still learning how to use the platforms to grow their businesses. One key advantage a CDP provides is its ability to offer a clearer picture of the future. This is because the information obtained through identity and household resolution retains value in terms of both short-term business growth and long-term customer retention. Baldwin explains that when dealers have access to consumer data, they “can start to see further, not just one month, two months, a quarter down the road; [they] can start seeing years down the road.”

Historically, leads of any sort have held few long-term benefits for retailers. This is because the auto industry has lacked the tools needed to resolve, track and update consumer records after they leave the market. For many storeowners, the first time a shopper walks into their store is also the last time. As a result, dealers tend to ignore customer retention numbers, focusing their energy almost exclusively on sales and service. With the advent of CDPs, however, digital identities became more than to see who is currently shopping for a vehicle; they became valuable assets for sustained growth. As time goes on and more business intelligence features are added, the platforms are likely to become essential for competitive dealers.

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On the last episode of Auto Marketing Now, we discussed some of the building blocks of Customer Data Platforms (CDP), and how they can identify users and entities. In this installment, Brian Pasch discusses the differences between using a CDP, marketing automation platform or a hybrid of the two.

Many of the bigger dealership groups rely on large CDP corporations for resolving and handling their customer data. While these massive companies offer stability and experience, they are also quite expensive. Smaller dealer groups may find it difficult to justify the high cost, especially when new, cheaper platforms are launching on a regular basis. However, Pasch notes that these industry newcomers come with their own set or risks, such as closures and buyouts, which can jeopardize their client’s data.

Marketing automation platforms take information collected by CDPs and activate it on marketing channels. By analyzing the consumer data, these services can automatically target users on social media through advertisements and other content. Pasch explains that while many providers exist, only a few are focused on the auto industry, making it difficult for dealers to find a product which works for their market.

Companies which offer both marketing automation and CDP services are called hybrids. Pasch explains that these platforms can be especially beneficial to small and mid-size dealership groups. For one, they can be more budget-friendly, since clients only have to pay for one product. Second, hybrids designed to work for the auto industry have a better understanding of how car buyer data can be used, and what restrictions exist for dealers.

However, while hybrids present an excellent opportunity for most dealership groups, Pasch notes that the features included in these platforms vary from brand to brand. This means that dealers will need to thoroughly research their business partners when selecting a CDP and marketing automation provider. Not only should retailers focus on picking the right solutions for their market, they should also verify that the company has a long term vision for the product, and will continue to expand or improve their services as the years go by. To hear more of Pasch’s insights on CDPs, visit his website to read his latest report.

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Now that we have covered the benefits a Customer Data Platform (CDP) can provide to dealers, it is time to examine the basic building blocks which form these powerful tools. On this episode of Auto Marketing Now, host Brian Pasch, founder of PCG Companies and auto marketing expert, continues his new series exploring CDPs, what they have to offer and why dealers should start using these products.

Digital identity and identity resolution

Everyone has some form of digital identity, a kind of composite sketch which companies build from website data. By tracking the actions a user takes while visiting a site, analysis tools can determine their interests over time, allowing businesses to accurately target their marketing. Many websites use these profiles to recommend products which fit the user’s needs while they browse the internet. For dealers, CDPs can help to de-mistify the identities of their otherwise anonymous website visitors, giving them greater insight into their customer base and opening the door for targeted marketing.

Entity resolution

However, while it is possible to create these digital profiles just by tracking online activity, figuring out who these individuals are requires more information. By asking site visitors to share their identifying information with a contact form (while following privacy and content rules), businesses can begin to associate names, emails and phone numbers with user data. This is entity resolution, and it can open up new opportunities to engage with customers. Since most dealerships already have multiple ways for customers to provide their details both in-store and online, retailers already have the data necessary for a CDP to effectively generate these profiles.

Household resolution

This takes entity resolution a step further. While digital identities are profiles of single individuals, household identities consist of groups. To do this, companies collect data from numerous sites to search for connections. For example, if a business finds two people with the same last name and address, they can placed into a digital household. While the process of uncovering these relationships can be extremely difficult, CDPs typically integrate the necessary tools, although Pasch warns the effectiveness varies between platforms. Businesses can then use this information to further refine their outreach. Users in the household also expose each other to marketing, increasing the likelihood that a targeted advertisement will lead to an eventual sale.

When choosing a CDP to tackle identity, entity or household resolution, Pasch encourages dealers to select the right product. Ideally, the platform they ultimately choose must be able to not only collect the data, but also generate identities, write reports and make the profiles available when needed. This way, whenever a sales agent or customer service representative speaks with a potential buyer, they can know who they are speaking to and what the individual’s needs are simply based on their digital profile.

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A Customer Data Platform, or CDP, offers dealers the chance to unify their data and use consumer information effectively. While relatively new to automotive retail, companies in other industries have been using these tools for years to improve their customer service and simplify their operations. On this episode of Auto Marketing Now, host Brian Pasch, founder of PCG Companies and auto marketing expert, kicks off a new series exploring CDPs, what they have to offer and why dealers should make the shift.

As of today, Pasch has published the entirety of his CDP research. With more than 30 interviews with relevant companies, as well as insights into first-party data management frameworks, identity vs entity resolution, CDP/MAP comparison charts and real-world use cases, dealers can learn everything there is to know about the subject. Be sure to check out the completed project here on PaschGroup.com.

Thanks to the proliferation of digital tools, today’s dealers are likely to share the customer data they obtain with up to twenty different platforms. This is because retailers use separate programs to track different segments of the car customer’s online journey. Google Analytics records the user’s progression through the site, while the CRM software files any information they provide through form submissions. If the storefront hires an outsourced marketing firm, it too will be using a different set of tools to track engagement.

This fragmentation of the car buyer’s journey can create problems for both dealers and customers. Many of these platforms do not communicate with each other, leaving it to the dealer to put together the big picture. “When I looked at the amount of fragmented data…it should be no surprise that no one has said that automotive retail delivers an amazing customer experience,” remarks Pasch. However, there is good news.

“Some of the largest dealer groups are investing in CDPs, Customer Data Platforms, to unify all of their customer data,” he explains. This could promote a significant shift in the way retailers conduct business. Rather than relying on an overly complex system with little inter-connectivity, store owners can funnel consumer information through one platform, unifying their data collection, outreach and analysis.

The simplicity of a CDP allows dealers to utilize their data more effectively. For example, f a retailer works with a business development company to conduct outreach and take calls, the representative will have no idea if the person on the line is a returning customer since the relevant data is outsourced to multiple companies with varying degrees of integration. However, with a unified system, all relevant information can be pulled from one source as soon as the call is placed, giving the agent data such as name, location, previously viewed products and so on. This makes the customer to client interaction far more personable, and improves the speed and quality of service.

There are many other cases where a CDP outshines the typical, fragmented system used by most dealers. However, the most important takeaway for dealers is that they must act quickly to fund and adopt these new tools. “…Dealer groups are finally realizing that these silos of data, fragments of the customer journey, are preventing them from looking professional, preventing them from delivering a great customer experience,” explains Pasch. By responding now, retailers can sharpen their competitive edge and face the new market landscape head on.

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