A new study has revealed that up to 44% of the vehicle data that dealers hold about customers is outdated or incorrect. Data experts at Auto Data Solutions warn that poor data creates compliance issues and can be a brake on sales.
The team at Auto Data Solutions are urging all dealers to check their databases and undertake a data cleansing process if required.
With larger dealers holding millions of records, the details will change by the second, and the quality and value of that data will decrease daily.
Data sits at the heart of modern dealerships and fuels the sales effort. Therefore, it’s essential that all records are up-to-date and accurate. Dealers that fail to manage their customer records face hefty fines of up to £17.5m or four per cent of global turnover under the GPDR rules, which require dealers to take reasonable steps to keep data up to date or erase it if it’s lapsed.
The Royal Mail quote that 50% of an average business’ database will be out of date in two years. While we don’t regularly see those kinds of numbers in dealerships, it is essential that a regular data cleanse is undertaken.
The study also found one dealer had issues with its customer records where 14.7% of the database had moved house.
Auto Data Solutions is working with leading DMS providers to make data cleaning an automated and accurate process.
Customer data records can become out of date due to a number of factors ranging from moving house to changing car, getting married or dying.
Data management needs to be a priority for the industry. Following an initial cleanse, the process can be automated to ensure that data is always up to date. Advanced technology can be used to update the database automatically. It’s an approach that will keep dealers on the right side of compliance procedures.
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Motor Trade News: Dealers urged to act on data
Motor Finance Online: Outdated data poses compliance risk for dealers, says Auto Data Solutions