A significant portion of customer records in dealer databases may be outdated and incorrect, according to Auto Data Solutions (ADS). Over half of the records analysed were inaccurate, potentially leading to inefficiencies in dealer communications and lost revenue opportunities.
ADS’s analysis suggests that inaccurate data could result in millions of pounds in missed profits. Jon Sheard, operations director at ADS, said: “There are many reasons why dealers often neglect to cleanse their customer databases, ranging from not realising how poor their records are to struggling with the complexities of re-importing a fully accurate database into their systems without expert help.”
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The study used ADS’s real-time data-checking system to analyse the databases of several major dealer groups. The findings revealed many incorrect addresses, customers no longer possessing the cars originally supplied, and outdated vehicle records. These included failure to reflect changes in Vehicle Registration Mark (VRM), MOT dates, or status alerts for written-off, scrapped, or stolen vehicles, and even customer deaths.
Based on the experience of dealers who have opted for data cleansing, ADS estimates that correcting 1,000 MOT discrepancies could generate an additional £40,000 in workshop revenue, assuming a 30% booking rate and 35% profit margin.
“Our analysis reveals significant opportunities simply by keeping track of the basics—knowing where customers live, whether they still have the vehicle, and when the MOT is due,” Sheard noted. “Contacting the right customers at the right time can lead to increased service bookings or sales conversations, but that’s not possible if the data is inaccurate.”
Sheard also warned that outdated databases not only waste time and money on communications sent to incorrect addresses but also result in missed opportunities as customers drift away or move to other dealers.
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