Through analytics, we can much better understand not only the audience but our business as well. In the car industry, this holds true as well. The money the you have invested and tied up into your inventory of vehicles, can often times break you. Having too an packed lot full of vehicles might look and sound like a great thing, but that is only if those vehicles are getting sold and not sitting on the lot for extensive amounts of time. If all those vehicles don't get moved around to make room for other vehicles, potential clients could get bored with the same vehicles on your lot and think you don't have a big variety. Also, having all the money tied-up into those vehicles that sit too long is not a good thing. That same money could be being invested into other parts of the business.
So how can analytics help us out here? Analytics can help us pick up on trends to adjust the size of your inventory. Google Trends is an awesome tool to help us get this done. If you look at how much interests some of these websites that people use to look for new vehicles, you can gain some major insights. For example, CarGurus is one of the biggest websites used to find a new vehicle. Google Trends shows us that they get steady traffic during the warm months of the year, but somewhere around November the numbers drop a little bit. This could be due to the fact that most people don't want to be out on the lots, looking at vehicles in cold weather. In mid-December, the numbers begin to turn on an upward slope and continue going up to today's current date which is also the highest they've been, A good explanation for this is because of tax season. Americans are now getting their refund and have the money for a down payment. You can take this information and plan the size of your inventory accordingly.
by Ever Rosales
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