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How Predictive Analytics is Helping the Automotive Industry

NewCarsThe automotive industry has been faced with many challenges in a tough economy. Sales have struggled and consumer whims seem to be all over the place.

A recent Data Informed article discusses how predictive analytics is helping auto makers meet some of these pressing challenges. Web browsing data on select auto sales sites is being used to give car makers real-time data about what customers want so that they can adjust their production schedules accordingly.

The major car companies can use the demand data to adjust production schedules, tweak marketing campaigns, and minimize inventory, greatly increasing profit margins in a very competitive industry.

That’s the power of demand sensing: stitching together data from marketing, sales, production and supply chain systems to offer up-to-the-minute insights on what buyers want.

It’s another example of predictive analytic’s power to help the business community make data-driven, scientific decisions about issues that were once decided mostly on gut instinct. The result is a leaner, more profitable business.

The article also provided a nice example of how intelligent design factors into the process. Notice the careful attention that was given to which data would be chosen. The programs don’t use all of the websites available to the automotive industry, but a select few. They don’t target everyone who is moderately interested in a car, but people who are “lower on the buying funnel,” that is, people who are very close to making a decision.

If you are trying to build a leaner, more profitable, data-driven business that chooses the right data sets to work with, TMA can help. Register for TMA’s free webinar or training courses, and learn how you can best apply the science of data analytics to the unique needs of your business.

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