Auto Data Solutions (ADS) has warned dealers of the risk that advanced AI tools could amplify the high proportion of inaccurate records in the typical customer database.
ADS analysed over 1.1 million customer and vehicle records across nine dealer groups. Of the 731,006 vehicle records analysed, 44.9% required correction, whilst 22% of the 435,027 customer records contained inaccurate information.
Jon Sheard, operations director of ADS, said: “Dealers are right to be excited about the opportunities of AI and ever more sophisticated marketing and customer journey processes.
“AI is very good at following up, but if a customer sold their vehicle six months ago and is still receiving automated service or MOT reminders, every additional contact risks causing more frustration. Without getting the underlying data right first, dealers risk their marketing simply failing faster and at greater scale.
“Our latest dealer analysis across more than a million customer and vehicle records shows that even the most powerful tools could fail to deliver their promised benefits without first addressing those discrepancies. “
ADS warns that adopting advanced AI-powered marketing tools before cleansing and updating customer records will lead to bigger and faster marketing failures.
The company is urging the industry to maximise the value of AI by first establishing accurate customer and vehicle records to fuel the new generation of marketing tools.
The call is backed by marketing automation specialists Force24, who have partnered with ADS to demonstrate the power of clean customer data for sophisticated marketing.
ADS recommends establishing a ‘Trusted Working Vehicle Base’, focusing on customers who have visited a dealership within the previous seven years and cleansing their associated records.
