While most of the industries have taken a swift shift towards the digital world, the automotive industry is one of the few industries where in-person engagement still plays a crucial role in customer satisfaction. 

Here, it is not the game of choosing a vehicle from an array of options, adding it to the cart, and making the purchase. No, consumers still want to interact with dealers in-person, test drive novelties, compare them with other vehicles and then make the decision to purchase. Marketers in this sector are relentlessly trying to bring in new marketing strategies and that’s where location data comes to provide insights on consumer behavior, market trends, and competitor atmosphere. 
In a study, it has been noted that 61% of automotive marketers are highly likely to leverage location data to assess customer behavior at dealerships. In this blog, we explore how location technology aids the automotive industry in customer attraction and retention and, while also optimizing their presence with a vast network of dealership centers.

Improving businesses through location data

The convergence of the physical and virtual world is not a new concept anymore. Retail, healthcare, food & dining, and many other industries have ensured to document the physical changes of the real world in a complex digital economy. But, how can the automotive industry and other players in it make use of geospatial data to sell their products and services? Let’s read to know more. 

Using location analytics, large automobile companies can optimize their presence with a wide network of dealerships. Based on the demographic and location trends, these companies can position dealership stores, facilities, and service centers. With the right mix of marketing strategies, the automotive industry can leverage the full potential of location data and target customers effectively.

While automakers can benefit from location data, other players in the automotive industry can also improve businesses through location-based technologies. For example,

  • Repair shops can access user location via sensors and systems in the vehicle to diagnose a defect, plan, and arrange repair and maintenance events. 
  • IT & telecom companies can offer in-vehicle data services and furthermore track the location of these vehicles for marketing services. 
  • Investment companies need access to location-based analytics to determine the most profitable location for financing.
  • Vehicle insurance companies can leverage navigational data and provide insurance plans and packages based on individual and vehicle usage metrics.
  • Manufactures and development firms build innovative and most-selling products based on location-intelligence solutions.

The automotive industry involves many phases such as – production, warehousing, supply chain, marketing, and many more. Thus, suppliers can leverage location data and improve inventory management. 

With sensors fitted to the components of high-end cars, GPS location, and navigation-related information, automotive manufacturers can pre-empt the requirements of the customers. For example, if a component has been failing in its functioning and needs to be replaced, manufacturers are easily notified by these sensors and location data. And, a brand new component is already shipped and made available to the nearest dealership location. However, securing customer information and using it responsibly must be the primary objective of any automakers.

With 5M+ location data across 11 industries, Xtract.io helps businesses to take spatially-aware decisions for improved growth.

To continue reading, head to TechMediaToday where this article is originally published.


Varsha is a Content Marketer. She is passionate about writing, and adds a pinch of her OCD to her writing style. Apart from writing, you can find her doodling mandala art or reading a book with a cuppa of coffee.

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