KAR Launches Suite of Data Science Capabilities Aimed at Optimizing Dealer Profitability - AutoSuccessOnline

KAR Launches Suite of Data Science Capabilities Aimed at Optimizing Dealer Profitability

By integrating data science, predictive analytics and machine learning into the dealer remarketing process, dealers can save time and may increase sales margins and cash flow, the company said.

KAR Auction Services, Inc. announced the launch of a pilot program for its Data as a Service (DaaS) suite of capabilities during the Auto Intel Council news conference at NADA 2019.

Powered by DRIVIN, acquired by KAR in 2017, these new DaaS capabilities leverage data and technology from across the KAR platform and use proprietary algorithms to deliver clear, easy, actionable intelligence to dealers. By integrating data science, predictive analytics and machine learning into the dealer remarketing process, dealers can save time and may increase sales margins and cash flow, the company said.

“Every day our customers are making inventory decisions — deciding which cars will sell quickly and profitably on their lots and how to best replenish inventory,” said Joe Oliveri, general manager, KAR Data as a Service. “We have the capabilities to help our customers make faster, better informed decisions specific to their individual rooftops, not just their state or their market. Our rich data coupled with predictive analytics can pinpoint which cars will sell quickly at retail, which trade-ins to keep for retail sale and which ones should go to auction along with the auction channel that would provide the fastest sale at a fair price.”

KAR’s ADESA business unit, which operates more than 75 physical and online auction marketplaces, is piloting the new technology with a major East Coast dealer group representing nine OEM franchises. KAR DaaS capabilities can offer actionable analytics for dealer customers — saving them time and money, the company said. Currently in pilot with several dealers, KAR is providing lot analysis reports with data and recommendations specific to their dealership and more specifically to the individual vehicle.

“Not all vehicles are created equal. Each car has a unique value curve depending on the lifecycle of that car and a host of other economic, market and dealer behavioral data,” said Oliveri. “Through data science, we are now starting to inform dealers participating in our pilot the likelihood a specific vehicle will sell — both retail and wholesale — and when they should dispose of identified inventory.”

Dealers participating in the pilot get a holistic snapshot of what is in demand, the vehicles that could provide the best return on investment and how to best dispose of less desirable vehicles — all specifically relevant to their individual rooftop. KAR provides the pilot program dealers with lot-specific reports containing inventory segmentation analyses, purchase recommendations and remarketing advice — giving dealers targets for the best vehicle mix, propensity to sell and optimal disposal channel. As the pilot continues, KAR is fine-tuning the reporting and algorithms based on feedback from pilot program dealers, sales information and market reports.

 

Links: KAR Auction Services, Inc.

You May Also Like

DAS Technology Unveils New CDXP Features at NADA 2023

The platform offers new Google communication integration capabilities and expanded inventory merchandising capabilities.

Leading Customer Data and Experience Platform (CDXP) company unveils new technology features leveraging data and integrations to enhance customer experience and boost CSI and sales

DAS Technology, a leading customer data and experience platform company leveraged by over 7,800 retailers, unveiled new technology showcasing the company’s expanded Customer Data and Experience Platform (CDXP) solutions. The new solutions were shown at DAS Technology’s booth at the National Automobile Dealers Association (NADA) Show Jan. 26-29 in Dallas, Texas.

Cox Automotive Teams with Roku to Measure how TV Streaming Impacts the Consumer Automotive Journey 

New partnership seeks to make leading automotive dataset available for marketers to connect ad exposure to every stage of the shopping journey for the first time

automotiveMastermind Joins the Reynolds Certified Interface Program

automotiveMastermind (aM) has signed a contract to join the Reynolds Certified Interface Program.

Cox Automotive’s Upside Expands, Delivers Over Four Million Dollars in Profit Share Back to Clients

Cox Automotive remains confident in how this new way to wholesale can deliver profitability to sellers in any market—and the data has proven that.

Reynolds Acquires American Guardian Warranty Services

The Reynolds and Reynolds Company expands its portfolio by adding F&I products and services for automotive, RV, powersports, marine, and commercial trucking markets

Other Posts

Outgoing 2022 NADA Chairman Mike Alford Underscores Dealer Commitment to Evolving Business Model

In his final remarks as NADA Chairman, Mike Alford highlighted the evolving auto retail business model and how dealers and auto manufacturers “are connected by the desire to provide an unrivaled customer experience.”

NAAA Foundation Donates $75,000 to NADA Workforce Initiative

The NAAA Foundation donated $75,000 to the National Automobile Dealers Association (NADA) Foundation’s Workforce Initiative, which promotes the value of dealerships roles and access to educational resources.

NADA and Tekion Announce First-Ever Tied Winners in 6th Annual Women Driving Auto Retail Video Contest

The National Automobile Dealers Association (NADA) and sponsor Tekion named Leslie Jefferson and Alicia Rivera as the winners of the 6th Annual Women Driving Auto Retail Contest at NADA Show 2023.

New Jersey Dealer Mike DeSilva to Serve as AIADA’s 2023 Chairman

DeSilva, who is the co-owner of Liberty Auto Group in northern New Jersey, accepted the chairman’s gavel during an AIADA event in Dallas, Texas on Friday night.