Data Privacy Blurs Analytics Data. Here’s How, and Why It Matters

April 21st, 2023

In the ever-evolving digital age, data privacy has become an increasingly important factor in the way we do business. This is especially true in the automotive industry, where car dealerships are struggling to keep up with customer attribution details due to new privacy laws. 

There’s no question that safely using and storing data is important, and every one of us wants our data protected too. But these data privacy laws affect analytics data. It matters to car dealership owners, general managers, and marketing managers especially. Explore what the challenges are and how you can navigate the murky waters.

How Data Privacy Laws Changed Auto Marketing

Data privacy laws have become more stringent in recent years, with laws like CCPA in California and GDPR in the EU. But what does this have to do with automotive analytics? Well, these laws restrict the collection and use of personal data, which makes it harder for marketers to interpret and analyze customer data. This means that marketers now have limited access to the data they once used to generate relevant ads and customer experiences.

The difficulty in tracking customer engagement from different channels is the primary issue affecting car dealerships. Marketers no longer have as clear a clear picture of which channels were most effective in engaging customers. Did traffic come direct, from paid ads, through an email blast, or from social media? Without this knowledge, marketing strategies cannot be optimized as well as they used to, especially at the dealership level. Ultimately, sales are affected. 

Another way that data privacy laws have affected analytics is that marketers can no longer use third-party data as freely as they once did. In the automotive industry, dealerships just like yours typically rely on third-party data to generate leads, and what happens when that data is less accessible? It’s harder to get quick access and use of this data effectively in a competitive market. 

So, how can dealerships adapt to these privacy laws? One potential solution is to work more closely with customers to understand their needs and preferences, but that entails already having their information and their approval to communicate with them. What about all of the potential leads that are still out there? How can you use the data that’s still available to you most effectively?

Attribution Done Right 

To stay competitive and develop customers with life-long relationships amid the landscape of privacy laws and data protection, dealerships face a massive challenge in interpreting the sales, marketing, and analytics data available to them. 

Attributely does that for you with customizable metrics pulled in from every channel you’re currently using. Accurate, relevant data that gives you a window into key metrics like customer acquisition cost, campaign conversion rates, and more are available at a click, along with expertise to interpret the data so you can focus your marketing efforts more precisely. 

Schedule a demo or contact us to find out more.

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