NADA, Power team up on dealer data
The National Automobile Dealers Association has formed a strategic alliance with J.D. Power and Associates in a step meant to help dealers protect data security while participating in market intelligence research.
The alliance aims to increase dealer participation in the Power Information Network, which gathers point-of-sale transaction data. NADA officials say participating dealers will get benchmark information to help them improve their operations while ensuring that individual dealer data and customer information are secure.
NADA also will use the information in part to improve the accuracy of the association's used-car guide and help inform its 20 groups.
Dealers participating in the Power Information Network see their own individual information, plus aggregated statistics for their market area. Benchmark data are available for such metrics as vehicle selling price, incentive amounts and days to turn.
"It will give me more timely information of what is going on in our region, in my market," said Bill Willis, a Delaware dealer and NADA director who chairs the association's used-car guide committee.
For example, with the price of gasoline rising, Willis says the Power Information Network will help him determine how much he should tilt his inventory toward small cars. Such knowledge is crucial in his rural area where trucks are popular.
One of Willis Automotive's three dealerships currently participates in the Power Information Network. Willis says he will add the other two. Because dealers trust NADA, more also are likely to increase their participation, Willis said.
That's what J.D. Power is looking for. Currently, about 4,700 U.S. dealerships, responsible for just more than 30 percent of U.S. retail sales, participate in the program, said Deirdre Borrego, general manager of the Power Information Network
"As participation grows, it will enable more granular views into the data," Borrego said.
More detailed benchmark information on used-car prices, for instance, will help dealers make better trade appraisals and stock faster-selling inventory. Nothing will change in how data are extracted from participating dealerships, Borrego said.
Changes were made to the enrollment agreement so NADA would be comfortable encouraging dealer participation, association officials said. That includes making it clear that the dealer owns the data, which J.D. Power expressly acknowledges.
The issue of data security has been a growing concern for dealers with questions about who owns and controls the data, NADA officials said. Through the alliance with J.D. Power, NADA aims to lead by example on how best to gather and use the data.
You can reach Amy Wilson at email@example.com.