If you’ve streamed music and movies or purchased shoes, food or other goods on an app, you’re likely familiar with personalized, tailored recommendations.
While those are often based on viewing, browsing or purchasing behavior, a new recommendations tool in the wholesale auto industry appears to take that a step further.
ADESA said Tuesday it has launched a personalized vehicle Recommendations carousel for eligible subscribing dealers on ADESA.com that provides them unique, personalized buying recommendations.
Those recommendations, based on an algorithm using over 300 independent data points, appear for each individual dealer on his or her respective ADESA.com home page.
They’re not just about what the dealer has previously purchased or browsed, as they recommendations consider such elements as the location, market conditions, buyer base and lot characteristics of the individual dealer.
“We are thrilled to deliver this pioneering new functionality to our dealers and empower them with the information they need to make the best, fastest and most economically calculated decisions possible,” ADESA president John Hammer said in a news release.
“By analyzing vehicles based on each dealer’s specific geography, market conditions, lot characteristics and buyer base, our recommendations save dealers time and eliminate the guesswork around what’s most likely to lead to a quick retail sale,” he said. “The Recommendations carousel is a great example of what KAR does best – leveraging data and capabilities from across our platform to simplify remarketing and help our customers succeed.”
Fellow KAR Auction Services business unit DRIVIN has been developing the technology for several years, the company said.
After analyzing hundreds of data points, DRIVIN’s proprietary algorithms aggregates those into “distinct decision factors” that are used to make inventory recommendations. Those appear in the form of color-coded badges – like “Low Lot Supply” and “Recent Success” – that explain why ADESA recommends the dealer buy that car.
ADESA has been running a pilot of the Recommendations carousel since March and began a staggered rollout to subscribers this month, with the goal of launching with 16,000 dealers by the end of the month. ADESA plans to up that to 20,000 by the end of September.
“No more hunches. Our recommendations are based on cutting-edge data science — bringing facts and real value to active ADESA.com customers,” said Joe Oliveri, who is KAR’s vice president of Data as a Service, in a news release.
“And the selections are proven to be on-target. In the first 90 days of our pilot, nearly one in four dealers who clicked to explore the vehicles specially chosen for that dealership bought one of them,” Oliveri said. “The program learns every time it’s utilized, so we expect that number to go up as more dealers take advantage of having the right inventory selected for them.”
For more with Oliveri on this and other tech at KAR, see the below episode of the Auto Remarketing Podcast, recorded at the Auto Intel Summit this summer.