Driving Solutions with Jim Fitzpatrick, powered by CBT News

Why Cox Automotive's Native CDP Solution is Changing the Game for Dealers

• CBT News • Season 1 • Episode 2

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The data revolution has arrived at automotive dealerships' doorsteps, and those who harness it effectively are seeing remarkable results. Customer Data Platforms (CDPs) have quickly evolved from industry jargon to essential technology that's transforming how dealerships connect with car shoppers and owners.

In this illuminating conversation, Cox Automotive executives Jade Teraberry and Susan Blue demystify CDPs and reveal why they've become so critical for dealership success. They explain that while many vendors are now selling standalone CDP solutions requiring significant investment, Cox Automotive has taken a different approach – embedding comprehensive CDP capabilities directly into the tools dealers already use daily. This native integration allows dealerships to activate real-time consumer insights without adding new systems, training, or complexity to their operations.

What makes Cox Automotive's CDP approach particularly powerful is the unparalleled data foundation beneath it. With 5.1 trillion vehicle insights annually and nearly 3 billion consumer insights, the system creates unified customer profiles enriched with granular shopping behavior. Their "human in the loop" approach combines AI automation with the human touch, ensuring every customer communication is personalized and relevant. As Jade notes, "You don't waste a penny speaking to a consumer with a message that isn't relevant to where they are in the process right now."

For dealers navigating the complex world of customer data management, the experts offer clear guidance: partner with companies that have the most comprehensive data resources, and ensure insights can be activated in real-time through existing workflows. The future belongs to dealerships that can deliver truly personalized experiences while making every marketing dollar work harder. Ready to transform how you connect with today's digital-first car shoppers?

Announcer:

This is Driving Solutions exclusively on CBTNewscom.

Jim Fitzpatrick:

Hey everyone, jim Fitzpatrick, welcome into another edition of Driving Solutions right here at the CBT Automotive Network. What started as a buzzword is now becoming a game changer for dealerships customer data platforms or CDPs. Dealerships, customer data platforms or CDPs. Joining us to share their insights and expertise are two experts from Cox Automotive Jade Terreberry, senior Director of Strategic Development at AutoTrader, and Kelly Blue Book and Susan Blue, who is new to CBT News. She's the Vice President of Operations for Dealer Sales and Solutions at Cox Automotive. So, ladies, thank you so much for taking the time out of your busy schedule there at Cox Automotive to join me here on the show, and I would like to start with you, if I can, jade. We've heard so much about CDP in the automotive space. It seems to be something everybody's talking about. At the last couple of NADA conferences, everyone's CDP, cdp. So it's officially more than a buzzword now, as you know. Can you describe how it's impacting the customer experience and why it is such a hot topic?

Jade Terreberry:

Yes. Well, what I love the most about the CDP topic is, for years we've said, you know, we built Cox Automotive as a multi-billion dollar CDP. You and I have talked a lot of times before how long it took us to get to one view of the customer, one view of the vehicle, one view of the dealer and one view of the market. And now everybody understands what that means. It's that real-time data that creates the most relevant connections with your consumers and makes every dollar go further. In fact, I was over the last couple of weeks at the Digital Marketing Strategies Conference and the SO2 Conference.

Jade Terreberry:

And it's not just a buzzword anymore that dealers don't understand. It is real and everyone is starting to think about this much. Like we talked about with digital retailing tools the first few years, it was a differentiator if you had it, and CDPs, or being able to activate on real-time data, is getting to the point now where, if you're not doing that, if you're not partnered with the right partners that have this real-time engine powering their solutions, you're wasting a lot of money and a lot of time. And so Susan's going to talk more to us today about that.

Jim Fitzpatrick:

Yeah, what's your take on that Susan?

Susan Blue:

You know Jade is exactly right. It's no longer just good enough to collect leads and use a standard lead follow-up question. It's about using high-quality data to deliver really personalized experiences for your customers at every step along their car buying journey, up along their car buying journey. You know, at Cox Automotive we've long used our data, like Jade mentioned, to use connected, personalized and data-driven insights to help our dealers really deliver for their consumers and really build that long-term consumer value.

Jim Fitzpatrick:

Yeah, for sure. What is Cox Automotive's approach Susan to CDPs?

Susan Blue:

You know, with Cox Automotive you get all of the benefits of a CDP natively throughout the solutions that you're already using today. So I'm going to tell you kind of how we do that and then what the benefits are for our dealers. So first we collect all of the customer data across all of our solutions and put them into a single unified profile. Next we enrich that profile with some of the behavioral data that we get on Kelley, blue Book, autotrader and Dealercom. And next we kind of activate that data and embed that into the solutions you're already using, like Venn, crm or our marketing platform, our service solution, even our deal products, so that in real time you can use these customer insights in the tools that you're already using today to connect with your customer. And finally, we activate all of these insights across sales, marketing and service with AI and automation to deliver that personalized experience for that consumer.

Susan Blue:

That's kind of how we do it, but you haven't heard the best part yet. The best part is that this is already included in the solutions that you buy with us today. You don't need to buy something else. You don't have to have your dealership log in, train or learn anything. It's already included and embedded in the solutions that you already know how to use.

Jim Fitzpatrick:

That's fantastic, Jade. Do you want to add to that at all?

Jade Terreberry:

Yeah, I just want to add real time. Susan said the word real time, and you know it's one of the challenges that a lot of our dealers have seen, as they have started to stand up either independent CDPs or thinking about how to partner with the right folks, but it's just like a CRM. It's kind of garbage in, garbage out. You're only as good as the data that you have, and so you know, one of the big differentiators on the Cox side is, you know, we spent all of these years taking these unified consumer profiles as the building blocks, but then, when you think about that, ai and automation on top of it.

Jade Terreberry:

However, ai and automation learn from models by testing and testing, and so, with what Cox has built, we apply this kind of human in the loop component, which is giving you the best of both worlds. You've got the human piece on your advertising. You have the ability for your sales team members, your BDC teams, to interact out of your CRM, out of Venn Solutions. We have a lot of clients that are just amazed by our Venn Predictive Insights product, which gives them the ability to interact with a consumer via email or via text, but they are involved, however. They have all of the layers of AI right there on top of it that make every one of those communications to the consumer more relevant and smarter, to move them one step further in the purchase journey or the ownership journey.

Jim Fitzpatrick:

For sure. One of the big misconceptions is that you have to build or buy you know a standalone CDP. As you know, that's been the discussion out there. You know for your dealership. Can you explain the difference between a native CDP capabilities and a standalone CDP, as well as share some of the pros and cons of each?

Jade Terreberry:

Sure. So, as with everything automotive, there is no one-size-fits-all solutions. There are plenty of organizations and groups out there that have the hundreds of thousands of dollars to invest, not only on the front end for a standalone CDP, and we are looking every day at new and different ways to partner and to provide rich insights for those clients. But the power of partnering with Cox is that we have built this embedded CDP that underlies every single thing that we do all of the marketing, all of the advertising, the consumer experiences on websites. And, if you've noticed, over the last couple of years we've been really deliberate about starting to tie the pieces of our products and our capabilities into syndication tools. So things like KBB MyWallet it's your wallet, you carry it in your back pocket everywhere you go, but you're going to see more and more of that being embedded, say, on OEM sites, behind user-authenticated lender and bank experiences, and so, as you think about all of those entry points and touch points that a consumer enters, that data and not only do we have the most in first, second and third-party data, this massive identity graph and data set that connects all of your devices to you and then yours and Bridget's devices to your household, and so we see all of those pieces together and that is really expensive, not just to build but to maintain.

Jade Terreberry:

And I did a panel a couple of weeks ago with the Rorman Group, with Ryan and Jeremy Nowling, and they were given some incredible stats around. Like you get all of that data stood up and it's accurate, and after you de-dupe it it's amazing. You know, 50 or 60% of it might be good and then a handful of months later you got to keep doing it again. And that's kind of the power of Cox, that we have all of these partnerships that I'm sure Susan would love to tell us more about and she will but where that data is updating in real time literally every handful of seconds, where we're shifting these consumers from one segment to the next to make sure that that messaging is as relevant as it can be to meet the consumer's needs and to keep them connected to you.

Jim Fitzpatrick:

Yeah, no question about it. Do you want to jump in on that, Susan

Susan Blue:

to jump in on that, Susan.

Susan Blue:

Yeah, I mean, like we talked about, sometimes a standalone CDP is positioned as the ultimate solution to deliver on all your marketing needs, but in reality, a full CDP is.

Susan Blue:

You're often adding it as a separate thing to your tech stack and what that means is an extra system to log into and to manage, and also it might not be deeply embedded in your CRM solution that you're using every day to talk to that consumer, and so you could miss out on some real-time compliance issues and also the time between systems when that data is going from here to there and making sure, like Jade said, how do you keep everything up to date in real time? The more systems you have, the harder it is to do that, and so, knowing that ours is already embedded, the real-time insights are right there every time in your CRM for your dealership to use. The other thing to think about is the CDP, like Jade said, is only as good as the data that you put into it. So some standalone CDPs will have broader data integrations, but ours has the exclusive data that you can only get through Cox.

Jim Fitzpatrick:

But ours has the exclusive data that you can only get through Cox, which is really deep, granular shopping behavior and such when you are now and then where you've got plans to go. Talk to us about that with the CDP. What's next?

Jade Terreberry:

Yeah. So first I'll say you know we've already been here for a really long time. You know Pash calls us the grandfather of CDPs. Yeah, and we've been asked a lot over the last handful of years why didn't you build a CDP product? Do and we've been asked a lot over the last handful of years why didn't you build a CDP product? Do you sell a CDP?

Jade Terreberry:

It's like actually everything we have is built on this CDP. That saves our clients a tremendous amount of money because they don't have to go out and invest. And, like I said earlier, it doesn't have to be a one size fits all solution, and not to say that the standalone solutions aren't okay, but they have to have the data layer and the two-way integrations, and so that really is like the goodness of the investment that Cox makes, not only in consumer research but in partnering with every big data provider and registration provider and OEM and all of these data points that we have coming in, and so it really it sounds overwhelming, but and it is it's hard to get your mind around, especially for a smaller dealer.

Jim Fitzpatrick:

The average dealer, I think, has two and a half dealerships.

Jade Terreberry:

So when you talk to the average dealer you know they're like, okay, we're not going to go out and build our own, we're not we don't want to be a technology company and by the time you did, it would be outdated, that data would be done and the newest technology and the newest AI that sits on top of it that knows how to make it work with all of your other stuff, just having that data sitting out there alone is irrelevant if you don't have the service layers that will push it to drive your consumer experience and the efficiencies in your stores.

Jim Fitzpatrick:

Yeah, for sure.

Jade Terreberry:

And so that's the path we're on. We are going to keep investing, and you know it said the sheer volume 5.1 trillion vehicle insights a year. We are just right on the cusp, approaching 3 billion consumer insights, 80 million leads.

Jim Fitzpatrick:

I mean, it's just it's incredible and mean in real time as life events happen as consumers change what they're looking for.

Jade Terreberry:

We know it updates and you don't waste a penny speaking to a consumer with a message that isn't relevant to where they are in the process right now.

Jim Fitzpatrick:

That's right. That's right. How many times have we gotten from dealerships? I know I continually get from past dealerships or dealer cars that you sold two years ago, right, and you think it's time for your checkup? You'll never get that from marketing powered by Cox Automotive, right? Yeah, exactly, it's incredible.

Jade Terreberry:

We probably know what you're going to buy before you know.

Jim Fitzpatrick:

See, I think you do, I think you do. Susan, do you want to add anything to that in terms of what's next for Cox Automotive, because I know that's something that you're diligently working on as well.

Susan Blue:

Yeah, you know we have always known how important it is to reach the right consumer at the right time with the right message no more flyers for things that you got two years ago that you sold already. How do we make your connection with the consumer be relevant and important and on time? And so you know we're going to continue to invest in this area to help make dealers as effective and efficient as possible in meeting their consumer and creating personalized experiences. So one of the things that I love about Cox is our close connection with the dealers. We don't sit in some room by ourselves and come up with this grand idea and go build it-da, here it is, come buy. You know we work really closely with dealers and do many onsite visits to make sure, with our innovations, that we're solving real-world problems, and so we're going to continue to invest. We're going to continue to learn from real experiences at dealerships what we need to do to help our dealers be better to serve their consumers.

Jim Fitzpatrick:

Yeah, that's fantastic. So, as we wrap up this incredible segment and again I appreciate all of your time that you both have given us here at CBT News to cover this important issue of CDPs, because dealers are kind of, you know, sometimes their eyes get, you know, glazed over and they're like, oh my gosh. Well, you know which way do we go here? But talk to us what are the biggest? Which way do we go here? But talk to us what are the biggest in terms of the action plan or the action advice I would say on CDPs, for those watching, for those dealers out there that are right now Maybe taking notes and saying, okay, I got to call these two and really get the DL here, but what's your advice for them?

Jade Terreberry:

Yeah, I would say the big takeaway is partner with the right partner that has the most data, the biggest reach and can make every dollar that you have go further. This is all about efficiency and, as we mentioned at the beginning, this may have been a differentiator and may still be a differentiator for those that are really serving the consumer with those custom experiences and custom messages, but there's going to be a time very soon. In fact, one of the big industry influencers two weeks ago on stage with me, he said you know, this is the year that everybody who has looked elsewhere at a bright and shiny object looks back and comes back to Cox Automotive Because the power of the data that we have is untouched and it's about efficiency for the dealer, making every dollar and every minute go further for your staff and my goodness, how often do we get to do that and it really be a win-win for the dealership, the consumer, the manufacturer, win-win for everybody.

Jim Fitzpatrick:

Yeah, there's no question, and there's a comfortability factor there and a confidence factor that dealers have with the Cox Automotive brand and the family of dealerships that you guys have for sure. And then how about you, Susan? What advice do you have and what are your final thoughts here as we wrap up the segment for dealers that are listening?

Susan Blue:

Yeah, I have two big things. Number one, when you're looking at CDPs, the CDP is only as good as the data you put in it. So, like Jade mentioned, make sure you're using a CDP that has access to very rich granular behavioral data so it can really power your insights. The second thing is it's not just good enough to have the data and have the insights. How can you leverage those in real time, embedded in things that you already do, without creating new processes? So make sure you have the best data and that you can use it within your current processes as easily as possible.

Jim Fitzpatrick:

Yep, Fantastic CDPs. Every dealer out there wants to either learn more about it. Obviously they've got to go down this road. I appreciate all of the time that you have both given me today. So Jade Teraberry, Senior Director of Strategic Development at AutoTrader, and Kelly Blue Book with Cox Automotive, and, of course, Susan Blue, first time now at CBT News. Thank you so much for taking the time you did great, by the way. Vice President of Operations for Dealer Services and Solutions at Cox Automotive.

Jade Terreberry:

Thank you, ladies so much for joining me. I know that our dealer viewing audience will get so much out of today's discussion.

Announcer:

So thanks for having us, jim, as always, thanks for watching Driving Solutions exclusively on cbtnewscom.