After decades in this business, I can tell you one thing with absolute certainty: The buzz around “there’s gold in your data” isn’t just hype. It’s real, and it’s finally hitting home for dealer principals and general managers across the country.

But the hard truth is that mining that gold isn’t as simple as it sounds. Think less modern tech miracle and more 1800s prospector, panning a riverbed for a glint of payoff. In our world, that “nugget” is the customer ready to buy, trade or service. The question is, are you mining efficiently or still knee-deep in the mud?

The Old Way: Spray, Pray, and Hope for the Best

We’ve all sat through those marathon management meetings brainstorming campaigns, chasing the next big idea from a glossy trade mag or a fast-talking vendor. The result? Some marketing and advertising ideas and crossed fingers.

It’s the age-old “spray and pray” approach, scattering your message and hoping something sticks. Sure, the vanity metrics might look good, but your profit-and-loss tell the real story. Too often, those dollars never make their way back home. Every dealer has a few of those war stories.

The New Way: Turning Data into Precision Tools

The game changes when logic meets the data already sitting in your dealer management system. There’s a gold mine hiding in plain sight, such as customers with leases expiring in 90 days, vehicles rolling off warranty, and open recalls waiting to be scheduled.

Go deeper, and you’ll find owners with positive equity, ripe for an upgrade, or loyal service customers who hesitated on a repair last visit but are ready now. When you start segmenting, scoring and prioritizing these opportunities, your outreach shifts from guesswork to precision targeting.

Suddenly you’re not “advertising” but sending laser-focused invitations that drive showroom traffic, lift close rates, and cut wasted ad spend. That’s what true return on investment looks like.

Why It’s Not as Simple as Plugging In

Of course, extracting this gold isn’t a weekend project. It takes time, talent and technical muscle. You need people who can read structured query language like a second language, understand the quirks of your DMS, and know how to build campaigns that convert without feeling like spam.

Most dealers who’ve tried to go it alone hit the wall fast. The opportunity cost alone, pulling your F&I manager or service director off their core work, can sink the effort before it starts.

Enter the Data-Driven Partner

That’s why so many dealers are turning to outside marketing partners that specialize in mining DMS data. These firms plug directly into your system, surface your highest-value prospects, and even automate the outreach with custom emails, texts or mailers.

It’s turnkey efficiency, and when it works, it works. But make no mistake, this convenience comes at a cost. Setup fees, DMS integration charges, monthly subscriptions, per-deal commissions all add up. Without disciplined internal follow-up, even the best program falls flat.

The Fork in the Road: Build or Buy

Every dealer principal faces this choice: Build an in-house data operation or outsource it.

In-house gives you control, but without robust tools and analytics, you’re flying blind. Outsourcing gives you clarity and scalability, but you’re paying premium rates and betting that your team will close the loop.

Either way, attribution becomes tricky. Did that service contract sale come from the firm’s campaign or your adviser’s rapport? Without visibility, you’re guessing.

The Hidden Variable: Knowing Your Audience

Here’s what too many overlook: Not all customers respond to the same message. A millennial scrolling TikTok might engage with a snappy video about trade-up equity. A retiree, on the other hand, may respond better to a personalized postcard about a recall or warranty extension.

Demographics, income, tech adoption, life stage, they all shape how customers engage. One-size-fits-all campaigns are relics of the past. Relevance wins every time.

Where the Real Gold Lies

The true gold is in the high-intent customers your data already identifies, the ones most likely to buy, trade or service based on behavior, not guesswork. How you prioritize and activate those insights determines whether you strike it rich or spin your wheels.

As you evaluate internal teams or external partners, dig into the details. Do they segment by life stage? A/B test messages, including subject lines and calls-to-action, to see which option works best? Measure lift in service revenue or vehicle service contract penetration? Those answers reveal whether you’re panning for gold or operating a full-scale mining operation.

From Pan to Dredge: Scaling Up Smart

After years in the trenches, I’ve seen what happens when data-driven strategy meets the right partner. A true turnkey VSC provider doesn’t just analyze but integrates, automates and executes. They surface warranty-end opportunities, uncover equity-rich trades, and deliver compliant, targeted campaigns that convert data into profit without the nickel-and-dime surprises.

Principals and GMs, it may be time to upgrade your tools. Trade the gold pan for a hydraulic dredge. Your DMS isn’t just a system – it’s a gold mine. Let’s start extracting the value that’s been buried there all along.

Liebler is regional director of Automotive Product Consultants (APC).

EDITOR’S NOTE: This article was authored and edited according to F&I and Showroom editorial standards and style. Opinions expressed may not reflect that of the publication.