How to Start Building Your Organization's Data Strategy Today
4/7/2025We are currently living through a new digital revolution, where data and AI are reshaping how business is done. Just like dealers in the 90’s who first adopted the PC and internet gained an advantage over their competitors, today’s most competitive dealerships are those using data for proactive pricing, move inventory faster, streamline processes, and better serve their customers.
According to a comprehensive 2023 McKinsey study, data-driven organizations are 23 times more likely to acquire customers and 19 times more likely to be profitable. And as Equipment Magazine revealed in a 2023 market report, 74% of dealers state that having access to better data on customer equipment usage and service history allows them to provide more targeted, value-added support.
While you by no means need to turn your dealership into a tech company, you do need a solid plan for how to use the data you’re already sitting on.
The following steps for getting started on a data strategy come from our Spring 2025 Webinar, in which Tractor Zoom’s Manager of Data & Analytics, Hank Mandsager, explains some key terms and lays out the key elements needed to start making your data more productive for sales operations at your organization.
Step 1: Focus first on people, not technology
As Hank reminds us in the webinar, “There is no transformation without people.”
In truth, the biggest hurdle to implementing successful data strategy isn’t choosing the right tools. It’s preparing your people for the changes ahead.
At root, this means that your employees need to understand the “why” behind any fundamental changes. Without buy-in from your teams – especially those responsible for entering or managing customer, sales, and inventory data – you risk poor adoption or bad data habits. It’s crucial to identify internal champions, like a tech-savvy sales manager or knowledgeable IT person, who can help aid the transformation by being a bridge between personnel and technology.
Major questions to ask yourself:
- Who in our dealership naturally thinks in terms of data and efficiency?
- Have we clearly communicated why we’re pursuing this transformation?
- What are the specific outcomes we want to achieve (higher quarterly sales, faster turn rate, a more efficient invoicing process, etc.)?
Step 2: Audit your current processes
Too many dealerships attempt to “move to the cloud” by simply digitizing their old paper or Excel-based workflows. But as Hank warns, “You’re just taking an outdated process and making it more expensive.” Before adjusting your means of capturing data and applying it where it’s needed most, you first need to understand what exactly you are doing at present.
Start by evaluating your current workflows and identifying where poor data entry or siloed systems are costing you time or accuracy. Are sales statuses being overwritten instead of tracked historically? Are trade values being entered inconsistently across locations? These are signs of a transactional mindset, where data only serves a single moment and isn’t usable for long-term analysis.
Instead, shift to an analytical mindset: Treat every interaction and data point as part of a larger picture that can drive smarter decision-making.
Step 3: Run experiments and start small
You don’t need a million-dollar data lake to start using your data productively. In fact, the best way to begin is by running small, simple experiments to gain some useful and relevant baseline stats and averages. If you already have some idea about the numbers for these processes, make a hypothesis and compare the actual results to your predictions.
Here are some examples of how to run these mini “experiments” on your current processes:
- Make a prediction: “It takes on average around 20 days to close a sale on used combines between 500 and 1000 hours.”
- Gather your data: Ask your sales team to record the number of days it takes to close deals on used combines with this hour range.
- Assess the results: What was the average number of days to close? Was your prediction close to the actual results of your experiment? How far did the results fall outside of your prediction?
Here are some more examples of experiments you can run:
- Track how many quotes convert into purchases at different discount levels.
- Run a 30-day experiment testing which trade-in values lead to higher win rates.
- Count the number of leads it takes to get to a sale on a specific type of equipment.
If you’re not yet set up with digital tools to record and compare these numbers, you can use simple tracking tools (even a spreadsheet and a timer) to test a given hypothesis. Then share what you have learned with the team, giving them a close look into some crucial metrics they can directly impact.
The purpose of creating a “culture of experimentation” is to build momentum and demonstrate (to yourself and your team) that capturing and analyzing even basic data can bring useful insights you can build upon.
“We’re undergoing another digital revolution -- and the organizations that prepare for it with data and AI will be the ones leading tomorrow.”
Step 4: Choose the right area to focus on
A common mistake leadership makes when applying new tech tools or procedures is trying to solve EVERYTHING at once. Instead, focus on the parts of your dealership where data can quickly deliver the biggest wins.
For dealers, these areas include:
- Inventory management – Are you pricing to match regional market demand? Can you spot slow-movers earlier?
- Sales process optimization – Are your quotes being followed up in a timely way? Which customers are most likely to convert?
- Marketing and lead generation – Are you tracking which listings drive traffic and inquiries? Are your sales reps prioritizing the hottest leads?
By choosing one or two high-impact areas, you can demonstrate clear ROI and build internal buy-in for a broader data transformation.
Step 5: Invest in the right tools
Once you feel that your team and processes are truly ready, only then should you begin looking into more advanced tools or platforms in earnest.
These tools might include:
- A centralized and integrated CRM that tracks every sales interaction.
- Analytics tools that compare trade values against real-time market comps.
- An AI-powered sales pipeline that helps you forecast and plan inventory turnover.
Tractor Zoom’s Anvil Pro platform is one such solution designed specifically for dealerships. It helps automate quoting, unify customer data, and provide actionable market insights—all from one integrated dashboard.
As Hank emphasizes, “You don’t need to know exactly how your data will be used from day one. But you do need to store it well, clean it early, and structure it for analysis.”
I keep hearing about a “data lake” – What is that?
A “data lake” is just a fancy way of saying you’re storing all your dealership’s data in one place, whether it’s parts sales, reconditioning photos, or inventory records. While powerful, a data lake can quickly become a “data swamp” if it’s unorganized and unmanaged.
If you're not a big enterprise with a tech team, the best path is to work with a platform that manages the complexity for you. That way, you can focus on using the data -- not just storing it or referencing it.
More resources on building a data strategy
Catch the full conversation in our Spring 2025 Equipment Trends and Data Strategy Webinar, where we cover not only current market trends but also deeper dives into data strategy, real dealer examples, and audience questions and answers.
Or, if you’re ready to see how Tractor Zoom's data tools -- including the Tractor Zoom Pro comps and valuation platform and Anvil Pro dealer intelligence platform -- can help your organization build a better data foundation, streamline quoting, and grow with informed decision-making, book a demo today.