For over two years, I have been highlighting the benefits that dealers experience when they organize, manage, activate, and model their first-party data. My latest book, which focuses on Automotive CDP Planning, is another resource to help dealers find the right partner for their dealership or dealer group.
CDP investments are on the rise as dealers realize the significant opportunity they offer to increase profits and customer retention in a challenging retail market.
In just six weeks, the leading CDP vendors serving the automotive industry will be meeting in Scottsdale, Arizona for the 2025 Digital Marketing Strategies Conference (DMSC). At the conference, speakers will outline the new marketing opportunities which can be activated using a CDP. Each vendor will be required to bring dealers who are using their platform to back up their performance claims.
As far as whether dealers need a CDP, let me say that all dealers should invest in managing their first-party data. Because dealers have a good understanding of the value of DMS and CRM technology, they would never bypass those investments. Take time to learn the benefits of a CDP.
When a successful CDP implementation is delivered, dealers will join with me to say a CDP is the third critical software platform in retail operations.
Any dealership manager who delays their research on a CDP and pushes off making a decision will soon be run over by dealers who activate real-time retailing in their markets. This is not an exaggeration because a well-integrated CDP can double the sales opportunities dealers see each month.
DMS-CRM-CDP
Nine of the Top Ten CDP platforms in automotive retailing will be showcasing their products at DMSC. Dealers who attend the conference will be able to hear from the leaders of each company, but more importantly, hear from dealers who have been the early pioneers of CDP technology.
The oldest pioneer in the growing CDP marketplace is Client Command led by Jonathan Lucenay. There is a significant amount of M&A activity around first-party data management and activation. In 2023, PureCars acquired The AutoMiner technology from Aaron Sheeks. Another early tech leader, Outsell, was acquired in 2024 by Impel to complete the integrated communication and marketing platform.
The Automotive CDP space is heating up and attracting larger players.
Enterprise software companies, normally used by Fortune 1000 companies, are moving into automotive retailing. Treasure Data has partnered with Clarivoy for systems integration projects at Tier 3. Activator Dealer Solutions has built their platform on the Salesforce CDP framework, and their team has been in automotive retail for over 20 years. Tealium is unique in that they implement their platform using their own team of platform engineers which makes for a smoother installation and support which is on our US time zones.
New startups are coming to market with CDP solutions and Marketing Activation Platforms (MAP) this year. Industry veteran Larry Bruce is working with dealers to create a bespoke first-party data management platform. Identity resolution companies, including Launch Labs, are extending their products to be able to activate micro-audiences created by CDPs.
Any dealer who is interested in activating their first-party data to power better marketing and communication strategies should attend DMSC.
Changes to marketing agencies
Dealership leaders who are involved in a progressive CDP project will tell you that many of the OEM-approved digital marketing companies are NOT READY to support the new framework for data activation created by CDPs.
No longer will agencies be able to pull data from the dealer’s DMS and CRM platforms and create static marketing lists. No longer will conquest lists be trusted for activation. No longer will dealers accept sketchy marketing attribution reports.
Agencies will need to support real-time audiences which contain consumers who are included or excluded based on their current shopping events and signals.
Agencies will now need to send out emails individually and not in batch. Emails with hyperlinks will need to be personalized for each consumer. Agencies will need to stop using the Google and Meta pixel and move towards a rich set of conversion events created by the CDP audiences.
Don’t miss the conversations
The entire discussion of marketing data and activation will deliver value to Dealer Principals, General Managers, and Marketing Managers who want to stay ahead of the competition and prepare for the future.
Don’t go alone. Dealership leaders should bring their marketing manager with them to the show and vice versa. Dealers can see all the sponsors for DMSC because the conference is not just about CDPs. We will be discussing website optimization, advanced AI communication strategies, data activation and hygiene, and new technologies which will advance sales strategies in automotive retail.
