Post on 18-Feb-2017
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GET ADDICTED TO DATAStart Creating Higher Value Customers
Megan Gardner & Doug Van Sach
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Just for You,
Nick.
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The goal is to create a
unique experience for
customers.
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$$
PUSH VS PULL
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Connect with your
customers in a way
that is meaningful
to them.
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A M A Z O N V S . Y O U R D E A L E R S H I P
Your Dealership »
Amazon »
Address
Device
Browsing
History
Address
Device
Browsing History
HHI
Credit Score
Family Size
Spouse/Co-signer
Lead Source
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A D D I C T E D T O T H E H U N T
15%Newspaper
NADA Data, Advertising and the Dealership, 2014
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A D D I C T E D T O T H E H U N T
16%Radio
NADA Data, Advertising and the Dealership, 2014
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A D D I C T E D T O T H E H U N T
23%Television
NADA Data, Advertising and the Dealership, 2014
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A D D I C T E D T O T H E H U N T
11%Print
NADA Data, Advertising and the Dealership, 2014
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A D D I C T E D T O T H E H U N T
9%Other
NADA Data, Advertising and the Dealership, 2014
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A D D I C T E D T O T H E H U N T
26%Internet
NADA Data, Advertising and the Dealership, 2014
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A D D I C T E D T O T H E H U N T
5%Creating Unique
Experiences
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Adobe Digital Index Report, The ROI from Marketing to Existing Online Customer, 8/12
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Untapped
poten t ia l
o f your
database
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20%of your customers create
66%of your dealership revenue
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The top 20% of customers have
an annual spend of
$2,090
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The other 80% of customers
have an annual spend of only
$258
U N TA P P E D P O T E N T I A L O F Y O U R D ATA B A S E
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HISTORICAL focused on
the past
T R A D I T I O N A L S E G M E N TAT I O N A P P R O A C H E S
NARROW Limited view of
customer behavior
FROZENDon’t recognize
evolving customer
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Focus on how customers act after you segment them not before!
S T E P 1 L O O K F O R WA R D
Zip Code
Vehicle Type
Model Year
Income
Gender
STATICTime Since Last Visit
Frequency of Visits
Avg. Transaction Amount
Appointments
HISTORICAL
Likely to Get an Oil Change
Likely to Engage via Email
Likely to Buy a Vehicle
Likely to Visit Website
PREDICTIVE
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S T E P 2 I N C O R P O R A T E D I G I TA L P E R S P E C T I V E
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Ensure segments have meaningful differences in value potential
S T E P 3 D I F F E R E N T I AT E O N VA L U E
$ $$ $$$ $$$$
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S A M P L E A P P R O A C H
Data is from representation sample of over 100K customers
Segmentation Drivers
Likely to purchase
Likely to engage
Segment Results
Elite 9%
Potential 25%
Average 30%
At Risk 27%
Disaffected 9%
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P R E D I C T I V E P O W E R
Data is from representation sample of over 100K customers
92x service purchase rate
Post Segmentation Results
0.6%
8%
14%
27%
56%
Disaffected
At Risk
Average
Potential
Elite
6-Month Service Rate
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Data is from representation sample of over 100K customers
0.1%
0.2%
11.2%
18.6%
23.9%
Disaffected
At Risk
Average
Potential
Elite
Digital Engagement Rate
Post Segmentation Results
290x engagement rate
D I G I TA L LY R E L E VA N T
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Data is from representation sample of over 100K customers
Post Segmentation Results
$45
$57
$219
$326
$771
Disaffected
At Risk
Average
Potential
Elite
6-Month Revenue
16x higher revenue
VA L U E D R I V E N
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Before
G O A L : C R E AT E H I G H E R VA L U E C U S T O M E R S
Elite
Potential
Average
At Risk
Disaffected
Elite
Potential
Average
At Risk
Disaffected
After
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2%
6%
28%
35%
29%
Disaffected
At Risk
Average
Potential
Elite
Predicted Revenue in Next 6 Months
Expected Revenue Contribution
92% of Future Value Potential
INVEST MORE
S T R AT E G Y 1 S H I F T Y O U R D O L L A R S
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Benefits of Non-Promotional Content
+63% Clicks
+61% Service Visits
+28% Vehicle Purchases
Based on approximately 500K contacts from sample of campaigns from dealers
S T R AT E G Y 2 E N G A G E , E N G A G E , E N G A G E
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Enrich their online experience
S T R AT E G Y 3 C U S T O M I Z E T H E E X P E R I E N C E
Understand a customer’s preferences
Enjoy latest technology
Needs a service loaner
Worried about safety
Obsessed with saving time
Repurchase prior to end of finance term
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Enrich their online experience
S T R AT E G Y 3 C U S T O M I Z E T H E E X P E R I E N C E
Understand a customer’s preferences
Enjoy latest technology
Needs a service loaner
Worried about safety
Obsessed with saving time
Repurchase prior to end of finance term
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Enrich their online experience
S T R AT E G Y 3 C U S T O M I Z E T H E E X P E R I E N C E
Understand a customer’s preferences
Enjoy latest technology
Needs a service loaner
Worried about safety
Obsessed with saving time
Repurchase prior to end of finance term
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Enrich their online experience
S T R AT E G Y 3 C U S T O M I Z E T H E E X P E R I E N C E
Understand a customer’s preferences
Enjoy latest technology
Needs a service loaner
Worried about safety
Obsessed with saving time
Repurchase prior to end of finance term
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1 Track the digital experience of your customers
2 Segment customers on a single attribute that is predictive
– Frequency of visits
– Frequency of engagement
3 Invest more in your high potential segments
4 Start engaging customers with content
G E T T I N G S TA R T E D W I T H A S I M P L E
A P P R O A C H
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Entertainment isn’t the same thing
as a unique experience.
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Feed your addiction to data by identifying unique
segments and creating meaningful experiences
to engage and develop higher-value customers.
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Megan Gardner VP of Accounts
3 Birds Marketing919-636-2941
megan@3birdsmarketing.comwww.linkedin.com/in/megangardner
Doug Van SachVP of Insight and Analytics3 Birds Marketing919-913-2764doug@3birdsmarketing.comwww.linkedin.com/pub/doug-vansach/1/831/a9b
Share an important takeaway you received from this session
using hashtag #DD19 for a chance to win an iPad47
919-913-2762