Get Addicted to Data: Start Creating Higher Value Customers

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GET ADDICTED TO DATAStart Creating Higher Value Customers

Megan Gardner & Doug Van Sach

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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16%Radio


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23%Television


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11%Print


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9%Other


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26%Internet


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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


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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0.1%

0.2%

11.2%

18.6%

23.9%

Disaffected

At Risk

Average

Potential

Elite

Digital Engagement Rate


290x engagement rate

D I G I TA L LY R E L E VA N T

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$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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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

[email protected]/in/megangardner

Doug Van SachVP of Insight and Analytics3 Birds [email protected]/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

http://www.linkedin.com/in/megangardner

http://www.linkedin.com/pub/doug-vansach/1/831/a9b

Get Addicted to Data: Start Creating Higher Value Customers

Data & Analytics

Transcript of Get Addicted to Data: Start Creating Higher Value Customers