This document discusses strategies for dealerships to create higher value customers by getting "addicted to data." It recommends segmenting customers based on predictive attributes like visit frequency or engagement. The top 20% of customers account for 66% of revenue but dealerships typically underinvest in these valuable segments. By customizing experiences for different customer segments identified through data analysis, dealerships can increase engagement, visits, and revenue from their highest potential customers.
10. 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
11
12. 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
13
13. 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
14
14. 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
15
15. 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
16
16. 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
17
17. 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
18
18. A D D I C T E D T O T H E H U N T
5%
Creating Unique
Experiences
19
Adobe Digital Index Report, The ROI from Marketing to Existing Online Customer, 8/12
25. 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
FROZEN
Don’t recognize
evolving customer
26
27. 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
STATIC
Time 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
28
28. S T E P 2 I N C O R P O R AT E D I G I TA L P E R S P E C T I V E
29
29. 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
$ $$ $$$ $$$$
30
31. 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%
32
32. 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
33
33. 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
34
34. 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
35
36. 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
37
38. 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
39
39. 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
40
40. 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
41
41. 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
42
42. 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
43
43. 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
44
45. Feed your addiction to data by identifying unique
segments and creating meaningful experiences
to engage and develop higher-value customers.
46
46. Megan Gardner
VP of Accounts
3 Birds Marketing
919-636-2941
megan@3birdsmarketing.com
www.linkedin.com/in/megangardner
Doug Van Sach
VP of Insight and Analytics
3 Birds Marketing
919-913-2764
doug@3birdsmarketing.com
www.linkedin.com/pub/doug-vansach/1/831/a9b
Share an important takeaway you received from this session 47
919-913-2762