The client's dealerships needed a communications program to improve response rates for retail promotional offers and drive traffic to service departments, a traditional profit center.
Solution
Deploying five core competencies, Targetbase developed a program providing each dealership with vital customer information and strategic communications tools that were customizable, fast, flexible, and low-cost.
Creative: The Targetbase Creative team developed and implemented the first automotive marketing program for a manufacturer that could be executed at each dealership with multiple communication strategies based on each vehicle model. Dealerships were given the flexibility of customizing messages, offers, maps, and logos–any number of variables–all while maintaining overall brand image for the manufacturer.
Interactive: With over 1,200 dealerships, automation of communications materials and a simplified ordering process were mandatory. Utilizing Targetbase's Interactive expertise, a web site was created empowering dealers to easily customize their choice of eight communications materials.
Business Intelligence: To assist dealers in offer selection, the web site provided solutions based on highest-performing past offers at the model and model year levels. Also, offers varied based on individual customer's interaction with the dealership. These customer segments were defined using Targetbase Business Intelligence.
Data Integration: Using Data Integration through the client's web site, Targetbase began populating customer counts to the dealers based on non-loyal, loyal or defector. This immediately allowed dealers to understand their customer base in terms of interaction with service. Dealers could then select which group to target. Also, the web site showed dealers the total quantity of customers in that category and suggested the best group to target.
Decision Support System: Through Targetbase's Decision Support System, a dealer could quickly respond to changes in competitive conditions with custom communications pieces designed to get results while supporting brand integrity and equity.
Results
- Increased response rates 14x or <0.5% to 7% among non-loyal customers (response is defined as a paid service).
- Increased response rates among loyal customers from 7% to 30%.
- Dealerships ranked this as the number-one program offered by the manufacturer.
- Timing of custom marketing materials was cut in half, from 20 to 10 days.
- Payback to dealer was 900% ROI or $90 for every $1 spent.
