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Get Addicted to Data: Start Creating Higher Value Customers

3 Birds Marketing LLC
3 Birds Marketing LLC
3 Birds Marketing LLCCEO & Co-Founder of 3 Birds Marketing LLC at 3 Birds Marketing LLC

Presentation by Megan Gardner and Doug Van Sach at Digital Dealer 19 in Las Vegas, NV on October 6th, 2015

Get Addicted to Data: Start Creating Higher Value Customers

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GET ADDICTED TO DATA
Start Creating Higher Value Customers
Megan Gardner & Doug Van Sach
Get Addicted to Data: Start Creating Higher Value Customers
3
Just for You,
Nick.
4
The goal is to create a
unique experience for
customers.
5
$$
PUSH VS PULL
6
Ad

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Get Addicted to Data: Start Creating Higher Value Customers

  • 1. 1 GET ADDICTED TO DATA Start Creating Higher Value Customers Megan Gardner & Doug Van Sach
  • 3. 3
  • 5. The goal is to create a unique experience for customers. 5 $$
  • 7. 8
  • 8. Connect with your customers in a way that is meaningful to them. 9
  • 9. 10
  • 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
  • 11. 12
  • 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
  • 20. 21 20% of your customers create 66% of your dealership revenue
  • 21. 22 The top 20% of customers have an annual spend of $2,090
  • 22. 23 The other 80% of customers have an annual spend of only $258
  • 23. 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 24
  • 24. 25
  • 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
  • 26. 27
  • 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
  • 30. 31
  • 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
  • 35. 36
  • 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
  • 37. 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 38
  • 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
  • 44. Entertainment isn’t the same thing as a unique experience. 45
  • 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