A Toyota dealer in Jacksonville, FL wanted to improve the ROI of its direct mail campaigns and explore alternative channels like email and text. LIVE MARKETING analyzed the dealer's customer data to categorize households into high, medium, and low response groups. It then optimized the dealer's campaigns to target the most responsive households through various channels. This reduced the dealer's monthly direct mail costs by 50% on average and contributed over $278,000 in additional revenue over four months through more effective targeting and use of multiple channels.

1. Dms Intelligence™ Intelligent Customer Engagement
In its highly competitive and diverse Northern Florida region, this dealer works with LIVE MARKETING to optimize both costs and impacts of frequent direct mail (DM) campaigns. With customers spread across north Florida, as well as many diverse households, LIVE MARKETING has categorized the brand’s customer households into three groupings based on campaign response rates and corresponding sales impacts to help the brand build an optimized combination of direct mail, email and text communications for various campaigns.
The solution has reduced the brand’s monthly DM campaign costs by an average of 50% and contributed over $278K in top- line value.
BUSINESS OBJECTIVE
As part of its multichannel marketing strategy this dealer drops monthly direct mailers to thousands of households in Jacksonville area at an average cost of $1.25 per piece. While monthly direct mail delivers strong awareness around new product launches This Dealer wanted to improve campaign ROI with better targeting, and eliminate non relevant messages. The brand also wanted to gain insights about which households were most responsive to direct mail and which segments might be more effectively targeted via other channels such as email or text message. To cope with competition from other dealers, the brand wanted to leverage customer-response to try and raise Car/Truck sales in such a heavily saturated market.
THE SOLUTION
LIVE MARKETING harmonized this dealer’s existing customer DMS and transactions data by building purchase and campaign response profiles for every household targeted... The company defined response indexes by calculating ratios comparing sales during campaign periods to same-duration average sales generated both before and after campaigns. The brand’s customer base in Jacksonville was categorized into three groups — (1) High (1.31 average response index), (2) Medium (1.16 average) and (3) Low (1.01). For each direct mail campaign, Group 1 had a positive impact on the brand’s top-line while Group 3 had a nil or negative contribution.
©LIVE MARKETING, 2014 All Rights Reserve
WHY LIVE MARKETING?
"LIVE MARKETING is our data partner and since using LIVE MARKETING Intelligence™ Solutions, we have been able to unlock insights from our database to offer our customers targeted messages and deals and to drive sales increments for our dealership. Their analytical solutions have helped us identify our customers’ responsiveness to different product segments and associated repeat tendencies, enabling us to better design product launch campaign, therefore reducing waste."
Industry : Automotive Sales
New and Used
No. of Stores: 2 Rooftops
Geography: Jacksonville Fl.
Key Challenges
> Reduce DM investment and explore alternatives to direct mailers
> Map sector-wise DM campaign response rates to build geographic intelligence
> Explore high-gross potential customers
Solution
> LIVE MARKETING IntelligenceTM
> LIVE MARKETING ConciergeTM
> LIVE Dashboard Analytics™
Highlights of This Dealer’s Customer
Engagement Program:
> Monthly DM investments down 50%
> Higher revenues (on average of 2k per transaction) with optimized DM campaigns
> Total benefit of $278K in just four months
> Campaign hit rates as high as 2.2%
CASE STUDY
LIVE MARKETING Drops This Toyota Scion Dealer DIRECT MAIL COSTS BY AN AVERAGE 50%
For over 30 years this Toyota dealer has been serving Toyota customers from Jacksonville, Northeast Florida and Southeast Georgia. They carry a large inventory of new Toyotas, like the Toyota Camry, Toyota Tundra, Toyota Sienna, and Toyota Prius.
Customers are the focus of everything they do. They are committed to integrity, teamwork, pride and family values.

2. Dms Intelligence™ Intelligent Customer Engagement
High sales zone Mid sales zone
Mid sales zone Low sales zone
Customers ranked into segments according sector’s performance
Bottom-line savings on DM Costs – A 4 month snapshot
LIVE MARKETING built a channel optimization solution for this dealer, which leveraged a combination of direct mail, email and text communications across the three groups to reduce campaign expenses and strengthen direct mail ROI. Mailers are now used in varying frequencies to generate brand awareness among Groups 2 and 3, while Group 1 – the most responsive – is engaged more consistently with direct mail. Groups not being engaged in particular direct mail campaign sequences get engaged via text message, which potentially drive higher sales conversions than print mailers.
Campaign Months DM delivery CRM Conversions
1
Group 1& 2
Grp 2
95
2
Group 2 & 3
Grp 1
5
3
Group 1 & 2
Grp 3
25
4
Group 2 & 3
Grp 1
4
LIVE MARKETING also creates heat-maps for response groupings across various locations to help this dealer continue to use multimedia marketing in areas with high concentrations of Group 1 and 2 households.
BUSINESS BENEFITS
Along with increased foot falls and better overall response rates and conversions, this dealer has seen over $278K in incremental value added to its top line over just four months with LIVE MARKTINGS DMS Intelligence™ solution in place. Direct mail and other customer campaigns are now synchronized to bear identical messages and offers, providing consistent experiences to all North Florida based customers. With text communications replacing DM in two-thirds of campaigns to low-response Group 3 households and one-third of campaigns to medium-response Group 2 households, this dealer’s monthly direct mail costs have dropped 50%. With LIVE MARKETINGS’ heat-mapping of responsive segments across Jacksonville area, this dealer also now enjoys field- level intelligence on multimedia marketing.
Promotion Name Equity Tuxedo Buy Back Recall
Drop Strategy
Grp 1 & 2
SMS 3 & 4
Grp 3 & 4
SMS 1& 2
Grp 1 & 2
SMS 3 & 4
Grp 3 & 4
SMS 1& 2 Savings in Cost 3165.00 8775.00 2363.13 5857.00 Extra Revenue 190,000.00 10,000.00 50,000.00 8,000.00 Profit $278,160.13
Solution Facts
> DMs optimized across responsive and non- responsive groupings of customer households
> Sectors with skeptical responses were targeted many times to define nature correctly
> DM low-response sectors targeted preferentially through CRM communications
> Optimized DM campaigns structured to avoid clashing with CRM campaigns
> Text communications replacing DM, requiring just 10% of investment
> Synchronized messaging —text and e-mail communications bear same messages as DMs
“..We have seen better ROI on marketing investments with LIVE MARKETING’S suggestions and campaigns. Their team is supportive and prompt; they are a true partner to us.”

3. Dms Intelligence™ Intelligent Customer Engagement
About LIVE MARKETING
LIVE MARKETING is the auto industry's first data driven marketing engine platform and connects over 9 million consumer records from the dealerships own data management system, builds consumer profile, markets a vehicle to those buyers, to call them to engage with the dealer, in a very time sensitive campaign. Founded by a team of veteran automotive and visionary pioneers in the data community, serving dealers for over 36 years, the company's mission is to disrupt traditional, old fashion campaigns and drive showroom-up rates through the roof. Allowing auto dealers to concentrate on selling, rather than mindless routine marketing habits that prove to be worthless. LIVE MARKETING has patent-pending unique algorithm that is used to mine the data in your DMS, and is delivering campaigns through direct, digital, and email designed to reach the right customers at the right time. This technology has a high conversion rate and at a fraction of the cost of other marketing options. LIVE MARKETING is based in Tampa, Florida. More info: www.mylivemarketing.com
CLIENTS INCLUDE: TOYOTA | HYUNDAI | FORD | SUBURU | CHEVROLET
Visit www.mylivemarketing.com for more details.
Direct contact call 1-855-795-3322 or dani@mylivemarketing.com
© LIVE MARKETING, 2014 All Rights Reserved
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