Manufacturers and dealers spend hundreds of millions of pounds/euros each year on sales and service campaigns, but only a small percentage of consumers return as loyal customers. Opportunities are lost and much of the marketing spend is wasted. How can you boost efficiencies and growth? Is there a way to more effectively leverage data to target the right prospect, at the right time, with the right message?
Understanding the Local Market
Boosting profits requires dealers to do all they can to build repurchase loyalty. Beyond that, the perennial task is to identify new customers. Advertising in local newspapers, television and radio is expensive. What’s more, there is an uncertain return in business growth. And then there is direct mail.
By using a robust model created by statistical analysis of actual sales data, you can identify people who are similar to past customers. With this information, direct mail can be more effective than broadcast advertising.
Understanding where the potential market is helps plan a strategy to reach the right potential customers.
Introducing Science into the Equation
The right plan utilises the best data available — either from external data sources, the OEM or the dealer — to identify the prospects most likely to buy the brand. The solution will deliver targeted marketing more simply and more effectively by focusing on top targets and reducing the direct mail going to people who are unlikely to buy.
With a scientific approach, you not only cut print production and postage costs, but increase sales from targeted efforts.
Today, tools are available that will enable hot spot mapping of targeted prospects. In the example above, a dealer or manufacturer can view a heat map illustrating the relative densities of profiled prospects in a specified area. In this example, most of the potential market growth will come from the geographic area close to the city, plus a few outlying areas.
Targeting the Right People with the Right Message
The most effective approach builds custom profiles and identifies what current customers look like and what characteristics distinguish customers from non-customers. Using this profile, you can build a predictive model and score the prospect database for their match with the customer profile.
With the right solution, you gain the analysis and the tools to reach “conquest” prospects more effectively.
Measuring Success, Rising to the Next Level
It is critical that you are able to measure what has been done and then generate accurate reporting. Manufacturers can then benefit from having a consistent, single source for data and analysis. And dealers know what works and what doesn’t. Actionable reporting brings visibility to focus marketing effort where it will have the greatest impact.
The ability to measure effectiveness enables you to justify marketing spend, and that’s critical for sustained growth. After all, the marketing that you can’t measure can’t be valued.
The right solution reduces costs and increases ROI. That solution is available now.
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