Playing the Long Game: Revitalize Your Digital Marketing by Spending on the Right Customers
1. Playing the Long Game:
Revitalize Your Digital Marketing
by Spending on the Right Customers
2. 1. My name is Kristen Judd
2. I'm the CEO and Co-
founder of 3 Birds Marketing.
3. I'm addicted to data.
3. A DIFFERENT WAY TO LOOK AT YOUR DATA
A new way to think about and communicate with your
customers and prospects
A better way to spend your marketing dollars
19. Are you left to trust your gut about whether
you're investing in the right things ?
How do you know if you're tripping over dollars
to get to dimes?
20. Understand how much customers contribute to my bottom line
Playing the Long Game with Digital
Marketing
3 Primary Learnings
1
21. Identify unique behavior patterns of high value customers
Playing the Long Game with Digital
Marketing
3 Primary Learnings
2
22. Create, acquire and retain more high value customers with engaging
communications and digital marketing
Playing the Long Game with Digital
Marketing
3 Primary Learnings
3
25. 66%of your dealership revenue
Have an annual spend of only
$258
The other
80%of customers
26. Taking it even further
Study Overview:
Representative set of import and domestic dealerships
All customers included had at least one vehicle purchase
Merged various data sources to create full profile of each customer
Evaluated purchase and digital activity over 5-year period
29. Lifetime Value (Typical Dealer Customer)
Average Gross
$3,023
Typical Customer
3.1 years
2.8 service visits
1.2 vehicle purchases
Sales
73%
Service
27%
30. LTV (Low Value and High Value Customers)
Low Value Customers
3.1 years
1.1 service visits
1 vehicle purchase
High Value Customers
3.1 years
5.1 service visits
1.6 vehicle purchase
Average Gross
$1,586
Average Gross
$5,599
VS
32. Above Average vs. Below Average Customers
Average ValueBelow Average Above Average
33. Above Average vs. Below Average Customers
Above Average Customers
Average ValueBelow Average Above Average
34. Highest Value vs. Lowest Value Customers
Average ValueBelow Average Above Average
Lowest Value
Customers
Highest Value
Customers
35. Sales and Service Traits
Customers have propensities based on sales, service characteristics
Average Value
36. Sales and Service Traits
Customers have propensities based on sales, service characteristics
Average Value
Lease (89%) Finance (114%)
37. Sales and Service Traits
Customers have propensities based on sales, service characteristics
Average Value
New Vehicle (84%)
Used Vehicle (115%)
Lease (89%) Finance (114%)
38. Sales and Service Traits
Customers have propensities based on sales, service characteristics
Average Value
New Vehicle (84%)
Used Vehicle (115%)
0-15 Miles (105%)
21-50 Miles (86%)
Lease (89%) Finance (114%)
39. Sales and Service Traits
Customers have propensities based on sales, service characteristics
Average Value
No Svc Visits (83%) 6 Svc Visits over lifetime (122%)
New Vehicle (84%)
Used Vehicle (115%)
0-15 Miles (105%)
21-50 Miles (86%)
Lease (89%) Finance (114%)
40. Highest Value vs. Lowest Value Customers
Average ValueBelow Average Above Average
Lowest Value
Customers
Highest Value
Customers
Buy vehicles with
cash
No service visits
Make up only 10%
of total revenue
generated
More than 5 service
visits per year
34% higher email
penetration and
engagement
Live within 0-5
miles of the store
48. How to Invest Marketing Dollars
to Create, Engage and Retain High
Value Customers
49. Ensure segments have meaningful differences in value potential
$ $$ $$$ $$$$
Step 1 Differentiate on Value
50. Focus on how customers act after you segment them not before!
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
Likes and dislikes
PREDICTIVE/
DEMONSTRATED INTEREST
Step 2 Look Forward
53. Data is from representation sample of over 100K customers
Segmentation Drivers
Likely to purchase
Likely to engage
Sample Approach
Elite
Potential
Average
At Risk
Disaffected
Highest Value Customers
Lowest Value Customers
54. 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
Predictive Power
55. 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
290x
engagement rate
Digitally Relevant
Post Segmentation Results
56. 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
Value Driven
Data is from representation sample of over 100K customers
16x
Higher revenue
Post Segmentation Results
69. Strategy Customize the Experience to
Demonstrated Interests
Enrich their online experience
Understand a customer’s preferences and demonstrated interest
Needs a
service loaner
Enjoys the
latest tech
Worried about
safety
Obsessed
with saving
time
Repurchase prior
to end of finance
term
70. Needs a
service loaner
Enjoys the
latest tech
Worried about
safety
Obsessed
with saving
time
Repurchase prior
to end of finance
term
Strategy Customize the Experience to
Demonstrated Interests
Enrich their online experience
Understand a customer’s preferences and demonstrated interest
71. Needs a
service loaner
Enjoys the
latest tech
Worried about
safety
Obsessed
with saving
time
Repurchase prior
to end of finance
term
Strategy 3 Customize the Experience
Enrich their online experience
Understand a customer’s preferences and demonstrated interest
72. Needs a
service loaner
Enjoys the
latest tech
Worried about
safety
Obsessed
with saving
time
Repurchase prior
to end of finance
term
Strategy Customize the Experience to
Demonstrated Interests
Enrich their online experience
Understand a customer’s preferences and demonstrated interest
73. Needs a
service loaner
Enjoys the
latest tech
Worried about
safety
Obsessed
with saving
time
Repurchase prior
to end of finance
term
Strategy Customize the Experience to
Demonstrated Interests
Enrich their online experience
Understand a customer’s preferences and demonstrated interest
74. Needs a
service loaner
Enjoys the
latest tech
Worried about
safety
Obsessed
with saving
time
Repurchase prior
to end of finance
term
Strategy 3 Customize the Experience
Enrich their online experience
Understand a customer’s preferences and demonstrated interest
75. Benefits Engage, Engage, Engage
Benefits of Non-Promotional Content
+63% Clicks
+61% Service Visits
+28% Vehicle Purchases
Based on approximately 500K contacts from sample of campaigns from dealers
New Models
Store Events
Vehicle Education
Lifestyle
Examples of
Non-Promotional Content
77. Invest more in your high value and high potential segments
Getting Started with a Simple Approach
2
78. Use LTV segmentation and predictive modeling to
tailor highly relevant messaging
Getting Started with a Simple Approach
3
79. Leverage high return digital channels to track customer intent,
fuel predictive models and develop additional data
Getting Started with a Simple Approach
4