Our client is a Quebec-based financial institution who provides car and leisure vehicle financing to the customers of our client’s vehicle brands.
As established loans or leases came to term, there was a high probability that the owner would be predisposed to purchasing a new vehicle. This represented a retention opportunity for new car financing and for other financial products the customer may hold with the institution.
As with many major financial institutions, all marketing communications that the client were utilizing were on a broad mass scale. There was no personalization and segmentation. And with no seasonality or typical consumer purchasing patterns, new car purchases are difficult to predict. Fact is, car companies may not be allocating their marketing budgets on people who are most likely to be in the market for another automobile. Insights from data mining would help the client’s partners allocate appropriate marketing dollars towards potential renewals. This could mean a more effective, targeted approach.
It was our data analysis that guided the strategy. With data discovery analysis, we provided needed insights to put a plan in place and shape marketing ideas.
The plan included:
● Targeted direct mail sent to the customers based on their loan lifecycle. Customer journeys were created based on the customer’s current value of the vehicle, as well as on the loan expiry date.
● Multi-variate testing: creative, preauthorization, the institution’s member/client status, gender and content.
● Channel integration: customer care and online registration portal, which in turn collected more customer data.
As a result of more sophisticated data usage and personalization, we created an individualized content geared to customers’ interests and behaviour.
As an example, a customer could receive content helping them calculate the current value of their vehicle.
The goal was to reach profitability for the marketing spend after year 1. And the resulting loans fulfilled exceeded the ROI goal by 100%!
What was as important as the results was the customer data we are able to capture. We could follow the individual customer’s path to purchase from the communications they received to the website sections they visited to their email subscription right down to fulfillment.