Lender programs managed through online platform

The client is a leading regional automotive marketing company offering integrated solutions to auto dealerships. They have traditionally focused on parts and service marketing and have achieved great success in this area.

The Challenge

With 90% of their business derived from parts and service support programs, the client has been attempting to diversify its capabilities and move into acquisition marketing. The client asked for Tranzact IS’s expertise and services to achieve the following:

Drive the market for parts and service through increased new vehicle sales
Reduce their reliance on parts and services marketing for revenue and growth
Significantly increase their volume of sales-based offerings
Deepen relationships with dealerships clients

Solution

Working with Tranzact IS, the client identified a set of geographic areas that correspond to their auto dealerships. This basic list was segmented using credit and vehicle propensity data from Tranzact IS’s Intelidata Platform to identify those prospects who:

Are pre-approved for financing
Are likely to be “in-the-market” for a vehicle purchase
Are consistent with the manufacturer’s known purchaser profile

Previously, the client had only targeted past vehicle purchasers from their in-house customer database. By taking advantage of Tranzact IS’s advanced targeting capabilities they were able to locate fresh prospects who are new customers to the manufacturer.

Results

The strategy was a huge success. The campaign generated a 1.33% response rate and yielded a 27.77% close rate. The end result of the campaign was well over one thousand incremental vehicles sold across the participating dealerships.

In addition to the outbound campaign strategy, Tranzact IS is working closely with the client to evaluate the results and refine the focus of the target market to optimize campaign performance. Tranzact IS’s analytical staff is profiling the promotion history data to draw inferences from the differences of respondents and non-respondents. A response model is also being built in order to further target the population.