Corante

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Britton Manasco specializes in customer-focused initiatives that build business credibility and strengthen sales growth. His articles have appeared in Harvard Business Review; The New York Times; Sales and Marketing Management; CIO Magazine; 1to1 Magazine; and many other media outlets.
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This boundary spanning Industry Insider is designed to explore and assess how enterprises are capitalizing on customer insight to build powerful, profitable and enduring relationships. Customer Intelligence reveals the compelling strategies and practices behind today’s success stories – and provides a dynamic forum where thought leaders, business innovators and customer-focused executives can identify valuable opportunities. Drawing on the perspectives and experiences of leading lights in the customer intelligence community, we demonstrate how intelligent analysis and action is setting the stage for the next economy. Also, see our launch statement.
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Customer Intelligence

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September 27, 2004

Driving Growth and Retention

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Posted by Britton

AutoNation, the only automobile dealership to make the Fortune 100, is intent on leveraging customer intelligence to drive still more growth. The company, which has revenues of $19 billion, is presently consolidating customer data from its 287 dealerships (in 18 states) to provide an increasingly personalized customer experience. “Some would say there’s not much opportunity to differentiate customers [in the auto industry],” says Scott Zientarski, director of database and direct marketing. “However, I believe the exact opposite to be true.” left

Zientarski, who formerly directed customer intelligence efforts at financial services provider Capital One, tells INSIDE 1to1 that creating customer portfolios is a “silver bullet” strategy for the company. It intends to draw on its own data and analytics to generate customized direct mail pieces that reflect the preferences and priorities of customers in various segments. Rather than send out identical messages to all customers (as it has in the past), it can now divide them into 62 unique groups. Such efforts enable the organization to anticipate and influence new purchasing activity before customers start shopping around. “If you can circumvent the sales cycle and get people into the market sooner, they are more profitable customers,” he adds.

The company’s efforts also are paying off in terms of customer retention. This year, AutoNation has seen retention rise from 10.3 percent to 16.7 percent – a measure of customers returning for service as well as vehicle leases and purchases.

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