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September 27, 2004
Driving Growth and Retention
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 theres 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. 
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 companys 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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