Maximizing Campaign Return through Marketing Intelligence
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1 Volvo Car Germany Maximizing Campaign Return through Marketing Intelligence Markus Matzak Regional CRM Manager Central-Europe 1
2 The Vision is to be THE most Brand Desired, Progressive, Premium 2
3 Changes in the automotive environment influence the customer experience... Technological Development Changing Customer Behaviour Customer experience Effectiveness of of Communication Search for Competitive Advantage leading to to new new Volvo Car Car marketing objectives 3
4 Marketing Objectives Volvo is a premium brand Enable Volvo s sales growth objective of 50% Increase effectiveness of RM-budget Communication in the customers preferred way: Correct, complete and relevant information of the customers available for all contact-points Use of modern information technologies Response efficiency, flexibility, completeness of all communication focussed to individual customer preferred way Communication by various channels: integration with a multichannel approach 4
5 Business Issues Customer experience of RM No premium brand customer No value for money No complete view on the customer Customer dissatisfaction Missing contacts Dependency on too many agencies Lack of optimal use of channels Ineffective use and missing opportunities 5
6 Relationship Marketing is the process of identifying, attracting, acquiring and retaining customers Scope of pilot project Marketing Intelligence is is an animportant item item of of the the scope 6
7 Key Challenges Package selection Implement & embed Campaign Management Process and tools (Xchange) Implement & embed Market Intelligence Processes Solution (SAS Enterprise Miner) Organisation Data Enrichment Preparation for European roll-out CGEY succesfully managed implementation process 7
8 Range Campaign to Prove Power of SAS Analytics Objective: Improve Response% using Data Mining sample vs. Control sample 1. Selection: ~ German VOLVO new car owners ~ Respondents from prior campaigns ~ non VOLVO car owners 2. Purchase external information for all samples 3. Generate the best analytical model 4. Scoring: Identify the best addresses 5. Transfer score values & addresses to Campaign Management solution 6. Campaign Execution (eg. select best addresses) 7. Evaluation 8
9 9
10 Marketing Intelligence Benefits SAS Analytics improves response by more than 70% Source of data has a major impact on response rates There is a marginal better response of suspects based on respondents profiles vs. customers Target, monitor and measure campaign performance Increase profitability of marketing campaigns Ability to control communications process in-house Calculating cost costper responder shows: Investing in in addresses and and Data Data Mining maximizes returns 10
11 Pilot Range Campaign Suspect to Prospect /prosp Offer Range of Volvo Cars New situation /prosp AS-IS Group Suspect Prospect Qualified Prospect Sales Lead Sale = New Customer Suspect to Prospect Prospect to Sales Lead (Prospecting Management) Sales Lead to Sale 11
12 Pilot 2: Volvo Life Card Campaign Facts Customer Loyalty Card free of charge Volvo Magazin Invitations to special events Special offers from Volvo collection Special car support Test with different offers 12
13 Steps for Volvo Life Card Campaign Objective: Response% of 10% for Data Mining sample 1. Selection: ~ German VOLVO car owner ~ non VLC holder ~ VLC holder 2. Purchase external information for all samples 3. Data Mining / Modeling: Generate the best model 4. Data Mining / Scoring: Identify the best non-vlc-holder 5. Transfer score values & addresses to Campaign Management tool 6. Campaign Execution (eg. select best addresses) 7. Evaluation 13
14 Marketing Intelligence Results Data Mining improves response% by 12% Data Mining sample: pcs. Control sample: pcs. 20,00% 18,00% Response rates 18,90% Offers define the response 16,00% 14,00% 12,00% 11,43% 10,00% 8,00% VLC & APL Group APL Offer 1 Offer 2 14
15 Marketing Intelligence; Next steps Extend the use within Volvo Car Germany Integrated learning & leveraging e.g. learnings for future campaigns, integrated communication, cross selling Get the rest of the data in-house Roll-out within Volvo Car Corporation globally Implement central Data Mining organisation Customer value Content driven owner page & offers 15
16 16 Thank you
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