Through two successful campaign studies Akram Raffoul will share how Jacobsons conducted a direct marketing campaign with a test drive offer to accelerate sales in automotive. And how starting a robust retention framework with predictable success ratio and substantial savings on cost of sale of new vehicles, along with an even more substantial saving on sales incentives drove retention.
The two client challenges Jacobsons addressed in these campaigns were:
- Ensure that a minimum number of vehicles of the new car line sell before the start of the model year so that they start appearing on the roads and generate buzz about the new car in the primary target market milieut
- Test a basic retention process in view of completing the retention framework of the CRM program
Speaker: Akram Raffoul from Jacobsons Direct, UAE
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
IDMD Online: 2 campaign studies from the automotive industry: sales acceleration and best retention practice in automotive CRM - Akram Raffoul
1. The value every business tries hard to tap is in
the wallets of its prospects and customers.
The challenge is about
constantly balancing
prospect and customer
management practices.
2.
3. Automotive Sales Acceleration
Problem & limitations
Need to meet minimum start-up unit sales target before
launching model with bigger sales forecast & ad-spend
New car is technologically advanced & stylish with traditional
manufacturer image
Sales team not good at prospecting but good at closing sales
It would take a fortune in ad-spend (n/p) to gain adequate
awareness & generate an image turnaround
Strategy
Generate at very low cost awareness among opinion leaders
Get the car test-driven by as many trend-setters as possible
to appear on roads & fuel grape vine
4. Automotive Acceleration
Tactic: Resort to DM-driven test drive campaign
Simple but expressive direct mail communication new car values
Invitation to test-drive to a privileged few.
Follow-up by call centre to schedule test-drives & saturate /
optimize sales team time.
Results: Sales target met within 3 months
Learning enabled create new car positioning and It became viable
to re-draft mass media creative with substantial ad budgets
to consolidate new brand image & grow sales from acquiring early
customers among adopters.
Acceleration cost: just USD 99,000.00 and some sweating !
5. Campaign Metrics Tracked
Duration 16 weeks 9 weeks
Universe Targeted 3,000 2,675
Leads Generated 475 489
Response Rate 15.8% 18.3%
Converted 40 65
Conversion Rate 1.3% 2.4%
Revenue $ 3,200,000 5,200,000
Campaign Cost $ 100,000 90,000
Gross Margin $ 3,100,000 5,110,000
Net Margin $ 800,000 1,690,000
Program ROI 800.00% 1877.78%
Campaign Cost of Sale % 3.13 1.73
THIS PRESENTATION AND CONCEPT ARE PROPERTY OF JACOBSONS DIRECT MARKETING SERVICES LLC
6. Gauging ROI of a Retention Mechanism
• Profile Customers
• Generate new vehicle purchase leads: Detect next
purchase intention
• Manage and track the efforts of sales teams to
leverage leads into in retention & referral sales
• Refine the retention framework as part of customer
management.
10. CRM Solution to host CI
THIS PRESENTATION AND
CONCEPT ARE PROPERTY OF
11. Comprehensive CRM retention ROI
Value Measured Volume 3-year Variation
Universe of vehicles on road + 600,000 vehicles
Annual New Sales revenue + $ 5,000,000,000
Annual Sales retention revenue share $ 300,000,000 From 5 to 11 %
Annual Service revenue $ 800,000,000
Annual Service retention revenue share $ 240,000,000 From 27 to 37 %
ROI Analysis US $
Annual combined CRM Investment 5,600,000
Cost per retained sale customer $ 23 (1.5%)
Cost per retained service customer $ 20 (0,9 %)
14. Jacobsons’ promises
Advise on, Organize, and Continuously Assist businesses &
institutions to Create, Manage and Monetize Customer
Intelligence & Market Information, into sustained Revenue
Growth, in addition to:
• Improvement in business processes
• Beyond average Growth;
• Permanent information and Control on all operations (prospecting,
communication, marketing, sales and after-sales, return on
investment - ROI);
• Constant Contact with feedback from customers & prospects;
• Guaranteed Learning & saving of all Knowledge and Business
Intelligence;
• Individual-independent business processes with minimal change-
related disruptions or risks;
• High immunity against threats by competition.
• The bigger numbers will be your sales, not our fees
15. What we are good at:
We intervene in today’s businesses to generate insightful & precision-
guided growth then adequately support close loop marketing cycle.
We formulate and build a lasting and comprehensive process of
capturing, analyzing and using customer intelligence (demographics,
transactions, response to marketing / sales initiatives, seasonality,
etc.)
We derive better understanding and become able to predict future
behavior of existing and prospective customers to optimize business
decisions;
We design and build processes that measure ROI, Opportunity Cost
and Track Campaign Results in order to:
o Create relevant messaging with related consumption triggers;
o Cross Sell by targeting effectively;
o Optimize Channel Investments;
o Increase response and conversion ratios.
16. Jacobsons are...
• An independent DM, CRM & Customer Value Management
firm with 26 years of unique & mature regional know-
how in Database Marketing, Customer Acquisition and
Retention, steered by its owners and a team of
passionate professionals
• Started in 1986, pioneered business growth in the Arab
World by using databases (direct marketing & crm) - the
very first
• 120+ member multi-skilled team
• Offices & operations bases in Dubai, Jeddah, Bahrain,
Cairo, Beirut, Amman and Kochi
17. … Jacobsons HQ
• 20,000 sq.ft. purpose-built facility
• 24 hour security with restricted access to operations,
state of the art systems security & back-ups
• Host to the Regional Data Centre
• Highly skilled, mission-critical & achievement-focused
human resources
• Regionalized, unique specialist tools
18. Core Competences & Unique Tool-kit
• Build Databases & Business Intelligence: (Consulting/ Creation/ Hygiene/
Enhancement/Development/Continuous management. PURE™) critical to
membership & rewards management;
• Plan and Execute campaigns to Acquire New Customers and Retain
Existing Customers : Sales-generating Campaigns, Loyalty Programs and
Initiatives across several verticals. (Cexycle™)
• Specialist Creative & Production for 1-to-1 communication
• Optimal Campaign Integration: liaise with other campaigns (off-line & on-
line media & messaging Interaction touch-points) to optimize and
synchronize media usage together with campaign effect and ROI
measurement, up-to dashboard applications
19. Core Competences & Unique Tool-kit
• Assess & Audit Enterprise-wide customer interaction & management
processes for improvement, deployment for sales acceleration (CAPP™,
ACUMAP™)
• Analytics: Data Mining, Insight, Predictive Modeling, Value Forecasting
(Analytix ™, C-Score™, RetScore™)
• Enterprise-wide process deployment for sales acceleration
• CEM – Customer Experience Management & Loyalty Generation Programs
• CRM – Customer Relationship Management Processes & Platforms
• Human Capital Development / Training on Customer-Centricity & Value
• eCRM – Customised Applications Engineered for Middle East firms
• Profiled Mailing Lists in the GCC, MENA and Worldwide
20. Core Competences & Unique Tool-kit
• Supplies Specialist Logistic & Support Services to Leverage Business
Intelligence into customer acquisition & retention (iPost™):
– Own and operate Mailroom & fulfillment (mail, merchandise & POSM,
fulfill statements, handle rewards redemption)
– Own and operate Call Centers –Multi-location Services / Consult on
custom-creation of call-centers for clients for all purpose types
(prospect handling, customer service, member support, etc)
– Activation Events, Inquiry / Response Management – Online/ Offline
21. Mission-Critical competence teams`
Datalab : A task force of the finest direct marketing and CRM database
builders, hygiene specialists and technologists the region has ever
had.
Fulfillment+ : Its about combining and controlling a problem-free
delivery of various offline and online communication.
Tele Interact : Call Centers abound around the region.
Creative i : Have always demonstrated superiority in conceiving &
producing high-ROI customer-engagement communication.
Analytix : Region-specific expertise in monetizing information
Apps Infinite : has put apps on the cloud long before there was one .
21
22. Interaction Centres
Outbound
• Lead qualification & generation for
sales teams with follow-up
• Pro-active customer care fact-finding
• Customer Satisfaction Measurement
• Database research/update/profiling
• Gauge Shopper Marketing conversion
Inbound
• Toll Free connectivity
• IVR & inquiry recording
• Help desk & inquiry handling
Managed Network of Call Centres • Support to public events
Jeddah, Riyadh, Kuwait, Bahrain, • Live agent support
Muscat, Beirut, Cairo