Last Updated: June 22, 2018
The data, analytics, and insights available today empower marketers with a new era of insights, resulting in smarter planning, marketing strategy, and more profitable decisions. Marketers can now pinpoint exactly who a company’s customers will be when they will buy, which products they prefer and which competitors’ products they will also consider.
Here is one story of how an automotive company is beginning to realize this new reality of business insights.
Stuck On Autopilot
The marketing department of a leading luxury car manufacturer felt its advertising campaigns and promotions were largely on autopilot. The team was basing plans on the prior year, repeating last year’s strategy with tweaks based on assumptions and anecdotal feedback from sales.
These marketers knew that if they could better predict auto purchase behavior, such as defining when and where demand for specific models will occur, they could dramatically improve marketing ROI. Like most companies, though, they did not have the internal resources to tackle such a major initiative without pulling people and budget away from time-sensitive projects, so they turned to Prevedere to find the answers.
A New Era of Marketing Strategy Insights
Prevedere’s industry insights and analytics engine are designed to mimic the thought process and methodology of an economist, but with the analytic power of cloud computing. It is constantly monitoring millions of global economic and consumer behavior data points, much faster than current analysis methods.
In addition to these demographic and economic drivers, the company was able to better define the car types each segment would buy.
The Bottom Line
Based on these insights, the company redrew its sales regions to better match purchasing patterns. From there, it was able to allocate marketing dollars to the months and regions based on when and where people were most likely to buy, as well as which markets were most sensitive to economic and consumer sentiment pressure.
This smarter, insights-driven marketing strategy paid off. It is estimated that marketing ROI improved by 10% – 14%. At a $200M annual budget, that’s over $10 million in extra marketing horsepower.
For more insights on the automotive industry, download Prevedere’s on-demand automotive forecast for 2018.