Why This Case Study Is Relevant
It demonstrates how implementing an analytics-based CRM program can drive gross margin and build long-term relationships with customers.
Goodyear Auto Service Centers presented us with a challenge: help them develop more profitable customer relationships. To accomplish this, they needed to better understand their customers’ buying behaviors, determine who their best customers were and would be, and develop a CRM program that would measurably increase ROI.
Contrary to popular belief, not all tire buyers are the same. But by segmenting customers by type of purchase, for example, oil, preventive maintenance or tires, and improving their experience at every stage of the life cycle, it was possible to lift incremental revenue, improve retention and win back lost customers.
So, how did we do that?
Working with our client, we integrated all store POS data into a single database that drove all CRM decisions. The database supported direct mail, store call lists, email and business analysis.
We analyzed individual store performance, retention rates and use of the brand’s proprietary credit card to measure customers’ likelihood of returning on a store-by-store basis.
We also segmented high- and low-value customers, built models predicting likelihood of buying and developed segment-by-segment acquisition and retention win-back programs.
We integrated all of Goodyear’s multichannel communications to allow accurate media channel attribution.
Our segmentation approach used predictive models to help develop offers that were based on a customer’s need for tires or brakes. This approach helped turn them into higher-value, higher-revenue-generating customers.
We then provided each store with information about winning offers, cross-sell and upsell opportunities, and customer value, helping enhance the store’s selling efforts.
Here’s the part you’ve been waiting for:
In one year, Goodyear Auto Service Centers saw more than 100,000 additional store visits and millions of dollars in incremental margins.
In two years, new customer retention increased 14%.