I mentioned 1:1 custom-tailored marketing, the how and result a couple of times before, so here I present a good example.
Today’s case study highlights the Volkswagen Division of D’Ieteren, a Begium-based auto dealership. The story shows how it increased potential customer visits more than tenfold using Xerox’s 1:1 Lab.
D’Ieteren is a well-known European auto dealership based in Belgium, founded in 1805.
Courtesy: D’leteren Page
Volkswagen Division of D’Ieteren Faced Challenges
D’Ieteren markets 22 Volkswagen models all over Belgium, and ‘was’ distributing two million copies of comprehensive catalogues explaining the basic info and features of each model. But it began to think about enhancing ROI and efficient ways of allocating resources after the financial crisis hit.
According to D’Ieteren, usually customers start thinking about buying a new car 6 months prior to making a decision, and knocking on the door of a dealership. This shows the real advantage that dealership with agents and real cars on display have over any other means of marketing. The company also says about 30,000 people show up at a Volkswagen exhibition after hearing it publicized out of which 3,900 (13%) decide to buy a car. D’Ieteren saw a clue in those numbers and decided on a customer-tailored marketing project and to measure its effectiveness.
Courtesy: D’leteren Page
New Experiment Called 1:1 Marketing – 22 Models vs. 3 Models
Strategie, the marketing agency for D’Ieteren, developed a customized campaign in partnership with Xerox 1:1 Lab. Instead of churning out the good old comprehensive car catalogues with general info, they designed and published a brochure with the unique features of three particular models that were likely to attract the attention of potential customers. For instance for someone like me, who is in her early 30’s, a female professional, a brochure that introduces the New Beetle, Golf Blue Ocean, and EOS in greater depth would be ideal because, obviously, gals like me would rather have their boyfriends worry about sedans or SUV’s.
In order to understand potential customers better, the team conducted surveys of visitors to the D’Ieteren web page. The information revealing preferences was factored into the selection of customized brochure content, and presto! Automatic mailing begins. In the brochure, the potential customer can find core information not only about each model’s features, but models that suit his/her tastes (spaciousness, horsepower, design, etc.). It also included ‘perks’ like an extended warranty when bringing the catalogue along for a test drive and buying the car. The brochure was ‘personalized’ with selection of images and text. Each person would get a brochure with his or her name inscribed, highlighting its customized nature. This 1:1 custom-tailored brochure was designed using XMPie, Xerox’s premium variable data solution.
1:1 custom-tailored brochure that reflects each customer’s tastes and preferences. The parts in blue circles are adapted to the variables of each client’s characteristics. Courtesy D’leteren Page
Visitation Rate Goes Through the Roof (1,067%)
So, the results? Unbelievably phenomenal. Although the cost of making a customized brochure as opposed to the conventional catalogue was much higher (customized: USD 5.20 / conventional USD 1.87), the profit generated by this new approach was more than enough to cover the expenses, and D’Ieteren saw that it was worth the investment.
Among brochure recipients, 15 ~ 20% visited the showroom (past rate was 1.5%), a 1,067% increase. Among the visitors, 12% (600) test-drove a Volkswagen, and 50% of these (300) purchased a vehicle.
On top of that, in a phone survey of 5,000 of the 1:1 brochure recipients, 81% remembered the brochure, and said that they were interested in the benefits provided in the brochure.
Xerox 1:1 Lab, based on the results from its 5,000-brochure experiment, presented quantified comparisons of 250,000 customized brochures vs. 2 million conventional brochures. The results pointed out that through 1:1 marketing, a company can reduce marketing cost by 90% and more, while increasing profit per sale by 26%.
Courtesy: Flickr by Brandy Dopkins