Outsell and RXA Analysis of 18.7 Million Vehicle Transactions Finds that AI-Driven Lifecycle Marketing Measurably Increases Retention Rates, Service Revenue and Profitability for Dealers

AI-driven marketing found to increase loyalty, repeat business and service visits

Outsell announced today the results of a comprehensive, multi-year data study conducted with RXA and Experian. The study encompassed 5.6M consumer relationships across 960 dealers, and 18.7 million vehicle transactions – leveraged data from Experian’s Auto Response Analysis – including 2.5 million sales and 16.2 million service visits over a three-and-a-half year period. It examined the effect that AI-driven marketing has on customer loyalty, repeat business and service visits, and calculated the incremental lifetime value of customers due to AI-driven lifecycle marketing.

The study found that engaging a customer with AI-driven lifecycle marketing results in:

  • 65% higher odds of that customer repurchasing at the same dealer
  • A 25% increase in service visits over three years
  • $427 in incremental profit per customer

“The study confirmed what Outsell has been telling dealers for years: that AI-driven lifecycle marketing improves customer engagement, revenue and profitability,” said Mike Wethington, Founder & CEO of Outsell. “This is the clearest picture we’ve seen yet of the impact that AI-driven lifecycle marketing has on the Automotive consumer. This concept is particularly important now, when auto sales are softening and dealers are looking for ways to increase retention, boost service and profitability.”

“The results are crystal clear: the best time to start AI-based personalized lifecycle marketing is yesterday, and the second-best time is today,” said Jason Harper, Founder and CEO of RXA. “The data shows that AI-driven marketing, like Outsell’s, increases customer value no matter what stage the customer is in.”

Wethington and Harper will be presenting additional details on the study at the 2019 Automotive Analytics and Attribution Summit, taking place Nov. 17-19 in Palm Beach, Fla. In a session titled, “Winter is Here: How AI-Driven Customer Lifecycle Marketing Is Your Best Defense in a Downturn,” Wethington and Harper will speak about how dealers can increase loyalty and profitability with personalized AI-driven marketing automation.

To learn more, contact marketing@outsell.com or download the infographic.