Study examined 14.7 million consumers; Lifetime customer value found to increase loyalty, repeat sales business, and service visits
Minneapolis, MN – Nov. 15, 2021 – Outsell, which offers the only virtual customer engagement platform for the automotive industry, announced today the results of a comprehensive data study conducted with RXA. The study encompassed 26 OEM brands, and 14.7 million consumers, across 841 dealerships. It examined the effect that top value customers have on customer loyalty, repeat business, and service visits, and calculated the lifetime value of customers.
The study found that top value customers result in:
- 30% of customers account for 80% of the total gross profit from existing customers.
- For luxury, it’s 20% of the total gross profit.
- Top value service customers are 6x more likely to repurchase.
“The study confirmed that dealers and dealer groups need to focus on lifetime customer value in order to improve customer engagement to drive revenue and profitability,” said Gary Marcotte, senior vice president of customer engagement innovation at Outsell. “This is the clearest picture we’ve seen yet of the impact of loyalty and that top value customers are born not bred. This concept is particularly important now when inventory is low and dealers are looking for ways to increase retention, boost service and profitability.”
“The results are crystal clear: it is time to focus on serving top value customers differently,” said Jason Harper, Founder, and CEO of RXA. “The data shows that top value customers increase total gross profit across sales and service.”
Marcotte and Harper along with Valerie Vallancourt, vice president of marketing with Outsell will be presenting additional details on the study at the 2021 Automotive Analytics and Attribution Summit, taking place Nov. 14-17 in Manalapan, Fla. In a session titled, “The data doesn’t lie. Not everyone is a top value customer – is it time to think differently?” The trio will speak about how dealers and dealer groups can increase total gross profit by focusing on their top value customers to drive increased loyalty and profitability with personalized AI-driven marketing automation.
RXA is an applied artificial intelligence company based in Ann Arbor, MI. RXA provides AI consulting services and applications designed to improve decision-making for business managers. RXA was named the 2019 Innovative Domo Partner of the Year. To learn more, visit www.rxa.io or follow RXA at https://www.linkedin.com/company/rxa.io/
Outsell offers the only Virtual Customer Engagement platform for the automotive industry, creating an individualized consumer experience that builds and strengthens customer relationships, amplifying the impact of a brand by communicating its story and benefits ultimately driving increased profits across sales and service. Our proprietary technology harnesses massive amounts of data, creating accurate and powerful consumer profiles that engage your customers and prospects exactly where they are in their individual lifecycles. That’s why Outsell is the trusted platform for more than 1,500 dealers representing all major automotive brands. To learn more, visit https://www.outsell.com/ or follow us at @Outsell.