One of the most valuable ways to apply Machine Learning to dealer first party data and make a real impact on the business is to identify the customers most likely to deliver the most gross profit over the next few years. Informed by its analysis of millions of transactions over the last 10+ years, Outsell has seen that typically 20% of dealer customers represent over 65% of dealer gross profit over the next 3 years. In May, Outsell is launched four new Machine Learning models focused exclusively on those special dealer customers and prospects likely to represent the most sales and service gross profit over the next three years.
By launching Customer Value scores throughout its platform, Outsell is trying to focus dealer attention on where it can have the most impact. Typical industry programs focus too many resources on “winning back” customers who are effectively lost. These programs fail to understand that if some of these customers return, they are low gross and very offer-centric, only returning for the next offer. High value customers have shown they are loyal to both sales and repurchases. Nurturing these customers and providing premium services and communication can have much more impact on profitability and market share for every dealer. Showing the potential value score with each customer record on the platform, Outsell is keeping this in the front of every dealer’s mind.
Here’s how Outsell is focusing dealers on future customer value:
- A Customer Value Score (up to 5 Dollar Signs) on the Profile page for every customer to enable dealers to personalize treatment in store.
- Store Engagement Alerts when high value customers engage with content or are scheduled for service – to focus store staff on most important customers.
- A ranked list of every customer in a dealer’s database, ranked according to potential value – so every associate knows who the high value customers are.
- Customer Value Scoring on the “in the market’ page next to each consumer where Outsell’s Buyer Detection AI says they are likely in market – to enable dealers to prioritize outreach.
- Special filters on Outsell’s On Demand selections so dealers can differentiate their campaigns and offers based on projected value – this applies to products like Equity, Find a Trade and soon Service.
- Priority scoring in campaign and omnichannel delivery on models puts high value customers at the top of the list for communications, including direct mail when they cannot be reached on other channels.
- New Customer Database Health reporting showcasing high value segment size and growth, gross profit contribution and, importantly, changes in the behavior of these special segments.
- By incorporating its proprietary Customer Value models into its Customer Engagement Platform (CEP), Outsell enables dealers and dealer groups to differentiate communication cadence, channels, offers and content based on the projected value of the customer and prospect, not over the next 25 years, but over the next three, when it really matters.
The goal of using first party data is not just to collect it, rather to use it effectively throughout the dealership to transform engagement and retention. Adding Outsell’s Customer Value is one important dimension that turns data into real action that makes an impact. To see the Customer Value for yourself, schedule a demo with our team!