What are the common challenges and pitfalls of customer segmentation and targeting in automotive sales?

Additionally, dealers that can't quantify every marketing $ spent beyond umbrella brand marketing, should not risk that capital. Moreover, measuring these data allows marketers to hone their messaging to their targeted segments in their lifecycle management campaigns.

Measuring the performance will assist with the employee and consumer experience. With the employee experience, this helps us identify training opportunities and also receive feedback from employees around which marketing areas have been most effective. Example, by measuring the traffic by engagement rate by source, this will help us identify which marketing channels allow the most two way communication. However, if one employees engagement rate is 50% with a marketing source, versus the overall average for that source is 80%, then this could provide a training opportunity for that source. On the marketing side, if the overall sale percentage is 22%, the areas below that would cause for an audit as well.

I agree, measuring performance additionally helps to solve questions and or problems much quicker. You can always go back to what you’ve measured and narrow down areas of importance much more effectively. By doing this you’re able to regroup and get back to the task at hand and send your revised worked. Additionally, perfecting how you measure performance will guide you to better quality work when applied correctly and consistently.

Specifically, the rationale for measuring these KPI's are essential for the growing your business. 1.) Reducing the CAC should be the goal of any growing business. 2.) CLV/CRR is enhanced when a dealers' business is focused on existing customers as the cost of retaining them pails to new customer CAC. 3.)Closing ratio, average gross profit and CSI are higher when doing business with existing customers. Not to mention much faster and with less friction.

In addition to these metrics, what I would pay attention to are the notes and details of: - How does the customer like to purchase? (Online, in-store, or hybrid) - For loyal customers, how can we customize their experience as they hit certain levels. Think of a rewards program. I use an example like this, if a customer prefers a certain kind of coffee, have that ready for them when they arrive with their name on it. Focus on mixing these KPIs and metrics with personalization.

Repeat and referral business versus new business is faster, more profitable, results in higher CSI scores and enhances LTV of the customer. That said, don't get caught up in analysis paralysis. Measure a few KPI's at a time, and keep your eyes open for unintended consequences.

While the quality of the data is key, message timeliness and content should be carefully curated, which is not easy. Further, identifying and acquiring new and previously unused relevant data to integrate is always challenging.

Maintaining an "agile" mindset will go a long way, always improving. Enrolling team members and tying their compensation and bonuses will align everyone's interests. Finally, explaining methodology clearly will enhance the business culture.