Luxury Sedan Audience Acquisition Strategy - Custom Models and Integrated Marketing Results
ICS Product/Service Area: Direct Mail, Email Marketing, Integrated Marketing, Analytics
ICS assisted an OEM and its agency in developing an Audience Acquisition strategy for a new luxury sedan. A series of five events were planned in key markets for the product. Our clients challenged us to develop a targeted marketing strategy that would drive a set number of attendees who match a targeted profile type to each event.
- Given the newness of the product, ICS was charged with developing a custom model combining the household makeup of current related brand owners as well as Brand Competitive Set Owners. We leveraged our AutoNet Automotive Masterfile to pull in significant volumes of self-reported Brand Competitive Set Owners for the model development.
- Because over 80% of attendees had to be highly targeted competitive prospects, we recommended an integrated marketing test structure. Our test structure was approved by using OEM assets and competitive prospects and was segmented by:
- Email Only (Non-modeled): This segment did not receive a direct mail piece, but received “two email touches” prior to the event. We also did not use the model to target for this segment. We used a combination of income qualifiers and vehicle shopping history to target for this segment.
- Direct Mail Only (Modeled): In this segment, we used the custom model to select “high indexed” competitive prospects. In this case, only a direct mail piece was sent to the household.
- Integrated Campaign (Modeled): Like the segment above, we used the custom model to select “high indexed” competitive prospects. This segment received both the direct mail and one follow-up email.
- The same mail and email creative was used across the segments. This test ran across all markets.
- The custom model identified 42 different demographic / psychographic variables that contributed to the model performance. The top 10% of prospects had a 300%+ lift in identifying potential owners of the Luxury Sedan.
- Actual performance of both the Direct Mail and Integrated Campaign segments using the model performed at or above anticipated lift metrics. An overview is identified below:
- ICS and the clients were extremely happy with the audience acquisition strategy and model performance. Our top competitive prospect tier using modeled data performed at response rates equal to OEM-provided assets (something we had not achieved before).
- Our Integrated Campaign showed a 27% lift over the direct mail only campaign.
- Note: The Email Only campaign performed at “traditional response rates” for this type of campaign – further validating the power of the model.