AAA Auto - Online segmentation

AAA Auto is a TOP successful used car dealership and it achieves the best results also thanks to data science.

The goal of the project was customer segmentation and to maximize sales conversions based on the number of website visits.

Using the data science model, we identified 10 customer segments, one of which had a 12-times higher conversion rate then average. The result was a solution that gave us more than five times more conversions within the first six months after deployment.

Methodology:

• Segment profiling helps to sell and also to identify customer groups, their purchasing intent, needs, desires, and experience.

Understanding of customer segments is of fundamental importance for:

• Personalizing customer topics in communication (e.g., by life situation, finances, and lifestyle).

• Relevant direct communication.

Dimensions:

• Identification of 4 most important dimensions from over 300 different attributes:

  • Purchase intent

  • Car quality / value dimension

  • "Local" vs. worldwide importance of the brand

  • Engine power.

Segments:

• The optimal number of segments and the number of segments was determined mathematically. 

• The final result of Segmentation was 10 larger customer segments with a high proportion and clear characteristics for each of them.

Segment Potential:

• The highest trading potential was reflected in “Segment 7” followed by “Segment 10” and “Segment 2”.

• Segments with low or no trading potential: “Segment 1”, “Segment 3”, and “Segment 6”.

Resulting return on marketing investments:

Addressing high-potential segments (7, 10, 2), while excluding low-potential segments (1, 3, 6) of  segmentation resulted in a massive increase in marketing campaign efficiency even in the first month! High affinity segments (4, 5) were addressed by a special offer focused on a narrow product group. 

ROI of the online segmentation project exceeded level 5 within the first 180 days!