Protyre and Purple Agency 2015
Using PWE models to determine propensity to buy and to optimise the customer communication mix
Background
The challenge
When Purple Agency was approached by Protyre, they had a vision, but no means to realise it. Protyre was the UK’s second largest tyre distributor and with ambitions to be number one, they had identified that the motor industry and fast fit operators in particular, had not realised the true potential of a customer-centric business, driven by data insight.
In an industry that is not renowned for using customer data effectively, with long sales cycles and a poor reputation for customer experience, Protyre are setting a new standard. Their Head of Marketing, Morgan Jamison, aims to build a truly customer centric, data driven business. This vision is driven by a focus on data, using it to improve ROI, business performance and to propel the business forwards.
They wanted insight about every customer and vehicle that visited their branches and needed innovative ways of using the data to maximise customer value and return on investment, but also to deliver a customer experience that wins loyalty.
One of the biggest challenges they faced was timing communications. When people only visit a garage once or twice a year, how do you stay “front of mind” without “carpet bombing” and incurring a lot of cost with little attributable return?
None of this would have been possible without Apteco FastStats®. The results have been spectacular, with Protyre already enjoying customer satisfaction ratings of 84 per cent, higher than Apple, Amazon or Starbucks! FastStats® sits at the heart of this stunning success.
The Apteco solution
In 12 months, Purple and Protyre have built a single customer view database, bringing together data on over 1.5M vehicles and 800,000 customers, deployed Apteco FastStats® and Cascade, and set about creating a customer centric, data focussed business to deliver a market leading customer experience.
Using FastStats®, Protyre has been able to build algorithms that describe the wear patterns of tyres, brakes and clutches of cars and vans driven by their customers. Creating Virtual Variables based on these models and the new Date Dimension cube functions, predictions can be made as to when these items are likely to next need inspection or replacement. This highly predictive communication strategy has delivered some spectacular results with ROI of over 1000%, again analysed using FastStats®.
We have also scheduled automated time and date driven event triggers for events such as MOTs and services. Not only does this mean reminders are highly time specific, but they also enable Protyre to promote offers on the products customers need exactly when they need them taking away the guesswork.
The impact on the business
Explore some examples of how companies currently benefit from Apteco FastStats®.
ROI of 746%
MOT mailings, where dates are obviously fixed, have still benefited from the ability to target selected offers to individual customers, generating an ROI of 746.7 per cent – and revenues of £957,976. This however is still trumped by mailings based on the predictive modelling carried out using FastStats®.
NPS score of 84
Importantly there is clear evidence that customers find the high level of relevance and timeliness helpful feeding into class leading NPS scores. ProTyre currently achieve an NPS score of 84 - higher than Apple, Starbucks or Amazon!
Improved retention rates
This project has been driven from the start by a desire to build a better customer experience, which is already translating into business benefits. Good retention rates are reducing the need to invest as heavily as some competitors in new customer acquisition.
Better customer experience
Customers say they appreciate having a relationship with an automotive business which simply wants to be helpful, relevant and take away some of the cost and pain of keeping their car safe and legal. Ultimately, through reputation, loyalty and advocacy this model will build a stronger business foundation for Protyre.
Thanks to the SCV database and FastStats® system we can target every communication with pinpoint accuracy using the most appropriate channel mix, optimised for each individual customer. That’s allowed us to generate higher revenues on every single communication and ensured that our customers enjoy the best customer experience. We have the goal of doubling the 800,000 customers on our database in two years, which is potentially a tall order. But as our world beating customer satisfaction figures and impressive ROI figures show – to date it is working brilliantly.