How RAPP helped Lexus improved revenue per customer by 43% with an ever-evolving online retention marketing strategy

Summary

With the Lexus Fall Service Event coming up, RAPP saw an opportunity for Lexus to improve traffic to individual dealerships. Rather than using mass marketing like past campaigns, RAPP used a propensity model backed by first-party data. This propensity model rated existing customers based on their likelihood of buying new tires — and helped RAPP target them across multiple channels. RAPP also created an automotive marketing platform for dealers to personalize their on-demand campaigns. But RAPP didn’t stop there. To help expand their reach, RAPP offered dealers individual opt-ins and unique coupon generation — something unheard of in the automotive industry.

Together with RAPP, Lexus had one of their most successful events in history: 35% more tires sold compared to the past promotion and 43% more revenue per customer. For dealers that used custom incentives? 24% more sales and 10% more overall revenue.

Through precision marketing, we can better nurture customers throughout the customer journey — and deliver what they need to improve retention.

The opportunity

Every year, Lexus of North America runs a Fall Service Event for 6 weeks to increase dealer traffic for new parts. However, in the aftermath of the pandemic, car owners have increasingly tightened their budgets. As a result, Lexus has seen declining performance — and less tire sales — year-over-year. RAPP saw this as an opportunity for Lexus to remind car owners that ongoing vehicle maintenance isn’t a luxury. It’s a need. A need for safety. And Lexus is here to help them get the car parts they need.

The solution

RAPP set out to make a replicable and evolving retention marketing strategy. With access to first-party data, RAPP used a propensity model to scale and bucket Lexus customers eligible for new tires. This propensity model looked at multiple factors — like vehicle age, mileage and customer service history — to rate users based on their likelihood of buying new tires. RAPP then targeted users based on where they scored, within their budget, across multiple channels.

Using proprietary tools, RAPP also developed an automotive marketing platform for dealers. Dealers can enroll in on-demand email, direct mail or digital campaigns — and upload any dealer-specific coupons. After choosing a run time and approving assets, dealers can be hands-off for the whole campaign.

The results

With RAPP’s multi-touch approach and personalized dealer messaging, Lexus had one of their most successful events in history. Compared to the previous promotion, Lexus had 35% more tires sold and 43% more revenue per customer. Dealers that used custom incentives saw 24% more sales and 10% more overall revenue.

The impact

With a competitive market, companies need to stand out. And precision marketing can be the answer. By personalizing our marketing — and focusing on customers’ needs — we can better nurture customer relationships. RAPP is committed to creating meaningful, lasting connections throughout the customer journey to build brand trust.