Best use of FastStats® 2015 Award Finalist
Using FastStats to provide the best user experience and to know more about their customers than their competitors
ProTyre is the retail brand of Micheldever Tyres, the UK’s number two tyre distributer and fastest growing retail network. Their aim is to be number one. They already have a customer base of over 800,000 and have worked on over 1.5 million vehicles, but to overhaul the market leader is still a tall order.
When Purple was approached by ProTyre, they had a vision, but no means to realise it. As the UK’s second largest tyre distributor and 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 12 months, Purple and ProTyre have built a single customer view database, bringing together data on over 1.5M vehicles and 800,00 customers, deployed FastStats Discoverer and Cascade, and set about creating a customer centric, data focussed business to deliver a market leading customer experience.
The focus of their activity has been on acquiring more data about every customer and vehicle that visits one of their branches and through innovative thinking developing ways of using it to not only maximise customer value and return on investment, but also to deliver a customer experience that wins their loyalty.
One of the biggest challenges is 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?
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 answer lies in understanding every customer’s driving behaviour by capturing detailed data on their vehicles every time they visit a workshop, measuring everything from tread depth to brake wear. To do this tablet computers have been issued to every depot linked to their retail POS system a feed to the SCV. Once a customer has “checked in” all the key metrics from their vehicle are recorded and downloaded.
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.
In conjunction with this unique approach to customer intelligence, ProTyre 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.
Results - 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.
- The effect of this campaign activity and very high response rates might be considered as self-prophesy, but in reality it proves how well fitted the models are and the timeliness and relevance of the communication secures a significantly greater share of customer wallet than would have been the case had ProTyre not communicated at exactly the right time.
- Importantly there is clear evidence that customer 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!
- Many organisations think purely in terms of short term financial success. 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. Customers already 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.
However, they are not resting on their laurels, having recently deployed Cascade to increase campaign analysis capabilities and facilitate creative and multi-channel communications testing programmes, ProTyre are already looking to the future. They have recently redeveloped their online presence and are exploring ways of integrating online and email activity into the customer journey, building a real-time customer experience that responds to both on and off line behaviours using PeopleStage. The first phase of this will be the integration of FastStats with their ESP.
In an industry that is not renowned for respecting and 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, recently recognised at The Database Marketing Awards by winning the “Rising Star” award, is a man on a mission – 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. The initial results are spectacular, but the project is still only in its infancy. There are many more ways in which we see the potential to use data, of all types to enable marketing to perform its true function more efficiently – satisfying customer needs.
None of this would have been possible without FastStats. Not only have ProTyre been able to query their rich pot of data in myriad ways, but as has been seen already, it offers them a scalable path to even more sophisticated techniques, all designed to leverage the power of their data and to achieve true sustainable competitive advantage.
Says Morgan Jamison, Head of Retail Marketing at ProTyre:
“Thanks to the SCV database and FastStats system Purple has provided, we can target every communication using the most appropriate – and cost effective – channel mix, optimised for each individual customer. Each communication can be targeted with pinpoint accuracy – and aimed precisely at when each customer’s car is likely to need attention.
“That’s allowed us to generate higher revenues on every single communication – but also ensured that our customers enjoy the best customer experience in our industry – and beyond. We have 800,000 customers on our database, and the goal of doubling that in two years, which is potentially a tall order. But as our exceptional – indeed world beating – customer satisfaction figures and impressive ROI figures show – to date it is working brilliantly.”