Tiger Yang, Co-Founder & President of APEX Technologies presented at ADMIC 2019
Data released by the National Passenger Vehicle Market Information Association shows that the cumulative sales of general passenger vehicles in China reached 22.72 million in 2018, the first decline in 26 years, down 6% year-on-year. Both OEMs (original equipment manufacturer) and dealers are faced with problems such as recalls, difficulty attracting new customers, and high maintenance costs.
Therefore, on March 29th, the ADMIC (Auto Digitalization & Marketing Innovation) Conference was hosted in Shanghai by iDigitalChina, China Automotive News Network and the China International Trade Promotion Council Automotive Industry Branch. Many automotive companies, dealers, e-commerce platforms, travel companies, digital marketing technology companies and other industry executives gathered to discuss the digital transformation of automotive companies in the digital economy era. Other topics included were creating new growth and performance indicators, auto intelligence, operational service upgrades, as well as e-marketing disruption.
Tiger Yang, Co-Founder and President of APEX Technologies, was invited to attend and give a speech titled “Employing Data Technology as a Catalyst to Maximize Customer Value” and provide an analysis on how to help the automotive industry solve the aforementioned pain points via big data technology.
The digital transformation of the automotive industry is unavoidable and imminent.
According to sector analysts the sluggishness of the Chinese market is a precursor to the “dark age” of the automotive industry. At present, domestic car companies in general are encountering a decline in revenues, high and increasing costs, and tight cash flow. Even Porsche, popular with the public since it entered China in 2001, has also shown signs of weaknesses in 2018 as sales have fallen sharply throughout the year.
In fact, car companies do not lack sales leads, instead customers need a long decision time from the awareness stage (discovery of the need) to the eventual purchase of the car. A longer decision time means a higher cost for the company to convince the customer. A personalized marketing approach could significantly reduce this period. Unclear customer portraits, as well as large and detailed amounts of data require a lot of manpower and material resources, which is unbearable for most car companies. Therefore, it is imperative to achieve synergies, cost reductions and efficiencies through digital transformation.
Big data empowers car companies to stay at the forefront of digital transformation and innovation.
APEX Technologies helps car companies integrate internal and external customer data, analyze data via machine learning, establish 360-degree customer portraits, find commonalities between customers that show a high buying rate and subsequently copy those to new customer profiles via a look-alike model. As a result, data technology can be used to revitalize a car company’s vast amount of customer resources, achieve standardization and structure, identify potential customers and carry out targeted development and maintenance, thereby supporting the growth of performance and profits.
Tiger Yang used the example of a well-known luxury car brand, a customer of APEX Technologies, to analyze the data of a customer (car owner). In addition to basic information, the data field also includes spending power, browsing habits, and the like. Then according to this model, the purchase readiness indicator has a range of 5 (A, B, C, D and E). The higher the score of the customer, the higher the possibility of the customer’s purchase and the greater the marketing value. The sales department can adopt the corresponding marketing strategy to carry out a tailored promotion, make test drive appointments, make service improvement, etc. for different types of customers. Implementing this technique, each group of customers can have their own marketing actions. Through the marketing scoring model, 15% of high-value customers received the highest rating and helped the car manufacturer to reduce drive acquisition costs by 55%, while booking appointments increased by 4 times and sales transactions year-on-year conversion rate increased by 5% (which made the car company break through the downturn trend in the overall market and seize additional market share.
Customer data can not only contribute to the increase in sales, but also provide strong data intelligence for the marketing department, public relations department, business department, after-sales service department and production department of the enterprise. With the development of technologies such as Internet of Vehicles and smart travel, more and more customer data will be generated, and the data interaction between the vehicle and the customer is not limited to pre-sale, but gradually entails pre-sale, sale and after-sale. APEX Technologies helps enterprises with customer life cycle data management. While continuing to improve the product, APEX Technologies helps the car industry’s entire business chain with digital transformation and upgrading to the latest technologies.