Even the most innovative vehicle on the planet can’t make an impression if its manufacturer can’t get it to consumers. That was the challenge facing the manufacturer of a cutting-edge electric car and its captive-financing division: How to convince local dealers to stock, promote and invest in services for the new vehicle.
This unique auto lending challenge required a one-of-a-kind solution. To say the least, dealers were wary about investing in this new car. Who would its customers be? And would they be qualified buyers, or just tech-happy tire-kickers?
Seeking advanced consumer insight
This new electric car was testing everyone’s comfort zone. It was a model unlike anything in the manufacturer’s traditional vehicle lineup. The captive lender needed to convince dealers that there was a qualified market and demand for the new product. Equifax had a solution: IXI Services’ financial and economic capacity data could provide credit-based profiles and demographics.
Of course, the dealers were well aware of Equifax FICO scores, so there was a good deal of comfort in the process, which included:
- Aggregated FICO Scores that provided neighborhood-level data for marketing purposes
- CreditStyles Pro measures to reveal household buying power
- Economic Cohorts to break down consumer groups by age, attitudes and lifestyles
Shifting auto-lending into overdrive
Here’s where the rubber met the road. IXI Service’s results showed that customers interested in the new automobile tended to have higher FICO scores — they would definitely be qualified buyers. Plus, these prospective customers were less likely to be delinquent on a car loan; tended to be in families with children; often lived in major metropolitan areas; and earned a higher-than-average income.
Needless to say, the dealers were impressed.
The captive lender had the auto lending in place. The manufacturer was ready to deliver the new electric cars — and now the dealers were on board with their commitment to the vehicle as well.
Driving sales with targeted marketing
With the advanced analysis in hand, this company could enhance marketing efficiency. It could minimize expensive, wide-swath efforts such as road shows, mall displays and mass-market advertising, and instead use targeted prospect mailings with messages tailored for each customer segment. And online marketing got a boost from site-visitor segmentation based on identified consumer characteristics.
In addition, because this model was targeting a significantly different customer than the brand’s typical buyers, there was the real potential for a notable increase in market share.
That’s a true auto lending success story. To learn more, you can read the entire case study about this story here.
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