The Challenge
A leading automotive manufacturer faced the challenge of ensuring the integrity of their extensive customer database. Accurate data is crucial for driving business, retaining customers, and understanding their customer base. However, their database was plagued with quality issues that impacted deliverability and overall business strategy. This issue is common in the auto industry, where maintaining high-quality customer data is critical for effective communication.
They needed a solution to validate and correct their database to more effectively reach customers and maintain a high level of engagement.
Calculating the Potential Value of an Email Address
Vehicles
|
Average Car Price1 |
$47,000 |
OEM Profit Margin2 |
7.8% |
Avg consumer lifetime vehicles3 |
9 |
$47,000 x 7.8% x 9 = $32,994 |
Maintenance and Service
|
Average Service Cost3 |
$175 |
2 services per year x 64 driving years |
Average Operating Profit4 |
26% |
$175 x 2 x 64 x 26% = $5,824 |
Future Subscription Services
|
Potential Annual Revenue5 |
$1,600 |
$1,600 x 64 = $102,400 |
Customer Acquisition Cost
|
Avg for Automotive6 |
$1,434 |
Customer Retention
|
10x Reduced Cost to Retain |
$1,434 / 10 x 9 vehicles = $1,290 |
Potential LTV
|
$32,994 + $5,824 +$102,400 – $1,434 – $1,290 = $138,494 |
Potential Value of an Email Address:
+/- $138,000
|
The Solution
The auto business partnered with AtData to implement comprehensive data validation and correction services. Conducting a semi-annual cleanup of around 60 million records to ensure ongoing accuracy and integrity, here’s how AtData’s solutions addressed their needs:
-
Email Validation
They conduct a semi-annual cleanup of around 60 million records as well as real-time email validation to verify accuracy, identifying and flagging invalid or risky emails. This improves their deliverability and database integrity, as well as protects their reputation.
-
Data Correction
AtData’s email address correction helps update and rectify incorrect email addresses. By correcting at point of capture in real-time, the manufacturer maintains high data quality for improved reach to contacts that otherwise would have been lost.
Results & Benefits
The implementation of AtData’s data validation and correction services yielded significant benefits:
- Enhanced Data Quality: Processing 5,000 – 6,000 API calls per day to validate and correct emails resulted in identifying 8 – 10% invalid addresses, reducing around 500 bad emails from entering their system daily.
- Risk Mitigation: Roughly 1.15% of emails are flagged risky, stopping 55 from causing issues daily.
- Data Correction: Regular correction of 0.3 – 0.6% of the emails saves about 30 contacts per day from going to waste, so these valuable contacts remain in their database and are able to be followed up with.
- Improved Marketing Deliverability: With accurate and valid email addresses, the manufacturer saw a marked improvement in their marketing deliverability, ensuring messages reached their intended recipients. This vastly improved their sender reputation and had positive effects on lifetime value (LTV) and customer satisfaction.
- Informed Decision-Making: High-quality data enabled more informed business decisions, improved their analytics, and enhanced predictive capabilities.
- Return on Investment (ROI): Enhanced data quality and improved marketing deliverability translated into a higher ROI for their marketing campaigns. By reaching more customers, they increased their marketing effectiveness and reduced costs associated with wasted efforts.
Conclusion
Partnering with AtData allowed this automotive manufacturer to overcome data quality challenges, resulting in a more robust and reliable customer database. AtData helps the automotive industry enhance their data quality, improve marketing deliverability, and make more informed business decisions. Realize significant returns on your data investment.
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- https://caredge.com/guides/new-car-price-trends-in-2024
- https://www.bain.com/insights/automotive-profitability-how-oem-and-supplier-margins-are-faring-interactive/
- https://www.fullpath.com/blog/ltv-for-driving-dealership-revenues/
- https://sharpsheets.io/blog/how-profitable-is-an-auto-repair-shop/
- https://www.forbes.com/sites/sarwantsingh/2024/04/24/car-companies-can-generate-1600-per-car-in-future-from-connected-car-services/
- https://focus-digital.co/average-customer-acquisition-cost-benchmarks-in-the-automotive-industry/