AutoNation: Driving customer loyalty in a fragmented industry

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Abstract: Most companies strive to improve their customer retention yet struggle with how to approach customers with relevant messages, products and offers to drive profit. The purpose of this case study is to illustrate how AutoNation (www.autonation.com) has leveraged analytics to drive its customer loyalty in a fragmented, automotive industry. Strategies such as RFM segmentation, propensity-based modelling and control group methodologies are used to define a dynamic customer journey, support marketing programming and deliver value.

Keywords: Customer Segmentation, AutoNation, Customer Loyalty, Automotive Customer, RFM segmentation, Propensity Based Segmentation

Vikash Singh has more than 14 years of experience in the automotive and travel industry. He has hands-on experience in revenue management, pricing optimisation, marketing mix and econometric modelling, advanced customer analytics, revenue forecasting/modelling, and digital and web analytics. Prior to joining AutoNation, Vikash worked in a number of analytics and management positions at Carnival Cruise Lines and Grand Circle Cruise Lines. He has an MS in industrial engineering from the University of South Florida and a certification in general management from Harvard University.

Sheena Banton has 12 years of marketing experience across fi nancial services, and the technology, travel/hospitality and automotive industries. Her specialties include marketing strategy, customer loyalty and channel management, with a focus on leveraging data, technology and analytics to drive insights, decisions and results. Sheena has a BS in marketing from the Stern School of Business at NYU and an MBA from the Kellogg School of Management at Northwestern University.