Captive Auto Lender Discovers Likely Financial Capacity of Consumers for New Electric Model

Leading captive auto lender determines likely financial capacity and profile of consumers for new model introduction

Leading captive auto lender needed to validate interested consumers for new electric model

CHALLENGE:

Limited insight on consumer hand-raisers who put down a deposit for new electric vehicle An auto manufacturer was introducing a new electric model with a different target audience than they had historically pursued. With the new model, the manufacturer needed to reposition its brand from a buyer-base of “relatively young consumers” to “green, environmentally-aware families.”

Given the divergence from traditional buyers of the brand, some franchise dealers were not completely on-board for the new vehicle in general, and the hand-raisers, in particular.

Captive lender needed to provide dealers with insight on consumers that had put down a deposit
to pre-order the new model. Dealers wanted to better understand deposit-payers’: 

  • Likelihood to have the FINANCIAL CAPACITY to purchase the vehicle upon delivery

  • DEMOGRAPHICS AND BEHAVIORS, and if they contrasted from traditional buyers

Analyze financial capacity and demographics of interested consumers

SOLUTION: 

Gain insight on likely financial capacity and persona of interested consumers

ANALYSIS:  

Several financial and economic capacity measures were analyzed, including:

  • Aggregated credit-based measures

  • An economic-based segmentation system

“We chose Equifax’s asset- and credit-based measures because they were the only source that could provide us information on both the likely financial capacity and demographics of interested consumers. Other providers offered only demographics or survey-based information, but Equifax’s foundation of measured assets and credit data plus their ability to provide insight on household demographics, behaviors, and lifestyles was a real differentiator.”

– Quote from one of the senior executives
(head of credit risk and analytics) at captive lender

Analysis revealed interested consumers were likely to have financial capacity and desired demographics to purchase new vehicle

Analysis used aggregated credit-based measures and economic-based segmentation to evaluate the estimated financial capacity and profile of interested consumers against target audience for new auto model

KEY FINDING: Analysis confirmed that the estimated financial capacity and profile of interested consumers MATCHED the desired target audience for the new auto model

Next steps

Apply likely financial capacity/profile findings to ENHANCE PROSPECTING EFFORTS AND GENERATE NEW LEADS for both electric model and other new vehicles

Based on analysis, captive lender and dealers have confidence in relying on estimated financial capacity and demographics to inform future marketing efforts:

  • Minimize expensive prospecting efforts such as roadshows, mall visits,
    and mass online advertising.  

  • Instead, use likely financial capacity and demographic findings to: 

NARROW 
target list for prospect mailings to reach households likely to have desired characteristics
 
DIFFERENTIATE
consumers as they enter the dealer show-room to inform sales efforts
 
TAILOR
communication methods and messages for various target groups
 
SEGMENT
site visitors based on desired characteristics to improve targeting for online advertising
 
IDENTIFY
current customers that are likely to have the right profile and interest for the new auto model
 

Likely financial capacity and profile findings can be applied to other marketing efforts to better reach the right audience and save operational costs

For more information click here.

Neither these materials nor any product described herein were developed or intended to be used for the extension of credit to any individual, nor may they be used for purposes of determining an individual's creditworthiness or for any other purpose contemplated under the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.  Prior results not always indicative of future performance.

Results may vary based on actual data and situation.

 
 
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