The role of data and personalization in automotive marketing

We live in a data-driven world. So, crafting bespoke user experiences is no longer a luxury, it’s a necessity. This holds particularly true for the automotive industry.

With its complex dynamics, it is challenging to find the right tools and effective means of connecting with customers. But in an age where video content is king and personalization is a must, personalized video might be just the thing your automotive business needs.

Data is one of the most important fuels of customer journeys, and the key to crafting personalized user experiences.

In this article, we’ll explore how data and personalization can be used in the automotive context to enhance customer satisfaction - focusing on personalized video marketing and how it can be a game-changer for your automotive business.

Cars, technology, and customer experience

The automobile industry is on the cusp of an exciting transformation — one that is driven by new technologies and data-driven strategies. Innovations in autonomous self-driving cars, electric vehicles, and online car sales are changing the face of the automotive industry.

For car companies and manufacturers, this means fast adaptation of marketing to car buyers. But, before we dive into marketing, let’s first get a glimpse of the buyers in the automotive industry.

• Time Invested: On average, customers spend approximately 15 hours when purchasing a car, and an additional 50 hours on various service and after-sales processes.
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• Shifting Competition: The primary competition in the automotive industry is increasingly centered around customer service.
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• Customer Preferences: 54% of customers are willing to purchase a car from a dealership that provides an exceptional experience and after-sales service, even if it doesn't offer the lowest prices.
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• Sales Potential: Improving the retail experience to be simpler, smarter, and more personalized could potentially boost car sales by up to 25%.
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• Customer Experience: McKinsey emphasizes the importance of a positive consumer experience when buying a new car, highlighting the fundamental role of brand service for the new customer.

A poor customer experience can lead to brand switching, while a satisfying experience fosters loyalty. Only 10% of dissatisfied customers return to the same dealer for their next purchase, while a significant 87% of highly satisfied customers continue to buy cars from the same brand, with 85% choosing the same dealership. This only highlights the importance of delivering customized experiences that speak to customers' needs and preferences.

Successful car companies and manufacturers are already harnessing customer data to deliver personalized customer journeys and after-sales support that strengthens brand loyalty and customer satisfaction. In fact, businesses that incorporate personalization in their customer experience generate 40% more revenue.

Personalized video is also proving to be particularly useful in helping customers visualize their journey to their first vehicle, and is also facilitating sales across the board. With personalized videos, customers can get an exclusive look at the features and services that their dream vehicle offers, while dealerships use data to tailor the video to individuals.

Manufacturers can tailor their videos to focus on the unique benefits of their car models and services, as well as showcase the level of quality they offer. From short Instagram clips to full-length videos, the possibilities are endless when it comes to using personalized videos to make a personal connection with customers. In fact, personalized video marketing will continue to be a key trend as the automobile industry evolves.

Video + cars = a great customer experience

The effectiveness of video is strongly supported by data. Consider these compelling statistics:

• 82% of all internet traffic is generated by video content.
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• 92% of marketers express satisfaction with the return on investment (ROI) generated by their video marketing campaigns.
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• 55% of people pay more attention when watching video than any other content type.
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• Viewers retain an impressive 95% of the message presented in videos.
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• 97% of marketers believe video plays a critical role in enhancing customers' understanding of products and services.

Of course, brands have long understood the power of video, and they are increasingly leveraging it in their automotive marketing and customer care strategies. Now they're gradually including personalized video.

Personalized Video Marketing

Stats show that video on its own is highly effective. Add personalization in the mix, to address the customers' demand for personalization and new experiences, and you have an even more effective type of content - personalized video.

Creating and delivering personalized videos at scale can seem like a lot of work, but in fact, it can be much easier than expected. To find out in detail about what personalized video is and how it works, check out our simplified article that shows what personalized video is.

The key to successful personalized video marketing is to ensure that the data you are using is of high quality, that your messaging brings value to each individual recipient, and that you have the proper consent to be using it.

Car companies, manufacturers, and dealerships are realizing the potential of personalized video content in creating visually appealing and memorable content that adds a layer of personalization to the customer journey and leads to an improved customer experience, more sales, and higher customer satisfaction in the long run.

The Personalized Video Impact

An independent A/B test found that data-driven videos outperform generic videos by a considerable margin, showing 3x higher conversions, a 5x increase in time spent with the brand, and a 7x increase in engagement.

In one of our articles, we’ve shown the psychological impact and benefits of hearing your name in a video and how it influences perception and memory.  But besides using the customer name in a video, when brands get creative with using data points in the content they deliver, personalized videos boost customer retention and sales by a significant margin.

There are many ways you can get creative with personalized video, in fact, we’ve created an article that shows you how you can use personalized video to create tailored customer journeys.

With personalized video, you deepen your relationship with your customers and provide better value and a positive experience with your brand. Remember that 93% of businesses using personalized videos report higher conversion rates. Since 90% of customers find personalization appealing, personalized videos can be a valuable tool for upselling and cross-selling automotive products and services for any company.

How Personalized Video Works

Personalized video marketing works by using specific customer data points, such as name, age, gender, interest, purchase history, and other information, to create video content that speaks directly to the viewer.

Personalized video marketing takes advantage of data-driven insights to customize each video and provide a more tailored experience for each customer.

For instance, an automotive company website might use information about past car purchases and browsing history to recommend additional car products relevant to the customer's interests. Manufacturers can use these insights to provide customer service and grow sales more efficiently. As personalized videos are relatively easy to create, they can be a great complement to the usual marketing campaigns.

Personalized video production follows the same basic process as regular video production, with minor variations in planning and scripting. The primary difference is that personalized videos allow businesses to maximize the potential uses of their video content by allowing them to adapt it to individual customers. If you want to see in detail how personalized video production goes, check out our production guide.

Types of Videos You Can Personalize

The types of videos you can personalize are limited only by your imagination. To help you get started, we've provided some example ideas on the types of videos you can make for the automotive industry.

• Welcome Video: Express gratitude for choosing your dealership and walk your customers through the key features of their new car, fostering customer loyalty and reducing the need for calls to your customer service center.
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• Electric Cars: Thank your eco-conscious customers for choosing electric cars and hybrid vehicles, and provide them with a clear explanation of how these cars operate. Offer insights on nearby charging stations based on your dealership data.
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• Accessory Offers: Enhance the ownership experience by creating personalized video promotions to highlight accessories that align with customers' needs, whether it's a roof rack before the ski season or tow bars ahead of the summer holidays.
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• Tutorial and Support: Simplify vehicle ownership with tutorial and support videos that guide customers through complex features, from configuring dashboard displays to electric vehicle charging. These videos keep customers coming back for more.
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• Car Walkthrough Demos: Make your dealership the most exciting place to buy a car by showcasing what sets your vehicles apart through engaging and personalized walkthrough demos. Highlight unique features and their benefits, helping customers make informed decisions.
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• App Adoption: If you have a mobile app for your dealership or specific cars, encourage customers to explore the app. Use personalized videos to educate them on how to use the app's features and enhance their car ownership experience.

• Scheduled Servicing: Nudge customers to schedule regular vehicle checks and roadworthiness tests after a fixed time interval. Express gratitude for their loyalty and simplify the booking process for their convenience.
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• Insurance Renewals: Facilitate hassle-free car insurance renewals with personalized videos as the customer's coverage nears its expiration date. You can also use personalized video to offer exclusive renewal options at special rates, ensuring a seamless transition for your valued customers.
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• Milestone Celebration: Milestone celebrations make for great personalized video content. From the anniversary of a car purchase to the 50,000th vehicle sold, tailor-made videos provide customers with a feeling of appreciation that strengthens their relationship with the automotive dealer.
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• Brand Loyalty: Data-driven videos can be used to show customers how their vehicle has evolved over the years and how they've helped contribute to the success of the automotive sector or the success of your dealership.

The possibilities for personalizing videos in the automotive industry are vast and varied. Whether it's a welcome video, tutorials, demos, or milestone celebrations, personalized videos enhance customer loyalty, simplify processes, educate, and create a sense of appreciation, ultimately strengthening the relationship between customers and your automotive business.

The Case of Lexus’ Personalized Video Campaign

Lexus's personalized video campaign is an excellent example of how to use this medium to reach your audience of car owners and enthusiasts.

Lexus used existing footage alongside personalized video technology to thank their existing customers, showing their appreciation and fostering brand loyalty. The campaign was a resounding success, demonstrating the power of personalized video marketing in the automotive sector to foster brand loyalty.

The Lexus personalized video campaign had an 84% audience net reach, and it illustrates the tremendous positive impact that this marketing tool can have on consumers, which goes to show that customers will respond positively to personalized experiences.

Key Takeaways

Personalization should be a top priority for any automotive business looking to optimize their car customer journeys. By leveraging data and personalization, automotive businesses can create video content that resonates with customers on a deeply personal level, leading to higher conversions and engagement.

With the possibility of driving up sales, targeting your customers better, expanding your reach, and delivering better results, there’s never been a better time to create your first personalized video campaign.

🚗 Automotive industry's complexity requires innovative customer engagement tools, and video stands out as a powerful medium.

📹 Compelling statistics support video's effectiveness: 82% of internet traffic is video, 92% of marketers are satisfied with video ROI, and 55% of people pay more attention to video.

📊 Data-driven personalization enhances customer satisfaction in the automotive industry, particularly through personalized video marketing.

🚀 Personalized videos create immersive experiences, driving 3x higher conversions, 5x more time spent with brands, and 7x higher engagement.

🏆 The Lexus personalized video campaign showcases the impact of personalized video marketing in fostering brand loyalty and positive customer experiences.

🚀 Personalized video marketing is a potent tool to drive sales, target customers effectively, expand reach, and deliver superior results in the automotive industry.

💰The use of personalized video in customer relationship management can help businesses retain loyal customers, reduce customer churn, and drive revenue growth.

With marketing automation tools, you can create real-time, reliable, and personalized video content that enhances the customer experience and fosters positive relationships.

Personalized videos can help you keep your finger on the pulse of what your customers want. Contact us at SEEN to see how personalized video can work for your automotive business.