Lexus Digital Marketing Strategy

Bill BurrisToyota Advertising Manager

formerly Lexus Relationship Marketing ManageNext Generation

Automotive CRM Summit 2007hosted by European Networking Group

Discussion points

• Changing media landscape• Owner-in-market & lead treatment• Other one-to-one communications• Wrapup, Q&A

Viewpoint 1

• Changing media landscape• Owner-in-market & lead treatment• Other one-to-one communications• Wrapup, Q&A

Everybody’s Talking …

• iPhone, Web 2.0, MP3 docks, Second Life, LinkedIn, MySpace, Wii, Blogs, Mashups, Mobisodes & more

• Time shifters, commercial flippers or just high tech junkies, America leads a DVR revolution

• In this case study, Lexus saw an opportunity to merge new and existing technologies

• Small test to prove out theories, gain learning

If Content is King, leverage it

• First-ever Interactive DVR advertising application showcases the 2007 Lexus ES 350

• Enables users to configure a vehicle, request an email or printed brochure about the vehicle, and locate a nearby dealer

• Seamless integration with Lexus Dealer Locator and Lexus Sales Lead Processor web services

“ES Photo Gallery”“Find a Lexus Dealer”

“Choose the exterior andinterior of your ideal ES 350”

Repurposed brochure imagery• Personalized messaging

• TiVo user’s selected interior & exterior color

• Dealer contact information

• Capacity to add a credit preapproval

And if you get lucky …

Results

• Delivered 5x the normal lead traffic during the 2 weeks the spots ran

• Sales closing ratios were substantially higher than typical brochure requests

• Absolutely killed my brochure budget

Next step: i-Vu

• Chairside beauty salon touchscreen device

• Perfect for longform video content

• Solicits purchase interest

• Captures name, address information for fulfillment

Results

• Due to weak initial response, media partner extended the run free of charge

• Keypad functionality was determined to be a serious challenge to data collection

• Absolutely saved my brochure budget

Next step: back to TiVo

RX TiVo Fulfillment PieceOutside

Inside

Dealer insert (only one listed)

Viewpoint 2

• Changing media landscape• Owner-in-market & lead treatment• Other one-to-one communications• Wrapup, Q&A

Lexus owners coming back to market: Time & behavioral triggers

Predictive modeling that includes:

• Months since previous Lexus purchase

• Life stage

• Financial service triggers

• Online activity prompts

BoughtVehicle(RDR)

Owners Site Push to Owners

MagazineInitial Mailing,QuarterlyMailing

TRIGGER 1

Sign on to site-Capture profile for future activity

TRIGGER 2

TRIGGER 3

LFS Welcome Credit Card Comm. Surveys Dealer 1:1 Launch Efforts Owner Site

Comm.In-Statement

Comm.

•Based on owner action taken on Lexus.com

1.5 Year Post Purchase Surprise And Delight Communication

OWNER TRIGGER ARCHITECTURE

Test 2In-Market

Test 1In-Market – 3

Months

Test 3In-Market + 3

Months

Behavior Trigger

Request A brochure

Behavior Trigger

Build Your Lexus

•Time based on •in-market

•predictive model

Mid-ownership surprise and delight at key point in time during owner lifecycle

Time-Based Triggers

Behavior-Based TriggersOngoing Efforts

First Six Months

EARLY OWNER EXPERIENCE SEASONED OWNER EXPERIENCE

Lead generation to lead incubation

• Dealer processes

• Handraisers

• Owners / Prospects

• Nonresponders

Handraisers are scored using a 3-dimensional data model:

1. READINESSHow close to purchase?Visited a dealer?Financial deadlines (i.e., end of lease)Behavioral Indications (i.e., quote request)

2. APPROPRIATENESSLifestyle matches Lexus profileLive in dealer PMAOther Lexus vehicles in householdOccupation

3. WILLINGNESS1. Is Lexus the preferred brand?2. Identified a dealer?3. Considering competitors?

Score is constantly being updated based on consumer responses

How are leads scored?

Lead generation to lead incubation

BUYERSWill purchase in the next 3 months and are very likely

to purchase a Lexus

INCUBATORSReady to purchase in 4-12 months and are well suited

to purchase a Lexus

LONG SHOTSNot likely to purchase a Lexus, but some may be

converted to Buyer or Incubator

UNKNOWNSConsumers who have not

provided Lexus with enough information to

score

RECYCLERSMore than 12 months from purchasing. Lifestyle and vehicle history indicates

low likelihood to purchase a Lexus

GOAL DESIRED ACTION

Enable transition to dealer by educating consumer about dealer and encouraging contact/visit.

Foster a relationship over time, cultivating consumer towards purchase.

Convince consumer that Lexus is the right choice.

Learn more about the consumer.

Stay in touch over long period.

GO TO DEALER

GET READY FOR DEALER

INCREASE LIKELIHOOD TO VISIT DEALER

ENABLE DEALER TO FOCUS TIME ON

“READY” CONSUMERS

SEND TO DEALER WHEN TIME IS RIGHT

SEGMENT

Lead generation to lead treatment

Repurposed imagery from new model brochures, print and e-version

Viewpoint 3

• Changing media landscape• Owner-in-market & lead treatment• Other one-to-one communications• Wrapup, Q&A

Inconsistent brand message?

One-to-One Communications

• Dealer focused, dealer funded

• Level 3 advertising integration

• Quantifiable return on investment

Each piece unique &dealer branded

The Net Promoter metric asks whether or not your customers will refer the brand to friends and colleagues, however, we’re after a more refined advocacy that I’ll define as an irrational willingness to defend the brand

One-to-One trends

Final Perspective

• Changing media landscape• Owner-in-market & lead treatment• Other one-to-one communications• Wrapup, Q&A

• Media consumption changes rapidly; it’s our challenge to find out what those changes are! Leverage technology to improve relevancy.

• An accurate view of each customer allows you to develop a relationship that leads to extra sales gross, shorter purchase cycles, advocacy

• Test, test, test. You’ll find incremental improvements in your communication that resonate with prospects and customers

Final Perspective

Questions & Answersbill_burris@toyota.com