Automotive Service Providers Leverage Customer Data

If someone has taken their car to one of your stores for an oil change, they are a good candidate to drive to another of your stores for a car wash. The key is to capture their contact details and then contact them to let them know about other services you offer.

With a database that now includes information on 20 million unique customers, Driven Brands Holdings aims to do just that. The auto collision, maintenance and car wash service provider said it expects its new digital and data strategies to accelerate its growth.

“Digital and data unlocking is happening,” Driven Brands President and CEO Jonathan Fitzpatrick said Wednesday, Feb. 16, during the company’s quarterly earnings call. “Nothing is modeled, but it will absolutely provide an advantage.”

Cross promotion of different brands

Four months earlier, the company had named its first chief digital and data officer. When announcing the addition of Matt Meier to the newly created role in October, Fitzpatrick said Driven Brands data already provides a strategic advantage and the company is looking to derive even more business benefit from it.

During Wednesday’s earnings call, Fitzpatrick outlined three opportunities presented by this digital and data unlock. On the one hand, it will help the company to ensure that it promotes its brands appropriately to different customers who live in the same business area.

“So if you’re a quick lube customer, let’s make sure you’re invited to our car wash, and vice versa, or our other brands,” Fitzpatrick said. “So really, that kind of cross-promotional activity is something that we continue to work against and execute against.”

Create a seamless digital experience

Digital marketing already offers benefits. The company said the maintenance segment, which saw same-store sales growth of 26%, benefited from targeted digital marketing that led to an increase in cars from new and repeat customers in the fourth trimester.

Another element of Digital and Data Unlock is the digital experience, which involves making it as simple and seamless as possible for customers to do business with one or more of the company’s brands.

“So you might think about how we connect our different brand offerings in a market to our customers and make sure that digital experience is seamless and easy to connect with multiple of our brands,” Fitzpatrick said.

Exploitation of the information of approximately 20 million customers

A third opportunity is presented by data. Fitzpatrick said the company’s platform captures information on 900,000 new customers each quarter and now has information on more than 20 million unique customers.

“I don’t think anyone else in our industry has that,” Fitzpatrick said. “So we’ve built this process so, really, it now takes this really solid platform and leverages both digital and cross-promotions.”

With the new initiatives currently in their early stages, the company expects to release the first metrics later this year, Fitzpatrick told analysts on the earnings call.

“We’re saving that for another call later in the year, but we’ll give you a lot more detail on what’s being done and the return profile associated with that,” Fitzpatrick said.



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