What Are Four Types of Behavioral Segmentation for the Automotive Industry?

What Are Four Types of Behavioral Segmentation for the Automotive Industry?

For automotive professionals, navigating the industry today is like steering through a high-speed racetrack. Gone are the simple days of just selling cars. Now, we’re in an era where understanding our customers and their behaviors is the real key to success.

The automotive industry accounts for 5.3 percent of ad spend in America, but still the age-old question remains: How do marketers get their messages in front of consumers in a cost-efficient way?

To get started, just ask a similar question: What are the types of behavioral segmentation my audience will relate to? We give you four campaigns to get you started.

RELATED: Segmentation Unleashed: Enhancing Customer Engagement in Salesforce Marketing Cloud

Purchase Behavior: Delving into Consumer Motivations

The automotive purchase journey isn’t uniform for all. It’s a mosaic of diverse consumer motivations, each with its unique set of aspirations and requirements. Pay close attention to what consumers are purchasing and use this to your advantage.

Example: Notice a segment of first-time car buyers? The focus should be on messaging with a reputation for reliability and cost-effectiveness. On the other hand, for luxury aficionados, it’s prudent to emphasize state-of-the-art features, coupling them with the brand’s illustrious heritage.

Occasion & Timing: Synchronizing with Life’s Milestones

The second type of behavioral segmentation requires event-based personalization. The need to buy a vehicle often aligns with significant life events, so recognizing these pivotal moments can be instrumental in positioning the right vehicle to the right audience at the right time.

Example: Young professionals fresh out of college might be swayed by affordable, chic models. For growing families, however, a vehicle’s spaciousness and safety credentials take precedence.

Brand Loyalty: Beyond the Emblem

The allure of a car often transcends its mechanics. It’s an emblem of memories, traditions, and, for some, a tangible connection to one’s roots. Tapping into this deep-seated emotional bond by identifying highly engaged customers is crucial for fostering and nurturing brand loyalty.

Example: Loyalists could be treated to exclusive previews of upcoming models or be entitled to loyalty-centric benefits such as a free oil change at the same dealership they made their purchase.

Location, Location, Location: Ensure Relevancy

Consumers in higher density areas may live near multiple dealerships. How do you promote the correct one, and how do you get it to stand out from competing brands? Combining location with the aforementioned personalization opportunities creates attractive messaging designed to get consumers to their most relevant dealer.

Example: Combining location with behavioral data (e.g., search history on the website or previous email engagement) determines which nearby dealership has the most relevant offerings to this individual. So, a person in Atlanta, GA, showing a continued interest in mid-size SUVs will be directed to a location that has the most variety in this car type.

What are four types of behavioral segmentation in DESelect?

Each of these behavioral segmentation types are available in DESelect Segment. Here’s a breakdown of why automotive companies are such fans of the solution.

  • Personalize customer experiences with tailored messages and promotions to specific customer segments, enhancing engagement and driving higher conversion rates.
  • Optimize sales funnels by identifying high-potential leads, nurturing prospects with personalized content, and maximizing the impact of marketing efforts throughout the customer journey.
  • Increase customer devotion with customized loyalty programs and targeted retention campaigns to encourage repeat purchases at different dealership locations.
  • Differentiate dealers’ and manufacturers’ campaigns by targeting consumers (B2C) or dealers (B2B) with personalized campaigns for each audience segment.

With a keen focus on behavioral insights, automotive brands have the unique opportunity to not just accompany consumers on their journey but to also predict the challenges and twists that lie ahead. In crafting campaigns with this depth of understanding, the connection forged is more profound, leaving a lasting impression that goes beyond a mere transaction.

Read the story of how Motorpoint is able to create advanced segmentations with DESelect Segment, including the ones listed above.

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