$1 billion in financing…let’s go! What a great program to provide stimulus to the US automotive market. OEMS, dealerships and agencies know that this program can be a great opportunity to get drivers into their showrooms. But, the question is: How do they know which consumers to target with marketing materials about Cash for Clunkers?
Here at Polk, I’m part of a team that came up with a predictive model to help our clients determine who to target. First, we determine the households that are likely to own a vehicle that qualifies for the Cash for Clunkers program. But, just knowing who owns a clunker isn’t enough. We also take into account whether consumers can afford the payment on a new car or truck – with or without incentives. Thus, clients can send extra incentive dollars to those who truly need it and avoid sending them to those who don’t.
Finally, the Cash for Clunkers predictive model helps clients avoid wasting marketing dollars on consumers who own a clunker, but aren’t likely to participate in the program. Some consumers aren’t good prospects because they can’t afford a new vehicle, while others tend to buy high-end vehicles with price points beyond the program specifications.
Cash for Clunkers has potential for dealers that act quickly to get consumers into their showrooms to trade in their clunkers…before the money allotted by the government for this program runs out. The timeframe for this program will be short, and dealers need to spend their marketing dollars wisely. Therefore, use of a predictive model to identify the most likely Cash for Clunkers candidates will help dealers and OEMs maximize their marketing ROI.
Posted by Laura Murray, Product Manager, Polk (07.28.2009)
Here at Polk, I’m part of a team that came up with a predictive model to help our clients determine who to target. First, we determine the households that are likely to own a vehicle that qualifies for the Cash for Clunkers program. But, just knowing who owns a clunker isn’t enough. We also take into account whether consumers can afford the payment on a new car or truck – with or without incentives. Thus, clients can send extra incentive dollars to those who truly need it and avoid sending them to those who don’t.
Finally, the Cash for Clunkers predictive model helps clients avoid wasting marketing dollars on consumers who own a clunker, but aren’t likely to participate in the program. Some consumers aren’t good prospects because they can’t afford a new vehicle, while others tend to buy high-end vehicles with price points beyond the program specifications.
Cash for Clunkers has potential for dealers that act quickly to get consumers into their showrooms to trade in their clunkers…before the money allotted by the government for this program runs out. The timeframe for this program will be short, and dealers need to spend their marketing dollars wisely. Therefore, use of a predictive model to identify the most likely Cash for Clunkers candidates will help dealers and OEMs maximize their marketing ROI.
Posted by Laura Murray, Product Manager, Polk (07.28.2009)
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