Cannes Lions

SAAB

MRM WORLDWIDE, Stockholm / GM / 2008

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Overview

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Credits

Overview

Description

Loyalty is a key factor in driving sustainable profitability to every car manufacturer. High loyalty decreases the cost of sales and marketing and creates new revenues from after sales.The purpose of the Saab Customer Loyalty Program is aimed at achieving this through a positive experience of the brand with relevant offerings, great benefits and affirmation of Saab as a preferred brand. The Program targets private owners of Saab with cars no older than 10 years, in total 190,000 in Sweden. In addition 15,000 drivers of company cars are included in the Drivers Club program.

Execution

The Saab Customer Loyalty Program has three different phases: the Delivery Phase, the Ownership Phase and the Retention Phase. The program contains over 30 different activities, covering the whole customer life cycle from purchase, through ownership, to retention. Activities are issued based either on customer behaviour (event) or seasonality (calendar). Examples of event driven activities are a Welcome Package to new customers, Service Reminders every 12 months, and the Retention Program to customers who score high in terms of likelihood to change cars within the next four months. Examples of seasonal activities are launch activities, newsletters and seasonal after-sales offerings.

Outcome

The Saab Customer Loyalty Program has increased the loyalty with + 37.4% in 2007. The result was calculated by comparing the customer loyalty amongst customers who were selected to take part in the Retention Program at the beginning of the year and at year’s end. The repurchase-rate increased from 40.1% to 55.1% or an improvement of 37.4%. The program has also increased the share of conquering customers from other brands with 5% during the year. All numbers was collected and analysed by the data mining company Vroom and based on the National Swedish Car registry.

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