‘When people move, they think about notifying the gas company and the cable company. The last thing they think of doing is notifying the car company.’
That inescapable fact, according to Suzuki Canada National Advertising Manager Mike Kurnik, is one of the main reasons the company is having to work so diligently to update and refresh its national customer database, which he admits had fallen into disarray over the past few years.
The fact is, Suzuki Canada had run a customer retention program in the early 1990s, but a dispute with an important supplier led the company to abandon its efforts. It was only when Suzuki hired Padulo Integrated in May 1996 that the company became convinced it should get its database marketing program off the ground and running once again.
Since then, the manufacturer of value-priced, compact automobiles has instituted a five-year database marketing plan and has made impressive strides in renewing contact with its customers. A number of direct mail promotions, each with parts- or service-oriented offers, have exceeded anticipated response rates.
The success of those mailings has been a bonus, says Kurnik, adding the first year of the program, which concluded this summer, was geared mainly toward cleaning up the company’s database and trying to locate valid addresses and telephone numbers for customers.
‘We hadn’t done anything with our list for about two or three years,’ he explains, ‘so we were basically starting over again.’
The first step began in the summer of ’96, when Padulo created a direct mail package that featured an offer too compelling for almost anyone to pass up: an oil and filter change and a 33-point maintenance inspection for only $9.95.
According to Kurnik, the postal returns on that initial campaign soared as high as 15%, with the most recent mailing in September weighing in at eight per cent. Kurnik says three per cent would be an acceptable return rate.
‘It’s an ongoing process where we have to plug the holes in the bucket before we dump more water in,’ he says.
The company is now making sure that all pertinent data relating to new customers is accurately captured by its dealers when they make a sale. To bolster that effort, the company recently began mailing out thank-you letters from the president of Suzuki Canada to anyone who buys a new vehicle from the company. If the piece is returned by Canada Post, the company can immediately follow up with its dealer to find out what went wrong.
Kurnik allows that it is a difficult task to convince dealers of the importance of grabbing detailed information, such as a customer’s age, sex and occupation, when they sell a new car. He points out, however, that the dealers are quick to come around once they see that promotional mailings actually do bring customers back into their service centres and showrooms.
‘We have to prove to the dealer that what we’re doing really works,’ he says, adding that as Suzuki expands its automotive product line beyond pure entry-level vehicles, it will have a greater opportunity to form longer-lasting relationships with its customers.
‘As we continue to do that,’ he explains, ‘people’s buying patterns will also change. Suzuki is not just that first cheap car to get you through university anymore. It’s evolving and following people through their lifestyle changes.’
Describing Suzuki’s database marketing plan in terms of a decision tree, Kurnik says the next ‘branches’ that have to be dealt with are segmenting the customer base along such obvious lines as truck owner versus car owner, lessee versus buyer, and first-time buyer versus repeat buyer. Later on, he says, the company will look at creating cross-promotions between its automotive and motorcycle divisions, and for products such as all-terrain vehicles and outboard engines.
Kurnik says other program spin-offs could include a ‘Mileage Club’ or longevity club to recognize loyal owners, or even clothing offers or car rallies.
‘Once you get the database tidied up, you can basically do whatever you want… if you’ve got the money,’ he says.
