A recreational vehicle manufacturer identified a big growth in demand — and a potential customer market where the company could expand — as Baby Boomers aged and hit the road in retirement. The manufacturer wanted to capture this possible new demand but didn’t know how to identify it, quantify it and segment it by geographic markets.
Additionally, the manufacturer was unsure whether their current dealer network would allow them to capture this opportunity. They wanted to grow sales by acquiring more customers through a broader network of dealers.
The Baby Boomer demographic trend represented a large opportunity for the manufacturer. The RV market is crowded, but this company has a strong, well-known brand that should enable them to capture a significant share of the aging population if they can get their product to the right dealer locations.
They chose to partner with g2o to find answers to their market share questions because of our marketing and customer analytics know-how.
The manufacturer came to us looking for more customers, but through our analysis of data also got recommendations for new dealer locations — and how to use their existing dealers more effectively.
We shared our approach to first segment their current customers to better understand who their potential customers might be. Then, using a national segmentation tool, identify and quantify the untapped potential by market.
Once the manufacturer understood the approach and saw the results, they expanded their use of the insights we provided to include evaluating the performance of current dealers in their network and setting new individualized sales goals for each one.
First, we had a planning workshop with key stakeholders — the CEO, CFO, and key people in sales, marketing, and operations — to understand the operational constraints on the use case and the current data on customers.
Then we segmented their current customer base using Nielsen’s Prizm package and identified 18 segments where the manufacturer’s sales were concentrated. We also studied factors like driving distance that influence sales.
Next, we identified untapped potential in those customer segments by major metropolitan markets and estimated sales for each recommended market to help set strategic goals for dealerships.
When the manufacturer saw the geographic segmentation we produced, they decided to pursue new dealerships in those areas. Their sales leadership asked for additional insights and predictions to use to set goals for existing dealers.
The insights provided helped the manufacturer more strategically engage with their dealers and better forecast their markets — making their customer engagement and sales efforts more efficient as well as helping them identify where to pursue their target demographic.