5% Increase in Marketing Campaign Sales Leveraging AI Customer Segmentation

Project Background

A leading global automotive manufacturer engaged Adastra to enhance their understanding of customer and potential customer demographics and behavior through advanced analytics and artificial intelligence (AI). The client, positioned among the top 10 automotive manufacturers worldwide, sought to precisely identify high-value personas for their products, using data from their connected cars.

The objective was to leverage data-driven insights for tailoring marketing strategies effectively, ensuring these strategies were accessible and actionable for management and key decision-makers.

The imperative was for these insights to be grounded in robust data analysis and presented in a format conducive to strategic decision-making. This initiative was aimed at refining the client’s marketing campaigns by integrating a comprehensive understanding of customer segments.

Solution

Adastra proposed a comprehensive solution, integrating the client’s sales, telemetry, and ECU data with extensive sociodemographic information to construct a sophisticated clustering model. This model effectively categorized customers into distinct groups based on shared characteristics, facilitating nuanced market segmentation. The segments were meticulously detailed and made accessible through an intuitive Tableau dashboard.

This solution was deployed on the AWS Cloud, chosen for its superior flexibility, scalability, resilience, and cost-efficiency. The entire process was automated—from data ingestion and analysis through to visualization— with outputs seamlessly integrated into the Tableau dashboard. Infrastructure management was streamlined through Terraform IaC (Infrastructure as Code), enabling efficient, one-click deployments.

The solution allows our client to create detailed personas that include multiple parameters. Users can segment beyond standard metrics like spend per month and products bought, and incorporate information such as demographic data, household consumption, route frequency, where the user likes to travel, which cellphone provider they use, and more. The client now has a comprehensive 360° view of their customers and prospects.

This allows the client’s team to test complex personas, gleaning untapped insights through the availability of connected car data, expert data modeling and AI services and the targeted visualizations.

Impacts and Benefits

The segmentation insights further informed the development of a predictive model designed to pinpoint high-potential customers within the market. These identified segments were then prioritized in the client’s marketing initiatives, resulting in a notable 5% increase in conversion rates among the targeted high-potential customer group.

Adastra’s tailored solution delivered significant advantages to the client, enabling them to:

• Accurately segment the market in alignment with specific business needs, moving beyond generic segmentation models.
• Gain a 360° view of their customers, driven by connected car data
• Maintain data security, ensuring sensitive information remains confidential and protected.
• Monitor market dynamics in real-time, adapting strategies swiftly to changes.
• Gain actionable, data-driven insights for informed decision-making across management and marketing teams.

Additionally, the AI-driven model for identifying high-value customers provided:

• Essential insights to refine and personalize marketing campaigns, thereby enhancing their effectiveness and ROI.

Through Adastra’s strategic solution, the client not only achieved enhanced market segmentation but also capitalized on the identification of high-potential customers, setting a new standard in targeted marketing strategies within the automotive sector.