Case Study: GM Colombia

General Motors Colombia Drives Customer Loyalty Marketing and ROI to New Heights with Sugar Professional

Business Issue:

As the leading automobile company in the country of Colombia, GENERAL MOTORS COLMOTORES SA (GM Colombia) is committed to providing its customers with the highest quality products and services. GM’s Aftermarket division is focused on driving customer loyalty to increase incremental revenue once the customer has purchased a vehicle. Its focus is on tracking customer behavior to drive targeted campaigns and increase revenue.

As the group began to ramp up efforts to develop strategic loyalty campaigns, it realized the quality and depth of its data was limited. Separation between the “after-sales” team and sales division resulted in a lack of visibility between the two groups. Additionally, because executive level staff maintained data in their own spreadsheets, there was limited access to customer data at the dealership level. Also, access to its central database was difficult, limited and often took a few months to extract information.

Problem

  • Flexibility to manage and provide access to a vast amount of data in a variety of ways.
  • Scalable solution to easily manage massive amounts of data, including 2 million records supporting 350,000 customers, 500,000 vehicles and 1.3 million customer activities.
  • Ability to include customized modules to support customer loyalty campaigns that can generate revenue throughout the dealer network.
  • Able to be implemented as a phased-approach to accommodate transition of outdated, disorganized data.

Solution

GM began its phased-approach with Sugar Community Edition and developed three main modules for vehicles, customers and after-sales interactions. This involved a limited number of key stakeholders and a large volume of data scrubbing. Within just twelve months, GM had organized millions of records. By 2008, GM decided to take its initiative to the next level and upgraded to the advanced features in Sugar Professional.

Benefits

  • Increased marking campaign response from an 0.2 percent to 10 percent.
  • Improved customer retention rates by 34 percent.
  • Gained 60 percent increase in year-on-year incremental revenues over the past 3 years within the aftermarket division.
  • Successfully developed “behavior scoring” system to track each of 350,000 customers to design strategic marketing campaigns around customer purchasing habits and interests.
  • Gained a high level of visibility into customer activities across the organization with Sugar Professional’s advanced features.

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