Establishment Of A Strategic Total Direct Mail Model To Bring Customers Into Auto Dealerships

Abstract

This paper uses statistical science and mathematical programming to develop a strategic Total Direct Mail Model “TDMM” with the aim of bringing more customers into auto dealerships. The core systems used in the model are (1) a customer purchase data analysis system to increase dealer visits, (2) a DM content optimization system to target customer preferences, (3) a system for strategically determining who should be sent direct mail based on who actually visits the dealership, and (4) a DM promotion system for sales staff to increase market share. These four systems are integrated and strategically applied to promote dealer visits. The authors then apply this model at an actual auto dealership, where they are able to successfully increase dealer visits.