Lexus Digital Marketing Strategy

1. Bill Burris
Next Generation Toyota Advertising Manager
Automotive CRM Summit 2007 formerly Lexus Relationship Marketing Manage
hosted by European Networking Group

2. Discussion points
• Changing media landscape
• Owner-in-market & lead treatment
• Other one-to-one communications
• Wrapup, Q&A

3. Viewpoint 1
• Changing media landscape
• Owner-in-market & lead treatment
• Other one-to-one communications
• Wrapup, Q&A

4. Everybody’s Talking …
• iPhone, Web 2.0, MP3 docks, Second Life, LinkedIn,
MySpace, Wii, Blogs, Mashups, Mobisodes & more
• Time shifters, commercial flippers or just high tech
junkies, America leads a DVR revolution
• In this case study, Lexus saw an opportunity to
merge new and existing technologies
• Small test to prove out theories, gain learning

5. If Content is King, leverage it
• First-ever Interactive DVR advertising
application showcases the 2007 Lexus ES 350
• Enables users to configure a vehicle, request an
email or printed brochure about the vehicle, and
locate a nearby dealer
• Seamless integration with Lexus Dealer Locator
and Lexus Sales Lead Processor web services
“ES Photo Gallery”
“Find a Lexus Dealer”
“Choose the exterior and
interior of your ideal ES 350”

6. Repurposed brochure imagery
• Personalized messaging
• TiVo user’s selected interior
& exterior color
• Dealer contact information
• Capacity to add a credit
preapproval

7. And if you get lucky …

8. Results
• Delivered 5x the normal lead traffic during the
2 weeks the spots ran
• Sales closing ratios were substantially higher
than typical brochure requests
• Absolutely killed my brochure budget

9. Next step: i-Vu
• Chairside beauty salon
touchscreen device
• Perfect for longform video
content
• Solicits purchase interest
• Captures name, address
information for fulfillment

10. Results
• Due to weak initial response, media partner
extended the run free of charge
• Keypad functionality was determined to be a
serious challenge to data collection
• Absolutely saved my brochure budget

11. Next step: back to TiVo

12. RX TiVo Fulfillment Piece
Outside
Inside
Dealer insert (only one
listed)

13. Viewpoint 2
• Changing media landscape
• Owner-in-market & lead treatment
• Other one-to-one communications
• Wrapup, Q&A

14. Lexus owners coming back to
market: Time & behavioral triggers
Predictive modeling that includes:
• Months since previous Lexus purchase
• Life stage
• Financial service triggers
• Online activity prompts

16. OWNER TRIGGER ARCHITECTURE
EARLY OWNER EXPERIENCE SEASONED OWNER EXPERIENCE
First Six Months Time-Based Triggers
Mid-ownership
1.5 Year Post
surprise and
TRIGGER Purchase delight at key
Surprise And
1
TRIGGE TRIGGE Delight point in time
R2 R3 Communication during owner
Bought
Vehicle Owners Site Push to Magazine lifecycle
(RDR) Owners Initial Mailing,
Test 1
Quarterly
In-Market – 3
Mailing Months
•Time based on
Test 2
•in-market
In-Market
•predictive model
Sign on to site
-Capture profile for future activity
Test 3
In-Market + 3
Months
Ongoing Efforts Behavior-Based Triggers
Behavior Trigger
•Based on owner
Request A brochure
action taken on
Lexus.com
LFS Welcome Credit Card Surveys Dealer 1:1 Launch Efforts Owner Site
In-Statement
Comm. Comm. Comm. Behavior Trigger
Build Your Lexus

17. Lead generation to lead incubation
• Dealer processes
• Handraisers
• Owners / Prospects
• Nonresponders

18. Lead generation to lead incubation
How are leads scored?
Handraisers are scored using a 3-dimensional data model:
1. READINESS
How close to purchase?
Visited a dealer?
Financial deadlines (i.e., end of lease)
Behavioral Indications (i.e., quote request)
2. APPROPRIATENESS
Lifestyle matches Lexus profile
Live in dealer PMA
Other Lexus vehicles in household
Occupation
3. WILLINGNESS
1. Is Lexus the preferred brand?
2. Identified a dealer?
3. Considering competitors?
Score is constantly being updated based on consumer responses

19. Lead generation to lead treatment
SEGMENT GOAL DESIRED ACTION
BUYERS Enable transition to dealer by
Will purchase in the next 3 educating consumer about GO TO DEALER
months and are very likely
dealer and encouraging
to purchase a Lexus
contact/visit.
INCUBATORS Foster a relationship over
Ready to purchase in 4-12 time, cultivating consumer GET READY FOR
months and are well suited
to purchase a Lexus towards purchase. DEALER
LONG SHOTS
Not likely to purchase a Convince consumer that INCREASE LIKELIHOOD
Lexus, but some may be Lexus is the right choice. TO VISIT DEALER
converted to Buyer or
Incubator
UNKNOWNS
Consumers who have not ENABLE DEALER TO
provided Lexus with Learn more about the
consumer.
FOCUS TIME ON
enough information to
score “READY” CONSUMERS
RECYCLERS
More than 12 months from Stay in touch over long SEND TO DEALER
purchasing. Lifestyle and period. WHEN TIME IS RIGHT
vehicle history indicates
low likelihood to purchase
a Lexus

20. Repurposed imagery from new model
brochures, print and e-version

21. Viewpoint 3
• Changing media landscape
• Owner-in-market & lead treatment
• Other one-to-one communications
• Wrapup, Q&A

22. Inconsistent brand message?

23. One-to-One Communications
• Dealer focused, dealer funded
• Level 3 advertising integration
• Quantifiable return on investment

24. Each piece unique &
dealer branded

27. One-to-One trends
The Net Promoter metric asks whether or not
your customers will refer the brand to friends
and colleagues, however, we’re after a more
refined advocacy that I’ll define as an irrational
willingness to defend the brand

28. Final Perspective
• Changing media landscape
• Owner-in-market & lead treatment
• Other one-to-one communications
• Wrapup, Q&A

29. Final Perspective
• Media consumption changes rapidly; it’s our
challenge to find out what those changes are!
Leverage technology to improve relevancy.
• An accurate view of each customer allows you
to develop a relationship that leads to extra
sales gross, shorter purchase cycles, advocacy
• Test, test, test. You’ll find incremental
improvements in your communication that
resonate with prospects and customers

30. Questions & Answers
bill_burris@toyota.com