Speeding to Profitability

THE RESULTS

GOAL: 52,000 total units
ACTUAL: 60,000+ total TLX sales in Year One.

And more than half of these sales had a direct analytical correlation to our collective strategic efforts.

THE CHALLENGE

Acura North America was charged with the following edict: sunset your two largest selling domestic vehicle—the popular Acura TL and the sporty Acura TSX—and introduce a single car to replace them both.

The new Acura TLX was designed to pull buyers from both cohorts and, ultimately, supercede sales of both
models combined… a heady order.

Sales would have to total more than 50,000 units in Year one post launch.

THE STRATEGY

Typically, new auto launches start with a media blitz involving hundreds of millions of impressions and persuading potential “buyers” to consider the new car.

We took a more targeted approach.
With a robust customer file, Acura had the tools but not the approach.

We audited the customer file to understand that 50% of all Acura buyers have purchased an Acura in the past—the highest of any of the primary luxury auto brands (Lexus, Infiniti, Mercedes, BMW)
By isolating these potential buyers, we then extrapolated the time lag between auto purchasing in aggregate. Meaning, Acura buyers were “in market” approximately every 2.8 years.
Further, lifestage affinity analysis told us how measures of liquidity allowed us to target those most willing to buy at certain financial inflection points (child college, empty nest, typical age for 401k liquidation)

Our current customers would account for the lion’s share of sales in Year One… but knowing the who wasn’t enough.

THE WIN

Our analysis told us we had at least 50% of our sales total within our current customer base.

Further, we knew we could conquest only 12% from other luxury brands (lowest in industry) as Acura in perceived as an entry level luxury brand.

Finally, we knew that mass market brand conquest would be key (Acura has highest in industry).

Media campaigns, CRM outreach and social campaigns were designed to get “butts in seats—test drives converted to sales in nearly 70% of instances.

Digital conversion sat at the cornerstone of engagement.

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