Zipcar

Zipcar is the world’s largest car sharing service. By making vehicles available for rent by the hour or day, Zipcar offers a compelling alternative to traditional car rental or ownership. Zipcar members pay in monthly or annual membership fees, which allows them to rent cars on demand.

 
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As with any subscription-based business, customer loyalty is key to lower acquisition costs. Zipcar wanted to develop a lifecycle marketing program that would boost product adoption – the key driver of customer loyalty – and increase client lifetime value. But first, they needed to make sense of the data they’ve collected over the years to build out their strategy.

Challenge

To target new club members strategically, Zipcar wanted to understand each and every client, why they joined, how much they paid for their membership, and how exactly they used the service. After revamping their internal datastore and syncing it with Selligent, Zipcar’s team was able to visualize all customer information and easily tap into behavioral insights. 

Zipcar team found that consistency was more important to customer lifetime value than car reservation volume: Zipcar’s loyal members not only booked cars more often – even when taking shorter rides – but they also were more likely to reserve different types of cars depending on the trip type. Zipcar also discovered that members who took their first trip for local errands were more likely to be consistent drivers than those who made other types of trips such as weekend destinations. And the strongest Zipcar members would typically make their second reservation within 90 days of the first one.

Armed with these insights, Zipcar developed a campaign to reduce the time between the first and second reservations, increase awareness of vehicle options, and encourage more consistent reservations using dynamic messages based on the type of trips a member took. 

Campaign Features

With Selligent’s audience-generation tools, Zipcar segmented their user base into three groups: Business, University Students, and General Consumers.

Next, Zipcar used Selligent’s pre-built templates, dynamic content, and cadence management tools to develop a testing plan to determine the right message and frequency to encourage members in each group to move from their first trip to the second one. 

Zipcar also automated their re-engagement message,which is now triggered whenever a member reduces his or her driving frequency. 

All communications featured dynamic content based on the customer segment; they also incorporated cross-sell messages to introduce members to new products and services. 

Evaluation

By making their data more accessible and actionable with Selligent, Zipcar was able to identify very specific consumer behavior that was directly associated with increased customer lifetime value and revenue lift. They were then able to test their hypothesis on a marketing program specifically designed to inspire the desired behavior, such as shortening the time between reservations to form stronger habits. 

Results

The campaign increased the number of registrations by 8% and the distance being driven by 11%. Zipcar also saw a 7% lift in second reservations, leading to increased customer lifetime value and overall revenue.

Case Passport

  • Industry: Transportation
  • Services: Car rental
  • Region: North America, Europe

Key Insights

  • 8% increase in the number of car reservations
  • 1% increase in the distance being driven
  • 7% lift in second reservations