The Berylls by AlixPartners Automotive Marketing Benchmark (BAMB) provides an in-depth analysis of the quantity and quality of marketing activities aimed at driving digital sales for international automotive manufacturers. By benchmarking and creating transparency, it helps OEMs to continuously improve their strategies.
For the third consecutive year, Berylls by AlixPartners has analysed data from more than 25 brands, providing insights into budget allocation, marketing performance, and customer experience for 2023.
Key Highlights for 2023
1. Our analysis shows significant improvements in performance KPIs, reflecting enhanced efficiency and effectiveness in marketing:
2. Post-Pandemic Recovery: Automotive manufacturers are recovering from the impacts of the COVID-19 pandemic. The Key Performance Indicators (KPIs) reflect a positive trend, particularly for German manufacturers.
3. Market Changes: European, especially German OEMs are distancing themselves from Chinese competitors, showing a stronger market position and better performance metrics.
Why It Matters
Driving Sales Success: Marketing is increasingly becoming a sales enabler, as evidenced by a strong correlation between website visits, finished configurations, and sales (see Chapter 3).
High Budget Pressure
It’s crucial to understand how budgets are allocated and their impact on performance, including optimising cost per web visit and configuration. This knowledge empowers OEMs to enhance marketing efficiency and drive better returns.
Sales Pressure: Utilize the marketing budget to improve the sales funnel and decrease necessary discounts, thereby maximizing overall profitability.
Comparing yourself to yesterday is one aspect; comparing yourself to your competition is another. However, strive to learn and improve every day!
The BAMB is published in three parts.
Chapter 1: Market Development and OEM Investments
Due to crises, OEMs and consumers are hesitant about non-digital media investments. Despite improvements in sales funnel efficiency and configurator optimisation in 2023, configurator usage declined, while web traffic and sales increased.
Chapter 2: Comparative Spending Analysis
Half of automotive brands distribute their media budgets evenly throughout the year, while the rest significantly increase marketing spending in Q4. Our analysis shows that this Q4 surge doesn’t correlate with increased customer demand, resulting in higher costs without commensurate business growth. Redirecting some Q4 funds to earlier quarters could significantly enhance marketing effectiveness, driving more leads and sales.
Chapter 3: Conversion Rate Optimisation
Conversion rate disparities significantly influence marketing efficiency. While simplifying digital experiences is vital, reducing clicks for vehicle configuration is just a part of it. Timely, relevant customer experiences are crucial for enhancing conversions. Management should prioritise conversion rates as a key performance indicator, ensuring transparency and proactive management across the entire customer journey.
Call to Action
Contact us to discuss your current position and explore how you can improve your budget efficiency and effectiveness. Our benchmark analysis provides valuable insights to guide your marketing strategies and drive digital sales growth.
For more detailed information and personalised advice, feel free to contact us.
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