DEARBORN, Mich. -

ChannelNet analyzed the usage of its technology by 10 different auto finance companies to determine the six components comprising what the company describes as a best-in-class digital experience.

ChannelNet spent a year combining through the performance of these finance companies that use its omnichannel solution that combines data, content and asset management, personalization, a rules engine and analytics into one platform that clients can use across the life cycle to acquire, cross-sell and retain customers.

The ChannelNet 2016 Auto Finance Digital Experience Benchmark Study leveraged comparisons against Silverpop’s 2015 Email Marketing Metrics Benchmark Study to provide comparable data and categories. Silverpop’s survey examined messages sent by nearly 750 companies and 3,000 brands in 2014, and ChannelNet utilized Silverpop’s industry averages and top quartile percentages in the automotive and financial services verticals as our benchmarks.

What ChannelNet found was all 10 of its auto finance clients exceeded industry benchmarks for unique open rates, click-through-rates and click-to-open rates. ChannelNet reviewed the data for 4 million email-marketing messages sent by these 10 undisclosed auto finance companies from February of last year through February of this year.

So why did those 10 auto finance companies enjoy so much success? The ChannelNet 2016 Auto Finance Digital Experience Benchmark Study pinpointed six reasons.

1. A customer-centric focus instead of a product-focused sales process increases engagement.

Across all 10 operations, ChannelNet noticed the one common factor that boosted every finance company’s click-to-open performance to the top quartile and beyond is the two-step marketing combination of an email or text message partnered with a personal microsite.

The study showed finance companies achieving the highest click-to-open rates and the longest dwell times on the site (average visit is 4 minutes, 37 seconds) are serving customers with personally relevant content about their vehicle, finances and dealer.

“They also provide educational information that relates to a customer’s final step in the vehicle lease journey,” the study said. “Their goal is to remove as much friction as possible from the lease-end process so customer has a great turn-in experience.”

2. One of the keys to increasing customer engagement is coordinating the timing of the messages across the customer life cycle — consideration, purchase, use and retention.

ChannelNet noticed the better job a finance company does with coordinating the message timing and content with the stage of the customer’s vehicle ownership, the better the open rates.

The study determined some finance companies are realizing tremendous open rates of 60 percent or higher — 50 percent higher than the top quartile in the industry benchmark groups.

3. Companies that understand that no one organization or part of the sales channel owns the customer relationship score the highest.

The study mentioned these finance companies provide customers with access to vehicle, dealer, finance and consumer education information all in one place.

4. Emails can be customized by dealer, vehicle, contract duration, location, website behavior, status and many other factors.

ChannelNet learned that sending an email with content specifically selected to meet the needs of the individual results in 29 percent higher unique open rates and 41 percent higher unique click rates.

“The more relevant a message is, the more likely it will be opened,” the study indicated. “Repeatedly sending the same content, even if it is personalized, greatly reduces the open rates.”

5. Responsive design increases clicks-to-open.

The data showed that mobile visits for auto lenders without a mobile optimized responsive design stagnates at about 30 percent.

In contrast, ChannelNet pointed out best-in-class finance companies are logging click-to-open rates of up to 55 percent.

“The data reveals that if a lender does not offer a responsive design, a high percentage of mobile users who click on a link do not read the content,” the study said in which ChannelNet mentioned 46 percent of mobile users immediately leave the website at the login screen compared to 16 percent of desktop users.

6. Finance companies that require customers to log-in to access all content reduce their click-to-open rates.

When access to content that is not personal and private is behind a firewall, ChannelNet noticed the unnecessary login requirement diminishes engagement.

“Best-in-class lenders understand that not all data needs protection,” the study said. “With one click, a customer can see relevant information such as his or her vehicle lease miles, contract end-date or educational information on how to reduce lease-end turn-in fees.”

ChannelNet chief executive officer and founder Paula Tompkins elaborated how finance companies are achieving superior customer engagement metrics,

“For automotive finance companies the delivery channels are pretty common — emails, direct mail and self-service websites,” Tompkins said. “What sets our solutions apart in the marketplace is the combination of data, analytics, content, business rules and personalization.

“This unique combination provides our brands’ customers with relevant content wrapped in a personal appeal delivered at the right moment in time. Our industry-leading approach delivers a huge competitive edge,” she went on to say.

Charts and more data from the ChannelNet 2016 Auto Finance Digital Experience Benchmark Study can be downloaded here.