David Goldschmidt
Ann Arbor, MI (USA)
Role(s):
Founder/Owner/Principal
Buycentives
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Startup
Location:
Ann Arbor
Industry:
Internet
Year Founded:
2009
Number Employees:
1-10 people
Description:
The Problem:
Auto companies spend $30 billion on rebates every year (more than $2,500 per vehicle) and are struggling to optimize a broken consumer sales incentive process. The primary problem is inefficiency - one size fits none. With the today’s reactive, static rebates, some car buyers get more than is needed to make a sale, sacrificing margin. For others, the rebate amount isn’t enough and they buy a competitor’s model, resulting in a lost sale and costly excess inventory. While the Internet has changed car shopping significantly, it hasn’t changed the way incentives are developed or deployed.
The Solution:
Our One-To-One Conversion Tool to instantly offer a data-driven, individualized incentive that matches a shopper’s price sensitivity. Buycentives is building a sophisticated probability model that uses customer and car company data to instantly deliver a time-sensitive, personal rebate certificate (a Buycentive) to online shoppers. Buycentive certificates are redeemed at any dealership at the time of purchase. Buycentives are the right incentive for the right customer at the right time for the right vehicle. Delivering rebates directly to shoppers also keeps costly and brand-eroding incentive messages out of mass media. Utilizing a pay-for-performance (CPS) pricing model, Buycentives aligns interests and reduces trial risk.