FULFILLING THE AMERICAN DREAM
The flexibility of the Omnichannel creates value for car shoppers. CarMax empowers customers to choose how they buy a car, whether that is from home, in-store, or a smooth combination of both. CarMax integrates the Omnichannel experience in store with computers on the sales floor. This allows customers to pickup on any progress made online.
THE PROBLEM
How can CarMax further enhance its Omnichannel offering to meet the needs of its customers? Specifically, how can we help "Dreamers", a racially diverse set of customers who are young, budget-conscious, and tech-savvy.
Dreamer’s enjoy shopping and value adequate financing options for car purchases reporting it as one of the largest pain points
THE OPPORTUNITY
A large portion of credit insecure Americans are considered Dreamers, and research shows that many credit invisible individuals are qualified buyers.
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PERCEPTUAL MAP SHOWS OPPORTUNITY
CarMax holds advantages by having a large number of cars in inventory giving customers a higher chance of finding what they are looking for. Yet compared to competition, it has the potential of providing more financially flexible options.
THE SOLUTION
Dreamers may perceive CarMax as being less financially flexible; by adding another option for customers without credit scores we can prevent a roadblock in the car shopping experience. When clicking on the new option, they will be taken to our new credit-invisible APR calculator product, FICO Score XD which uses alternative ways to measure credit.
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TEST LOCATIONS PROVE PRODUCT VIABILITY
Testing plan will rollout FICO Score XD in cities resembling our target segment.
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Select cities have high immigrant population, so there's a higher likelihood of them being credit invisible
This A/B test will take one year and we will compare the sales in the cities without FICO Score XD to the ones with the offering to test its effectiveness.
PROJECTIONS ARE PROMISING
FICO Score XD will allow a new group of customers to do business with CarMax and will significantly increase sales. NPV and IRR analysis show strong projections for this FICO Score XD project.
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THE AMERICAN DREAM CAMPAIGN
These Google ads have a relatable message especially for immigrants as part of the American Dream is owning a car. This sample Google search depicts how one would find that CarMax offers flexible financing for credit invisible people.
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THE INCLUSIVITY CAMPAIGN
These Hulu ads promote CarMax's values to provide opportunities to grow and help communities grow. This sample commercial depicts how CarMax can serve those who are without credit and work with it instead of around it.
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THE THREE CLICK CAMPAIGN
These Facebook ads show the simplicity of the product promoting CarMax's hassle-free process. This example depicts in three slides how easy car buying can be.
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By incorporating FICO Score XD into Carmax Auto Financing,
CarMax can improve the Dreamers’ experience,
create a more inclusive and hassle-free car buying process,
and increase shareholder value.
