Automotive Capabilities - Marketelligent

Confidential & Proprietary Information www.marketelligent.
com
MARKETELLIGENT
YOUR PARTNER IN LEVERAGING THE POWER OF ANALYTICS

JUNE 2014
Confidential & Proprietary Information www.marketelligent.com
2
We bring Analytics with Business Sense
Starts with a focus on
the business problem
and the impact of
analytics
Leadership & project
teams with extensive
business experience
Leadership team with over 100 years of collective hands-on business experience
Roy - CEO, managed the Chocolates and Confectionary business at Nestle
Anunay - Head of Analytics, set up Citigroups global analytics delivery center
Greg - EVP Sales, held multiple senior roles at Dell and Capital One
MBAs with business experience providing domain expertise
Clients love the result
Analytics with
Business Sense
We deliver tangible analysis and outputs that are actionable in your business
Real value for your analytics investment Fair pricing, powerful insights
Over 90% of current revenues from repeat customers
Global track record of customer delight
Partnered with leading clients across the globe US, UK, Middle East, SE Asia and India
The starting point is ensuring a clear view of the business issue you need to solve for
We then develop an analytic approach to help understand and solve the problem
Expertise across functions - sales, marketing, CRM, supply chain, risk, etc.
Capabilities ranging from sophisticated predictive modeling, to strategic consulting, to
reporting & analysis for improving business efficiency

We offer services from dashboards to predictive models
3
Strategic reporting
and dashboards
Business analysis
and Consulting
Simulators & Tools
Analytics capabilities for a
sustained competitive
advantage
Reports and dashboards
which help companies
track and improve KPIs
- 13% increase in income
for a Fortune 500 US
Food distributor
- 14% increase in
reporting efficiency for a
US$20b publishing co.
Continuous analytics
support to answer key
business questions
- Top reason code for
engine failures for a
automobile manufacturer
- 30% reduction in stock
outs for a Fortune 100
snacks and beverage
company
Simulators and tools for
business managers to do
What-if analysis
- 16% increase in media
yield for a large
petroleum giant
- OOMF tool for
evaluating launch
scenarios for a Fortune
100 pharma company
Predictive models
Sophisticated predictive
models using advanced
statistical techniques
- $18MM increase in
trade in revenue for the
worlds largest car
manufacturer in Kuwait
- 35% reduction in
marketing expense for
an automobile company

-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1
-M
a
y-1
1
3
-M
a
y-1
1
5
-M
a
y-1
1
7
-M
a
y-1
1
9
-M
a
y-1
1
1
1
-M
a
y-1
1
1
3
-M
a
y-1
1
1
5
-M
a
y-1
1
1
7
-M
a
y-1
1
1
9
-M
a
y-1
1
2
1
-M
a
y-1
1
2
3
-M
a
y-1
1
2
5
-M
a
y-1
1
2
7
-M
a
y-1
1
2
9
-M
a
y-1
1
3
1
-M
a
y-1
1
2
-J u
n
-1
1
4
-J u
n
-1
1
6
-J u
n
-1
1
8
-J u
n
-1
1
1
0
-J u
n
-1
1
1
2
-J u
n
-1
1
1
4
-J u
n
-1
1
1
6
-J u
n
-1
1
1
8
-J u
n
-1
1
2
0
-J u
n
-1
1
2
2
-J u
n
-1
1
2
4
-J u
n
-1
1
2
6
-J u
n
-1
1
2
8
-J u
n
-1
1
3
0
-J u
n
-1
1
D
a
i l y
R
e
t
u
r
n
s
Actuals
Forecast
C
u
m
u
l
a
t
i
v
e

D
e
f
a
u
l
t

R
a
t
e

Score deciles
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 1 2 3 4 5 6 7 8 9 10
Random
New Model
Existing Model
4
We work with the best companies across the world
Large US Bank
and Insurance co.
Second largest analytics partner. 30+ member team delivering
projects across sales, marketing, supply chain and Digital analytics

10+ member team delivering strategic planning support

8+ member team providing strategic marketing support

10 member team, including onsite support, for modelling and
strategic reporting
5
Jukebox - our unified analytics offering
Where is my data?
available information
Collating &
transforming data into
a unified analytical
database
What is happening?
accessible information
Executive and
operational reporting,
with drill-downs and
intuitive visualization
What should happen?
effective information
Predictive analytics,
forecasting &
optimization to impact
revenues & expenses
What is the impact?
actionable information
In-market business
strategies with
continuous test-and-
learn capabilities

JUKEBOX
1
2 3
4
6
Marketelligent jukebox information management
Customer
service data
Transaction
data
CRM data
Billing data
Analytical
Database
Contact history Customer status
Customer profile
Customer usage Payment behavior
Campaign
management
Customer value Loyalty behavior
Illustrative
Demographics, firmographics
Channel, reason,
frequency, in-bound
and out-bound,
customer service
Enrollment,
earn and
burn
Channel, method,
on-time,
delinquency
Transactions
frequency and
value, other
products
Actual,
lifetime,
potential
value
Tenure, dormancy, status
Promotions, response, test vs. control
MRP data
Transaction systems
7
Leadership team experienced in managing businesses
and delivering analytics solutions
Over 12 years of international experience in analytics and consumer finance
Set up offshore analytics capability for Citigroup. managed $145B portfolio for Citigroup US cards
Extensive experience in analytics, advanced modeling and predictive techniques
Anunay Gupta, PhD, COO & Head of Analytics MBA - NYU Stern School of Business, B Tech - IIT Delhi
Over 8 years of experience within the CPG industry
Part of the analytics practice in WNS, leading analytic initiatives for top fortune 50 clients globally
Extensive experience in what drives consumer purchase behavior, pricing & promotion analytics, etc.
Kakul Paul, Head of CPG MBA - IIM Ahmedabad, B Tech - IT BHU
Over 20 years of experience in global marketing, strategic planning, business development and analytics at Dell,
capital one and AT&T
Focused on identifying the right analytical solution and engagement model for Businesses
Greg Ferdinand, EVP, Business Development USA MBA NYU Stern School of Business
Roy Cherian, CEO MBA - IIM Ahmedabad, B Tech - CET
Over 20 years experience in marketing, advertising and media industry
Headed marketing services, marketing operations and the chocolate and confectionary business of Nestle India
Did pioneering work in media and marketing mix optimization
8
Global industry leaders as board of advisors
Founded and headed the decision management group at Citi
Designed, aligned and executed business analytic and information initiatives for the franchise globally.
Marketing director, and risk managing director Citi cards core market segments
Marcia Tal Formerly Executive Vice President, Citigroup
Founded Parsec Technologies, Parsec loans and whowhere Inc, one of the early and big dot com success story
Founder and coach at aravalli scholars, a social venture to help students from the economically weaker section
Conferred the prestigious Significant contribution to national development Award by IIT Delhi alumni association
Prabhat Agarwal Successful Entrepreneur
Co-authored the book Marketing management with Philip Kotler.
Visiting faculty in several prestigious international management institutes
Consults and serves on the board for several prestigious companies
Prof. Abraham Koshy Head of Marketing Department, IIM Ahmedabad
Carlo Donati Formerly Executive Board Member, Nestle SA
Executive vice president and member of the global executive board of Nestle SA
CEO of Nestle Waters
Chairman and managing director Nestle South Asia
9
Proven ability to deliver off-shore analytics solutions for
clients across the world
Risk Models: for
leading US consumer
finance company
CRM analytics: for a
Dubai-based
Investment house
Sales and market
share reporting: for a
leading alcobev
manufacturer
Automated MIS: for
the largest Indian
private sector Bank
Continuous
replenishment
System: for a leading
salty snacks company
Sales potential
realization: for a
global technology
giant
Customer value
score: for a
leading auto-
dealership
Predictive analytics:
for a company into on-
line content delivery
Marketing mix
models: for a global
cosmetic company
Cards Collection
Strategy & MIS: for a
Middle East bank
Marketing
analytics: for
Online classifieds
Analytics support:
for a fortune 100 IT
giant
Credit Card analytics:
for a mid sized bank
Headquarters
Offices
10

Delivery
manager

Business
user
Business
user
Analyst
Analyst
Analyst
Core team
Marketelligent
sponsor
Flexible multi-disciplinary team
Off-shore
Business
user
Client sponsor
Client
Analytics
manager
Marketelligent
Engagement /
On-site Manager
Flexible and fast
Can scale-up and scale-down rapidly depending on requirement
Access to a multi-disciplinary team with specialized skill sets on a need basis
Leverage time zone difference for critical overnight delivery
Knowledge build-up
Seamless integration with client team with clear communication protocols
Core team ensures knowledge stays within and can be transferred at ease
Cost efficient
Direct savings from the off-shore delivery model
Savings due to flexible team structure
Data confidentiality
Secured FTP servers used for data transfers between onsite and offsite data sources
Employee access to client data is tightly controlled and closely monitored as per company
guidelines in line with International data security standards
We offer a seamless and flexible engagement structure
11
Automotive : Case Studies
12
Problem definition:
The Client, a leading automotive dealer, wanted to
implement a customer & vehicle level analytics
based trade-in strategy.
Objective was to model the propensity to trade-in
and predict the customer preferred new car model.
Analytical framework:
Create a Trade-In segment, using the old vehicle age, model,
service behavior, mileage etc. along with customer demo-
graphics, to predict customer propensity for a trade-in.
Use affinity analysis at different customer dimensions to identify
the car, a customer is most likely to buy in lieu of the trade-in
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
%

o
f

C
u
s
t
o
m
e
r
s

w
h
o

T
r
a
d
e
d
-
I
n

% Customers
High Medium Low
Average Trade-In %: 2.14%
CustomerID
Vehicle
ID
Trade-In
Segment
Current
Model
New Car
1
New Car
2
New Car
3
C10001 V12345 High CAMRY RAV4 AURION AVALON
C10001 V32456 Low IMV SEQUOIA IMV L.CRUISER
C10002 V12765 High LEXUS FJ HILUX LEXUS
C10003 V34265 Medium L.CRUISER SEQUOIA FJ L.CRUISER
C1005 V39865 Medium PRADO SEQUOIA FJ HILUX
Trade-In Response Model performance & Illustrative Output

Auto trade-in response modeling resulted in incremental
sales of $18MM
YT
Results:
Specific business actions based on model insights, incentivized up-sell of 20% of medium-value customers to high-value
resulting in incremental revenue of $18MM.
13

Problem definition:

A leading automotive dealer was losing market share
YOY for past several years
Project objectives:
Understand customer behavior
Increase profitability
Prevent attrition
Analyze customer purchase behavior across key
dimensions: Recency, Frequency, Monetary value,
Tenure, Car model, Car servicing & demographic etc.
Develop customer profiles by segmenting into 7 groups
Entrants, Service Regulars, Trend Setters, Elite,
Classic, Passive and Corporate & Fleet
Build RFM & T models by segments to score profitability
and loyalty, and align marketing strategies
C-Score % Customers Tenure
Car Price
(KWD)
Service Spends
(KWD)
Frequency
Recency
(Years)
1 2% 6.1 2,473 21 0.1 4.4
2 11% 8.2 5,107 162 1.1 3.0
3 11% 7.7 6,782 279 1.9 3.0
4 12% 6.5 7,733 394 2.5 3.0
5 15% 6.6 8,793 428 3.1 2.9
6 14% 7.1 9,642 515 3.2 2.7
7 13% 7.5 10,465 634 3.2 2.6
8 10% 7.7 10,976 792 3.7 2.0
9 9% 9.2 11,273 1,300 4.2 1.8
10 2% 11.3 11,425 2,180 4.5 0.1
High
Value
Low
Value

Targeted marketing led to 3% YOY increase in market share
YT
Results:
Targeted marketing campaigns led to a 3% YOY increase in market share, reversing prior trends.
14
Client, a major auto seller,
acquired customers through
multiple channels.
Project objective was to
maximize sales through
cross-sell/up-sell of
additional products to
existing client porfolio
Problem definition:
Data Preparation
Customer
Segmentation
Propensity
Model
Campaign
Design &
Measurement
Analyze
customer
purchase activity
for the last 2
years.
Identify customer
segments based on
demographics,
using clustering
techniques like K-
means,
hierarchical etc.
Determine
likelihood of
purchasing a
product based on
recent customer
purchase history
Score prospects and
use insights to design
new campaigns
Evaluates the sales lift
among test customers
against control

Targeting right segments for Cross-Sell increased sales
revenue by 17%

Response model was built which assigned each prospect a response score between 1 & 10
Targeting prospects with a score between 1&5 improved the sales by 17% and reduced marketing expenses by 35%
Results:
15
Problem definition:
Client, a leading automotive dealer, wanted
to identify most valuable segments of his
customer base and direct marketing
campaigns to grow profitable customer
segments.

Develop a individual customer level value score, C-Score, to capture
in one number the importance of a specific Customer to the Business.
Generate C-scores ranging from 1 to 10 based on six dimensions
recency, frequency, monetary value of service, customer tenure,
brand owned, and number of vehicles owned.
C - Score
Recency
of service
Frequency
of service
Monetary
Value of
service
Tenure of
Customer
Payment
Channel
Different
number of
Products
purchased
20% 40% 60% 80% 100%

Insights from customer level C-scores increased sales
revenues by 14%

Specific business recommendations were developed based on C-score of High/Medium/Low
Targeted sales and marketing efforts based on individual C-scores resulted in increase of sales by 14% while facilitating
reduction in marketing expenses by 35%
Results:
16
0%
5%
10%
15%
20%
25%
1 2 3 4 5 6 7 8 9 10
%

L
e
a
d
s

w
h
o

p
u
r
c
h
a
s
e
d

a

C
a
r
Predictive Model Deciles; Each decile has 10% of Leads
Hot Leads Warm Leads Cold Leads
Random; 10.9% leads bought a new car
Predictive Model
Problem definition:
US based automotive OEM received over 30,000 leads every
month from various lead aggregator internet sites
Individual leads came with limited information name,
address, email, time frame of purchase, etc.
Client wanted to classify leads into Hot, Warm or Cold; based
on the lead purchase propensity in the next 30 days
Developed a predictive model to classify
incoming leads into prospect customer groups
Hot, Warm and Cold
Implemented the model in a real-time system to
score Hot leads and route them to the
appropriate dealership
Results:
Hot leads had an auto purchase rate of 19%; almost twice that of an average lead.
After 3 months of using the lead rating system, auto sales went up by 12% across dealerships.

Prioritizing of Hot leads resulted in sales increase of 12%
17
Thank you
17
For more information, please contact us at:
info@marketelligent.com
www.marketelligent.com

London, UK
Sandeep Sachdeva
Partner, Business Development
sandeep.sachdeva@marketelligent.com
+ 44 7767 004491

Austin, USA
Greg Ferdinand
EVP, Business Development
greg.ferdinand@marketelligent.com
+1 512 944 0490

Bangalore, India
Anunay Gupta, PhD
COO & Head of Analytics
anunay.gupta@marketelligent.com
+91 99452 81888

Automotive Capabilities - Marketelligent

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Automotive Capabilities - Marketelligent

Uploaded by

Copyright:

Available Formats

Confidential & Proprietary Information www.marketelligent.

You might also like