AUTOMOTIVE OEMs

AUTOMOTIVE OEMINDUSTRY PERSPECTIVE

While SAAR might be down some, the overall numbers say the auto industry is solid. But it certainly doesn’t feel like it to you. Around your halls you hear the concerns: Squeezed profits on sales. Rising gas prices after you doubled down on larger vehicles. Pressure on the parts and after-market teams to make up some of the lost ground. Focus on marketing to demonstrate better ROI. We need to go electric! We need to find subscription dollars! We need to innovate! The ideas and initiatives are flying around faster than your organization can keep up. Finding sustainable sources of revenue and margin is the name of the game. What if some of that revenue and profitability was sitting there right in front of you, ready to be grabbed? What if all it took was applying some new lenses and tools to your data to unlock new profits? What if scientific pricing, artificial-intelligence decision tools and predictive analytics could drive new revenue? It’s all more than possible.

WHAT'S YOUR PAIN POINT?

Automotive OEMs Value Proposition

Production Scheduling – Models, Packages, Options

You’ve been in business a long time, but never has the industry felt so uncertain. It’s harder than ever to predict which model lines will grow, and which will decline. Which consumers will react favorably to the way you plan to price the new array of designs and technologies and options? Where will models or options win? We can help. As leaders in building sophisticated decision engines, we can help you identify the trends, opportunities and segment markets to win the model mix, options and distribution game to win in the uncertain marketplace of the future.

Pricing and Sales Management

There is little doubt that well-designed and marketing promotions and incentives work in the automotive industry. But do you feel like you have these nailed? Have you fallen into a bit of a rut – “It’s summer, so it’s time to run our summer sales event?” Maybe there are better alternatives. Knowing the right lever to pull will put you ahead of the competition. How powerful would it be to know the right MSRP, forecast demand and offer the right incentives and offers at the right time -- and even understand how they might cannibalizing other model lines? Let us help you unlock new sources of value and drive strong ROI.

Marketing and Advertising

Marketing is feeling the pressure to both generate results and, as importantly, prove that it is generating results. Even with all the new ways to measure and report, getting those proof points can be elusive on many marketing campaigns. This further muddies the water when it comes to spend optimization. What exactly is the right mix for our company with our strategy? What will drive my customer to my vehicle? Only clear insights about your company, customers and investments can answer that. Clear insights combined with Artificial Intelligence like where to increase investment, where to decrease investment and how to optimize promotional spend. Our marketing mix modeling and optimization expertise can help reduce risk and help you design allocations that prove that marketing is delivering as it should.

Inventory Distribution

With SAAR settling into new patterns after a few strong years, it’s time to rethink your inventory allocation and get your channel mix optimized. Through a mix of analytical approaches such as demand forecasting, segmentation, price sensitivity / elasticity detection, we can help you determine the optimal channel mix. Knowing what inventory to flow into retail (by geography), fleet and government channels can drive immediate financial benefit and bottom-line results. Layering on well-defined price tiers will further enhance decision-making and profitability.

Parts Pricing

It’s a much more transparent world, isn’t it? It used to be that somebody would have to work awful hard to comparison shop automotive parts prices. Common wisdom held that there was little price sensitivity in auto parts. These days price and product comparison is easier than ever for both professionals and consumers – and the pressure on prices is downward. And yet, your management wants even better performance out of the parts and service organization. It’s time to take pricing to the next, scientific level. It’s time to get more comfortable with variable-margin pricing that delivers profit dollars. Our deep expertise in data and Revenue Management informs our expertise in determining optimized prices – by product, by segment, by geography. Is cost-plus pricing, national pricing, lack of know-how or tools holding you back from finding and exploiting market differences and changes that can drive significant value. Working with your needs, we can begin the journey to parts pricing optimization with a diagnostic to demonstrate the “art of the possible” and end it where you need it, up to and including a cloud-based, artificial-intelligence optimization engine that adjusts and feeds prices into your systems. Our analytical approach works to identify opportunities in inventory mix optimization, lifecycle management, bundling / upselling, price tiering, segmentation and elasticity.

After-Warranty Goodwill

Your company spends millions, maybe hundreds of millions, on after-warranty claims in hope of generating customer goodwill and loyalty. Do you know if it is working? Are your service reps or making consistent decisions based on data and analytics, or does the squeaky wheel get the oil? Our after-warranty goodwill solution helps you make optimal decisions. Using segmentation and customer lifetime value calculations, we help you decide who to cover, who to deny, and how investments are paying off over time. Using artificial intelligence, our decision engine gets smarter over time, providing even better predictive and prescriptive analytics that improve ROI. The system also has management tools to build analyses and reports that inform the organization about performance. Prior to building a solution for you, we can conduct a “health check” that assesses your after-warrant performance over time and identifies best practices and determines if you would benefit from an optimized system.

WARRANTY FRAUD

Upwards of 15% of warranty costs are estimated to be fraudulent*. Fraud can take several forms: misuse by a consumer portrayed as a part failure; a lesser service billed as a more significant service; parts claimed in repair not actually replaced; non-OEM parts used, but OEM parts listed as part of the claim; wholly fabricated claims (using real VINs). How can you identify fraud? By using advanced analytics to identify suspicious trends or events, as well as alerts. Certain trends can be triggers – dealers with consistently higher claims or part replacements than segmented peers, for example. A Revenue Analytics warranty detection tool could have tremendous ROI in helping preserve warranty budgets for their intended purpose: helping customers with legitimate needs. 

*Source: “Warranty Fraud Management” by Matti Kurvinen, Ilkka Toyryla, and D. N. Prabhakar Murthy

LOYALTY

It’s all about the experience these days. Invest in a world-class experience, take out detracting steps from the customer journey and keep customers engaged. This is all wise and true. But are all customers the same? How do you know which ones are worth extra investment? How can you determine which are likely to be loyal and which will not be (and might need extra enticement)? How can you get smarter over time at zeroing in on customers likely to stay loyal? We offer a suite of analytical components and methodologies that can help you focus where you need to focus: on the right customers.

HELP ME BUILD A BUSINESS CASE FOR CHANGE

Change is hard, but it doesn’t have to be, but we can make it easy for you. After all, if your product (or service) has a price, you can use Revenue Management. That said, we bring deep industry expertise, and can help you solve for the unknowns. Click the button below to ignite change within your organization.

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