The Intersect
A Digital Publication

The Missing Horsepower of Customer Lifetime Value in the Automotive Industry

Automotive OEMs and dealers often talk about capturing customers for life. They toss around terms like customer lifetime value (CLV), which is the expected lifetime profit from a relationship with a customer.

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Auto Industry Leaders Need to Act Now Against Slowing Sales

It’s a good time to be a car buyer. The hurricane-replacement bump aside, new car sales are softening after seven years of growth since the Great Recession, and dealers are offering the biggest discounts in years. Market conditions are the main culprit, [...]

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The Ancillary Advantage: The Analytical Pathway to Organic Revenue Growth using Behavioral Segmentation

When you buy an airplane ticket, what comes with it? These days, it’s pretty much just a ticket. However, most airlines give you the option to purchase additional items, such as an upgraded seat, Wi-fi, beverages and more. These products and services are [...]

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Random Forests Can Bring Rental Car Pricing Out of the Woods

One of the greatest unknowns which rental car companies currently face, is how to respond to competitor pricing. When renting a car, customers tend to choose among the cheapest options available. This means setting your price above competitors’ prices can [...]

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Car Rental Companies: There’s a Solution to Captivating the Hyper-Informed Customer

Many car rental companies have declining revenues nowadays.  According to Certify, Uber accounted for 43 percent of ground transportation transactions while rental cars dropped from 55 percent to about 40 percent.  Ride-hailing services, with Uber at the [...]

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Organizational Alignment Can Drive Ancillary Bundling Uplift

While companies in the automotive-rental industry receive a substantial portion of their profits from ancillary revenue, there is an opportunity for even greater uplift from dynamic bundling and optimal pricing. But before these companies, or any others, [...]

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Revenue Growth Awaits Rental Companies Who Master Ancillary Selling

Hertz is hurting, but it doesn’t have to.

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Analytics Turbo Charge the Customer Experience

The Finance & Insurance (F&I) department of any major car dealership deals with the on-going problem of trying to sell add-on financing and insurance options after a customer has already agreed to a vehicle purchase price. This can lead to an [...]

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