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AAUM Research and Analytics Private Limited 01 N, 1st floor IIT Madras Research Park, Kanagam road, Chennai – 600113

Tel +91 44 66469877 | Fax +91 44 66469877 Email: info@aaumanalytics.com | Web www.aaumanalytics.com

Analytics

for

Automotive “after sales”

Jan, 2014

- 2 -

Corporate profile

Founded by IIT Madras alumnus having extensive global business experience with Fortune 100

companies in United States and India having three lines of business

Prof Prakash Sai

Dr. Prakash Sai is professor at the Department of Management Studies, Indian Institute of Technology Madras. He has wealth of international consulting experience in Strategy Formulation

Puneet Gupta

Puneet spearheads the IFMR Mezzanine Finance (Mezz Co.), is strengthening the delivery of financial services to rural households and urban poor by making investments in local financial institutions.

Padma Shri Dr. Ashok Jhunjhunwala

Dr. Ashok Jhunjhunwala is Professor at the Department of Electrical Engineering, Indian Institute of Technology Madras India. He holds a B.Tech degree from IIT, Kanpur, and M.S. and Ph.D degrees from the University of Maine, USA.

Analytics

• Appropriate statistical models

through which clients can measure

and grow their business.

Competitive Intelligence

• Actionable insights to clients for

their business excellence

Livelihood

•Services ranging from promotion of

livelihoods, implementation services,

livelihood & feasibility studies.

Key Focus Areas in Advanced analytics and Predictive analytics

Product – geniSIGHTS (Analytics/BI), Ordo-ab-Chao (Social Media)

More than 25 consulting assignments for Businesses & Govt orgs

Partnership – Actuate, IIT Madras, TIE and 3 strategic partnerships

Dedicated corporate office at IIT Madras Research park since 2009

Aaum’s office, IIT Madras Research Park

- 3 -

Competencies in

Advanced analytics

Build appropriate statistical models through

which clients can measure and grow their

business.

Expertise in

• Digital Media

• Finance/Insurance

• Travel & Logistics

• Retail

• Entertainment

• Human Capital

• Government organizations

• Research & training

Competitive

assessment

Competitive intelligence

Provide actionable insights to clients for

their business excellence.

Expertise in

• Business Entry

• Business Expansion

• Market research

Livelihood

Perform livelihood services ranging from

promotion of livelihoods, implementation

services, livelihood and feasibility studies.

Expertise in

• Government organizations

• Non Government organizations

• Corporate with livelihood focus

• Research

- 4 -

Human

Capital

Lifestyle

Retail

Travel/

Logistics

Insurance

Finance

Digital Media

• Strategic partnership with a major Employee Life-cycle

Management firm to provide actionable insights to their

clients

• Analytics support for a major Television network

• Recommendation Engine for Matrimonial company

• Market Basket Analysis & Loyalty Management – Pilot

case proposed to a major retail player

• Catchment prediction - quantitative model that helps

retailers to identify the vantage site.

• Fare analysis, assigning credit limits, Customer scoring, trend analysis,

etc for largest integrated travel & travel related firm

• Agents analytics, customer engagement, churn analysis, customer

acquisition, dynamic pricing, route optimization for major Ticket booking

company

• Lodging analytics for leading global lodging solutions company

• Predicting Ins claims & forecasting revenues in

healthcare industry for a US based vendor

• Household wealth at Risk deployment for a major

financial institute

• BI & analytical capability for major fin institution.

• Credit scoring to grade & monitor the performance of

SHGs – A product in making

• Geographic Dispersion of Business Risks for a financial

research institute

• Mining sentiments from social media – Movie analysis for

a major Television network

• Campaign and Publisher scoring for a major US based

digital media & content platform firm

Training

Research

Government

Organization

Product

Reports

Cloud

Big data

• Analytics for Business sucess & excellence

• Big data workshops/trainings

• Domain specific geniSIGHTS – version 2

• Retail | Travel | Finance | Digital Media

• Big data analytics and emerging technologies

• Periodic assessment of National Rural Employment

Guarantee Act (NREGA) in partnership with IITM’s

RTBI, as part of Ministry’s network | Poverty indicators

• Election Analytics

• geniSIGHTS - Advanced analytics/BI product that is

Customizable, extensible in cloud and big data

environment,

• Ordo-ab-Chao - State-of-the-art social media analytical

tool to predict the Business sentiments

• Reports in the form of intelligent dashboards

• Business reports in the format you like - doc, ppt, excel,

html, pdf, etc

• Partnership with Actuate for world class reports

• BI dashboard/analytics environment specific to clients

on an EC2 instance hosted at AWS.

• Provision to switch on/off the instance at the click of a

button to save the running costs.

• Hadoop – HDFS, Mapreduce, Hive, Pig, Hbase,

Cloudera

• Efficient ways to handle big data using state-of-art

memory mapping techniques and parallelization

techniques

Our past analytical assignments<Livelihood and Competitive intelligence initiatives not discussed here>

- 5 -

Relevant Solutions

for

Automotive After Sales Market

Analytical Advantage Using Mathematical modeling

- 6 -

AAUM’s capability in analytics stems from expertise to extract insights from data sources with the

ability to develop advanced mathematical models aided by experience in using statistical tools

Data sources

Business

Rules

formulation

Analytical

model development

Analytical Advantage Using Mathematical modeling

Secondary

research

Client Primary

research Census

Research

firms

Statistical Tools

R (Statistical

System)

WEKA (Machine

learning software)

SPSS (Multivariate

Statistical Analysis)

SAS (Data mining,

Statistical, and

Econometric

modeling)

Analytical Advantage

Profiling &

Segmentation

Product

/Process

performance

Product

/process

innovation

Valuation,

Loyalty & life

time

Market Intelligence | Finance | Retail | Telecom | Supply Chain | Consulting

- 7 -

Relevant solutions for Automotive after sales market include

Customer Acquisitions

Customer Segmentation & Loyalty

Customer Satisfaction Index

Performance Analytics

Churn Analytics Campaign Analytics

Forecasting & Inventory Management

Margin Analysis Workforce Analytics

Complaints Analytics

Dynamic Pricing Unstructured Data analysis

- 8 -

Customer Acquisitions

Customer Segmentation & Loyalty

Customer Satisfaction Index

Performance Analytics

Churn Analytics Campaign Analytics

Forecasting & Inventory Management

Margin Analysis Workshop Analytics

Complaints Analytics

Cross selling / Up selling Unstructured Data analysis

Analytical integration will yield significant results!

Relevant solutions for Automotive after sales market include

- 9 -

Customer Acquisitions

Determining the existing customer

acquisition rate

Identifying the qualified leads in the sales

funnel through various techniques such as

AB testing, propensity and uplift modelling

Survey data

- 10 -

Customer Segmentation leading to Loyalty

Customer Segmentation for Budget

Conscious Buyers and Premium Buyers

Customer segmentation using decision tree

Marketing Response Analysis with Gains &

Profit Charts

Customized Offerings to customers from

their needs

Identifying and rewarding long term

customers with special offers

Past business history, Customers' past business track records | Psychographic segmentation variables | Demographic variables

- 11 -

Customer Satisfaction Index

Develop Customer Satisfaction Scores from real time data instead of the

current “one time” approach

Index based on few key questions that could be asked to every customer

who comes in for servicing like:

Was the sales man receptive?

Are you satisfied with the service?

Have we been successful in meeting all your requirements?

How do you rate the service on an overall level?

How do you rate our service compared to other businesses in this industry?

Integrated findings of CSI with RFM, Loyalty, Demographics, etc

Survey data | Transaction data | Customer Profile information

- 12 -

Vehicle Specific

• New car/Pre-owned car

• Engine capacity

• Purchase date

• Fuel type

• (Petrol/Diesel/LPG)

• Kms driven

• Mileage

Service Expectation

• Service initiation attributes • center location, work force etc.

• Service Advisor • courtesy, promptness etc.

• Service Quality • parts availability, use of

certified products etc.

• Vehicle Pickup & Delivery • on time delivery, competitive

• price, vehicle care suggestions

Overall Satisfaction

• Rate the satisfaction level

• Recommend to

friends/relatives

• Come back for service

• Weight based rating

Customer Satisfaction Index (cont ...)

- 13 -

Net Promoter Score (NPS) measures the loyalty that

exists between a service provider and a consumer.

“How likely are you to recommend our service/product

to your friends, relatives and colleagues?”

Net Promoter Score is used to evaluate customer

loyalty to a brand or company

The ability to measure customer loyalty is a more

effective methodology to determine the likelihood that

the customer will buy again

Net Promoter Score

Advantage over CSI

Satisfaction of a customer with a particular service subject to the mood of the customer, environmental factors which in

turn effects CSI.

Net Promoter score can be used to motivate an organization to become more focused on improving products and services

for consumers.

Net Promoter Score correlates with revenue growth.

- 14 -

Performance analytics

In order to better analyze the performance,

one needs to ensure following steps are

followed.

Gathering data

Analyzing data

Presenting information in a meaningful way

Sales data

- 15 -

Churn analytics

Determining the existing churn rate in

business from lifts curves and logistic

regression

Qualifying churn with probability statistic

Identifying customers with high probability

of churn and preventing them from churning

Sales data Customer database for past few years | Demographic records as well as transaction history

- 16 -

Campaign Analytics

Analytics to track key performance metrics,

such as visits, leads, conversion rates, and

return on investments (ROI) on marketing

efforts

Profiling the ideal campaign for the right

customer to attract potential customers

Campaign survey data | Customer transaction data base

- 17 -

Forecasting and Inventory Management

Sales forecasting for optimal management

of showroom inventory to ensure the

business has best inventory mix

Forecasting through techniques such as

Moving Averages, Smoothening, ARIMA,

GARCH, etc

Macroeconomic Data | Industry Data | Company Sales Data

- 18 -

Margin Analysis

Identify the channel partner segments

responsible for various levels of margin,

commission.

Relating to the prisoner’s dilemma problem

Channel partner registration database | Transaction database

- 19 -

Workshop Analytics

Improving maintenance Efficiency by examining the

history of machine breakdowns and obtaining actual

MTBF & MTTR data.

Identifying repetitive failures and finding root causes

Reducing unplanned maintenance related downtime

Detecting patterns and trends in product problems.

Reducing warranty related costs.

Root cause analysis of warranty denials to arrive

appropriate preventive/corrective actions.

Transaction database

- 20 -

Cross selling / up selling

Identification of cross-sell and upsell opportunities

by evaluating and matching customer needs and

means

Examining the customer database through Market

Basket Analysis and Predictive models to reveal

insights on association rules that can maximize sales

force efficiency

Tying Cross Sell / Up sell opportunities with

Customer Segmentation and Loyalty to service the

right offering to the right customer

Historical Transaction Data

- 21 -

Complaints Analytics

Granularly segregating the complaints data on a common taxonomy, based on a standard lexicon of definitions of terminology and types of complaints.

Qualifying the raw data in more granular terms by adding parameters like severity of problem, periodicity of occurrence, type of fault detected etc

Run statistical analysis across parameters and help derive intelligent insights from the data either as predictive models, or as behaviour model or segment the data into intelligent patterns

The system identifies new issues in the field and flags higher-than-normal rate faults and notifies the appropriate analyst to let them know there is a problem that needs investigating.

Customer care complaints database.| Complaints on the products.

- 22 -

Unstructured Data Analysis

Text mining on unstructured data to derive patterns

Integrating text mining analysis with RFM, Loyalty,

Demographics, etc

Survey data | Transaction data |Customer Profile information

- 23 -

Aaum Research and Analytics founded by IIT Madras alumnus brings in

extensive global business experience working with Fortune 100

companies in North America and Asia Pacific. Established at IIT Madras

Research Park with a focus on researching and devising the

sophisticated analytical techniques to solve the pressing business

needs of corporations ranging from travel & logistics, finance,

insurance, HR, Health Care, Entertainment, FMCGs, retail, Telecom.

“Organizations are competing on analytics not just because they can- but because they should…”

01 N, 1st floor IIT Madras Research Park, Kanagam road, Chennai – 600113

+91 44 66469877 +91 44 66469887 +91 44 66469877

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