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NEER INTERACTIVESUNTOUCHED MARKET SEGMENT IN AUTO FINANCE - CUSTOMER EXPERIENCE COEFFICIENT (CEC) GEO SPATIAL INTELLIGENCE:
A KEY PARAMETER FOR DEFAULTER PREDICTION AND UNATTENDED DEMAND ANALYSIS
Automotive industry is one of the very fast moving and growing industry in view of the finance analysts in the current trend. As automobile industry is looking through a very competitive stage, the firms have been equally curious about pushing the vehicles onto the road with a very high target with rational empirical, power coercive methods.
One of the major hurdles faced by these customers and that add delay is mainly because of the lengthy process in the private or public financial institution. While working on this issue, the companies have understood that the customer is losing interest in the mean while for the protocol and sometimes working on other options like buying second hand vehicles, vehicles retailers who are accessible in set scope.
Senior Finance Analysts observation on the data stats reveal that valuation of analytics-enabled-disrupters (aed) is growing multiple times faster versus largest industry players. The image represents the growth in automotive is 15 times faster whereas retail industry is only 3 times fast in the aspect of market cap valuation.
Though the traditional schools of philosophy have addressed the first problem have created room for another problem i.e. creating more and more default customers – people who leave the vehicles in half debt state because of reasons like instable job, going job less, insufficient capacities, etc. The more interesting fact is this information and analytics is not reaching the auto finance heads as dealers are taking hold of them. As a result, huge flocks of these vehicles are entering into the used cars market in a continuous manner.
It is felt that the three patterns of disruption powered by analytics also count on the same idea. The three patterns enlisted are radically lower cost; a step-change improvement in customer experience and new business models combining services. Courtesy: Rasmus Wegner – A partner of Bain & Company’s advanced analytics practice.
Radically Lower Cost:
Because of the changing demand and the emergencies around, it may need a lower cost to win over in the loosing areas. These areas of spatial intelligence may have to evaluated from time to time.
A Step – Change Improvement in Customer experience:
Though customer service is spoke or engraved on high levels, the experience of the customers at a service center is still not addressed to the best. It is more messy in rural and semi-rural entities where the mechanic or manager was not able to explain about the servicing or reasoning for the change of some automotive parts.
New Business Models Combining Services:
Some firms have started working with government and cooperative groups in a turnaround model to reach the customer with a service plan. Services like Lean plans (rent plus lease), maintenance and warranty may have to be more exercised in certain pockets under prescriptive models. Models on insurance for a defaulter may add more interest or value for industries like pharmacy, IT, mechanical engineering stream. This may give a model for secure loaning instead of turning out as a defaulter.
Data Analysts feel that – “If this continues for some more time, it would show a big impact on the brand of the vehicle and also attack the demand for that vehicle, brand in a concentrated slope in a resultant period”. This may show more impact on small and medium size economy cars.
Besides creating a gap in the market, this operational lag is also creating more chance for increasing the customer dropouts and reduce the customer lifetime profit (recurring income). This has also more impact and chance to increase the spending of the companies in customer acquisition and marketing costs.
Defaulter prediction / cluster modelling with geospatial intelligence is helping the firms in this aspect by indicating the past history with respect to their data model. This is also the key in planning the marketing and campaign operations while reducing a considerable cost in marketing. In Rural India, a good number of these customers are also pulled out by the state and central government loans via the caste corporations that are essentially taking a close of 14-15 months period to clear the application and sanction the loan.
The proactive firms at the state level have started tapping this market using spatial intelligence in the extended marketing aspect and work on the unattended clusters of demand in the just above poverty lane and middle class families groups.
Neer Interactives is collaborating with esteemed finance corporations on this idea of helping the automotive firms in the risk analytics and branding while reach out to its end customers while evaluating the customers experience coefficient.
Neer’s Geo AMS (built for Auto fin) observes the movement and dimensions of the pattern in Customers Experience Coefficient (CEC). CEC is a geo spatial coefficient counted on the satisfaction of the customer that is influenced by the experience during purchase process, financing and post-sale. This can give a predictive indicator for the premarketing so that teams of marketing and sales can use this index in their planning and target analysis especially in Marketing Mix and Implementation aspects.
For more information on case studies, please feel free to contact: geoams-enq@neerinteractives.com