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Inspire 2013 - Listening to Customers through their Data - Ford Motor Company

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Every interaction with a customer is an opportunity to learn, and one way that Ford Motor Company learns about its customers is through the data they collect during every customer transaction. During …

Every interaction with a customer is an opportunity to learn, and one way that Ford Motor Company learns about its customers is through the data they collect during every customer transaction. During this session you will learn how Ford is driving marketing efforts by analyzing massive amounts of data from dealer service records to derive business-friendly data, such as customer locations and service detail information (e.g., tires, oil changes, and body work; warranty vs. retail coverage; day/time of the week; repair order charges). Plus, you will see how Ford was able to overlay the locations of their dealerships, service technicians, and training facilities so they could analyze the impact of classroom location changes on service technicians. By optimizing their training network investment on a regular basis, Ford ensures that their service technicians receive the advanced training they require to stay abreast of the latest automotive technology

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  • 1. Listening to Customersthrough their DataDavid LabergeManager, Representation PlanningFord Motor Company@FordBusiness Leadership trackMarch 6, 20133:15 – 4:00 pm #
  • 2. Ford Motor CompanyWho is Ford in the United States?• 21 Vehicle Models across 2 Divisions• 3,133 Ford Dealers• 932 Lincoln Dealers• 2012 Ford and Lincoln Sales = 2.2 million• 2012 Service Repair Orders = 14.7 million #
  • 3. Ford Motor CompanyWho is Representation Planning?• 4 Senior Planners  Automotive Sales and Marketing Professionals  15-25 Years Experience• 4 Planners  Automotive MIS Professionals  5-25 Years Experience• Responsibilities include:  Network Planning  Performance Measurement  Conveying business and customer data into value-added business knowledge #
  • 4. Dealer Locality Assignment • U.S. Government’s 72,739 Census Tracts • Dealer Location to the Census Tract  Proximity  Accessibility • Localities used in Network Planning, Dealer Performance Measurements, Marketing Efforts, and Internet Leads • Alteryx module completed in 2.5 hours when updating all Dealers with 2010 Census Tract changes #
  • 5. Listening to our Service Customers“Back Story” • 14.7 Million Service Repair Orders in each year 2010-2012 containing  Customer Address  Type of Service  Amount Paid  Vehicle Identification Number  Selling Dealer  Servicing Dealer  Date and Time • Alteryx module completed in 18 seconds for one Dealer #
  • 6. Listening to our Service Customers“Value-Added Business Knowledge” • Saturday Service Analysis where Customers living in a Dealer locality (no Saturday service hours) were getting vehicle service done at other Ford or Lincoln Dealers that were open on Saturday for service • Business decision capability enhanced using factual data • Alteryx module completed in 23 seconds for one Dealer #
  • 7. Listening to our Dealers“Back Story” • New Vehicle Delivery Process – Auto companies compensate dealers to prep a new vehicle before delivery to the customer  3133 Ford – 932 Lincoln Dealers  2.2 million Ford and Lincoln vehicles sold in US (2012) • A defined allotment of time is designated for the entire prep procedure • One requirement is a test-drive at speeds reaching 45 MPH #
  • 8. Listening to our Dealers“Value-Added Business Knowledge”• Dealer Council: “Are we allowing enough time for test drive portion?” Suggested additional 12 minutes per delivery• Alteryx was used to quickly cross-reference road speeds against dealer locations to determine the proximity of adequate roads for the “test drive” portion of the prep procedure• 99% of Dealerships could accomplish in 6 mins, 100% within 12 mins• Cost Avoidance over $30million/yr  Average labor rate of $75/hr  2.2 million vehicles sold in US #
  • 9. Listening to our Technicians“Back Story” • Highly Trained Dealership Technician Network  3133 Ford – 932 Lincoln Dealers  Over 30,000 highly trained technicians perform maintenance, body repair and service  35 Training Centers in the US • Technicians need continuous training and certifications • In 2009, Ford begin a process to right-size our training school network #
  • 10. Listening to our Technicians“Value-Added Business Knowledge” • Goal: Reduce training locations and vehicle fleets; maintain convenience and accessibility for technicians • 30,000 Tech Home Addresses analyzed against Training School Locations • Alteryx performed analysis in 8 minutes Tech Driving Distance Before After Less Than 2 hrs 60.3% 57.7% Less Than 4 hrs 88.7% 88.6% • Overall Results:  45 locations optimized to 35  40% reduction in vehicle fleet  Over $4million in annual savings #
  • 11. Listening to our Sales Customers“Back Story” • New Vehicle Launch Analysis: Where are the opportunity markets for a new vehicle, and where are vehicles being sold by our competitors?  14.5 Million total vehicles sold in 2012 across 30+ brands  1.7 Million vehicles sold in the luxury segments in 2012  88% of luxury sales are located in the top metropolitan areas Source: Automotive News #
  • 12. Listening to our Sales Customers“Value-Added Business Knowledge” • New Vehicle Launch Analysis: Match Lincoln MKZ target areas to opportunities that comprise 1/3 of the luxury market  Potential customers are buyers of the competitive vehicles set  Are Lincoln and the Dealer represented well in the target areas?  Alteryx module completed in 20 minutes for all Lincoln Dealers in the top metropolitan areas #
  • 13. #Thank You!

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