A US American corporate-owned car dealership chain.
SG Analytics’ client was disappointed with its domestic sales performance and had identified several issues that were subduing its growth potential. Most importantly, high attrition rates in the client’s sales teams paired with inefficient recruiting and training processes prevented the client’s regional sales heads from reacting quickly to changing market environments and consumer trends. The client requested SG Analytics’ expertise to achieve the following strategic business goals:
- Monitor agent performance and identify significant inconsistencies.
- Increase the retention rate for experienced and successful sales agents.
SG Analytics deployed a team of experienced data scientists and industry experts to support the client. The team approached the business problem in four steps:
- Build an agent database using parameters such as sales volume, tenure of service, conversion rates for high-value customers, and persistence index.
- Create clusters of agent performances using the centroid-based method and hierarchical clustering on portfolio and regional levels.
- Leverage descriptive statistical techniques including ANOVA, chi-squared test of independence, etc. to identify relevant characteristics for reporting.
- Develop a model using supervised learning techniques such as Random Forest, SVM, Neural Nets and Discriminant Analysis.
SG Analytics created a dashboard that provided an almost real-time view into the client’s sales performance. The dashboard’s granularity was flexible and allowed the management to monitor and compare the performance of different sales teams and agents.
- The client used SG Analytics’ dashboard to identify performance inconsistencies and react to slowdowns on aggregate and individual levels.
- The client increased the retention rate for successful sales agents by leveraging the dashboard’s timely insights and implementing an effective incentive program.