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Using SAS Analytics, Manheim optimizes dealer relationships


 
  
SAS(r) operations research and forecasting help Manheim increase buyer and seller success.


SAS CARY, NC (Oct. 17, 2011) - Manheim, the world's leading provider of vehicle remarketing services, has expanded its use of SAS Analytics. Adding powerful predictive software for forecasting and operations research from SAS, the leader in business analytics, Manheim is delivering better results to customers and bringing greater efficiencies to its marketing and sales processes.

sports car Manheim handles nearly 10 million vehicles each year, generating volumes of data. SAS integrates and analyzes the company's data and alerts managers to wholesale vehicle price trends and volume patterns so they can take the best marketing actions to maximize cross-business impact. Results came quickly. As one example, when using analytics for customer segmentation, SAS revealed a high-growth opportunity in a customer segment which Manheim now targets.

SAS Analytics support Manheim's industry leading consulting expertise, too. The company's Chief Economist, Tom Webb, relies on analytics to help customers set remarketing strategies for vehicles, such as lease returns. The analytics-based insights that Webb publishes in the Manheim Used Vehicle Value Index are critical to dealers, government agencies, financial analysts and other auto industry leaders. For example, the 2011 Mid-Year Edition showed that the use of auctions is growing. During the first six months of 2011, dealers were stocking fewer units, buying more frequently and using more sources. SAS enabled Manheim to predict that market change and formulate offers that helped them achieve a year-over-year increase in dealer volume.

Forecasting sales volume
In the fast-paced auction environment, SAS forecasting quickly provides the knowledge that managers need to improve business strategies. After predicting auction sales volume and reallocating sales events to the auctions that could most efficiently serve customers, Manheim improved both market retention and market penetration.

Using SAS, Manheim also analyzes industry data to identify and understand factors affecting car pricing and improve the accuracy of its published used-car values. With higher accuracy, everybody wins: Manheim and its customers.

Optimizing sales territories
In a day when many companies still mark off sales territories with a pen on a map, Manheim analyzes customer behavior to define the market. It used SAS operations research software to design its US sales territories, aligning and balancing workload and market potential with an eye on internal efficiencies. Sales staff contributed to the model that assigned Manheim representatives to dealership clients in hundreds of sales territories within the newly formed markets. The territory assignment would have taken two full-time employees a year of manual work, but SAS streamlined the process. Sales representatives reacted positively and dealer sales rose significantly after Manheim's market optimization.

For more information, visit www.sas.com


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