Oh! It is 6PM. Got to get back home.
Clicks on Uber App -> Book the ride -> Off to take a ride.
How easy is booking the ride! Everyday there are new features, there are new statistics rolled out for user’s ease. How is data helping the car rental industry today? Take a read.
Traditional Model Vs Analytics:
Car rental companies’ strategy has been changing throughout due to the wild competition in the market. Everyone needs a good ROI to their investment. Traditional methods of keeping a count of the fleet, transactions and dates are becoming a burden and the process is dying day by day.
Car rental companies are looking for innovative solutions to make money. Who isn’t!
Let’s take Careem as an example. Have you ever noticed that two people travelling the same route, distance and time are charged differently? The algorithm which runs behind considers the customer data, demands, local events etc. as their factors to generate the dynamic pricing.
Dynamic pricing has been a winning strategy until now in this area as the customer pays based on at the moment cost. About 78% of the customers are satisfied and avail the car rental services in day-to-day life assuming that the car rentals offer promotions and is a good bargain.
Being Customer Focused:
Enabling customer satisfaction and Retention has become easier today with respect to traditional methods. Using sentimental analysis on the feedback and reviews given by the customer and the chauffeurs has increased the chance of understanding the behavior of the customer-
- How many times does the customer take the cab in a week?
- Does the customer utilize car rental services when there are promotions applied during the weekend more than the weekdays?
- Does the customer take short trips or long trips?
- How many customers use shared pool cab during the office hours?
Innovative solution- usage per minute model:
Have you observed the car rental companies are innovating ideas like ekar, Udrive etc who provide usage per minute services. You can pick the car parked right next to your home and drive away. The charges reflect based on the number of minutes and distance you drive with additional metrics like the cost of the fuel, the traffic timings recorded etc. Again, dynamic pricing to the rescue!
The data derived out of such systems are fed into analytical dashboards to understand how to make the lives of the customers better in turn recording more of ROI for the car rental company itself.
Behavior and patterns:
The car rental companies are using the business intelligence tools for various reasons. Few of them are the following:
- Analyzing vehicle usages.
- Identifying the patterns on single/multi location turnovers.
- Rental agreements and bookings inventory management
- Sold rental days vs unsold rental days- identifying the reasons.
- Slice and dice information based on location, categories, type of models or reservations.
Some of the examples on the insight analysis using the above-mentioned business intelligence model, giving a behavior pattern on the customers:
- Customer owns the license but not a car.
- Customer takes public transport. When a rental car is parked nearby, customer uses this as an opportunity to reach the destination sooner.
- Customer avails the car rental service from their office and /or home.
Basically, once you have data generating in your system, don’t let it sit. Every record is connected to one another and that’s how the data answers your questions. Utilize the data to understand the patterns and trends. Identifying them will not only enable a better decision making but also generating insights which you never might have thought of. Book an expert in data analytics. Login to www.pangaeax.com and get your data working for you!