Impact Study
Colmobil is one of Israel's leading automotive importers, offering sales, service, parts and finance from 10 showrooms and 59 service centers across the country.
Challenge
The company was offering a new operating lease service for business customers. To set up pricing for the offer, they needed a solution to accurately estimate maintenance and repair costs. This needed to factor in hundreds of models, with thousands of contract variants, predicting expected cost developments over multi-year contracts. Determining optimal prices per customer segment is a complex, multidimensional task, given wide variations in profitability across different departments (e.g. due to additional services), and varying price elasticity between different customer segments.
Solution
Our AI-driven solution applies sophisticated algorithms to analyze usage patterns, customer preferences and historical data across all vehicle types. A robust data pipeline efficiently processes customer contracts and extracts garage claims associated with each car. Costs for parts, repairs and maintenance can then be accurately calculated over various contract duration periods, factoring in warranties and kilometers driven. Cost estimates are grouped into mileage-based buckets, providing customers with transparent pricing options. The solution has enabled an optimal pricing approach per customer segment, based on historic price sensitivity analysis and market positioning insights. In addition, it automatically tracks profit realization and market developments, systematically adjusting price positions based on business targets and strategic priorities.
Outcome
Our comprehensive approach draws on a deep understanding of the automotive sector and AI-driven analytics to automate complex, multidimensional data processes quickly and accurately. Pricing strategies developed for the new operating lease service have driven profit increases of up to 11%. The solution has been applied to wider financial forecasting in the business, resulting in a 4%-11% increase in accuracy.
Impact stats
11%
Profit increase
Effective pricing has allowed Colmobil to maximize sales while protecting margins.
11%
Increased forecast accuracy
Improved cost modelling capabilities enable better strategic decision making across the business.
98%
Of sales contracts rely on AI-based pricing model
Standardized AI-driven tooling drive 98% of sales, leaving exception cases to manual pricing processes.
“Our price optimization solution combines AI-driven cost forecasting, profit predictions and elasticity-based price positioning, with automated adjustment enabling accelerated response to new strategic priorities.
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