Driving Pricing Personalization as the Car Industry Evolves
Vauxhall Opel Global Pricing Operations and Strategy Manager Ricardo Rodrigues argues that data is playing a key role as the industry adapts to a generational change in demand for cars
The way people think about car ownership has changed, and data and analytics is helping to create the products and pricing strategies required to meet those changing customer needs.
In this episode of the Business of Data podcast, Vauxhall Opel Global Pricing Operations and Strategy Manager Ricardo Rodrigues outlines how data is driving customer-centric pricing strategies tailored to this new era.
Agility in pricing is key, he says. This is particularly true for younger generations, who increasingly prefer leasing vehicles and using flexible carsharing services over buying cars outright.
“We are now developing several business analytics and BI tools to help with pricing,” Rodrigues says. “Because, as the concept of ownership has changed across the generations, so has pricing.”
He continues: “You need to think about daily and weekly rates and how competitive other brands are, which means that we need a lot of data – a lot of competitor data and a lot of customer data.”
For Rodrigues, access to customer data is at the core of creating hyper-personalized products and experiences online. But he says businesses must be transparent about its use if they are to maintain the willingness of their customers to participate.
“As long as we are transparent, and we are, and the customer sees the added value of that, I think they are willing to share the data,” he says.
Rodrigues’ goal is to provide real-time insights based on the most recent data and market trends available. But his ability to do that relies solid data governance.
“Spend some time on your data governance and make sure that you get the right data for your business needs,” he recommends. “If you achieve that, I would say that 70% or more of your work is done.”
“You can have the best tools in the world,” he concludes. “But if the data is not aligned to your needs then those tools cannot do miracles.”
- Customers expect products that meet their needs. Data and analytics are helping manufacturers adapt to rapidly changing customer demands
- Preserving access to customer data is key. Businesses must use data responsibly to maintain the trust of their customers
- Invest in strong data fundamentals. A focus on sound data governance will help to ensure that data initiatives provide accurate insights