In a recent Quarterly Business Review with a pump-manufacturing customer of ours, the customer success team discussed the fact that one of their best selling parts had a much higher consumption rate in Louisiana than most other parts of the continental United States. Our team was wondering why there was such an anomaly. The customer explained that it was because the water in Louisiana is more brackish than in other parts of the country resulting in faster wear on the product.
For those of us at Entytle who don’t have a prior manufacturing background, that was a very important lesson. Every customer is different. Their equipment usage patterns are different, the wear-and-tear is different and therefore, their parts and services needs are very different.
One Size Doesn’t Fit All
When we pitch the Entytle Insyghts application to manufacturers, the single most frequently asked question is: Why can’t I just run reports? What manufacturers are asking is how Entytle’s data science driven Installed Base growth software differs from their BI system. The answer comes down to just one truism about the Aftermarket, and that is that every customer is different.
[clickToTweet tweet=”When it comes to Aftermarket sales, every customer is different.” quote=”When it comes to Aftermarket sales, every customer is different.” theme=”style1″]
Aftermarket practitioners all know this instinctively. Yet they tend to clump thousands upon thousands of their customers into broad, meaningless segments. Most likely, it’s because their expensive BI systems are only capable of producing crude averages for vanity metrics like mean times between failures. Unfortunately, BI’s one-size-fits-all approach is limited, and frankly, just doesn’t work. Like we said before, every customer is different.
With Data science on the other hand, we use sophisticated data science techniques like cohort analysis (amongst many others) to group similar customers together to compare and contrast behaviors within a cohort. We then calibrate this against every customer’s past behavior at each location. This then results in predictions that are completely tailored for every customer – down to the last zip-code. With a tailored approach like this, Entytle’s opportunities and insights drive high conversation rates and translate directly into increased topline for the Aftermarket.