AVIS x B2Metric Success Story
Challenge Overview
Fleet Renewal
Renewal of car rental fleets poses a multifaceted challenge for rental companies. The process involves selling existing vehicles and seamlessly integrating new ones. A challenging part of selling at an optimized price is managing time, costs, and storage challenges efficiently.
The dynamic nature of the Second-Hand Car Market
It's hard for AVIS to find the best selling price in the dynamic used car market, since it keeps changing. Selling at a low price leads to financial losses, and selling at a high rate leads to extra time and storage costs. AVIS needs precision in pricing to navigate this dynamic market effectively.
Challenges with Reselling Partners
Resellers introduce their own challenges, especially preventing fraud. Third-party resellers require meticulous oversight to ensure transactions are transparent, secure, and free from fraudulent activities. This challenge of AVIS adds another layer of complexity to the fleet renewal process.
The Solution: B2Metric Car Market Module
1. Real-time integration of market intelligence
To tackle the dynamic nature of the used car market, we implemented a groundbreaking solution by integrating real-time market intelligence into the AVIS system. Through systematic scanning of new sites selling used cars, Avis gained a comprehensive understanding of market prices. This dynamic data integration empowered Avis to make informed fleet renewal decisions, ensuring optimal pricing strategies.
2. Car Market Module for Comprehensive Insights
We have revolutionized fleet pricing by introducing future price estimations for AVIS through advanced analytics that predict future vehicle price trends. This forward-looking strategy allowed Avis to optimize the pricing of vehicles to be sold, striking the perfect balance between maximizing revenue and minimizing losses. The result was a significant increase in vehicle sales, enhancing the company's overall profitability.
Avis's commitment to staying ahead in the market extended to the introduction of a dedicated Car Market Module. This module listed the current used car market state but also provided valuable insights into market changes. Avis's teams could access a wealth of information, enabling them to make data-driven decisions and stay agile in response to market dynamics.
3. The Anomaly Detection Model for Fraud Prevention
Recognizing the challenges posed by reselling partnerships, Avis has used the B2Metric Anomaly Detection model. This model compared Avis Greece ads with similar ads on the market, identifying any discrepancies that could indicate fraudulent activities. This proactive approach to fraud prevention enhances transaction security and transparency,mitigating risks associated with third-party resellers.
Benefits
50% Increase in Operational Efficiency
Avis improved operational efficiency by implementing optimum sales prices based on real-time market intelligence. Avis embraced a more agile and efficient approach, optimizing its entire operational lifecycle. By streamlined pricing strategies, Avis accelerated operational processes, reducing fleet renewal time by 50%.
80% Efficient Pricing Optimization
With a 95% accuracy rate in predicting car prices, the model was trained on a variety of car models. As a result of its accuracy, Avis was able to make informed decisions, ensuring its pricing strategies were not only optimal, but also reflected the constantly evolving dynamics of the used car market.
30% Increase in Revenue
By using future price estimations and strategic pricing, Avis achieved a substantial 18% increase in revenue from used car sales. By predicting optimum selling prices, Avis maximized the value of each transaction, creating a significant positive impact on the company's bottom line. This increase in revenue proves Avis's innovative pricing strategies.
