Over the course of three months, Parker Avery’s analytics team partnered with the client’s analytics and operations teams to optimize their tire warranty pricing across regions, products, and channels.
The engagement utilized Parker Avery’s artificial intelligence (AI) driven demand platform and the firm’s deep retail industry and pricing expertise.
Parker Avery staged, cleansed, and filtered multiple years of transaction-level data, representing several terabytes of information. The team enhanced the client data with external sources before modeling warranty price elasticity across the company's product segments, geographies, and selling channels. External data sources included Covid-19 and macro-economic variables.
Parker Avery’s team designed and conducted a multi-stage field price test that confirmed the benefits of the price changes, both in terms of financial metrics and customer price perception.