New Wheels

Quarterly Business Report

Vignesha M
15-October-2023
Table of Contents

• Introduction

• Objective

• Business Overview

• Customer Metrics

• Revenue Metrics

• Shipping Metrics

• Overall Observations

• Insights and Recommendations

Introductions

• Global desire for vehicle ownership: Many aspire to own a car for the freedom it provides.

• Growing preference for pre-owned vehicles: People opt for affordability, but after-sales

service is a concern.

• Introducing New-Wheels: A vehicle resale company with an all-in-one app.

• End-to-end service: New-Wheels handles everything from listing to shipping.

• Focus on after-sales feedback: The app captures and values customer feedback.
Objective

• New-Wheels experienced steady sales decline over the past year.

• Critical online customer feedback led to a drop in new customers each quarter.

• CEO seeks a quarterly report with key metrics to assess business health.

• Report will guide crucial decisions for business recovery and growth.
Business Overview

Total Revenue Total Orders Total Customers Average Rating

$124,713,086.32 1,000 994 3.066

Last Qtr Revenue Last Qtr Orders Avg Days to Ship % Good Feedback

$23,346,779.63 199 105 days 20.71%

Customer Metrics
Distribution of Customers across States

Fig 1: Distribution of Customers across States

Distribution of Customers across States

Observations
State Customer Distribution: The data reveals that California and Texas have the highest
customer counts, each accounting for approximately 9.76% of the total customer base. This
suggests a significant customer presence in these states, making them key markets for the
business.

Relatively Uniform Distribution: Several states, including Colorado, Ohio, and Alabama, have a
similar number of customers and percentages. This indicates a relatively uniform distribution of
customers across these states, which could be strategically valuable for market expansion and
resource allocation.

Market Potential in Smaller States: States like Vermont, Wyoming, and Maine have a lower
number of customers, which is expected due to their smaller populations. However, they
represent an opportunity for the business to potentially increase its market share and reach in
these regions with targeted marketing efforts
Average Customer Ratings by Quarter

Fig 2: Average ratings given by Customer in each quarters

Average Customer Ratings by Quarter

Observations
Quarterly Average Ratings Decline: The data shows a noticeable declining trend in the average
ratings over the quarters. Quarter 1 has the highest average rating of 3.5548, while Quarter 4 has
the lowest average rating of 2.397. This suggests a possible decrease in customer satisfaction or
product quality as the year progresses.

Quarter 4 Shows a Significant Drop: Quarter 4 stands out with a sharp decline in the average
rating, dropping below 2.5. This could indicate that issues or challenges are more pronounced in
the final quarter, which might require attention and improvement.

Monitoring and Improvement Needed: The decreasing trend in average ratings highlights the
importance of continuous monitoring and improvement in product quality, customer service, or
other factors affecting customer satisfaction. Strategies to address issues and maintain or
increase customer satisfaction should be considered.
Trend of Customer Satisfaction

Fig 3: Trend of Customer Satisfaction

Trend of Customer Satisfaction

Observations

Quarterly Variation in Feedback: Feedback distribution varies across quarters, with different
proportions of feedback categories (Bad, Good, Okay, Very Bad, Very Good) in each quarter.

Variation in Very Bad Feedback: The percentage of "Very Bad" feedback varies across quarters.
It is highest in Quarter 4 (30.6533%) and lowest in Quarter 1 (10.9677%). The fluctuation in "Very
Bad" feedback may require an investigation into what factors are contributing to such negative
feedback and addressing these issues.

Changes in Customer Sentiment: Fluctuations in customer sentiment over the quarters indicate
the dynamic nature of customer experiences. It's essential to monitor these changes to maintain
or enhance customer satisfaction and product/service quality.
Top Vehicle makers preferred by customers

Fig 4: Customers preference of top vehicle makers

Top Vehicle makers preferred by customers

Observations
Chevrolet Leads in Customer Count: Chevrolet has the highest customer count among the
listed car brands, with 83 customers. This suggests that Chevrolet vehicles have a strong
presence and popularity among customers. The brand's marketing, product offerings, or customer
loyalty programs may be contributing to this higher customer count.

Competing Brands with Similar Counts: Ford, Toyota, Dodge, and Pontiac all have customer
counts of 50 or more, indicating a significant customer base for each of these brands. While
Chevrolet leads, the fact that several other brands have a similar number of customers suggests
a competitive landscape in the automotive industry, with multiple brands vying for customer
attention.

Market Insights and Targeting: This data provides valuable insights into customer preferences
and market share for various car brands. Businesses can use this information to tailor marketing
strategies, product development, and customer engagement efforts. For example, brands with
lower customer counts may use this data to identify growth opportunities or areas for
improvement to attract more customers.
Most preferred vehicle make in each state

Fig 5: Preferred vehicle make in each state

Most preferred vehicle make in each state

Observations
Regional Brand Preferences: The data reveals regional variations in preferred car brands.
Different states show a strong affinity for specific car manufacturers. For example, Toyota is
preferred in Florida, New York, and Mississippi, while Chevrolet is favored in Alaska, Arkansas,
and California.

Diverse Brand Choices: Customers in different states have a diverse range of brand
preferences, including luxury brands like Cadillac in Arizona and Hawaii, and niche choices like
Ferrari in Oklahoma.

Marketing and Market Segmentation: Understanding these regional preferences is essential for
car manufacturers and dealerships. It helps in tailoring marketing strategies, stocking inventory,
and providing the right models to meet the demands of each state.

Knowing the most preferred brand in each state provides valuable insights into consumer
behavior and can inform decisions related to dealership locations, advertising, and inventory
management.
Revenue Metrics
Trend of purchases by Quarter

Fig 6: Trend of Purchase by Quarter

Trend of purchases by Quarter

Observations

Seasonal Order Patterns: There is a clear seasonal pattern in the number of orders, with
Quarter 1 having the highest number of orders (310), followed by a consistent decline in orders in
subsequent quarters (Q2, Q3, and Q4). This suggests that businesses should be prepared for
increased demand in Quarter 1.

Year-End Decline: There is a noticeable drop in the number of orders from Quarter 3 to Quarter
4, with Quarter 4 having the lowest order count (199). This year-end decline could be influenced
by factors such as holidays, budget considerations, or changing customer behavior.

Planning and Strategy: Understanding these seasonal fluctuations is essential for businesses to
plan their inventory, marketing, and resource allocation effectively. Analyzing the reasons behind
the decline in later quarters can inform strategies to maintain or increase order volume throughout
the year.
Quarter on Quarter % change in Revenue

Fig 7: Trend of Purchase by Quarter

Quarter on Quarter % change in Revenue

Observations
Revenue Decline Across Quarters: The data indicates a consistent decline in total revenue as
the year progresses. Quarter 1 starts with a total revenue of $39,421,580.16, but there's a
significant drop in each subsequent quarter. Quarter 4, with total revenue of $23,346,779.63,
experiences the most substantial decline, with a QoQ percentage change of -20.13%.

Quarterly Revenue Comparisons: The QoQ percentage change provides insights into the
relative performance of each quarter compared to the previous one. Quarter 2 shows a decline of
-17.01% compared to Quarter 1, and Quarter 3 has a further -10.66% decline compared to
Quarter 2.

Impact on Business Planning: This declining trend in revenue suggests that the business
should carefully consider its strategies for revenue generation, cost management, and resource
allocation. Businesses might need to focus on increasing revenue in the latter quarters or
implement strategies to mitigate the decline. Understanding the reasons behind the revenue
fluctuations is crucial for making informed decisions.
Trend of Revenue and Orders by Quarter

Fig 8: Trend of Revenue and Orders by Quarter

Trend of Revenue and Orders by Quarter

Observations

Correlation Between Revenue and Orders: There's a clear correlation between the number of
orders and total revenue. In Quarter 1, with 310 orders, the total revenue is the highest at
$39,421,580.16. As the number of orders decreases in subsequent quarters, total revenue also
declines. This suggests that revenue is closely tied to the number of orders.

Revenue Decline Over Quarters: The data highlights a consistent decline in total revenue over
the course of the year. Quarter 4 has the lowest total revenue at $23,346,779.63, representing a
significant decrease from Quarter 1. This decline may be attributed to seasonality or changing
customer behavior.

Business Strategy Implications: Understanding the relationship between orders and revenue
can inform business strategies. To maintain or increase revenue, businesses should focus on
strategies to boost the number of orders. This might involve marketing efforts, product offerings,
or customer engagement to stimulate sales.
Shipping Metrics
Average discount offered by Credit Card type

Fig 9: Trend of Revenue and Orders by Quarter

Average discount offered by Credit Card type

Observations
Variability in Average Discounts: There is a range of average discounts associated with
different credit card types. Maestro has the highest average discount at 0.624219, while Diners
Club International has the lowest average discount at 0.584.

Opportunities for Marketing and Loyalty Programs: The data highlights opportunities for
businesses to tailor marketing strategies and loyalty programs based on credit card preferences.
Offering discounts or benefits that align with the credit card preferences of customers can be an
effective way to attract and retain customers.

Understanding Customer Behavior: Different credit card users may have varying spending
habits and preferences. Analyzing these differences can help businesses gain insights into
customer behavior and tailor their offerings to match customer needs and expectations.

Competitive Landscape: The range of average discounts suggests a competitive landscape

where various credit card providers may offer different incentives to attract customers. This
competition can influence customer choices and spending behavior.
Time taken to ship orders by Quarter

Fig 10: Time taken to ship orders by Quarter

Time taken to ship orders by Quarter

Observations
Shipping Time Increase Over Quarters: The data reveals a significant increase in average
shipping time as the year progresses. In Quarter 1, the average shipping time is 57.17 days, but it
steadily rises to 71.11 days in Quarter 2, 117.76 days in Quarter 3, and 174.10 days in Quarter 4.

Seasonal and Year-End Variations: The rising trend in shipping time may be influenced by
seasonality, year-end factors, or operational challenges. For example, Quarter 4 experiences the
highest shipping time, which may be related to increased demand during the holiday season.

Operational and Customer Service Implications: Understanding the fluctuation in shipping

time is essential for businesses to manage customer expectations, optimize logistics, and
maintain high-quality customer service. Addressing the challenges that lead to longer shipping
times, especially in the final quarter, is crucial for customer satisfaction.

Planning and Resource Allocation: Businesses should consider this shipping time data for their
planning and resource allocation. It can help in determining staffing levels, inventory
management, and logistics strategies to ensure timely deliveries and customer satisfaction.
Overall Observations
Customer Counts by State
• California and Texas have
the highest customer
counts.
• There is a wide range of
customer counts across
states, from 97 in
California and Texas to 1 in
several smaller states.
Quarterly Revenues and %
Changes
• It shows a declining trend
in revenue over the four
quarters.
• The percentage change is
negative, indicating
revenue decreases
quarter-over-quarter.
Average Ratings by Quarter Feedback and % by Quarter Preferred Cars by State
• The data shows a
• It shows varying feedback • It demonstrates a wide
decreasing trend in
distributions over the variety of brand
average ratings over the
quarters. preferences across states.
quarters.
• There's a trend of • It's useful for
• Further analysis is needed
increasing "Bad" and "Very understanding regional
to understand the reasons
Bad" feedback in later consumer preferences in
behind the declining
quarters. the automotive industry.
ratings.
Quarterly Orders and Credit Card Types and Average Shipping Time by
Revenue Average Discounts Quarter
• There's a significant
• Both the number of orders • Different credit card types
increase in shipping time
and revenue decrease as have varying average
over the four quarters.
the year progresses. discounts.
• The increasing trend may
• A correlation between the • It's useful for tailoring
impact customer
number of orders and marketing strategies in the
satisfaction and requires
revenue is evident. financial industry.
attention.
Insights and Recommendations

Customer Counts by State Average Ratings by Quarter Feedback and % by Quarter Preferred Cars by State

• Provide additional • Include more context or

demographic information
or segmentation data to
better understand the
customer base. • This could involve
• This could include age,
gender, income levels, or
customer preferences.
• Collect additional • Include data on market
qualitative data to explain
qualitative feedback share or vehicle sales in
the reasons behind the
alongside quantitative data addition to brand
changing ratings.
to gain deeper insights into preference to provide a
customer sentiment and more comprehensive view
customer feedback or
identify specific issues for of the automotive industry
comments to identify areas
improvement. in each state.
for improvement.

Quarterly Revenues and %
Changes
• Provide explanations or
• Offer a breakdown of
footnotes to highlight the
factors influencing the
revenue changes, such as
market conditions, new
product launches, or
changes in pricing
strategies..
Quarterly Orders and
Revenue
• Include data on the
revenue sources (e.g.,
product categories) to
understand which areas
are driving revenue and
where potential issues
may lie.
Credit Card Types and Average Shipping Time by
Average Discounts Quarter
• Track and provide data on
number of cardholders for
the number of delayed or
each card type to provide
lost shipments to help
context and identify
identify specific logistical
whether high discounts are
issues causing the
driving customer
increased shipping times.
acquisition.
Thank you