Equipment Sample Selected UCC Data Customer Analysis Example.pdf · construction and specialty...

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Total Customer Analytics

Equipment Sample

Selected UCC Data Customer Analysis

EXECUTIVE SUMMARY

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UCC data has limited much of the analysis we can do with real data. Based on the UCC data sample, however, the following conclusions can be made.

The revenue and customer base have fallen significantly over the years examined.

Construction is your biggest industry (54%), especially heavy construction and specialty trade contractors. Landscapers are also important.

The customer base is widely dispersed geographically, with some sun belt concentration.

Contacts are overwhelmingly senior managers, male, and non-Hispanic.

80% of your customers are in 247 geographic markets and 20 industries. You serve 6.7% of the potential customers in these markets, which is partly a reflection of the UCC data and being in a capital goods business. It also shows that you have significant growth opportunities.

All Other Crop Farming is your most penetrated industry at 66%. You have very good penetration in many smaller geographies. You’re under-penetrated in Residential Building Construction and the larger geographic markets.

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Excavators are your top item type producing 36% of your revenue. Revenue per unit varies substantially among your item types.

The top 20% of your customers produced 65% of your revenue in 2010. The main internal differentiator between your top customers and the rest is they ordered more times during the year.

Decision tree analysis shows your top customers fall into specific SICs, with a further split of one node by Contact Title.

Decile migration shows fairly high customer loss from year-to-year and over the 5-year period. Most of this is probably accounted for by reliance on UCC data, being in a capital goods business, and the economic downturn, but some may be a reflection of customer dissatisfaction.

Customers in the top recency decile last purchased 206 days ago on average. The top frequency decile customers average 6 transactions over the past five years (most only have 1 transaction), while the top monetary value customers average $3.1 million.

Market Basket Analysis shows four product-pairs that customers purchased together over time that could be cross-sold/upsold.

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OVERVIEW

5

Data Sources/Methodology This analysis is based on a sample of United States

UCC filings data from 2005 to 2010. Complete UCC data would by itself be a sample, as it is only filed when equipment is financed.

The only firmographics data available is SIC codes which limits our ability to provide good profiling information.

Complete customer data, along with customer interfacing, will substantially increase the value of the analysis.

This is only a sample of some of the data you will receive. The full report will have additional analyses for you.

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A total of 106,739 transactions spanning the period from

1/1/2006 through 12/23/2010 are included. Revenue by year is

shown below. 2010's revenue changed by -85% from 2006.

$10,503

$8,906

$5,804

$2,312

$1,622

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

2006 2007 2008 2009 2010

Mill

ion

s

Yearly Revenue

8

A total of 58,503 unique customers were active during this time

period. Below is a count of active customers by year. Active

customers declined by -81% in 2010 compared with 2006.

25,774

22,854

15,335

6,503

4,842

0

5,000

10,000

15,000

20,000

25,000

30,000

2006 2007 2008 2009 2010

Yearly Active Customers

FIRMOGRAPHICS

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10

Construction, 34332, 59%

Agriculture, Forestry, and

Fishing, 8624, 15%

Manufacturing, 2888, 5%

Wholesale Trade, 2653,

4%

Services, 2429, 4%

Public Administration,

2281, 4%

Transportation and Public Utilities,

2066, 3% Mining, 1938, 3%

Retail Trade, 910, 2%

Finance, Insurance, Real Estate, 340, 1%

Looking at the broad SIC Divisions in the U.S., Construction locations

are the largest division, with 58.7% of your customers. Agriculture,

Forestry, and Fishing and Manufacturing are the next largest.

Data is available on 58,461 of your 58,503 customers.

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20.6%

15.8%

8.1%

7.3%

3.5%

3.1%

3.1%

3.1%

2.9%

2.6%

29.8%

162-Heavy construction, except highway

179-Misc. special trade contractors

078-Landscape and horticultural services

161-Highway and street construction

019-General Farms, Primarily Crop

177-Concrete work

735-Misc. equipment rental & leasing

919-General government, nec

152-Residential building construction

171-Plumbing, heating, air-conditioning

Other

0% 5% 10% 15% 20% 25% 30% 35%

Customers' 3-Digit SIC

162-Heavy construction, except highway locations is the largest 3-digit

SIC, with 20.6% of your customers. 179-Misc. special trade contractors

and 078-Landscape and horticultural services are the next largest.

Data is available on 58,503 of your 58,503 customers.

CONTACTS

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A summation of contact titles shows PRES is the most common

with 66% of your customers having it. OWNER and VP follow.

The chart below shows your 15 most common contact titles.

0% 10% 20% 30% 40% 50% 60% 70%

PRES

OWNER

VP

PRTNR

MGR

TREAS

CHRM

SEC

CEO

EQMGR

CFO

SUPV

MAYOR

SUPT

GM

66.0%

13.6%

6.7%

4.1%

3.4%

1.2%

0.8%

0.6%

0.6%

0.4%

0.3%

0.3%

0.3%

0.3%

0.2%

Percent of Customers

Titl

eTop Contact Titles

12,522 (21%) of your 58,503 customers have title that could be evaluated.

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6% of your customers are Female and 94% are Male.

Female, 2130, 6%

Male, 36394, 94%

Gender could be identified through given names for 38,524 (66%) of your 58,503 customers.

15

Hispanic, 996, 2%

Unknown, 40475, 98%

2% of your customers have Hispanic surnames. Note: many

Hispanics don't have Hispanic surnames, so this should be

viewed as a minimum.

41,471 (71%) of your 58,503 customers have last names that could be analyzed.

GEOGRAPHY

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Of the 9 U.S. Census Divisions, the South Atlantic has the most

customers, 21%. The West South Central and Pacific follow.

20.7%

13.0%

11.9%

11.4%

10.7%

9.2%

7.8%

7.7%

7.5%

South Atlantic

West South Central

Pacific

Middle Atlantic

East North Central

Mountain

East South Central

West North Central

New England

0% 5% 10% 15% 20% 25%

Ce

nsu

s D

ivis

ion

Percent of U.S. Customers

Customers' U.S. Census Divison

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Texas is the state with the most customers, 7.5%. California and

Florida follow. The map displays your customer totals by state.

State Percent

Texas 7.5%

California 5.3%

Florida 5.2%

New York 4.8%

Pennsylvania 4.5%

North Carolina 4.0%

Georgia 3.7%

Washington 3.4%

Ohio 3.2%

Virginia 2.6%

Other 55.8%

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1.6% of your customers are in your largest MSA, Houston-Sugar

Land-Baytown, TX. Atlanta-Sandy Springs-Marietta, GA and

New York-White Plains-Wayne, NY-NJ follow. 31.1% of your

customers are not in a MSA.

1.6%

1.5%

1.4%

1.1%

1.0%

1.0%

0.9%

0.8%

0.8%

0.7%

58.1%

31.1%

Houston-Sugar Land-Baytown, TX

Atlanta-Sandy Springs-Marietta, GA

New York-White Plains-Wayne, NY-NJ

Pittsburgh, PA

Chicago-Joliet-Naperville, IL

Seattle-Bellevue-Everett, WA

Portland-Vancouver-Hillsboro, OR-WA

Philadelphia, PA

Washington-Arlington-Alexandria, DC

Dallas-Plano-Irving, TX

Other

Non-MSA

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

MSA

Percent of U.S. Customers

Customers' U.S. MSA

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Houston is the largest city with 0.6% of your customers. San

Antonio and Phoenix follow. The three largest cities account for

1.2% of your customers. 7.0% are in the shown Top 50 cities.City State Customers Percent City State Customers Percent

Houston Texas 376 0.6% Bakersfield California 68 0.1%

San Antonio Texas 151 0.3% Portland Oregon 68 0.1%

Phoenix Arizona 146 0.2% Fort Myers Florida 67 0.1%

Jacksonville Florida 138 0.2% Richmond Virginia 67 0.1%

Orlando Florida 110 0.2% Louisville Kentucky 66 0.1%

Miami Florida 107 0.2% Tacoma Washington 66 0.1%

Pittsburgh Pennsylvania 102 0.2% Knoxville Tennessee 65 0.1%

Dallas Texas 100 0.2% Denver Colorado 63 0.1%

Oklahoma City Oklahoma 99 0.2% Snohomish Washington 63 0.1%

Fort Worth Texas 97 0.2% Memphis Tennessee 60 0.1%

Salt Lake City Utah 93 0.2% Baltimore Maryland 59 0.1%

Birmingham Alabama 89 0.2% Albuquerque New Mexico 58 0.1%

Tucson Arizona 89 0.2% Chesapeake Virginia 58 0.1%

Austin Texas 84 0.1% Colorado Springs Colorado 58 0.1%

Charlotte North Carolina 80 0.1% Mobile Alabama 58 0.1%

Cincinnati Ohio 79 0.1% Ocala Florida 58 0.1%

Anchorage Alaska 77 0.1% Savannah Georgia 58 0.1%

Naples Florida 77 0.1% Seattle Washington 58 0.1%

Baton Rouge Louisiana 76 0.1% Tulsa Oklahoma 58 0.1%

Chicago Illinois 76 0.1% Billings Montana 57 0.1%

Tampa Florida 75 0.1% Mesa Arizona 57 0.1%

Saint Louis Missouri 74 0.1% Bend Oregon 54 0.1%

Las Vegas Nevada 73 0.1% Cleveland Ohio 54 0.1%

Raleigh North Carolina 71 0.1% Honolulu Hawaii 54 0.1%

Indianapolis Indiana 69 0.1% Olympia Washington 54 0.1%

Shown below is the distribution of your

customers throughout the lower 48 states of

the U.S.

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22

Shown below is the distribution of customers in your largest state,

Texas, with 7.5% of your customers.

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Shown below is the distribution of customers in your 2nd largest

state, California, with 5.3% of your customers.

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The final map shows the distribution of customers in your 3rd

largest state, Florida, with 5.2% of your customers.

MARKET PENETRATION

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Market penetration measures the

percent of potential customers in a

market that you have as customers We define a geographic market using MSAs and non-

MSA counties in 179 Bureau of Economic Analysis “Economic Areas.” We analyzed markets where you derive 80% or more of your revenue. The data is available by county.

Industries are defined using 5-digit NAICS industry codes for comparability with Bureau of Labor Statistics data. NAICs industries with 80% or more of your customers are analyzed.

The final analysis, then, includes your major markets and major industries.

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You have 247 markets that total more than 80% of your

customers. In total, 80% of your customers are in these markets.

Shown below are your Top 50 markets.

Market Percent

Cumu-

lative

Percent Market Percent

Cumu-

lative

Percent

Houston-Sugar Land-Baytown, TX 1.6% 1.6% Salt Lake City, UT 0.6% 21.9%

Atlanta-Sandy Springs-Marietta, GA 1.6% 3.2% Charlotte-Gastonia-Rock Hill, NC-SC 0.6% 22.5%

New York-White Plains-Wayne, NY-NJ 1.4% 4.5% Cleveland-Elyria-Mentor, OH 0.6% 23.1%

Pittsburgh, PA 1.1% 5.6% Riverside-San Bernardino-Ontario, CA 0.6% 23.7%

Chicago-Joliet-Naperville, IL 1.0% 6.7% Seattle-Tacoma-Olympia, WA Non-MSA 0.6% 24.3%

Boston-Worcester-Manchester, MA-NH Non-MSA 1.0% 7.7% Lexington-Fayette-Frankfort-Richmond, KY Non-MSA 0.6% 24.9%

Seattle-Bellevue-Everett, WA 1.0% 8.7% Birmingham-Hoover, AL 0.6% 25.4%

Portland-Vancouver-Hillsboro, OR-WA 0.9% 9.6% Fort Worth-Arlington, TX 0.5% 25.9%

Philadelphia, PA 0.8% 10.4% Kansas City, MO-KS 0.5% 26.5%

Washington-Arlington-Alexandria, DC 0.8% 11.2% Denver-Aurora-Broomfield, CO 0.5% 27.0%

Denver-Aurora-Boulder, CO Non-MSA 0.7% 11.9% Boston-Quincy, MA 0.5% 27.5%

Minneapolis-St. Paul-St. Cloud, MN-WI Non-MSA 0.7% 12.6% Richmond, VA 0.5% 28.0%

Dallas-Plano-Irving, TX 0.7% 13.3% Cambridge-Newton-Framingham, MA 0.5% 28.5%

Newark-Union, NJ-PA 0.7% 14.1% San Antonio-New Braunfels, TX 0.5% 29.0%

Nassau-Suffolk, NY 0.7% 14.8% Casper, WY Non-MSA 0.5% 29.5%

Phoenix-Mesa-Glendale, AZ 0.7% 15.5% Hartford-West Hartford-East Hartford, CT 0.5% 30.0%

Dallas-Fort Worth, TX Non-MSA 0.7% 16.2% Cincinnati-Middletown, OH-KY-IN 0.5% 30.5%

Orlando-Kissimmee-Sanford, FL 0.7% 16.9% Los Angeles-Long Beach-Glendale, CA 0.5% 30.9%

Atlanta-Sandy Springs-Gainesville, GA-AL Non-MSA 0.7% 17.5% Bridgeport-Stamford-Norwalk, CT 0.5% 31.4%

Baltimore-Towson, MD 0.7% 18.2% Providence-New Bedford-Fall River, RI-MA 0.5% 31.8%

St. Louis, MO-IL 0.6% 18.8% Asheville-Brevard, NC Non-MSA 0.5% 32.3%

Edison-New Brunswick, NJ 0.6% 19.5% Oklahoma City, OK 0.4% 32.7%

Tampa-St. Petersburg-Clearwater, FL 0.6% 20.1% Virginia Beach-Norfolk-Newport News, VA-NC 0.4% 33.2%

Jackson-Yazoo City, MS Non-MSA 0.6% 20.7% Little Rock-North Little Rock-Pine Bluff, AR Non-M 0.4% 33.6%

Minneapolis-St. Paul-Bloomington, MN-WI 0.6% 21.3% New Orleans-Metairie-Kenner, LA 0.4% 34.1%

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You have 20 industries that total more than 80% of your

customers. In total, 81% of your customers are in these

industries. Shown below are your top industries.Industry

Percent

Cumu-

lative

Percent

Site Preparation Contractors 18.7% 18.7%

Landscaping Services 8.2% 26.9%

Highway, Street, and Bridge Construction 7.8% 34.7%

Water and Sewer Line and Related Structures Construction 7.3% 42.0%

Other Heavy and Civil Engineering Construction 6.2% 48.2%

All Other Crop Farming 3.6% 51.8%

Other General Government Support 3.1% 54.9%

Power and Communication Line and Related Structures Construction 3.1% 58.0%

Residential Building Construction 2.7% 60.7%

Commercial and Institutional Building Construction 2.7% 63.3%

Plumbing, Heating, and Air-Conditioning Contractors 2.6% 65.9%

Poured Concrete Foundation and Structure Contractors 2.5% 68.4%

All Other Specialty Trade Contractors 2.4% 70.7%

Logging 2.0% 72.7%

Construction, Transportation, Mining, and Forestry Machinery and Equipment Rental and Leasing1.8% 74.6%

Construction and Mining (except Oil Well) Machinery and Equipment Merchant Wholesalers1.6% 76.1%

Beef Cattle Ranching and Farming, including Feedlots 1.4% 77.6%

Electrical Contractors and Other Wiring Installation Contractors 1.2% 78.8%

Support Activities for Mining 1.1% 79.9%

Oil and Gas Pipeline and Related Structures Construction 1.0% 80.9%

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Your overall penetration rate is 6.7%. Your top industry is All

Other Crop Farming that has 2214 prospects. You have 1459

customers for a 66% penetration rate. The chart shows your top

15 most penetrated industries.

0% 10% 20% 30% 40% 50% 60% 70%

All Other Crop Farming

Other Heavy and Civil Engineering Construction

Water and Sewer Line and Related Structures Construction

Highway, Street, and Bridge Construction

Site Preparation Contractors

Power and Communication Line and Related Structures…

Oil and Gas Pipeline and Related Structures Construction

Other General Government Support

Construction and Mining (except Oil Well) Machinery and…

Construction, Transportation, Mining, and Forestry…

Logging

Beef Cattle Ranching and Farming, including Feedlots

Poured Concrete Foundation and Structure Contractors

Landscaping Services

Support Activities for Mining

66%

55%

35%

30%

29%

28%

24%

22%

20%

19%

14%

12%

8%

5%

5%

Penetration

NA

ICS

Ind

ust

ry2010 Customer Industry Penetration

37,241 of your 58,503 customers can be identified to your primary geographies and industries.

30

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

New Orleans-Metairie-Bogalusa, LA Non-MSA

Gulfport-Biloxi, MS

Knoxville-Sevierville-La Follette, TN Non-MSA

Asheville-Brevard, NC Non-MSA

Erie, PA Non-MSA

Pittsburgh-New Castle, PA Non-MSA

Mobile-Daphne-Fairhope, AL Non-MSA

Atlanta-Sandy Springs-Gainesville, GA-AL Non-MSA

Asheville, NC

Jackson, MS

Charleston, WV

Beaumont-Port Arthur, TX

Seattle-Tacoma-Olympia, WA Non-MSA

Boston-Worcester-Manchester, MA-NH Non-MSA

Johnson City-Kingsport-Bristol (Tri-Cities), TN-VA

26.0%

20.5%

18.7%

17.5%

16.6%

16.4%

15.4%

15.4%

15.3%

15.1%

15.1%

15.0%

14.8%

14.7%

14.4%

Penetration

Mar

ket

2010 Customer Market Penetration

Your top geography is New Orleans-Metairie-Bogalusa, LA Non-MSA that has 431

prospects. You have 112 customers for a 26.0% penetration rate. Gulfport-Biloxi,

MS and Knoxville-Sevierville-La Follette, TN Non-MSA follow. The chart shows your

top 15 most penetrated geographies.

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Below are your 50 largest markets overall with your customer

count and penetration in the selected NAICS codes. Your

penetration rate in these markets is 7.3%

Market

Cust-

omers

Pene-

tration

Rate Market

Cust-

omers

Pene-

tration

Rate

Houston-Sugar Land-Baytown, TX 729 8.0% Salt Lake City, UT 297 9.2%

Atlanta-Sandy Springs-Marietta, GA 752 7.2% Charlotte-Gastonia-Rock Hill, NC-SC 295 7.3%

New York-White Plains-Wayne, NY-NJ 628 3.4% Cleveland-Elyria-Mentor, OH 269 6.3%

Pittsburgh, PA 514 10.4% Riverside-San Bernardino-Ontario, CA 265 4.8%

Chicago-Joliet-Naperville, IL 465 2.6% Seattle-Tacoma-Olympia, WA Non-MSA 285 14.8%

Boston-Worcester-Manchester, MA-NH Non-MSA 498 14.7% Lexington-Fayette-Frankfort-Richmond, KY Non-MSA 254 13.3%

Seattle-Bellevue-Everett, WA 500 7.5% Birmingham-Hoover, AL 236 11.1%

Portland-Vancouver-Hillsboro, OR-WA 423 7.5% Fort Worth-Arlington, TX 249 7.2%

Philadelphia, PA 359 4.8% Kansas City, MO-KS 262 6.0%

Washington-Arlington-Alexandria, DC 364 4.3% Denver-Aurora-Broomfield, CO 236 3.8%

Denver-Aurora-Boulder, CO Non-MSA 371 9.7% Boston-Quincy, MA 248 5.6%

Minneapolis-St. Paul-St. Cloud, MN-WI Non-MSA 337 7.0% Richmond, VA 249 7.1%

Dallas-Plano-Irving, TX 302 4.8% Cambridge-Newton-Framingham, MA 239 5.7%

Newark-Union, NJ-PA 337 6.1% San Antonio-New Braunfels, TX 229 7.0%

Nassau-Suffolk, NY 289 2.8% Casper, WY Non-MSA 231 8.7%

Phoenix-Mesa-Glendale, AZ 317 4.2% Hartford-West Hartford-East Hartford, CT 238 8.0%

Dallas-Fort Worth, TX Non-MSA 312 11.3% Cincinnati-Middletown, OH-KY-IN 213 5.2%

Orlando-Kissimmee-Sanford, FL 318 6.0% Los Angeles-Long Beach-Glendale, CA 193 1.8%

Atlanta-Sandy Springs-Gainesville, GA-AL Non-MSA 340 15.4% Bridgeport-Stamford-Norwalk, CT 209 7.5%

Baltimore-Towson, MD 308 4.5% Providence-New Bedford-Fall River, RI-MA 215 4.5%

St. Louis, MO-IL 282 4.3% Asheville-Brevard, NC Non-MSA 228 17.5%

Edison-New Brunswick, NJ 292 5.0% Oklahoma City, OK 224 6.6%

Tampa-St. Petersburg-Clearwater, FL 286 4.3% Virginia Beach-Norfolk-Newport News, VA-NC 208 5.2%

Jackson-Yazoo City, MS Non-MSA 262 13.6% Little Rock-North Little Rock-Pine Bluff, AR Non-M 196 11.9%

Minneapolis-St. Paul-Bloomington, MN-WI 276 3.7% New Orleans-Metairie-Kenner, LA 190 6.0%

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County Percent

Turner, GA 100%

Owsley, KY 100%

Quitman, MS 75%

Magoffin, KY 67%

San Juan, CO 60%

Pearl River, MS 53%

Hamilton, KS 50%

Harrison, MO 50%

Martin, KY 47%

Holmes, MS 45%

Turner, GA is your most highly penetrated county. You serve

100% of the targeted customers there. Owsley, KY and Quitman,

MS follow. Listed below are your Top 10 most penetrated

counties.

33

Looking at the largest industries, the 15 largest industries and your

penetration rate are shown below. Your penetration rate is 0.8% in the

largest industry, Residential Building Construction. Your penetration

rate is 5.0% in the 2nd largest industry, Landscaping Services.

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Residential Building Construction

Landscaping Services

Plumbing, Heating, and Air-Conditioning Contractors

Electrical Contractors and Other Wiring Installation…

Commercial and Institutional Building Construction

All Other Specialty Trade Contractors

Site Preparation Contractors

Poured Concrete Foundation and Structure Contractors

Highway, Street, and Bridge Construction

Support Activities for Mining

Water and Sewer Line and Related Structures Construction

Logging

Other General Government Support

Other Heavy and Civil Engineering Construction

Power and Communication Line and Related Structures…

0.8%

5.0%

1.5%

0.9%

3.7%

3.5%

28.8%

7.8%

30.2%

4.9%

34.8%

13.8%

21.6%

55.1%

28.1%

Penetration

NA

ICS

Ind

ust

ry2010 Customer Industry Penetration -- 15 Largest Industries

34

The chart below shows the 15 largest markets and your penetration rate.

Your penetration rate is 3.4% in the largest market, New York-White

Plains-Wayne, NY-NJ. Your penetration rate exceeds your average rate

of 6.7% in 3 of the 15 largest markets.

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

New York-White Plains-Wayne, NY-NJ

Chicago-Joliet-Naperville, IL

Atlanta-Sandy Springs-Marietta, GA

Los Angeles-Long Beach-Glendale, CA

Nassau-Suffolk, NY

Houston-Sugar Land-Baytown, TX

Washington-Arlington-Alexandria, DC

Phoenix-Mesa-Glendale, AZ

Philadelphia, PA

Minneapolis-St. Paul-Bloomington, MN-WI

Baltimore-Towson, MD

Seattle-Bellevue-Everett, WA

Tampa-St. Petersburg-Clearwater, FL

St. Louis, MO-IL

Denver-Aurora-Broomfield, CO

3.4%

2.6%

7.2%

1.8%

2.8%

8.0%

4.3%

4.2%

4.8%

3.7%

4.5%

7.5%

4.3%

4.3%

3.8%

Penetration

Mar

ket

2010 Customer Market Penetration -- 15 Largest Markets

PRODUCTS

35

36

Based on the Item Description, EXCAVATOR is your largest revenue producing item,

generating $10.4B revenue over the five-year period. This is 36% of your total revenue

of $29.1B. Shown below are your top 15 of your 38 total revenue producing items

that generated 96% of your revenue.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

$0

$2,000,000,000

$4,000,000,000

$6,000,000,000

$8,000,000,000

$10,000,000,000

$12,000,000,000

Qu

anti

ty

Re

ven

ue

Item Description

Top Item Description -- Revenue and Quantity

37

Based on the Item Description, the OFF ROAD TRUCK has the highest

revenue per unit at $832,201. The CONV SCRAPER and ART HAUL

UNIT follow at $827,532 and $622,287, respectively. Shown below are

your top items.

$287,040

$236,873

$622,287

$52,171

$219,341

$832,201

$93,777$122,772

$207,463

$827,532

$284,318$296,348

$156,721

$80,156

$212,747

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Re

ven

ue

Item Description

Top Item Description -- Revenue per Unit

DECILE ANALYSIS

38

Decile analysis identifies the

characteristics of your top customers

Customers were placed into one of ten deciles for each

year based on their revenue. Because of ties, some

deciles contain more than 10% of your customers.

Data for the most recent year was analyzed in-depth to

determine differences between deciles and suggest

opportunities for revenue enhancement.

Decile migration over the years was examined to see

how customers grew and if retention is a problem.

39

Current Year Details

40

41

50%

10%

15%

11%

9%

9%

7%

10%

7%

11%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Percent ofTotal Revenue

Percent ofCustomers

Customer Revenue Distribution by Decile -- 2010

1 2 3 4 5 6 7 8 9 10

Decile

The top 10% of your customers produced 50% of your revenue in 2010.

The top 21% of your customers produced 65%.

42

The average 2010 revenue of your top decile was $1,669,199. Average

revenue per customer for your next decile falls to $469,657. For the

lowest decile, the average revenue per customer is only $27,000.

$1,669,199

$469,657

$317,359

$230,352

$211,864

$177,592

$91,376

$69,879

$47,945

$27,000

1

2

3

4

5

6

7

8

9

10

Average Revenue

De

cile

Average Revenue per Customer by Decile -- 2010

43

Your top decile averages 3.5 transactions per year. This is 2.6 times the

1.3 of your next decile. The last decile averages 1.0 transactions per

year.

3.5

1.3

1.3

1.0

1.0

1.1

1.1

1.0

1.0

1.0

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

1

2

3

4

5

6

7

8

9

10

Average Transactions

De

cile

Average Transactions per Customer by Decile -- 2010

44

$574,396

$396,664

$275,157

$230,122

$210,174

$167,162

$87,089

$69,879

$47,649

$26,970

$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000

1

2

3

4

5

6

7

8

9

10

Average Revenue per Transaction

De

cile

Average Revenue per Transaction by Decile -- 2010

Customers in your top decile order $574,396 per transaction. This is

45% higher than the next decile's $396,664. Your last decile only orders

$26,970 per transaction.

45

Customers in your top decile order 1.43 items per transaction. This

differs by 27% from the next decile's 1.12. Your last decile orders 1.00

items per transaction.

1.4

1.1

1.1

1.0

1.0

1.1

1.0

1.0

1.0

1.0

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6

1

2

3

4

5

6

7

8

9

10

Average Items per Transaction

De

cile

Average Items per Transaction by Decile -- 2010

Best Customers Profile

46

Best Customers Profile attempts to

differentiate your top 20% customers

from others using external data. External data is used because this enables you to look for clones in

the market that you can further develop.

To make the segments meaningful, the minimum size is 10% of your

customer base. The number of split levels is capped at five.

The methodology picks the best variables to use.

For this analysis, the following variables were used:

47

Industry: 3 Digit SIC

Gender: Male/Female

Ethnicity: Hispanic/Unknown

State

MSA

Contact Rank

Contact Department

48

A decision tree shows the external factors to determine your top 20%. The first split is on 3-digit SIC,

which is split 4 ways. The top node has 43 SICs with 7% of your customers. 62% of the customers in

this cluster are in the top 20%. The next node has 37% of your customers in the 29 SICs and 27% of

the customers in this node are in the top 20%. The next node has 16 SICs with 39% of your clusters.

Only 17% of the customers are in the top 20%, but this is split again by rank and a node with 4 ranks

that are not “Other” has 10% of the customers with 25% in the top 20%. The final SIC node has 79

SICs with 17% of your customers, and only 2% of these are in the top 20%.

Migration

49

50

Customers migrated between deciles as shown below for the first

two years of data, 2005 to 2006. 31% of customers in decile 1 in

2005 remained in decile 1 in 2006. 46% of decile 1 customers

didn't order in 2006. 77% of your total customers didn't order the

following year.

2005 Decile 1 2 3 4 5 6 7 8 9 10 Lost

1 31% 10% 5% 3% 1% 2% 1% 0% 1% 0% 46%

2 9% 9% 6% 4% 3% 2% 2% 1% 1% 0% 64%

3 5% 6% 5% 4% 3% 2% 1% 1% 1% 0% 72%

4 3% 4% 4% 6% 2% 2% 2% 1% 1% 1% 74%

5 2% 3% 3% 3% 3% 1% 1% 2% 1% 0% 81%

6 1% 2% 2% 2% 2% 4% 2% 1% 1% 1% 82%

7 1% 1% 1% 2% 1% 3% 3% 1% 1% 1% 85%

8 1% 1% 1% 2% 2% 2% 2% 2% 1% 1% 87%

9 0% 0% 1% 1% 0% 1% 2% 1% 2% 1% 90%

10 0% 1% 0% 0% 0% 1% 1% 1% 2% 2% 91%

Total 5% 4% 3% 3% 2% 2% 2% 1% 1% 1% 77%

2006 Decile

Note: Red italics = lower decile migration; Green bold = higher decile migration.

51

2005 Decile

Moved

Up

Stayed

Same

Moved

Down Lost

1 0% 31% 23% 46%

2 9% 9% 18% 64%

3 11% 5% 11% 72%

4 10% 6% 9% 74%

5 10% 3% 5% 81%

6 9% 4% 6% 82%

7 8% 3% 3% 85%

8 9% 2% 2% 87%

9 6% 2% 1% 90%

10 7% 2% 0% 91%

Total 8% 7% 8% 77%

Shown below is a migration summary for 2005. In total, 8% of

your customers moved to a higher decile, 7% remained the

same, and 8% moved down. 77% did not do business the

following year.

52


When weighted by revenue, 48% of customers in decile 1 in


didn't order in 2006, lower than the customer count migration.

Customers producing 52% of your revenue didn't order the

following year. This equates to $5.4B of lost revenue.

2005 Decile 1 2 3 4 5 6 7 8 9 10 Lost

1 48% 8% 4% 2% 1% 1% 1% 0% 0% 0% 34%

2 10% 9% 6% 4% 3% 2% 1% 1% 1% 0% 63%

3 6% 6% 5% 4% 3% 2% 1% 1% 1% 0% 72%

4 3% 4% 4% 6% 2% 2% 2% 1% 1% 1% 74%

5 2% 3% 3% 3% 3% 1% 1% 2% 1% 0% 82%

6 1% 2% 2% 2% 2% 4% 2% 2% 1% 1% 82%

7 1% 1% 1% 2% 1% 3% 3% 1% 2% 1% 85%

8 1% 1% 1% 2% 2% 2% 2% 2% 1% 1% 87%

9 0% 1% 1% 1% 0% 1% 2% 1% 2% 1% 90%

10 0% 1% 0% 0% 0% 1% 1% 1% 2% 2% 92%

Total 29% 7% 4% 3% 2% 2% 1% 1% 1% 0% 52%

2006 Decile Revenue Weighted

53

16,963 customers were added in 2006. They generated $4.2B

revenue. 931 produced enough revenue to be in decile 1.

2006 Decile Number Revenue

1 931 $1,461,475,751

2 1,361 $715,751,819

3 1,587 $592,966,858

4 1,773 $414,861,101

5 1,646 $327,486,098

6 1,846 $258,424,893

7 1,793 $159,785,895

8 2,105 $140,725,532

9 2,101 $104,454,472

10 1,820 $70,138,960

Total 16,963 $4,246,071,379

54


Customers migrated between deciles as shown below for the last

two years of data, 2009 to 2010. 18% of customers in decile 1 in


didn't order in 2010. 87% of your total customers didn't order the

following year.

2009 Decile 1 2 3 4 5 6 7 8 9 10 Lost

1 18% 5% 3% 2% 1% 2% 1% 0% 1% 0% 67%

2 5% 3% 2% 2% 1% 1% 1% 0% 0% 0% 83%

3 3% 2% 3% 2% 1% 2% 1% 0% 1% 0% 84%

4 2% 2% 2% 3% 2% 1% 1% 1% 0% 0% 85%

5 1% 2% 2% 1% 3% 1% 1% 1% 1% 0% 89%

6 1% 1% 1% 1% 1% 2% 2% 2% 1% 1% 87%

7 0% 0% 1% 0% 0% 1% 2% 1% 2% 1% 91%

8 0% 0% 1% 0% 0% 1% 1% 1% 0% 0% 96%

9 0% 0% 0% 0% 0% 0% 1% 1% 2% 0% 94%

10 0% 1% 1% 0% 0% 0% 1% 2% 1% 1% 95%

Total 3% 2% 2% 1% 1% 1% 1% 1% 1% 0% 87%

2010 Decile

55

2009 Decile

Moved

Up

Stayed

Same

Moved

Down Lost

1 0% 18% 15% 67%

2 5% 3% 9% 83%

3 6% 3% 7% 84%

4 6% 3% 5% 85%

5 5% 3% 4% 89%

6 6% 2% 5% 87%

7 3% 2% 3% 91%

8 3% 1% 0% 96%

9 4% 2% 0% 94%

10 4% 1% 0% 95%

Total 5% 4% 4% 87%

Your migration summary for 2009 shows that, in total, 5% of your

customers moved to a higher decile, 4% remained the same, and

4% moved down. 87% did not do business the following year.

56


When weighted by revenue, 24% of customers in decile 1 in


didn't order in 2010, lower than the customer count migration.

Customers producing 72% of your revenue didn't order the

following year. This equates to $1.7B of lost revenue.

2009 Decile 1 2 3 4 5 6 7 8 9 10 Lost

1 24% 7% 4% 2% 1% 2% 1% 0% 1% 0% 59%

2 6% 3% 2% 2% 1% 1% 1% 0% 0% 0% 83%

3 3% 2% 3% 2% 1% 2% 1% 0% 1% 0% 84%

4 2% 2% 2% 3% 1% 1% 1% 1% 0% 0% 85%

5 1% 2% 2% 1% 3% 1% 1% 1% 1% 0% 89%

6 1% 2% 2% 1% 1% 2% 2% 2% 1% 1% 87%

7 0% 0% 1% 0% 0% 1% 3% 1% 1% 1% 91%

8 0% 0% 1% 0% 0% 1% 1% 1% 0% 0% 96%

9 1% 0% 0% 0% 0% 0% 2% 1% 2% 0% 93%

10 0% 0% 0% 0% 0% 0% 1% 2% 1% 1% 95%

Total 13% 5% 3% 2% 1% 2% 1% 0% 1% 0% 72%


57

3,995 brand new or returning customers were added in 2010.

They generated $1.1B revenue. 275 produced enough revenue

to be in decile 1.

2010 Decile Number Revenue

1 275 $408,067,457

2 420 $197,041,774

3 342 $107,966,976

4 429 $98,908,433

5 480 $101,616,345

6 329 $58,585,500

7 433 $39,369,595

8 399 $27,906,589

9 654 $31,228,867

10 234 $6,455,967

Total 3,995 $1,077,147,503

58


Looking at data from the first and last years, 2005 to 2010,

customers migrated between deciles as shown below. Only 5%

of customers in decile 1 in 2005 remained in decile 1 in 2010.

87% of decile 1 customers didn't order in 2010. 95% of your total

2005 customers didn't order in 2010.

2005 Decile 1 2 3 4 5 6 7 8 9 10 Lost

1 5% 3% 1% 1% 0% 1% 1% 0% 0% 0% 87%

2 1% 2% 1% 1% 1% 1% 0% 0% 0% 0% 93%

3 1% 1% 1% 1% 1% 1% 1% 0% 0% 0% 93%

4 1% 1% 1% 1% 0% 0% 0% 0% 0% 0% 96%

5 0% 1% 0% 1% 1% 0% 0% 0% 0% 0% 96%

6 0% 0% 0% 0% 0% 0% 1% 1% 0% 0% 96%

7 0% 0% 0% 0% 0% 0% 0% 0% 1% 0% 98%

8 0% 0% 0% 0% 0% 0% 1% 0% 0% 0% 98%

9 0% 0% 0% 0% 0% 0% 0% 0% 1% 0% 98%

10 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 98%

Total 1% 1% 1% 0% 0% 0% 0% 0% 0% 0% 95%

2010 Decile

59


When weighted by revenue, the picture is better. 8% of

customers in decile 1 in 2005 remained in decile 1 in 2010. 83%

of decile 1 customers didn't order in 2010, lower than the

customer count migration. Customers producing 88% of 2005

revenue didn't order in 2010. This equates to $9.3B of lost

revenue.

2005 Decile 1 2 3 4 5 6 7 8 9 10 Lost

1 8% 3% 1% 1% 0% 1% 1% 0% 0% 0% 83%

2 1% 2% 1% 1% 1% 1% 0% 0% 0% 0% 92%

3 1% 1% 1% 1% 1% 1% 1% 0% 0% 0% 93%

4 1% 1% 1% 1% 0% 0% 0% 0% 0% 0% 96%

5 0% 1% 0% 1% 1% 0% 0% 0% 0% 0% 96%

6 0% 0% 0% 0% 0% 0% 1% 1% 0% 0% 96%

7 0% 0% 0% 0% 0% 0% 0% 0% 1% 0% 98%

8 0% 0% 0% 0% 0% 0% 1% 0% 0% 0% 98%

9 0% 0% 0% 0% 0% 0% 0% 0% 1% 0% 98%

10 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 99%

Total 5% 2% 1% 1% 1% 1% 1% 0% 0% 0% 88%


RFM ANALYSIS

60

Recency, Frequency, and Monetary Value

Analysis Enables You to Target Customers Based

on These Attributes for Responsiveness

Customers are placed into deciles for each of these

variables over the entire time period.

A composite score is also computed with equal

weighting given to each.

This data is appended to your customer master file for

future use.

61

62

Customers in your top recency decile range from 0 days to 419

days from the last transaction in your data. They average 206

days from your last transaction.

206

611

850

1,002

1,151

1,272

1,388

1,508

1,625

1,748

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,0000

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1 2 3 4 5 6 7 8 9 10

Re

cen

cy --

Day

s

Nu

mb

er

of

Cu

sto

me

rs

Decile

RFM Recency by Decile

Number of Customers Mean

63

6 2 1 0

50

100

150

200

250

300

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1 2 3

Fre

qu

en

cy --

Nu

mb

er

of T

ran

sact

ion

s

Nu

mb

er

of

Cu

sto

me

rs

Decile

RFM Frequency by Decile


3 to 261 is the range of transactions for customers in your top

frequency decile. They average 6 transactions. Because of the

low number of transactions, you only have 3 deciles.

64

$895,935 to $241.6M is revenue range for customers in your top

monetary value decile. $3.1M is their average. Customers in

decile 2 average $646,831.

$3,075,063

$646,831

$404,875 $253,510 $203,744 $144,815 $92,108 $67,420 $49,950 $38,169

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

1 2 3 4 5 6 7 8 9 10

Mo

ne

tary

Val

ue

Nu

mb

er

of

Cu

sto

me

rs

Decile

RFM Monetary Value by Decile


Max = $241,577,677

MARKET BASKET ANALYSIS

65

Market Basket Analysis identifies

products purchased together for cross-

sell opportunities Data was analyzed two ways: transaction specific

purchases and customer purchases over the time period

Data is only included for products that sell at least as

much or more than the average product.

Products must also be purchased together at least a

certain percentage of the time.

66

67

No major product pairs are purchased together in the

same transaction. This may be because we used UCC

data and only large equipment is included.

68

You have 4 product pairs purchased together by the same customer over the five year

period where the co-purchase is greater than 0.5%. Your top products (based on

sales of the main product) to be sold together are EXCAVATOR and 1 DRUM VIB

COMP. They are sold together 94% more often than expected. Shown below are

your top cross-sell products.

Main Product Co-Product

Purchased

Together

Percent

Lift

Percent

EXCAVATOR 1 DRUM VIB COMP 2.2% 94.1%

EXCAVATOR MOTOR GRADER 1.5% 19.3%

WHEEL LOADER 1 DRUM VIB COMP 1.4% 61.7%

WHEEL LOADER MOTOR GRADER 1.3% 35.7%

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