Data driven innovation is more than just a buzzword for AGCO in Denmark. Together with IPA innovation they have built a digital solution, where publicly available data is combined with their own data to provide a unique insight into existing and prospect customers. Profits are up and ACGO has gained a cutting edge in competition.
Fakta om AGCO:
- AGCO Denmark is a part of AGCO Corporation
- AGCO Corporation is one of the world’s largest manufacturers of high-tech agricultural machinery
- You will find AGCO worldwide, including across Asia and Africa
- AGCO deals in trusted brands such as Massey Ferguson, Fendt and Valtra
As an importer of high-tech agricultural machinery ACGO has a lot of knowledge about the tractors, agricultural machinery and spare parts sold to Danish farmers across the country. This is sold through a vast network of dealers, who in turn know a lot about their customers.
And why not use this knowledge to become even better at servicing the farmers, whereby increasing the chances that they will continue dealing with ACGO because of the good service?
Combining data provides important insights about customers
This was precisely the question Lasse Rask asked himself. Lasse Rask is Aftersales Commercial Manager at AGCO.
This means that he works with retaining the farmers as customers after the purchase of their tractors and machinery, so they follow up by also buying spare parts, components, and service hours through ACGO’s dealer network.
AGCO knows the expected use of spare parts per tractor type and machinery.
The dealers know, who their customers are, which tractors and machinery they have, how often they use the workshop, and how many spare parts they use.
Together with Morten from IPA innovation Lasse discovered that by combining these two sources of knowledge they could create a data driven sales system to render the sales work of ACGO and the dealers far more efficient. Lasse explains:
”The challenge for us was knowing that the customer base was bigger and there was a potential for us to sell more, but we didn’t know how. We had a lot of data, but we were not using it. Now we have a tool that lets us use that data to get a unique insight into the market, so we can target our sales work.”
A precise sales tool
In practice this means, that the individual dealer can see, what machinery a farmer has and what their consumption of spare parts ought to be. If it is less than expected, the dealer can actively contact the farmer and follow up on why they haven’t purchased the expected spare parts. This way the potential for aftersales can be fully exploited, and this has meant that the aftersales department has needed to add more staff to fulfil the potential.
But the system is not only useful in relation to existing customers: by integrating data from publicly available registers, dealers can see all farmers in their area, including which tractors and other machinery they have.
” Instead of aimlessly contacting all potential customers, collecting and combining data allows us to identify and approach only those, for whom is most relevant.”
Unique solution gives a cutting edge in competition
The unique data processing has been very significant for ACGO, as their negotiators can be much more goal oriented. This way they can save time and be more efficient.
A further advantage is that they can be far more specific in relation to the customers and offer tailored service agreements, based on the needs of each customer. This added value for the customer makes ACGO an attractive supplier.
” We have earned an advantage compared to the the competition, because we have this insight into our customers and know where to go, and what they need. By converting our data into useful information, we are in a good position.”
Roll out across all of Europe
AGCO’s good results in Denmark following the use of data has drawn a lot of attention across the corporation in Europe. Data collection per se is nothing new to the organisation. It’s the way of combining data, that hasn’t been seen before, and the managements in the European branches are now planning to do something similar in their respective countries.
Even if AGCO in Denmark has already achieved good results, the development in use of data doesn’t stop here. Digitalisation and technology create possibilities that in their turn constantly generate potential for optimisation. For this reason, Lasse is planning for AGCO to expand the use and combination of data even more than today. A continued collaboration with IPA innovation is a key element to his plan.
“The use of data is complex, but with IPA innovation I get competent advice and guidance from Morten. He knows, what is possible, and is good at following up on the ideas I bring to the table. And the team of people behind him is then super sharp at tuning in and figuring out how to make it happen.”
For more information about what IPA innovation can do for your company:
MORTEN LOUW NIELSEN
Partner and Software Architect
Partner and Digitalization Consultant
Partner and Innovation Consultant