From office equipment, to machinery, to hardware and software for any industry, Canlease works with small businesses to make equipment financing quick and easy.
As with any company, not every potential customer converts into actual customer. Canlease is no exception. For Canlease, there are many reasons why transactions may not be completed including bad credit, weak financials, or no suitable lenders.
Canlease has many years of data about every equipment finance application they have ever processed. However, as with most companies, they did not have the means to perform Data Analytics on that data to discover the hidden insight within that data. That’s where the Smart & Connected Data Project came in.
When one considers any business, potential customers can be imagined on a continuum.
The “Sweet Spot” Customers
There are potential customers who will, for various reasons, never turn into a customer for you. We lump them into the “No chance” category. Conversely, there are those who will almost certainly do business with you. We include them in the “Sure thing” category. In the mushy middle are those that we don’t know for certain which way they will go. These potential customers typically require more investment due to the uncertainty. This is the “Sweet Spot” for our analysis.
When considering the “Sweet Spot”, how can we identify which of these customers are most likely to convert? By accurately determining which customers are most likely to convert, limited resources can be directly more effectively. It’s important to invest more in the higher probability customers and less in those that are less likely to convert. Doing this effectively will increase conversion while maintaining constant investment of resources. For any company, this has immediate bottom line impact.
The Insight Sought from the Data
The challenge was simple. How could Canlease use Data Analytics to determine, early in the process, those business’ who are approved for a equipment financing arrangement but don’t follow through. Did they change their mind? Choose another provider? It’s here that Canlease seeks to better understand their customers and their buying process. With this knowledge, Canlease can intervene appropriately to convert as many of their approved lessees into customers.
Canlease partnered with Enterprise Saint John’s Connected Data Project and with T4G to undertake an initial evaluation of 7 years of leasing data and, through this analysis, discovered key drivers that can predict which customers from the “Sweet Spot” category are most likely to convert. We are now determining how we can best leverage this new understanding of their customer behavior to modify processes and systems to operationalize this knowledge.
But that’s not all. The future for Canlease’s is now focused the introduction of an online leasing solution that will automate much of the initial vetting, matchmaking with leasing companies, and completion of the leasing arrangement. The sky really is the limit when you truly understand what drives your customers and, in turn, your business.