Motorcycle industry economics – whats next

Situation and Challenge

  • Evaluating the underlying economics of the motorcycle industry [ UK and Europe]
  • Translating that into service groups
  • Establishing the winners in that market and why
  • Translating macro theory of business  into easily deployable SME , Owner managed businesses – making the rules of improving profits easy to understand in smaller busy businesses

Approach

  • Gather metrics on the size of market and socio economic spending patterns
  • Compare consumer purchasing behaviour across the products and services on offer – “why they buy ” data capture
  • Use a data company to supply registered vehicle numbers in set geographies , age group , post codes
  • Use social media and surveys to break down the purchasing decision making process

Method

  • Rebuild the digital media platform to tap into key customer decision points
  • Create ” premium brand presence ” and seek to rank 1st SEO [Google]
  • Develop that into complimentary media such as twitter / periscope / Facebook and align messaging
  • Look for exclusive / next generation products and services under exclusive license
  • Source software developments and create own exclusive services
  • Revisit existing skills in the business; promote those with customer resonance [ provenance] change for new skills in advance of market demand

Outcomes

  • Revenues doubled in 24 months
  • All debt cleared and now cash generative
  • Regarded as “Best in Class” provider with zero defect rate
  • Customer base expanded by 20% and recurring customer rate up 15%
  • Average spend per customer up 300% in 36 months

And still growing …..

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