Harley Davidson New York Who wants to ride a Harley Davidson? It was winter in New York City and Asaf Jacobi’s Harley-Davidson dealership was selling an average of two motorcycles a week. It wasn’t enough.

Jacobi went for a long walk in Riverside Park and happened to bump into Or Shani, CEO of an AI (Artificial Intelligence) firm, Adgorithms. After discussing Jacobi’s sales woes, Shani suggested he try out Albert, Adgorithm’s AI-driven marketing platform. It works across digital channels like Facebook and Google to measure and autonomously optimise the outcomes of marketing campaigns. Jacobi decided he’d give Albert a one-weekend audition. That weekend Jacobi sold 15 motorcycles. It was almost twice his all-time summer weekend sales record of eight.

Naturally, Jacobi decided to trial Albert for three months to determine future growth opportunities and strategy. In addition, previously Jacobi’s dealership had only offered motorcycles for sale. So, at the start of the Albert trial, Jacobi introduced motorcycle gear (helmets, gloves, protective clothing & footwear) as an additional offering. The impact on sales The use of Albert had an immediate impact on operations. The dealership went from getting one qualified lead per day to 40. In the first month, 15% of those new leads were “lookalikes,” meaning that the people calling the dealership to set up a visit resembled previous high-value customers and therefore were more likely to make a purchase. By the third month, the dealership’s leads had increased 2930%, 50% of them lookalikes.

Effectively, Jacobi had estimated that only 2% of New York City’s population were potential buyers, Albert revealed that his target market was larger – much larger – and began finding customers Jacobi didn’t even know existed. These included out-of-state buyers who were willing to purchase a motorcycle – and associated gear – through the dealer’s online shopping channel. This was an interesting development for Jacobi, given net margin (profit) on motorcycles is 15.7%, while net margin on gear is 57.5%. What does the future hold? At the end of the three-month trial, Jacobi had some major decisions to make. He has already set up a small call centre – with three employees - to handle all new business. He now has $100K to invest back into the business and wants to know whether he should use that to include a new product in his range. Jacobi decided to analyse the relevant data to guide his decision.

QUESTIONS: 

You have been hired by Jacobi to analyze the data and provide the necessary reports to help him decide which option will be best for the dealership. He has set out some key information that he requires.

1. Over the three months, what is the total sales for the dealership, and how is this broken down across in-store and online sales? Provide a relevant chart with your answer clearly detailing the necessary information.

2. What are the in-store and online customers spending, on average, for motorcycles? Choose a different chart (to that used in Q1) to visualize this information.

3. What are the in-store and online customers spending, on average, for gear? Choose the best chart to visualize this information.