The features that determine predicted performance are computed for both the dealers in aggregate and individually. This table identifies the features that were most effective in determining a performance forecast for all dealers in aggregate. These features are those that motivate all the dealers as a group with all features both weighted and ranked.
The next table lists the features most important to the aggregate order input forecast. The weights are comparative importance. Scrolling down through the features by using the scoll bar at the right of the table yields surprising results.
This data table displays the features, their rank and their weight in projecting the order input for all dealers taken as a whole. These are the features used in the projections.
This table is interactive. Scroll vertically to observe all features.
It is not surprising that the external environment variables reflected by both the Demand Index and Price Index are the most important features. The cumulative effect of these two features account for 32% of the weights causing change in aggregate performance. The tide of market demand surges over any ability to execute or dealer preference. The challenge presented to the client by this conclusive weight of importance is that to maintain market leadership requires continued product competitiveness but, also, adept market agility by moving to emerging, but related, products and markets quickly.
Registrations are the new customers registered for account protection - a key field activity measurement. Activity measures do not rank again until over rank 20. It makes sense that motivating dealers to acquire new customers results in new order input. Client programs to improve customer prospecting and cash incentives for new customers should yield large benefits to the client's order input performance.
The highly ranked 'profit potential' refers to the financial incentive offered by the client to the dealer. The profit potential may include the profits associated with the sale such as training and professional services. Strong profit potential is a typical incentive in a vigorous distribution scheme for a core product in the market. The dealers are often cash strapped as vendors extract margin and profitability for themselves. A financially secure distribution network that sustains long-term profitability is often a better long-term strategy and certainly a better strategy when competitors are poaching the client's dealers.
Oddly "Price Point" and "Profit Expectation" are the lowest ranked features. The "Price Point" feature refers to bid price rather than to closing price. The client challenge on pricing is not the most important challenge. The "Profit Potential" feature refers to longer term profitability that can be achieved by other means than simply pricing. Deeper analysis may show that the client is very responsive to price negotiation at the order close, but initial pricing is not a key driver for the client's dealers.
The balance of the top ten features are measures of training quality, product desirability, customer recognition, account and support team vigor. This confirms the client's investment in the training programs and product development.
The overwhelming rank and weight of the Market and Price indices confirms the client's investment in new product development in order to match or exceed competitive advances. The high value placed on field activities further confirms the client's distribution strategy. It would appear that price reductions would work to demotivate the dealers and result in an unpredictable and, potentially, an undesired outcome. The message here is the client should stick to its original strategy. The next step is to analyze feature importance by partner for tactics rather than strategically.