KAR Launches State-of-the-Art Data Science Pricing Tool for Commercial Consignment Customers
“Pricing Insights” Is the Latest Entry in the DRIVIN Insights™ Product Suite
KAR Auction Services Inc. (NYSE: KAR) launches its DRIVIN-powered Pricing Insights, a robust, data-driven solution that helps commercial consignors maximize the net economics of their portfolios through optimized pricing. This newest product in the DRIVIN Insights™ Product Suite of portfolio management solutions uses proprietary, state-of-the-art data science algorithms to produce predictive models for determining VIN-level market channel and pricing. These uniquely-tailored analytics and valuations can help consignors achieve targeted conversion rates and remarketing financial objectives — whether the primary goal is to increase upstream conversion, increase overall net economics or both.
“Pricing Insights has achieved proven results for a number of our commercial consignors,” said Don Gottwald, president of KAR digital, data and mobility solutions. “By customizing the solution for each consignor and its brands, we have achieved a $170 per-unit net economic gain overall — potentially creating more than $86 million in annualized value for those customers.”
The proprietary, data-driven model of Pricing Insights encompasses a suite of input variables that are beyond those of traditional pricing approaches and unique to the KAR ecosystem — generating pricing models that are tailored to each consignor’s unique remarketing goals. The technology is API-driven and fully integrated with private-label platforms and other third-party marketplaces, providing seamless, robust and real-time analytics in a single workflow and minimizing both manual assays and opportunities for error. Daily views are provided allowing consignors to understand real-time performance, impact and results.
“Pricing Insights balances instinct and proven technology to produce the results customers want and need,” said Terrence Wynne, vice president of commercial solutions for DRIVIN. “It enables consignors to use more precise pricing as a strategic lever to improve economic outcomes across their entire portfolio. It’s fast, dynamic, and responsive to shifting customer success metrics in real time.”
Pricing Insights moves beyond traditional algorithms grounded in broad assumptions by utilizing data across KAR’s extensive ecosystem and integrating it with DRIVIN analytics and modeling. The product is dynamic and customizable for each consignor brand, aligning the technology with each customer’s strategic objectives and adjusting as remarketing priorities change — and can quickly and easily flex as objectives evolve. Dedicated DRIVIN resources are paired with each consignor to serve as a trusted advisor, monitoring and strategically adapting for the most effective pricing recommendations.
“Pricing Insights enables customers to benefit from Big Data at an industry-leading level,” said Wynne. “The customizable analytics and precise valuations of Pricing Insights deliver the returns our consignors are looking for.”
Powered by DRIVIN, which KAR acquired in 2017, these new Data as a Service (DaaS) capabilities leverage data and technology from across the KAR platform and use proprietary algorithms to deliver clear, easy, actionable intelligence to customers by integrating data science, predictive analytics and machine learning into the remarketing process.