Business challenge

Localiza wanted greater visibility of customer interactions across its various car rental and sales business units, to help it identify opportunities to improve service and boost sales.

Transformation

Localiza built a unified view of its customers, using IBM Analytics solutions to integrate, clean and validate customer data to support the company’s new centralized CRM and ERP systems.

Results

Enhances

customer satisfaction and loyalty with personalized rental offers

Boosts

opportunities for up-selling and cross-selling to grow revenues

Strengthens

competitiveness by helping Localiza stand out in a commoditized market

Business challenge story

Shifting service into high gear

People rent vehicles for many reasons, from business trips to family vacations. Traditionally, most car rental companies have split different types of rentals across different business units—for example, one department handles corporate rentals for large fleets of company cars, while another specializes in personal rentals to individuals.

“Working with IBM and MD2 has been a game changer for our business, allowing us to tap into a gold mine of customer information.”

—Alex Souza, Innovation & Digital Transformation Advisor, Localiza

But what if a customer drives a company car for work every day, and wants to hire a private car for their vacation? If you knew that they were already driving one of your vehicles, you could reach out to them with a personalized offer for private rentals too—boosting their loyalty and increasing your revenues.

Latin America’s largest car rental network, Localiza, recognized that it had a valuable opportunity to shake up the status quo by creating a more seamless experience for its customers. But in order to do so, the company first needed to gain better insight into customer activity across its four core divisions: personal rentals, corporate fleet rentals, used car sales, and franchising.

Alex Souza, Innovation & Digital Transformation Advisor at Localiza, takes up the story: “Customers are our most important asset, and we aim to provide a level of service that keeps them loyal to our brand. We wanted to get a clearer view of how customers interacted with our different business areas, so that we could identify ways to improve service, personalize the experience, and target opportunities for up- and cross-selling.”

To solve the challenge, Localiza looked to establish a new customer relationship management (CRM) system, built on Oracle Siebel technology. With richer insight into customer interactions, Localiza would be able to fine-tune operations and drive great customer journeys.

“We were already using a service-oriented architecture [SOA], so we had a way for our systems to interact with each other,” continues Alex Souza. “We needed to collect all of our customer information and clean it up before loading it into the new Oracle Siebel system. So we set out to find a solution that could help deliver the consistent, high-quality data that we needed to shape a holistic view of our customers.”

Transformation story

Paving the way to better customer insight

Localiza’s search led it to MD2, an IBM Gold Business Partner, who recommended IBM InfoSphere® QualityStage® as an ideal solution to help enhance data quality and facilitate integration.

Alex Souza recalls: “We chose to work with MD2 because they are skilled professionals and experts in InfoSphere technology. MD2 had confirmed past experience with projects similar to ours, and the team has developed special accelerators and customizations for the needs of the Brazilian market. All of this gave us confidence that they could deliver a solution that meets our company’s unique needs. MD2 played a key role in our project’s success, and we continue to partner with them today.”

Working with MD2, Localiza used InfoSphere QualityStage to develop a number of sophisticated data-cleaning rules for information from its source systems, which are used to match and standardize customer names, addresses, social security numbers and more, as well as merging duplicate customer information and correcting discrepancies.

“Establishing the rules that govern the quality and definitions of our data was probably the most important and challenging part of this project,” says Alex Souza. “To make sure we got it right, we created a rule governance committee, composed of very experienced professionals from all business divisions. Empowering our business users by giving them ownership over the creation of rules helped us to make sure we established a truly useful set of data.

“InfoSphere QualityStage helped us materialize our new data quality rules in a highly flexible way. This was a key benefit, because we made lots of rule-changes in the early stages of the project while we were fine-tuning our information governance strategy.”

In addition, Localiza deployed IBM InfoSphere Information Services Director, which is used to “publish” the clean data on the company’s SOA, making it available to other services, including enterprise applications like Oracle Siebel CRM.

With Information Services Director, Localiza was able to create and monitor comprehensive workflows that transfer its data between its systems. Data flows from the company’s source systems to InfoSphere QualityStage for cleansing and validation, and then to a centralized repository that holds what is regarded as the master copy of the data. Siebel CRM accesses the data in this repository and presents it to users, who can review and update or enrich the information. Any modified data then flows back to the core repository, to keep the master copy up to date.

Alex Souza comments: “It was very easy to monitor our intense data loading processes using InfoSphere Information Services Director. With its rich information and logs, we could easily diagnose problems and improve loading execution times.”

During the latter stages of the project, Localiza also completed an implementation of SAP ERP solutions. Having a robust data foundation in place played a key role in the success of the ERP rollout, making it quick and easy for Localiza to integrate customer information into the new system.

Results story

Driving exceptional customer experiences

By harnessing IBM Analytics solutions to establish a robust and consistent set of information about its customers, Localiza has gained the high-quality data foundation it needs to make the most of its new CRM and ERP platforms.

What’s more, Localiza has broken down the silos that used to exist between different business divisions when it came to managing customer information. With a 360-degree view of each customer’s current activity and rental history, decision-makers can deliver more responsive and personalized service.

Alex Souza explains: “When a customer arrives at one of our locations to hire a car, our representatives can bring up a unified view of that customer’s entire history with Localiza, across all divisions. With the ability to see how a customer has engaged with us in the past, as well as their needs and preferences, our teams can provide more personalized service that really resonates with each individual—potentially boosting their satisfaction and loyalty.”

Similarly, improved customer insight is helping Localiza to reach out to customers with up- and cross-selling offers that are tailored to their unique habits and needs. For example, if a customer has recently bought a car from the company’s resale division, a representative could offer the same customer a discount if they decide to rent a Localiza car when they go on vacation. Likewise, if Localiza has a contract with a business to provide all of their company cars, it could offer free upgrades to employees of that business whenever they make a personal car rental.

Alex Souza concludes: “Working with IBM and MD2 has been a game changer for our business, allowing us to tap into a gold mine of customer information. The insight is inspiring us to serve customers more effectively, and to shape exceptional car rental journeys that set Localiza apart from the competition.”

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About Localiza

Based in Belo Horizonte, Brazil, Localiza is Latin America’s biggest car rental company. Localiza operates from 577 locations in Brazil and six other countries, and manages a fleet of more than 150,000 vehicles.

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IBM Analytics offers one of the world's deepest and broadest analytics platform, domain and industry solutions that deliver new value to businesses, governments and individuals. For more information about how IBM Analytics helps to transform industries and professions with data, visit ibm.com/analytics. Follow us on Twitter at @IBMAnalytics, on our blog at ibmbigdatahub.com and join the conversation #IBMAnalytics.

MD2 is an IBM Gold Business Partner that specializes in data integration, business intelligence and business analytics services. MD2 has been working since 2000 to deliver solutions and services that help customers differentiate themselves in their target markets.

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