NEW WHEELS SQL PROJECT

January 12, 2025

SUBMITTED BY RADHA SINGH
 CONTENTS

 PROBLEM STATEMENT AND OBJECTIVE

 BUSINESS QUESTIONS
 BUSINESS METRICS OVERVIEW
 BUSINESS RECOMMENDATIONS
 CONCLUSIONS AND SUMMARY

PROBLEM STATEMENT AND OBJECTIVE

Problem Statement

New-Wheels, a vehicle resale company, has been experiencing a steady decline in sales over
the past year. Alongside this, negative customer feedback and ratings on online platforms
have contributed to a noticeable drop in new customer acquisitions every quarter. These
challenges are posing a threat to the company’s market position and profitability.

The leadership team requires a comprehensive analysis of quarterly performance metrics to

identify key issues and take corrective actions to stabilize and grow the business. They aim
to better understand sales trends, customer feedback patterns, operational inefficiencies,
and areas for improvement.

Objective

The primary objective of this report is to provide actionable insights to help New-Wheels’
CEO assess the health of the business and make informed decisions.

BUSINESS QUESTIONS

QUESTION 1: Find the total number of customers who have placed orders.
What is the distribution of the customers across states?
SOLUTION QUERY:

OUTPUT
Key Observations and Insights

1. Total Unique Customers

 Total Unique Customers: The company has 994 unique customers who have placed
orders.

2. State-Wise Distribution

 Top States by Customer Count:

1. Texas and California both have the highest number of customers (97 each),
contributing significantly to the overall customer base.
2. Florida comes next with 86 customers.
3. New York has 69 customers, making it another key state for sales.
 These four states (Texas, California, Florida, and New York) together account for a
large share of the customer base. They should be the focus for:

o Enhancing marketing efforts.

o Improving after-sales service to retain customers.

3. Lower-Contribution States

 States like District of Columbia (35), Ohio (33), and Colorado (33) have smaller
customer counts.
 These states may represent potential growth opportunities. The company could:
o Investigate reasons for lower customer counts (e.g., lack of market
penetration, lower brand visibility).
o Introduce targeted promotions or localized campaigns to improve customer
engagement.

4. Strategic Actions

1. Top States Focus: Increase promotional efforts and customer retention strategies in
Texas, California, Florida, and New York, as they are key revenue contributors.
2. Expand in Smaller Markets:
o Analyze lower-performing states to identify barriers (e.g., shipping issues,
customer awareness).
o Offer discounts, enhanced service guarantees, or targeted ads in these
regions.
3. Customer Base Growth:
o While 994 unique customers is a good starting point, the company must
assess if it aligns with revenue goals.
o Explore customer acquisition strategies to boost this number.
4. Feedback Collection:
o Assess the feedback and ratings distribution across states to understand
regional customer satisfaction.
QUESTION 2: Which are the top 5 vehicle makers preferred by the
customers?
SOLUTION QUERY:

OUTPUT:
KEY OBSERVATIONS AND INSIGHTS:

1. Chevrolet Dominates the Market:

o Chevrolet leads with the highest customer count of 83, indicating it is the
most preferred vehicle maker among customers on the New-Wheels
platform.
o This suggests Chevrolet's vehicles might appeal to a broader customer base
due to factors like reliability, pricing, or availability.
2. Ford and Toyota Are Strong Competitors:
o Ford (63 customers) and Toyota (52 customers) hold the second and third
positions, respectively.
o These brands likely have strong brand recognition and customer loyalty. Their
wide variety of models and competitive pricing may also contribute to their
popularity.
3. Pontiac and Dodge Tie for Fourth:
o Both Pontiac and Dodge have 50 customers each, indicating a shared
preference among customers for these vehicle makers.
o The tie might reflect a niche market appeal or competitive positioning in
specific categories like SUVs, trucks, or sports cars.
4. Brand Diversity Among the Top 5:
o The top 5 includes a mix of American (Chevrolet, Ford, Dodge, Pontiac) and
international (Toyota) brands.
o This diversity shows that customers on New-Wheels have a varied taste for
vehicles, reflecting either personal preferences or regional availability.
5. Significance for Marketing and Inventory:
o New-Wheels can focus marketing efforts and inventory management on
these top 5 vehicle makers to maximize sales and meet customer demand.
o Promotions and after-sales services targeting these brands could further
enhance customer satisfaction and loyalty.
6. Potential for Growth in Other Brands:
o The notable gap between Chevrolet and other brands suggests an
opportunity to investigate what makes Chevrolet more appealing and apply
similar strategies to promote other brands.
QUESTION 3: Which is the most preferred vehicle maker in each state?
SOLUTION QUERY :
OUTPUT:
KEY OBSERVATIONS AND INSIGHTS:

1. State-Level Vehicle Preferences:

o Different states have varying preferences for vehicle makers. This suggests
that factors such as local dealership presence, regional brand popularity, and
demographics might influence vehicle preferences.
2. Dominance of Certain Brands:
o Chevrolet is a frequently preferred vehicle maker across many states, such as
Texas (9 customers), Ohio (6 customers), and California (6 customers). This
indicates a strong brand presence and loyalty in these regions.
o Toyota also shows strong popularity in states like Florida (7 customers), New
York (5 customers), and Pennsylvania (3 customers).
3. Ties in Preference Counts:
o Several states show ties in customer counts for different brands, e.g., Arizona
where Cadillac and Pontiac both have 3 customers each. This suggests
competitive preferences for certain brands in these areas.
4. Regional Trends:
o Dodge is popular in states like Alabama (5 customers), Idaho (2 customers),
and New Mexico (2 customers), showing its appeal in specific states.
o Ford demonstrates regional popularity in Maryland (5 customers), Michigan
(3 customers), and Virginia (5 customers).
5. Niche and Luxury Brands:
o Niche brands like Maserati (Connecticut, Kansas), Ferrari (Oklahoma), and
Maybach (Utah) appear in states where customer preference might reflect
higher disposable income or specific brand appeal.
6. Uniform Preferences in Certain States:
o States like Hawaii and Iowa have distributed preferences, with many brands
having only 1 customer each. This might indicate a fragmented market with
no clear dominant vehicle maker.
7. Toyota's Popularity in Coastal and Urban States:
o Toyota is a top choice in urban or coastal areas like Florida, New York, and
Oregon, reflecting its reputation for reliability and efficiency in areas with
potentially high commuting demands.
8. Chevrolet's Stronghold in Texas:
o Chevrolet's significant lead in Texas (9 customers) could be attributed to its
historical association with rugged, durable vehicles well-suited for the state's
geography and lifestyle.
9. Sparse Markets in Low-Population States:
o States with smaller populations, such as Wyoming, Vermont, and North
Dakota, have fewer customers and more evenly distributed preferences,
suggesting lower market penetration or vehicle ownership.
10. Emergence of Luxury Brands:
o Brands like Mercedes-Benz, Audi, and BMW are preferred in some states,
such as Kentucky, Connecticut, and South Carolina, highlighting the presence
of premium vehicle markets in these regions.
QUESTION 4: : Find the overall average rating given by the customers. What
is the average rating in each quarter? Consider the following mapping for
ratings: “Very Bad”: 1, “Bad”: 2, “Okay”: 3, “Good”: 4, “Very Good”: 5

SOLUTION QUERY:
OUTPUT:

KEY OBSERVATIONS AND INSIGHTS

1. Variation in Scores:
o The individual scores for the category 1 are:
 2.40, 3.55, 2.96, and 3.35.
 This indicates a range of feedback or performance ratings with some
variability.
2. Overall Average Score:
o The overall score is 3.14, which is calculated as the average of the individual
scores.
o This suggests the performance or feedback for category 1 is moderately
positive but not exceptional.
3. Highest and Lowest Scores:
o The highest score is 3.55, which reflects strong feedback or performance in
some instances.
o The lowest score is 2.40, indicating areas where improvements may be
needed.
4. Spread of Scores:
o The scores range from 2.40 to 3.55, demonstrating some inconsistency. This
might suggest varied user experiences or differences in
performance/feedback across time or customers.

Insights:

1. Moderate Performance:
o The overall score of 3.14 suggests that the performance or satisfaction is
above average, but there is room for improvement to reach a higher level of
excellence.
2. Room for Consistency:
o The variation in individual scores points to a need for standardizing or
improving service or product quality to reduce the gap between the lowest
and highest ratings.
 3. Improvement Opportunities:
o Efforts should be directed at understanding the reasons behind lower scores
(e.g., 2.40) and addressing them to improve overall performance or
satisfaction.
4. Potential for Optimizing High Ratings:
o The presence of higher ratings (e.g., 3.55) indicates there are areas or
practices that are well-received. These should be identified, maintained, and
replicated in other areas to boost the overall score further.
5. Focus on Maintaining Momentum:
o With an average above 3, the feedback is generally positive. However,
focusing on consistency and eliminating lower scores can significantly elevate
the performance to an exceptional level.

QUESTION 5: Find the percentage distribution of feedback from the

customers. Are customers getting more dissatisfied over time?
SOLUTION QUERY:

OUTPUT:

KEY OBSERVATIONS AND INSIGHTS

1. Increasing Customer Dissatisfaction

 "Very Bad" Feedback:

 o Increased significantly from 10.97% in Q1 to 30.65% in Q4.
o Represents a growing number of highly dissatisfied customers.
 "Bad" Feedback:
o Increased from 11.29% in Q1 to 29.15% in Q4.

Insight:
The combined dissatisfaction (Very Bad + Bad) rose from 22.26% in Q1 to 59.80% in Q4,
signaling a serious issue with the service or product quality. Addressing the root cause is
critical to preventing further erosion of customer trust.

2. Decline in Positive Feedback

 "Good" Feedback:
o Dropped sharply from 28.71% in Q1 to 10.05% in Q4.
 "Very Good" Feedback:
o Declined from 30.00% in Q1 to 10.05% in Q4.

Insight:
Positive feedback (Good + Very Good) fell from 58.71% in Q1 to 20.10% in Q4, indicating a
significant decline in customer satisfaction and quality of service. This trend must be
reversed to rebuild customer loyalty.

3. "Okay" Feedback Stability

 The percentage of "Okay" feedback remained relatively stable, ranging from 19.03%
in Q1 to 21.83% in Q3, and slightly declining to 20.10% in Q4.

Insight:
While this neutrality indicates some stability, it doesn’t contribute to loyalty or advocacy.
Efforts should focus on turning these neutral customers into satisfied ones.

4. Possible Root Causes

The increase in dissatisfaction and decline in positive feedback suggest:

 Service Quality Issues:

o Delayed shipments, poor communication, or inadequate customer support
could contribute to rising dissatisfaction.
 Product Issues:
o Poor vehicle condition, unmet expectations, or inaccurate product
descriptions may play a role.
 Customer Expectations:
o High expectations not being met, especially in Q4 (holiday season), may
exacerbate the dissatisfaction.
QUESTION 6: What is the trend of the number of orders by quarter?
SOLUTION QUERY:

OUTPUT:
KEY OBSERVATIONS AND INSIGHTS

1. Declining Order Count Across Quarters

 The number of orders has consistently decreased across the quarters:

o Q1: 310 orders
o Q2: 262 orders (↓15.48% from Q1)
o Q3: 229 orders (↓12.60% from Q2)
o Q4: 199 orders (↓13.10% from Q3)

Insight:
This steady decline in order volume indicates a significant drop in customer engagement or
interest. The company needs to investigate the reasons behind this trend to address it
promptly.

2. Quarter-on-Quarter Decrease

 The most significant drop occurred between Q1 and Q2 (48 orders lost).
 Even though the drops between subsequent quarters are smaller, the consistent
decline signals worsening customer retention or acquisition issues.

Insight:
This trend suggests that customer dissatisfaction or external factors (e.g., market
conditions) are impacting the company's ability to attract and retain customers.

3. Potential Contributing Factors

 Customer Dissatisfaction:
o The earlier analysis of customer feedback indicates increasing dissatisfaction,
which likely led to reduced repeat orders.
 Market Competition:
o Competitors might be attracting New-Wheels' customer base with better
offers or services.
 Economic Conditions:
o Broader economic factors could affect customer purchasing power or
willingness to invest in pre-owned vehicles.

4. Seasonal Patterns

 The Q1 peak could reflect strong initial interest or a post-holiday surge. However,
the lack of growth in subsequent quarters suggests:
o Seasonal promotions or discounts are missing in Q2–Q4.
o A need for consistent customer engagement throughout the year.
QUESTION 7: Calculate the net revenue generated by the company. What is
the quarter-over-quarter % change in net revenue?

SOLUTION QUERY:

OUTPUT:

KEY OBSERVATIONS AND INSIGHTS:

1. Quarterly Revenue Trends

 Q1: The net revenue was the highest.

 Q2: Revenue decreased from Q1, indicating a negative trend starting early.
 Q3 and Q4: Revenue continued to decline steadily, showing a sustained drop across
quarters.

Insight:
The business is experiencing a continuous decline in net revenue, mirroring the downward
trend observed in customer orders.
2. Quarter-Over-Quarter (QoQ) Revenue Change

 The QoQ revenue change percentage shows consistent declines:

o Q2: A significant drop compared to Q1, suggesting a major loss in sales or
customer engagement early in the year.
o Q3 and Q4: Further decreases in revenue but at slightly lower percentages
than between Q1 and Q2.

Insight:
This indicates that the issues affecting sales and revenue (e.g., customer dissatisfaction,
competition, or operational inefficiencies) likely started in Q2 and persisted throughout the
year.

3. Impact of Discounts

 The formula accounts for discounts (1 - discount / 100), suggesting that aggressive
discounts are being offered but are not translating into sustained growth or higher
revenue.

Insight:
Discount strategies may not be sufficient to address underlying issues such as product or
service quality.

QUESTION 8: What is the trend of net revenue and orders by quarters?

SOLUTION QUERY :
OUTPUT:

KEY OBSERVATIONS AND INSIGHTS:

1. Declining Revenue Across Quarters

 Quarter 1 (Q1): Revenue was highest at 39.42M.

 Quarter 4 (Q4): Revenue dropped significantly to 23.35M.
 The total revenue consistently decreased every quarter:
o Q1 → Q2: Decrease of ~17.0% (32.72M).
o Q2 → Q3: Decrease of ~10.6% (29.23M).
o Q3 → Q4: Decrease of ~20.1% (23.35M).

Insight:
The company is facing a persistent decline in revenue, potentially due to fewer orders and
possibly lower average order values.

2. Declining Order Volume

 The total number of orders also declined each quarter:

o Q1: 310 orders
o Q2: 262 orders (↓15.48% from Q1)
o Q3: 229 orders (↓12.60% from Q2)
o Q4: 199 orders (↓13.10% from Q3)
Insight:
The steady decrease in order count is a critical factor contributing to the revenue decline.

3. Correlation Between Revenue and Orders

 Both revenue and orders follow a similar downward trend, indicating that fewer
sales are driving the revenue drop.
 The average revenue per order seems to have remained relatively stable, meaning
the decline is more volume-driven than price-driven.

QUESTION 9: What is the average discount offered for different types of

credit cards?
SOLUTION QUERY:
OUTPUT:

KEY OBSERVATIONS AND INSIGHTS:

1. Discounts Across Credit Card Types

 The highest average discount is offered to Laser card users (0.64%).

 Other notable card types with high discounts include:
o MasterCard: 0.63%
o Visa Electron, Maestro, InstaPayment, and China UnionPay: 0.62% each.

Insight:
There is minimal variation in the average discount rates across different credit card types.
The range spans from 0.61% to 0.64%, indicating that the company applies discounts
uniformly across payment methods.

2. Popular Credit Card Types

 While the query provides insights into discount rates, it doesn't directly indicate
which credit cards are most frequently used.
 High average discounts for MasterCard and Visa Electron might suggest these are
commonly used by customers.

Insight:
If these cards are indeed popular, offering targeted promotions for users of these card types
could boost sales and customer loyalty.
3. Uniform Discount Strategy

 Discounts for less common cards like Switch, JCB, and Diners Club are similar to
those for more widely used cards like MasterCard and Visa Electron.
 This uniformity might suggest the company does not currently use discounts as a
strategic tool to incentivize specific payment methods.

Insight:
The company could consider varying discount rates for underutilized card types to attract
more customers from those segments.

QUESTIONS 10: What is the average time taken to ship the placed orders for
each quarter?
SOLUTION QUERY:
OUTPUT:

KEY OBSERVATIONS AND INSIGHTS:

1. Increasing Shipping Time Across Quarters

 The average shipping time has consistently increased over the quarters:
o Q1: 57.17 days (lowest average shipping time).
o Q2: 71.11 days (↑24.37% compared to Q1).
o Q3: 117.76 days (↑65.57% compared to Q2).
o Q4: 174.10 days (↑47.78% compared to Q3).

Insight:
The dramatic increase in shipping time, especially in Q3 and Q4, indicates severe operational
inefficiencies or external challenges that are directly impacting delivery performance.

2. Impact on Customer Satisfaction

 Earlier customer feedback analysis showed a rise in negative feedback ("Very Bad"
and "Bad") over the same quarters.
 The correlation suggests that longer shipping times may be a primary driver of
customer dissatisfaction.
Insight:
Delays in shipping are likely eroding customer trust and contributing to lower retention
rates and order volumes.

3. Possible Causes of Delays

 Operational Issues:
o Inefficient logistics, supply chain disruptions, or understaffing in shipping
teams may have worsened over the quarters.
 Seasonal Challenges:
o Q3 and Q4 often face holiday season shipping pressures, which may have
overwhelmed capacity.
 Geographical Factors:
o Expanding to regions with less efficient shipping networks could contribute to
delays.
 BUSINESS OVERVIEW METRICS

Total Revenue Total Orders Total Customers Average Rating

124714086.32351312 1000 994 3.14

Last Quarter Last quarter Average Days to % Good Feedback

Revenue Orders Ship
23346779.63060600 199 174.1 20.10

BUSINESS RECOMMENDATIONS
Based on the analysis of increasing shipping times and its correlation with customer
dissatisfaction and declining orders, the following actions are recommended:

1. Optimize Logistics and Operations

 Identify Bottlenecks:
o Perform a detailed review of the shipping process to locate inefficiencies such
as delays in product dispatch or partner shipping delays.
 Enhance Partnerships:
o Collaborate with reliable shipping providers who can handle high volumes
during peak seasons.
 Leverage Technology:
o Use advanced logistics platforms for route optimization and real-time
monitoring of shipments.

2. Improve Inventory and Demand Management

 Forecasting:
o Use data analytics to better predict demand and avoid stockouts or
unnecessary inventory transfers.
 Stock Placement:
o Position inventory closer to key demand areas (e.g., distribution hubs in
Texas, California, and Florida) to minimize shipping distances.

3. Focus on High-Impact Regions

 Regional Prioritization:
o Focus efforts on regions contributing the most to order volumes, such as
Texas, California, and Florida.
o Provide additional resources to these regions to streamline shipping and
ensure quicker deliveries.

4. Proactive Customer Communication

 Transparency:
o Communicate expected delivery times upfront, especially during high-
demand periods.
 Tracking and Updates:
o Offer real-time tracking and proactive notifications for delays to build trust
with customers.

5. Seasonal Preparations

 Peak Readiness:
o Allocate additional resources (personnel, fleet, warehouses) in anticipation of
increased demand in Q3 and Q4.
  Promotions:
o Launch campaigns offering faster shipping options (e.g., express delivery)
during peak seasons.

CONCLUSION AND SUMMARY

Conclusions

 The consistent increase in shipping times across all quarters reflects operational
inefficiencies and/or external challenges, especially in Q3 and Q4.
 This trend directly correlates with declining customer satisfaction and order
volumes, highlighting the urgency to address shipping delays.
  Improving logistics, enhancing inventory management, and better preparing for
seasonal demand are crucial to reversing this trend.

Summary

The analysis reveals that longer shipping times are eroding customer trust and driving down
order volumes and revenues. To rebuild customer confidence and improve business
performance:

1. Optimize logistics and shipping operations.

2. Focus on improving high-performing regions.
3. Proactively communicate with customers about delays and tracking.
4. Prepare thoroughly for peak seasons to handle increased demand.