Business Partnerships for Customer Delight

1. BusinessPartnershipsfor CustomerDelight III. IstanbulInternationalInsuranceConference 25.05.2011

2. CONTENT

3. OBJECTIVE OF PRESENTATION • Build a shared understanding of the value we jointly create through customer delight • Understand how businesspartnershipcan enhance that value by • Sharing the customer ‘moment of truth’ • Broadening our cooperation to drive greater value

4. CONTENT

5. Belron is a 111 year old company owned by D’Ieteren • Vehicle Distribution • Car Rental • Vehicle Glass

6. D’IETEREN KEY FIGURES 2010 • Serving 19M customers in 120 countries • 32.000 employees • 3.4M glassrepairjobs • 12M glassrepair & replacementjobs • US$10,1 BillionTurnover

7. Our operating brands.... • 33 countries • 24,000 employees • 1,800 branches • 8,500 mobile units • 3 seconds…A glass job completed worldwide!

8. OUR VISION & STRATEGY IS CLEAR… VISION STRATEGY Repair First To be world’s natural choice in VGRR If it is possible to repair rather than replace we will do so

9. CONTENT

10. 2011 Comprehensive Motor InsuranceGlassClaimsEstimationforTurkey • 350,000 • Is theestimatedglassclaimsnumbers • 20%-30% • Is theshare of glassclaims • 4%-7% • Is theshare of glassclaims in costs

11. The evolving role of glass | Three main areas Glass incorporates advanced technologies Larger areas of glass, including roof Thinner, more complex curved glass

12. Evolution of glass complexity Solar control • Light and rain sensors. • Head up displays (HUDs). • Fitted cameras allowing:- Speed Detection- Lane Deviation- Collision Avoidance. • Radio antenna in glass Clear or green glass Light or dark grey top tint Rain sensor VIN notch in silkscreen Camera Head Up Display (HUD)

13. Facts about repair | Why does repair become ever more important?

14. A CHALLENGING TASK : Increased Customer Service with controlled costs | Why does repair become ever more important? • Increasing complexity (e.g. 5346AGSGYAHJMVW Merc SL) 40% is therepair rate of Belron 1% is therepair rate in Turkey

15. Benefits of Repair • Repairs onlytake 20 minutes. • Savetheoriginality of theglass. • Repairs are significantly cheaper than replacements. • 100% safe • 10 times more environmentally friendly than replacement. Source: Belron® & KPMG risk and sustainability study 2008

16. CONTENT

17. Attracting new customers is expensive! Insurance Retention/DefectorStudy*Suggests youshould: • Anticipate which customers are most likely to switch • Engage a retention strategy before they even begin the shopping. • Initiateproactive contact with customers at touch-points. • Don’tforget! Retaining customers stilldepends on high quality service. *J.D. Power & Associates 2008 CustomerLoyalty

18. We measure satisfaction usingNPS - Net Promoter Score • NPS is a measure of customerloyalty • International standard • Not specific to BELRON® • Used by a large number of companies : ING, e-Bay, • GE, American Express, Dell, US Airways, Sony…etc • How do we use NPS? • To motivateour people • To benchmark withothercompanies • To betterunderstandourcustomers • To improveourcustomerexperiencebased on theirfeedbacks

19. One Question, One measure “On a scale of 0 to 10 How likely would you be to recommend Carglass to your friends or colleagues”

20. What is a good NPS score? 81% 75% 50 to 80% 73% 71% 56% 51%

21. NPS BY INDUSTRY

22. CARGLASS® TURKEY NPS Carglass Turkeyachieved 83% NPS in average

23. Wecreateeconomicvaluetoourpartnersthroughpolicyholders served by Belron! Belron high NPS levels Higher Partner NPS for customers served by Belron Economic value from customer behaviour (e.g. renewal) • Belron has strong NPS performance across markets, including UK and case study markets • StrongBelron NPS is correlated with insurer NPS • This NPS advantage supports economic benefit as demonstrated in terms of • Up-sell /Cross-sell • Referral • Retention

24. We think we can do more to share the moment of truth 1 Share: Share moment of truth to increase translation of satisfactionfrom Belron to Partners Belron high NPS levels Higher PartnerNPS for customers served by Belron Economic value from customer behaviour (e.g. renewal) 2 Delight: Further increase Belron’s NPS through enhancing the customer experience Create more value: Work jointly to translate customer delightinto valuable customer behaviour for Partner(e.g. renewal, up-sell, cross-sell)

25. To create more value, we must convert satisfaction into action immediately following service FRENCH MARKET EXAMPLE 64 54 41 40 24 25 Carglass NPS Insurer NPS Carglass NPS Insurer NPS Carglass NPS Insurer NPS 1 week after service 3 months after service 6 months after service Window of opportunity between ~3 and ~30 days following service SOURCE: Carglass France NPS, segment and retention surveys

26. Possible intervention model How it could work: Targeted sales and recovery interventions Partner mines policyholder data for high potentials (e.g. customer value, date of next renewal, other products held) Partner contacts customer within 30 days to propose offer @ Belron provides glass service Belron conducts post-service satisfaction survey Belron pinpointshigh potentials and at-risk customers A recovery intervention is conducted with at-risk customers Insurer provides analysis on conversion rates to Belron for improvement of models

27. CONCLUSION • Glassclaimscomplexityandfrequency is increasing • Increasedcompetitionforces service companiestodifferentiatewithenhancedcustomerservices. • Withglassclaimsrepresentingonly4%-7% of total claims, Carglass offerscustomerloyaltyandincreasedsaleswith total valuepartnerships.

28. Z.Gul Birgun General Manager Carglass®Turkey E-mail:gul.birgun@carglass.com.tr THANK YOU…