A Service Retention and Customer Loyalty Program for Your Dealership

A Service Retention and Customer Loyalty Program for Your Dealership

What is Loyalty Trac? Loyalty Trac is • A Customer Loyalty program • Built for car dealers • Combines points reward & redemption system with CRM/customer communications enabler • Comprehensive, practical and affordable • In use at hundreds of dealerships in the USA Loyalty Trac encourages and rewards your customers to: • Service their current vehicle at your store • Give you 100% of their service business • Buy their next car at your store • Participate in marketing your store to others

Dealership Branding Car brand loyalty is important but Dealership branding and loyalty is what we’re all about LoyaltyTrac builds loyalty to your store and your services, one customer at a time Millions are spent on car brand loyalty often without huge effect. It’s time to invest in building Loyalty to what really matters… …Your Store

Who’s behind LoyaltyTrac? In the USA • MediaTrac LLP (2001)…a media measurement and retail marketing company in California created the product • Now in 500 (+/-) US dealerships & 6 Canadian dealerships • High dealer satisfaction (DSI) with the product and support In Canada • OSL a leading Canadian marketing and loyalty enterprise (120+ employees, Montreal and Toronto offices, clients eg’s National Bank MasterCard, Aeroplan over 19+ years. • OSL “discovered” LoyaltyTrac, did due diligence and has formed a company (IQ7/24) to license and sell LoyaltyTrac to Canadian dealers. • A growing team with solid loyalty, CRM and auto retail experience

Customer Satisfaction does not mean Customer Loyalty • 90% of customers are satisfied with vehicle purchase…but • only 50-65% return for service during warranty…and • only 20% do so after the warranty expires! • Regardless of how you measure service retention, there are opportunities to get more customers coming back more often and spending more money on at least some of their visits… • You do that by making your customers want to be loyal to you… • Sources: NADA and Harvard Business Review

We all know that Service Loyalty has a large Multiplier Effect on Profits % Revenue % Profit Service & parts * 16% New vehicle sales 31% Service & parts * 55% New vehicle sales 63% Used vehicle sales 20% Used vehicle sales 13% Eventhough Service represents 16% of total revenues in a dealership… it accounts for over 55% of a dealership’s profit! * Including F& I and Body Shop…Source : Desrosiers Automotive Consultants

But Service Loyalty also leads to more sales Initial Service Loyalty  Ongoing Service Loyalty • Customers who spend their first service dollar with a dealer are 65% more likely to use the dealer for ongoing service. Ongoing Service Loyalty  Repeat Vehicle Sales • 70% of customers who use a dealer for service on a regular basis will purchase another vehicle from that dealer. Ongoing Loyalty  Less Ad & Marketing expense • It is cheaper to retain a customer than attract a new one LoyaltyTrac will help you get more of your customers coming to your store more often to do more things at less cost to you Sources: NADA and Harvard Business Review

Let’s be Really Clear about Customer Loyalty Customers EXPECT to be satisfied, but they need to be ENCOURAGED to stay with you LoyaltyTrac allows you to encourage your customers to stay with you by communicating with them and rewarding them to do so

Let’s Talk Product • LoyaltyTrac combines a customer points/rewards program that you design and evolve + • effective, inexpensive, targeted email communication program that is as automated or self-initiated as you want

Generate Revenue with Multiple Member Levels Many dealerships offer a free base-level card and fee-based Silver, Gold and Platinum up-sell cards. Dealers can view the service reward program as a revenue generating asset. Gold Card Base Card Service Platinum Card Platinum Card

Chose/Design your offers and rewards • You decide on the benefits you want to offer…and when…and to whom… • Each card type will offer Points based on the customer’s spending at the store over time. Customers accumulate points which they can redeem towards a vehicle purchase or selected service jobs (your choice). These are called Earned Rewards. Points can also be given for completing a CSI survey, providing a referral or simply attending a dealer event. These are called Bonus Rewards. • You can attach any number of (complimentary) Privileges to any membership category (e.g. Washes, Service Shuttle, Loaner Car, invitations to a dealership event (theatre or golf) • You could chose to offer Discount Rewards either “all the time” or at particular times on frequently used dealer services • You can provide a credit on an F&I product or a Pre-Paid Service to members who select a premium (fee) card. • And you can always offer Cross Promotionsfrom your local partners (e.g. free coffee at Tim Hortons)

E.G. a Basic and Gold Reward Structure • $20 Gold Card • Earn 1 point per dollar spent • 50 bonus points for purchasing the card • 100 bonus points for setting first semi annual inspection appointment at time of delivery • 100 bonus points for attending new owner clinic • 400 bonus points for a customer referral • Complimentary 2-way shuttle service • Free car wash with every purchase • $199 Platinum Card • Earn 2 points for every dollar spent • 100 bonus points when card is purchased • 100 bonus points for setting first semi annual inspection appointment at time of delivery • 100 bonus points for attending new owner clinic • 400 bonus points for a customer referral • Complimentary 2-way shuttle • Free car wash with every purchase • $100 discount with the purchase of an extended warranty • $100 discount on any complete chemical package • Points are transferable to another family member • .

E.G. a Basic and Gold Reward Structure • Basic Card • Complimentary Rewards • complimentary 1st oil change • complimentary exterior wash with every service • complimentary coffee in waiting area • complimentary shuttle • complimentary recall check • complimentary windshield stone chip repair • complimentary rentals on repairs over $300. • Discounts • $5.00 discount off all oil changes • no charge to mount and balance with the purchase of two or more tires • $25.00 off all brake pad or shoe replacement • 5% off accessories & warrantees purchased in the F&I office. • Gold Card • Complimentary Rewards • complimentary oil change (max 5) • complimentary exterior wash with every service • complimentary coffee in waiting area • complimentary shuttle • complimentary recall check • complimentary windshield stone chip repair • complimentary rentals on repairs over $300. • 1 complete vehicle detail • complimentary annual wiper blade replacement for 1st three years • complimentary spring and fall inspections with tire rotations for the life of the car • complimentary winter/summer tire storage • Discounts • $5.00 discount off all oil changes • no charge to mount and balance with the purchase of two or more tires • $25.00 off all brake pad or shoe replacement • 10% off accessories & warrantees purchased in the F&I office.

Getting Your Customers enrolled…1 In the “normal course of events” buyers of new and used cars and customers of your Service Department will be enrolled into the LoyaltyTrac system database via Internet Issuance of a readable membership card with an unique numberfollows enrollment

Dealership Point of Sale Materials You’ll get proven POS materials to help program marketing and enrollment. Your in store visitors and customers will quickly come to know about your rewards program Materials directly help build service retention by reminding customers to use your dealership for ongoing service.

Customers Like LoyaltyTrac In our experience* 90%+ of customers choose to join a dealer’s LoyaltyTrac Program 70%+ opt in to receive email communications People generally like Rewards Programs and will alter their behaviour to allow them to accumulate points towards rewards Unlike some programs, the rewards that can be provided by a dealership are very tangible and seen to be significant by consumers… People will want to join your program and that will give you the mechanism to ask for and get their email address. *Primarily LoyaltyTrac US

Program Welcome Kit Delivered via e-mail or traditional mail immediately after the vehicle sale or the member enrolment. Explains program benefits and guidelines. Serves as an incentive to entice customers back by utilizing a date sensitive offer.

Regular contact with your customers You now have an infinite number of occasions on which to communicate with your member/customers. You may chose to have some pre-set and programmed…say, the sending of a monthly statement or a post-service survey. These contacts are automated and the dealership has no administrative responsibility in the deployment.

Member Activity Statements Every month, every member will receive an activity statement. Dealers may elect to include a service offer, event announcement, safety tip or notice of a new product offering. **You don’t have to be offering discounts or “giving things away” You can be as creative and informative as you wish (or as you customer wishes!)

Member Opinion Surveys..Automated or Special Surveys can be automatically triggered and emailed to customers based on member activity Or, they can be designed and sent to gather opinion on special topics In either event, negative responses will automatically emailed to key dealer personnel.

Automotive Marketing Templates • You are not stuck with Pre-set communications, although… • LoyaltyTrac includes scores of marketing templates you can select and personalize in minutes in real time via the web • Templates for every major dealer service: • Oil Change • Brake Service • Scheduled Maintenance • Parts and Accessories • Transmission Service • New Model Introduction…

Automated Owner Clinic or Event Invitations Special event invitations can be sent based on past purchases. Reward points and coupons can be offered as an incentive to attend. A great tool for inviting your best customers to see your newest models.

Reward Your Customers on Their Birthday Automated (car or personal) birthday greetings can be sent with or without a reward. (Send at the beginning of the month, with a thirty day expiration)

Customize a special Communication &&& communications A number of custom email marketing templates are included…but You can have us design a special promo when needed Marketing activities are driven from filtered customer lists based on each customer’s actual buying habits.

Your Client-Members have Access to their Accounts through their Website Cardholders have a personal web interface to view their activity, rewards, and dealer offers… Your store and brand are up-front & prominent.

You have Real-Time Program Admin and Reporting The entire program is accessible by you and your staff (on a selective basis) from one, secure, easy-to-use website.

Measuring Program Effectiveness is easy Comprehensive reporting measures movement against an established baseline to determine program performance in real time. Reporting measures three key metric groups: Program Utilization Member ContactMember Behavior

IQ 7/24 Client Relations Manager You are not left alone to make the program a success at your store… An IQ7/24 Manager reviews program results and hosts monthly performance calls with dealership as required. • Compensated based on a customer scorecard including: • Email Capture Rate • Card Activation Percentage • Marketing Campaigns • First Visit Activity • Reward Redemption… • these are the very things you need to know to make sure your program is working!

Pricing • Pricing is based on number of vehicles sold per month at your dealership (new and used). • If your average monthly vehicle sales are 100 , your monthly investment will be:

Pricing Notes • You will be provided with all the cards you need to enroll all your new and used car buyers and your Service Department visitors over the period of the contract. • In the example of a 100 car/store month up to 10,000 membership cards would be planned for allocation and delivered on an as-agreed schedule. • Regular program performance reviews by LoyaltyTrac personnel to help you drive the program, access to all the marketing templates and unlimited email deployments are included.

Start-Up & Other Potential Charges A Start-Up cost of $8,500 • Program planning support (card types, benefits, redemption etc) • Administrative procedure development support (accounting, data entry etc) • Membership card creative and production • Point of sale creative & production • Card Reader and installation • On-site training for all key personnel ( 2 days + telephone/web as needed) • License to use the technology As noted, all cards are included. Only other possible extras would be… • our costs to do a direct traditional mail campaign for you or, • Fees to provide additional (post-launch) marketing support and consulting at your request. These would be billed at an agreed rate.

Guaranteed Satisfaction If not fully satisfied, you can choose to cancel your LoyaltyTrac program in the 13th month of our agreement.

What LoyaltyTrac Can Do For You • Improve your service retention • Identify your best and most profitable customers • Help you compete against 3rd party service providers • Improve your email capture rate • Reduce your advertising spend • Increase your warranty and service contract penetration • Serve as a closing tool for new and used vehicle sales • Improve your bottom line

Moving Forward Interested in moving forward? • Letter of agreement and review program terms. • Program design • Schedule for launch and training session • Implementation Your dealership can be up and running in 5 - 8 weeks.

Questions ?

Loyalty Benefits the Whole Dealership • Sales differentiator • Incentive for future vehicle purchases • Reduces mass-marketing spend • Dramatically improves email capture rates • Provides an on-demand email marketing platform • Platinum cards—a unique tool for selling F&I services • Increases service contract and warranty penetration • Drives back-end profit • Improves CSI through automated surveys • Increases the number of ROs, spend, and profit • Delivers automated customer marketing • Identifies and tracks your most profitable customers • Retains a higher percentage of customers • Provides an incentive for customers to return

Loyalty Results “The LoyaltyTrac system is delivering an 87% service retention rate with our Service Rewards customers.” Ken Dent, Service Manager Stirling GMC-Pontiac, Washington “In the first year alone, our Service Rewards program has helped us increase sales in every department, reduce advertising by more than $120,000, and generate more than $1,000,000 from loyalty card members.” Jim Crutcher, General ManagerBerge Ford, Arizona “We have increased our service retention by more than ten points in the first six months on the program.” Bess Wills, General Manager Gresham Ford, Gresham Oregon “We’ve been a LoyaltyTrac user for just over a year and it has been instrumental in helping us achieve our double-digit annual growth. It’s been one of the smartest business decisions we’ve ever made.” Rory Klein, General Manager Klein Honda, Everett Washington

Product Features…A Quick Summary • LoyaltyTrac is a turn key points rewards program including: • Program structure made to measure…points structure, reward structure, Tier level structure • Membership cards customized for your dealership • Point of sale material for your dealership(s) • Powerful Email engine to allow effective communications with your customer/members • Advanced member data base to allow precise targeting and easy analysis of customer behaviour • Project manager to assist you throughout the contract period • All creative and copy writing • All Admin set up, training and staff orientations • Let’s take a closer look at how it works….

LoyaltyTrac gives you a Powerful E Mail Deployment system E-mail is the core communication vehicle for LoyaltyTrac. Using it, you can eliminate many traditional marketing costs. We capture on average 70%+ of client e-mails! Email is a normal part of everyone’s life Traditional service marketing is expensive. Think of the costs of phone work, survey distribution and direct mail pieces…you might spend $11 or more per customer per year to keep in touch! 5,000 customers = $55,000 every year! 10,000 customers = $110,000 every year! An infinite number of e-mail deployments are included in any LoyaltyTrac contract

A Service Retention and Customer Loyalty Program for Your Dealership