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Maximize Customer Value with Data-Driven Solutions

Learn how to enhance customer retention and lifetime value through targeted strategies. Discover the power of Gross Revenue Optimization (GRO) and impactful tactics to boost sales and loyalty. Take advantage of Driver Connect for increased revenue and customer relationships. Uncover missed opportunities and grow your dealership business.

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Maximize Customer Value with Data-Driven Solutions

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  1. (We) Do the Math to Ramp Up Your Customer Value • Mike Martinez, CMO • DMEautomotive Full Name | Company | Job Title | Email

  2. FIRST, A WORD ABOUT OUR DATA Automotive transactional data on 61% of US Households customers households vehicles Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  3. LIKELIHOOD TO PURCHASE AFTER SERVICE? Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com 2/3rd of consumers who serviced where they purchased Those who get service at their dealer are 1.7 times more likely to purchase their next vehicle at that dealership

  4. Service to Sales Repurchase Rate THE 4TH VISIT IS THE SWEET SPOT Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  5. MOST CUSTOMERS DON’T GET TO THE 4TH VISIT Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  6. PROBLEM: RETENTION METRICS TOO NARROW 1 Focus on Retention Ignored by Retention Revenue = Vehicles x Visits x Spend per Visit LACKS LIFESTYLE FOCUS 2 Retention Places Same Value on All Groups High Early Lifecycle Impact on LTV Medium Mid Lifecycle Low Late Lifecycle Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  7. SOLUTION: GROSS REVENUE OPTIMIZATION GRO Realized Lifetime Revenue Potential Lifetime Revenue Measures the amount of potential lifetime value actually realized by a store Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  8. GRO is a comprehensive view of customer lifetime value GRO CALCULATED GRO Percentage: 8.2% GRO Revenue: $217.93 Customer Retention Visits Resulting in Repurchase Spend Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  9. SO, WHAT ABOUT THOSE OTHER METRICS? 5 Tactics to Grow GRO 1 2 3 4 5 • Mobile in • Everything • Mid-Interval • Communications • Pre-Paid • Maintenance • RewardLoyalty Direct Behavioral Targeting Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  10. DIRECT BEHAVIORAL TARGETING Taking the value of loyalty segmentation to a completely new level Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  11. DIFFERENT BEHAVIOR PATTERNS Sales History 12-Month Service Retention Rate PREDICTS DEALER LOYALTY ServiceHistory Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  12. VINCE MARY DAVE 2010 FORD FOCUS 2010 FORD FOCUS 2010 FORD FOCUS PURCHASED AT DEALER YES YES NO 4 2 1 PRIOR SERVICES ALWAYS SOMETIMES NEVER FOLLOW MFG. INTERVALS LIKELY TO VISIT AFTERMARKET LOW MEDIUM HIGH $0 $300 $450 MISSED OPPORTUNITY LOYALIST SWING LOYALIST DISLOYALIST Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  13. LOYALTY SEGMENTATION OPPORTUNITY Shift investments to Swing and Loyal and Drive LIFT Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  14. auto[mobile]TM • Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  15. Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  16. RESPONSIVE EMAIL DESIGN Mobile Version Desktop Version Over 63% of consumers open an email on a mobile device. Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  17. Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  18. CONVENIENCE ON THE GO Driver Connect Tier-3 Dealership-branded mobile app • Targeted message integration • Service history and scheduling • Vehicle showroom • Recommended services • Complimentary service status (in dev) • Marketing and privacy compliance ADVANTAGES • Increase Customer Retention • Increase Service Revenue • Build Stronger Customer Relationships • Sells more cars at higher gross Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  19. Driver Connect Turns the Tide on Growing Service Intervals $144,000 in Customer Pay revenue lift per dealership, per year Sources DMEautomotive, August 19th, 2014. http://www.dmeautomotive.com/news Assumes 1,000 app users and $300 average revenue per visit

  20. App users buy more cars, spend more per purchase SELL MORE CARS AT HIGHER GROSS Consumers NOT USING A Dealership Mobile App Consumers USING A Dealership Mobile App 22% Consumers Purchased a Car During the Year 38% Consumers Purchased a Car During the Year 73% Lift $25,531.83 Avg Purchase Amount per Customer $27,293.87 Avg Purchase Amount per Customer 7% $1,762.04 * Source: DMEa 12 study of 111 U.S. dealerships spanning more than 366,000 sales records. Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  21. MID-INTERVAL COMMUNICATIONS Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  22. Service Intervals are Growing, Costing You Money $91Kper year in lost service revenue per store, on average Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  23. LOW CONSIDERATION FOR UNPLANNED SERVICES Brakes 36% of customers do not consider a dealership Batteries 54% of customers do not consider a dealership Tires 64% of customers do not consider a dealership Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  24. Mid-Interval CommunicationsTarget the Best Customers Mid-Interval Communication Model Targeted In the market for brakes, batteries, and tires Not Targeted Unlikely to make a purchase Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  25. Mid Interval Results 9% to 38% improvement over Active Reminder Higher spend per RO across all segments • Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  26. LOYALTY PROGRAMS Bringing rewards to your most loyal customer base…and turn swing loyalists into loyalists. Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  27. Why a Loyalty Program Participants (currently in auto service rewards program) Non-Participants (likely to join a rewards program) 18% Dealer Customers (Source: Spring 2013 DMEa survey of 2,000 auto consumers) (Source: DMEa national auto consumers surveys) Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  28. Loyalty trends Member of Automotive Service Rewards Program Likelihood to Join Frequent Shopper Rewards if Offered 2011 2012 2013 Spring 2014 2011 2012 2013 Spring 2014 60% 61% 56% 54% 22% 21% 19% 15% % Participating % Likely Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  29. Service Retention Notes: Service retention measured for 2 months from program start dates. 145 stores included in No Loyalty Program Group – same OEM brands as loyalty program stores. • Change in service retention for loyalty program dealers exceeded non-loyalty dealers at 2.1% increase • For customers spending over $600-$1200, there was a 2.7% increase in retention rate

  30. Average Time 1st Retained Visit $27,000 in AnnualService Rev Lift • Loyalty dealers had an average overall reduction in 1.1 days to retained visit vs. non-loyalty dealers • High spend customers ($900-$1200) had a reduction of 3.04 days to retained visit for loyalty dealers Notes: Average time for retained visit measured for 2 months from program start dates.

  31. PRE-PAID MAINTENANCE Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  32. Pre-Paid Maintenance • ESSENTIAL MARKETING TOOL • Builds Loyalty • Creates total customer retention • HIGHLY ATTRACTIVE TO MILLENNIALS • NEED TO MARKET TO PPM CUSTOMERS DIFFERENTLY • Why send an oil change coupon to a customer who already paid for oil changes? • Market to them the right way and get them to come back for all your services Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  33. Plan Usage Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  34. Likelihood to Service, Post Plan Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  35. Let’s Review Loyalty Direct Behavioral Marketing Pre-Paid Maintenance Mid-Interval Communications auto[mobile]TM • Increases Response Rate by 15% and captures unrealized value. • RED increases tap rates & apps sell more cars.  A lot more cars. • Increases response rates and increases $ value of ROs and sells tires. • Cuts 5-10 days off of interval, generates incremental revenue of $200,000. • Increases loyalty by 12 points, post warranty. Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  36. Impact to GRO Mike Martinez | DMEautomotive | CMO | Mike.Martinez@DMEautomotive.com

  37. Share an important takeaway you received from this session using hashtag#DD17 for a chance to win an iPad. Contact Info Full Name: Company: Job Title : Email: Mike Martinez DMEautomotive Chief Marketing Officer Mike.Martinez@DMEautomotive.com

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