Next Generation Automotive Customer...

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1The Vehicle Intelligence Company |

Next Generation Automotive

Customer Lifecycle:How Connectivity is Transforming the Buying

Experience for Consumers and Dealers

Carla Fitzgerald, CMO, Spireon, Inc.

SPIREON provides visibility and insights from connected vehicles

to help businesses run smarter and people drive safer

Aftermarket Telematics Automotive & Fleet

CustomersConnected Devices Recorded Driving Miles

Survey Instructions

To participate in our mobile surveys:

Visit PollEV.com/Spireon

Skip when asked for screen name

A Pizza Story…

• In 2012: Key to Survival:“An e-commerce company that sells pizza.”

• Two-phase Strategy:

1. Mobile-first

2. Surprise and delight customers

• Stock Price:

2008: $3 a share

2018: $211 a share

The Connected Consumer

GSMA IBM

Consumers EXPECT a Connected Experience

ERA 1: The Connected Car

Data-only Telematics

Consumer Value: Safety, Entertainment, Information, Convenience

OEM Value: Consumer Information, Consumer Relationship, Brand Equity

DEALER Value: ???

ERA 2: The Connected Dealership

1- Vehicle

2- Customer

3- Mobile

Engagement

Connected Dealership Opportunities

CONSIDERATION OWNERSHIPPURCHASE REPLACEMENT

CONSUMER VEHICLE LIFECYCLE

Lease Fit

Trade-in Value

REBUY FROM YOU BUY ELSEWHERE

BLIND SPOTS

Online shopping

On-Lot Activity Vehicle ReadinessVehicle Mileage

Service Preferences

Activity on the Lot – How Much Do You Know?

>50% of Shoppers Walk-in for first contact with dealership

84% of Buyers still test drive first

>50% test drive more than 1 car

DMEAutomotiveAutoTrader

Test Drive Analytics

• Test Drives Per Model

• Peer Benchmarks

(Dealer Group)

• All Dealer Benchmarks

Optimizing Inventory Mix with Customer Demand

High consumer interest

relative to inventory

Low consumer interest

relative to inventory

Consumer Wants to Test Drive Specific Vehicle

How fast can you find

the vehicle she wants?

Connected Dealerships Have Connected Sales People

Find Cars in Minutes -- Reduce purchase time by 35-40 mins.

AVERAGE

TIME TO

FIND TEST

VEHICLES1-5 min.

6-10 min.

11+ min.

Multi-Lot, Multi-Dealer Visibility

Geofenced Dealer/Holding Lots

Target Older Vehicles

Managing Sales by Inventory Age

Inventory carrying cost = $28/day*

90 day inventory cost = $2,520 per unit *NADA

Age Matters

369 vehicle reduction

102 vehicle

reduction

vehicle

reduction

465 vehicle increase

Aged Inventory Changes May 1 – May 31

465 vehicle increase

= $1.17M

Battery Management

Monthly Cost: $4,882

• Hours managing batteries: 30 @ $15/hr

• Batteries replaced: 10 @ $100 each

• Deals lost due to bad batteries: 3

• Average profit per vehicle: $1,144*

Annual costs: ~$58,584

20-dealer group: ~$1.17M/year

Battery Management at Connected Dealership

• Immediate Visibility to Battery Status

• Reports & Alerts on Low Battery Thresholds

Reduce battery management

time by over 50% on average

Transferring the Connected Experience to Consumers

• 24x7 Location

• Trip History

• Battery Alerts

• Speed Alerts

• Geofence Alerts

• Stolen Vehicle

Recovery

Connected Car

Consumer App

Ownership – Increasing Service Retention and Loyalty

Service retention

average for dealers

Average service bill

per visit, with 2.7 visits

per year

Increased chance of

next vehicle purchase

after single service visit

Increased odds after 5

visits

40%Cox Automotive

Target Customers for Service Using Actual Mileage

Increase number

of repair orders

and labor hours

Provide mileage

for more timely

promos

Predict future service

revenue with mileage

reports

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Mobile Push Marketing: Service, Trade-In, Recalls, etc.

In App

Messaging

Scheduling

The New Normal: Information, Convenience, Personalization

• INFORMATION:

– Last services performed

– Recommended service

– Estimated costs

• CONVENIENCE:

– Click to schedule appointments

– View repair orders for the service appointment

– Receive updates and notifications when each has been completed

• PERSONALIZATION:

– Loyalty Program rewards

– CRM integration

Applying Vehicle Intelligence to Lease Retention and Trade-ins

• Current mileage

• Driver scoring

• Harsh driving/braking

• Location

• Weather

• Accident History

• Trade-in market value

• Dealer inventory

Precision Trade-in Value

• Purchase Date

• Maintenance History

Mastering the Next Generation Customer Lifecycle

1. Use Aftermarket Vehicle Telematics to:

• Make EVERY Car a Connected Car

2. Use Vehicle Data to:

• Better Manage Inventory

3. Use Customer Data, Vehicle Data and Mobile Engagement to:

• Better Target Customers with Relevant, Timely Services

CONSIDERATION OWNERSHIPPURCHASE REPLACEMENT

CONSUMER VEHICLE LIFECYCLE

REBUY FROM YOU

• Increase Efficiency & Reduce Risk

• Better Understand On-lot Behavior • Improve the Sales Experience

• Create Transparency and Trust

Optimize Inventory

Connected Dealerships Create Lifetime Customers

Increase Revenue

Improve Retention

Drive Loyalty

To Learn More About Spireon’s Connected Dealer Solutions, visit:

https://www.spireon.com/kahu/

Carla Fitzgerald

Chief Marketing Officer

Spireon, Inc.

cfitzgerald@Spireon.com

Next Generation Automotive Customer...

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