Time Visitors into - PDF document

Turn One-Time Visitors into Lifetime
Turn One-Time Visitors into Lifetime CustomersJim RocheVP, Marketing & Managed Services |Xtime| Redwood City, CAjim.roche@coxautoinc.com@xtime#NADASHOWYour photo here2Two Things to Agree OnObjective is Profita

ble Growth 1Consumers are in Control
ble Growth 1Consumers are in Control2Margins Continue to Decline2.9%12.1%0%2%4%6%8%10%12%14%16%201120122013201420152016GROSS MARGIN AS % OF SELLING PRICENewUsed3Source: NADA4Primary Opportunity is

ServiceLess than 1 in 3 Service Visits
ServiceLess than 1 in 3 Service Visits are at DealershipsSource: Cox Automotive Maintenance & Repair Study, 2016Dealerships30%General Repair/Service Station, 25%Quick Lube, 14%Tire Store, 11%Retail, 6%Specia

list, 5%Body Shop, 4%Other, 5%5
list, 5%Body Shop, 4%Other, 5%5Focus Needs to be on Growth in ServiceOnly 3 Areas of Control5UtilizationRetentionExperienceVisits$/VisitCostSellingMore timeAppointmentsEfficiencyGood processesGood People

Good Systems6Growth Strategy6YOUR D
Good Systems6Growth Strategy6YOUR DEALERSHIPTHE COMPETITIONCustomer RetentionCustomer Acquisition+7Dealers Know Retention is Key764.4%Dealerships who said customer retention is their primary concernSource: 201

7 XtimeMarket Research Study8Automot
7 XtimeMarket Research Study8Automotive Brand Loyalty is Changing8“OEMs with the greatest improvements in loyalty experienced market share gains during the quarter.”1Top PerformersFord64.0%Mercedes57.8%Toyo

ta57.8%Average Automotive Industry Lo
ta57.8%Average Automotive Industry Loyalty51.5%Source: IHS/RL Polk Loyalty Studies http://press.ihs.com/press-release/automotive/loyalty-drives-us-automotive-market-share-gains-according-ihs-automotiv

e(1) An IHS Automotive study analyzing
e(1) An IHS Automotive study analyzing first quarter new vehicle registrations in 2014.9Expense Benefits of Loyalty9Source: (1) NADA Data 2016 (2) John Wiley & SonsCustomer Acquisition Cost $633 Per New Vehicle Sold1

“It costs 10 times as much to obtain
“It costs 10 times as much to obtain a new customer as it does to retain an existing customer.”10Revenue Benefits of LoyaltyGM states that “Every1% increase in sales retention translates to a $700 million increa

se in revenue annually.”This is an
se in revenue annually.”This is an average of $150,000 per dealer.Source: GM’s Alicia Boler-Davis at NADA 2014MERCENARYLOYALISTHOSTAGE11Defining Loyalty 11APOSTLES$WalletTimeReputationDEFECTORTERRORISTS

SatisfactionLoyalty1212Where Should
SatisfactionLoyalty1212Where Should You Focus?LoyalistsMore sales per customerHigher marginsMore referrals Don’t waste your time and capital on Mercenaries or Terrorists!1313What’s Changed?14The Customers

Are Changing14Source: Cox Automo
Are Changing14Source: Cox Automotive 2017 Mid Year ReviewWHO IS BUYING? MILLENNIALS NOW ACCOUNT FOR A LARGE SHARE OF NEW VEHICLE SALES14%9%42%36%24%25%20%29%20112016Gen ZMillennialsGen XBoomersSilents4

0%202015Higher Customer Expectations
0%202015Higher Customer Expectations Top the List of Trends15Source: 2016 XtimeMarket Research StudyBoth service managers and upper management mention higher customer expectations as the biggest factor impacting serv

ice operations“Customers want more th
ice operations“Customers want more than just having their vehicle fixed correctly. They want:A good interpersonal experienceEasy schedulingand prompt turnaround Fair and transparent pricingGood co

mmunicationsAmenities:•Coffee Barâ
mmunicationsAmenities:•Coffee Bar•Wi-Fi•Manicures1616Source: Deloitte –Acceleration of the Connected Experience 2014Product and manufacturing innovations have created parityDifferentiated experience is

growing in importanceGen Y consumers b
growing in importanceGen Y consumers believe customer experience is three times more important than vehicle designDifferentiators Are Changing17The Experience is Emerging as the Key Differentiator17Source: Deloitte

–Acceleration of the Connected Exper
–Acceleration of the Connected Experience 2014Improving a customer experience from merely average to something that wows the consumer can lead to a 30 to 50 %increase in measures such as likelihood to renew or buy anot

her product.Source: McKinsey, What it t
her product.Source: McKinsey, What it takes to deliver breakthrough customer experiences, November 2015By 2020, customer experience will overtake price and product as the key brand differentiator.Source: Walker 2014In 2016

, 89% of companies expected to compete
, 89% of companies expected to compete mostly on the basis of customer experience, versus 36% in 2010.Source: Gartner 2014Day-to-day experiences blend together 18How to Create Memorable Experiences18Peak experien

ces are memorable The Power of Moments
ces are memorable The Power of MomentsSource: The Power of Moments by Chip Heath and Dan Heath1919Source: The Power of Moments by Chip Heath and Dan HeathThe Power of MomentsThe Power of Moments202121The Power of M

omentsAt the end of the day, people wo
omentsAt the end of the day, people won’t remember what you said or did, they will remember how you made them feel.-Maya Angelou2222What Companies are Reshaping the Customer Experience?23Amazon23Email PromoSho

p OnlinePlace OrderEmail Confirm123
p OnlinePlace OrderEmail Confirm1234$24Uber2425Domino’s Pizza25$26If the Service Experience was like Amazon26Email PromoShop OnlinePlace OrderEmail Confirm13Check-In233435Status UpdatesOne-C

lick Confirm3Bill Pay6378Amazon P
lick Confirm3Bill Pay6378Amazon Position2727•Currently sells aftermarket parts online•Launched Amazon Vehicles in 2016•Car-buying research site•Sells SEAT Vehicles in France•

Sells Fiat cars in Italy•Working wit
Sells Fiat cars in Italy•Working with OEMs to offer Alexa for in-car servicesof Americans today live within 1 hour of an Amazon distribution center50%2828Let’s Compare Experi

encesToday’s Typical Dealer Experienc
encesToday’s Typical Dealer Experience2929Email Request FormN/AN/A57%unansweredLowTechnologyCostCustomer ValueCustomer ConvenienceCustomer TrustUnited PostalService$2,000+/monthGoodN/ALowMainframe$3,000+/

monthWait5+ minutesWait 5min, 25% u
monthWait5+ minutesWait 5min, 25% unansweredLow30What Do Customers Want?What do I need?What does it cost?When can I get it?24x7 access online, mobile, telephone, & vehicle to service recommendations, price and av

ailabilityAccurate pricingAppointment
ailabilityAccurate pricingAppointment availabilityDelivery estimatesValueConvenienceTrustSource: Cox Automotive Maintenance & Repair Study, 2016QualityFixed the first timeGenuine parts & equipmentCertified technici

ans31Positive Service Experience is
ans31Positive Service Experience is ImportantSource: Cox Automotive Maintenance & Repair Study, 201685%State their experience with the service department has influenced their likelihood of purchasing another vehicle

Positive Service Experience is Important
Positive Service Experience is ImportantConsumer Reasons for Returning32Source: IMR, Inc.33Dealers Understand Experience is ImportantSource: 2017 XtimeMarket Research Study93.1%Believe that the service experience i

s more important than the actual repai
s more important than the actual repair34Are You Providing a Superior Experience?Source: 2017 XtimeMarket Research StudyState that their current systems do not provide a superior ownership experience85.1% of Deale

rs35The Experience Begins During the S
rs35The Experience Begins During the Sales Process and Continues During the Ownership JourneySource: Cox Automotive Maintenance & Repair Study, 201641%53%Were introduced toservice department at the time of purchases

aid it came into play when deciding wh
aid it came into play when deciding where to repair the vehicleSales & Service Need to be Connected –Not Separate36Pleased to Meet You: Importance of Relationship-buildingIncrease in Customer Return Rate when int

roduced to service department at time
roduced to service department at time of purchase37Source: 2017 XtimeMarket Research Study2.3x3838Common Myths about the Ownership Experience39Being transparent with pricing is not importantMYTH #4Most service c

ustomers are only available early mornin
ustomers are only available early morningDealership service is more expensiveTablets complicate the service write-up experience MYTH #3MYTH #2MYTH #140Customers Want Appointments Throughout the DayFACT32% of customer

s want to come in before 9am.The most
s want to come in before 9am.The most recent data shows that while 7-11am are still the peak hours for service appointments with 62% of the total, 38% of appointments come outside of that.Source: Xtime, based on 50

96 dealers between Dec 2016 –Nov 201
96 dealers between Dec 2016 –Nov 201741Walk-Ins are Good, Appointments are BetterWalk-InsAppointmentsWalk-Ins72.4%Appointments64.9%+$54 +7.5%$ per ROOne year service retention, %$280$226Source: Xtime,

based on dealers with Go-Live date b
based on dealers with Go-Live date before 9/1/2016, OEM specific vehicles only, December 2016 –November 20177AM8AM9AM10AM11AM12PM1PM2PM3PM4PM5PM6PMAfterHours304k490k589k603k563k518k509k483k461k43

2k365k330k1631k4%7%8%8%8%7%7%
2k365k330k1631k4%7%8%8%8%7%7%7%6%6%5%5%22%7AM8AM9AM10AM11AM12PM1PM2PM3PM4PM5PM6PMAfterHours42Source: Xtime, based on 6154 dealers between Sept 2016 –Sept 201722% Web Customers Schedule Ap

pointments After Hours43Source: (1) C
pointments After Hours43Source: (1) Cox Automotive Maintenance & Repair Study 2016(2) Cox Automotive Future of Digital Retail Study 2018 Nearly Half are Unaware of Online Schedulingof consumers NOT scheduling online di

d not know if their providers offered
d not know if their providers offered this service45%of car owners are more likely to service a vehicle at a dealership that offers online scheduling…though 56%44Consumers Want PricingFACT71%Of customers are most

concerned with transparent cost estima
concerned with transparent cost estimates when setting appointmentsAverage cost of routine maintenance at a dealership is comparable to third-party providersSource: (1) XtimeMarket Research 2016(2) Cox Automotive Ma

intenance & Repair Study 201645Concern
intenance & Repair Study 201645Concerns When Setting Service AppointmentsFACTSource:(1) XtimeMarket Research 2016(2) Cox Automotive Future of Digital Retail Study 2018 71%68%39%21%COST ESTIMATECHOICE OF APPO

INTMENT TIME/DAYTRANSPORTATION OPTIONS
INTMENT TIME/DAYTRANSPORTATION OPTIONSCHOICE OF SERVICE ADVISORS55%of car owners are more likely to service a vehicle at a dealership that provides online cost estimates46FACTSource:Data provided by KEEPS Corporati

onPrice Perception vs Market RealityIs
onPrice Perception vs Market RealityIs your customer’s perception “Dealership Service is Expensive”?Do you know how competitive you are?Research data shows each market is different withthese factors impacting price:

•Franchise•Rural vs. Metro•T
•Franchise•Rural vs. Metro•Types of Aftermarket Competitors•Density of CompetitionIt is becoming essential for a dealership to understand their unique market better -and then learn how to leverage “Price”

to their advantage. FACT47National
to their advantage. FACT47National and Regional Views47Source:Data provided by KEEPS Corporation48Market View48Source:Data provided by KEEPS CorporationTablets Improve the Write-up Experience49Source: Analysis

of survey data from J.D. Power and Asso
of survey data from J.D. Power and Associates, McGraw Hill Financial 201628%72%8497827007207407607808008208408608809000%10%20%30%40%50%60%70%80%YesNoCSITablet UsageIndustry Tablet Usage and CSIFACT

Service Tablet: Overall CSI ImpactTabl
Service Tablet: Overall CSI ImpactTablet usage grew significantly and continues to produce a significant positive satisfaction impact.64.8%62.9%61.3%57.8%63.9%72.9%71.6%71.3%68.8%70.5%DMSEngageTablet Use Increase

s Customer RetentionHigher Retention fo
s Customer RetentionHigher Retention for Same Advisor at Same DealerRegardless of Advisor Engage Utilization508.1pp8.6pp10.0pp11.0pp6.7pp�0%-25%25-50%50-75%75-100%Grand TotalAvg. RetentionRetention Benefit,

TabletRetention Increase6.7ppSource:
TabletRetention Increase6.7ppSource: Xtime, based on 89dealers using Engage and Go-Live date before 5/1/2015, 216,332VINs and 463Service AdvisorsVIN based retention based on May-July 20155151What Can You Do

?52Improve the Ownership Experience5
?52Improve the Ownership Experience52Ownership Experience Impacts:•Retention•Revenue•Growth•CSI•Online ReputationA Seamless Ownership Experience Is Ideal5354Customer Updates During Service Visit als

o Create a Superior Service Experience
o Create a Superior Service Experience54“definitely will” return for service when updated via phone“definitely will” return for service when updated via textreceive text message updatesSource: J.D. Power 2017 U

.S. Customer Service Index (CSI) StudyS
.S. Customer Service Index (CSI) StudySM55More Things You Can Do551.Welcome video from GM or DP2.Technician sends video to explain additional work and leaves his/her business card on the customer’s dashboard3.Powe

r train warranty for life on
r train warranty for life on used vehicles4.Free “mini-inspections” at any time5.Vehicle pick up and delivery6.Self service kiosk7.Customer service app8.Free state inspections9.Owner rewards pr

ogram especial
ogram especially on usedSource: The RickessGroup56Consumers Will Pay More for a Better Experience56Source: 2015 Autotrader'sCar Buyer of the Future StudyWould choose to buy from a dealershi

p with their preferred EXPERIENCE vers
p with their preferred EXPERIENCE versus a dealership with the lowest price54%Ownership Experience is Key to RetentionRetention is Driven by Both Vehicle and Service Satisfaction57Service can be a remedy for poor vehi

cle perception.Retention is equal for
cle perception.Retention is equal for Excellent vehicle/ Mediocre service and Poor vehicle/ Superior serviceRepurchase Intent, %Service SatisfactionPoorAverageBelow AvgExcellentAbove AverageVehicleSatisfactionS

ource: OEM data based on� 500,0
ource: OEM data based on� 500,000 customer responsesRecap5864.4%state that customer retention is their primary concern.85.1%of dealerships feel that their current systems do not provide a superior ownership expe

rience.93.1%of dealers feel that the s
rience.93.1%of dealers feel that the service experience is more important than repair.Questions59Turn One-Time Visitors into Lifetime CustomersPlease visit the NADA Pavilionin the Expo Hall for information on access

ing electronic versions of this present
ing electronic versions of this presentation and the accompanying handout materials, and to order the education video recording.@xtime#NADASHOWJim RocheDVP, Marketing & Managed Services |Xtime| Redwood City, CAjim.r