Customer LifeCycle ManagementSM Tap into YOUR hidden potential with DPS PerfectCircle Suite of Marketing Capabilities <Month Day, Year> <Your name> 1 …How can you be sure you are optimizing your marketing investment when there is a lot of options, a lot of confusion, and… Actionable data Data Modeling Vary the media Point of Sale merchandising Owner Rewards Profiling Surveys Sales Force Automation Web marketing Coupon booklets CRM Key tags Intelligent offers Database marketing Gift cards Gender based marketing Incentives 2 …a lot of cookie cutter programs. With everyone essentially buying the same technology, where is the competitive advantage to be found? Actionable data Data Modeling Vary the media Point of Sale merchandising Owner Rewards Profiling Surveys Sales Force Automation Web marketing Coupon booklets CRM Key tags Intelligent offers Database marketing Gift cards Gender based marketing Incentives 3 How do you make an informed decision that makes sense for you? 4 First, begin by understanding how customers behave throughout their life cycle. Not including non-traditional after-sales products/services… SHOP BUY CONSUMER OWN Accenture 2004 5 Then, Implement a Solid Marketing Strategy… …Introducing Customer LifeCycle ManagementSM •Integrated communications •Sustainable •Aligned with behavior •Lowers per unit costs •Keeps options open: (Flexible Customization) 6 What is Customer LifeCycle Management ? SM As it relates to Customer Relationship Management (CRM), customer LifeCycle Management (CLM) is used to describe the progression of steps a consumer goes through when: considering, purchasing, using, and maintaining a vehicle. The goal of lifecycle management is to pro-actively move the consumer through the cycle again and again by defining the way in which an enterprise interacts & communicates with its customers and prospects at each phase of the life cycle. 7 Why is LifeCycle Management important? For the average franchised New Vehicle Dealer: • Marketing and Advertising is the second largest business expense • 88% of the Marketing & Advertising dollars are spent in Mass-Media • Marketing & Advertising consumes 25% - 30% of the average new vehicle gross profit • Front end acquisition rates typically yield 50% capture of the total advertising influenced prospect base • 40% of “New” customers never generate a CP repair order • 70% of the customers “defect” within the first 3 years of ownership • Less than 15% of annual sales are to repeat customers YET • 20-25% of their customer households will purchase a vehicle annually 8 Why is LifeCycle Management important? For the average BMW Center regarding Aftersales: • Customer service intervals are more expansive •Many BMW Service centers are at capacity •Must maximize each visit / opportunity •Vehicles are built better and have more complex systems •Less parts sales •More computer programming repairs versus additional parts or labor sales • Co-op funding going untapped – why solicit more if you can’t handle it? •Need ability to consistently build value in the breadth and quality of BMW products & services •Accessories, Lifestyle & boutique items, warranties, etc. 9 Why is LifeCycle management important? Because current practices are a “going out of business” strategy! $ 8.3 Billion is spent each year in conquest advertising. 30% of GP is consumed in ad costs 00 $ 493. STOP the Madness! Customer retention remains around 30%10 $ 1445 GP per unit Four essential elements for Customer LifeCycle Management: • Actionable data • Timely and relevant, customer-centric communications • Consistent delivery of quality interactive processes and, • Ability to demonstrate and quantify the value each customer derives from the relationship. 11 In what way is PerfectCircle CLMSM different? PerfectCircle CLM Strategy Traditional “Retention Marketing” Flexible Cookie cutter Aligned with business objectives Sold on price or other traditional metrics Unique, Flexible, & proactive Activity based Enterprise wide solution Focused on reminders, and traditional call center activity Integrated communications Permission based Consumer behavior driven Quantifies value for consumer Service dept focused Not integrated with total marketing and advertising strategy Facilitates shift in budget for no incremental expense Options: Options: O n Line A dm instrators 12 Why DPS? Innovative Thinking The ONLY CLM company in the automotive retailing industry The FIRST company to offer bundled communication capabilities oriented around consumer behavior The FIRST company to offer flexible fee structures The ONLY company to offer complete customization of the program The ONLY company to offer integrated marketing communications with a plug-n-play owner rewards program The ONLY automotive focused DB marketing firm to bundle all of this with personal owner web pages Clear Solutions Simple to understand suite of capabilities Marketing strategies developed according to dealer objectives and unique market conditions Hands-off, turn-key services that can be customized to individual preference Marketing programs aligned and held accountable to dealer business objectives Measurable Results The ONLY company to offer pre, and post implementation retention performance benchmarking The ONLY company to offer performance reporting that is available in hard copy, e-mail , fax, and secure web based access to real-time data-driven reporting Personalized, monthly service consultations and program adjustment recommendations 13 DPS Capabilities Platform D B M anagem ent S ervices • F e d e ra l a n d S ta te C o m p lia n c e filte rs • C u s to m e r in fo & a d d re s s s ta n d a rd iza tio n • D e -d u p in g c u s to m e r re c o rd s • C u s to m e r & ve h ic le re c o rd s a n d h is to ry • O p -c o d e n o rm a liza tio n • NCOA • C A S S C e rtific a tio n • C u s to m e r p ro filin g • C u s to m e r s e g m e n ta tio n • P re d ic tive d a ta m o d e lin g • 3 rd p a rty lis t m a n a g e m e n t B enchm arking S ervices C ustom er L ifeC y cle M anagem ent S ervices A cquisition • V o ic e o f th e P ro s p e c t – S h o p p e r C o n ta c t • A c q u is itio n d ire c t m a il m a rk e tin g • D e a le r A d va n c e le a d m a n a g e m e n t s ys te m • E -m a il D ire c t M a rk e tin g • O n d e m a n d c a m p a ig n m anagem ent • P e rfo rm a n c e re p o rtin g R etention • V o ic e o f th e C u s to m e r – S e rvic e F o llo w -u p R enew al • V o ic e o f th e C u s to m e r R e a c tiva tio n • E -m a il “S m a rt S u rve y s ” • R e a c tiva tio n m a il • N e w s a le th a n k yo u a n d • N e w ve h ic le s a le s s e rvic e in tro d u c tio n c a m p a ig n • M a in te n a n c e re m in d e rs • O n d e m a n d c a m p a ig n s • V o ic e o f th e C u s to m e r – • P e rfo rm a n c e re p o rtin g n o n -re s p o n d e r O w ner R ew ards • P ro m o tio n a l k it • W e lc o m e k it • P o in t a c c ru a l, tra c k in g , a c c o u n t a n d re d e m p tio n m anagem ent • M yC a rP o in ts .c o m p e rs o n a l o w n e r w e b pages • M a jo r s e rvic e th a n k y o u • E -m a ile d c o m m u n ic a tio n s • M yc a rp o in ts .c o m p e rs o n a l o w n e r w e b p a g e s • O w n e r rew a rd s p ro g ra m • K e y ta g s • S e rvic e M a in te n a n c e books • O n d e m a n d c a m p a ig n s • P e rfo rm a n c e re p o rtin g T he 4 C ornerstones of C ustom er L ifeC y cle M anagem ent 14 • D P S c lie n t e n g a g e m e n t a n d b u s in e s s c a s e d e ve lo p m e n t m o d e l • B e n c h m a rk m e a s u re m e n t a n d fo llo w -u p • M o n th ly p e rfo rm a n c e re p o rts Next Steps <list next steps here> 15