Full Name I Company I Job Title I Email Digital Engagement: the Most Important Measure of Your Future Success Doug Van Sach I AutoLoop I VP Analytics & Data Services I dvansach@autoloop.com

STUDY OVERVIEW

Industry Shift Customer loyalty erosion Digital decision-making New digital intermediaries Would consider making entire purchase online Accenture 2016 study with 10,000 consumers

Automotive Digital Engagement Study Purpose Understand how digital media impacts customer loyalty Identify new strategies for dealers to engage and retain their customers Methodology 1K customers surveyed 4M dealer customers analyzed 10M digital interactions

Any interaction by a customer with a dealer’s digital property Digital Engagement Any interaction by a customer with a dealer’s digital property

New definition of loyalty

Customers’ Relationships with their Vehicle Brand Love of a Vehicle Brand Customers’ Relationships with their Vehicle Brand Connection Commitment Passion I feel a close connection with the [vehicle] brand. I am passionate about the [vehicle] brand. My first choice of vehicle brands is [vehicle].

Loyalty Towards a Dealership Customers’ Definitions of Loyalty to a Service Center How do you define loyalty to an automotive service center? Select the option you agree with most.

Power of Engagement

More engagement = higher retention Predictive Power More engagement = higher retention

Best Leading Indicator Digital engagement is best predictor of retention

Value of One More Engagement One more digital interaction per active customer will yield over $500K in additional profit per year for typical dealer Annual Impact Per Dealer

Levels of engagement

4 Levels of Engagement

Disconnected 12-Mo Retention Rate Strategy: demonstrate the value of having an interactive relationship Bonus for sharing info Loyalty program SMS update

Accessible Strategy: increase relevance and reach 12-Mo Retention Rate Strategy: increase relevance and reach Frequent communications Social media SMS updates

Involved 12-Mo Retention Rate Strategy: gain consistency by reducing transaction friction and risk Seamless cross-channel experience In-service transparency Online payment

Committed Strategy: maintain engagement level after every interaction 12-Mo Retention Rate Strategy: maintain engagement level after every interaction Solicit online reviews Personalized follow-up calls Value added updates (vehicle health)

Millennials

Loyalty of Millennials 50% lower referral rate 12% lower retention rate 35% lower share of wallet Average dealer loses $380K per year for Millennials

Digital Experience Gap - Advertising Dealers are often outspent on digital ads for service by aftermarket companies Digital Ad Influence

Digital Experience Gap - SMS 2/3 of Millennials have an interest in SMS with dealers SMS Text

Digital Experience – Mobile Payment Majority of Millennials have an interest in paying for service by phone Pay by Phone

Conclusion

Summary Customers exhibit little love and loyalty to auto brands and dealers Digital engagement is best predictor of loyalty Opportunity to increase engagement of existing customers Address experience gaps with Millennials to thrive in the future

Life After Loyalty White Paper Learn More Life After Loyalty White Paper

Contact Info Doug Van Sach AutoLoop VP Analytics & Data Services dvansach@autoloop.com www.linkedin.com/in/dougvansach