The S.M.A.R.T. Solution S.M.A.R.T. Analysis (In Book Form)S.M.A.R.T. Analysis (In Book Form) Dealer Web Based ReportingDealer Web Based Reporting

Introducing the S.M.A.R.T. Solution The #1 Post-Warranty / Customer-Pay Retention and Retrieval Program in the automotive industry. S.M.A.R.T. Service Marketing and Research Technology

Retaining Current Customers Regaining inactive and Lost Customers Gaining and Retaining New Customers Increasing A.S.M. Closing Ratio (Upsell) Satisfying Sold Service Customers Creating the Maximum R.O.I. Retaining Current Customers Regaining inactive and Lost Customers Gaining and Retaining New Customers Increasing A.S.M. Closing Ratio (Upsell) Satisfying Sold Service Customers Creating the Maximum R.O.I. At ZTM, our goal is to assist dealers in…

Vehicles are staying on the road long after the warranty expires. OPPORTUNITY

Customer perception is that dealers are more expensive than “After Market Competitors” COMPETITION 32 Aftermarket service providers for each new car dealer WHY

New Car Retention in the Service Department Three years after a new car is sold, 80% - 90% of their new car customer base is gone.  After One year = 50% Gone  After Two years = 70% Gone  After Three years = 80% Gone Domestic dealers in 2004 retained 9.2% of their customer base three years after vehicle delivery. (Based on a sample of 200 new car retention studies.) Data from JM&A 2005

“SHOTGUN APPROACH” Traditional forms of mass media cannot target specific customers… “SHOTGUN APPROACH” (I.E. television, radio, newspaper)  Target Current Service Customers  Target Inactive and Lost Service Customers  Target Potential Service Customers Marketing to the Correct Customer “RIFLE and SCOPE APPROACH”

Combining purchase incentives with ZTM’s S.M.A.R.T.- Produced consumer database proves to be the most effective advertising strategy. 20% Discount offer is the threshold required to motivate customers

Analysis Includes ZTM written reports Format Subject to Change S.M.A.R.T. Service Marketing and Research Technology

Where should you focus your time and effort? The S.M.A.R.T. Solution provides focus on the 20% market that provides the dealer with 80% of the business. The S.M.A.R.T. Solution provides focus on the 20% market that provides the dealer with 80% of the business.

The S.M.A.R.T. Solution focuses on your most likely customer, in your proven market area. S.M.A.R.T. Service Marketing and Research Technology 80/20 Principle

The S.M.A.R.T. Analysis identifies the dealer’s Market area by using historical data in the Dealers Management System. Who Determines your market? S.M.A.R.T. Service Marketing and Research Technology

S.M.A.R.T. Analysis also provides necessary information to pick the right customer. Who are your customers What is a customer Where are your customers When are they a customer Why are they a customer Who are your customers What is a customer Where are your customers When are they a customer Why are they a customer DETAILS

Where in the DMS do we find the information? Customer records Sales records Service records Customer records Sales records Service records DETAILS

To process the S.M.A.R.T. Analysis, customer records are: Downloaded Cleaned Reformatted Standardized Addresses Verified Manually Reviewed for Data Integrity Downloaded Cleaned Reformatted Standardized Addresses Verified Manually Reviewed for Data Integrity DETAILS

The S.M.A.R.T. cleansing process identifies… Address errors Name errors Duplicates Blank vehicle information Models older than 1995 Not dealer’s make Activity outside 36 months Unrealistic drive time Organizations Address errors Name errors Duplicates Blank vehicle information Models older than 1995 Not dealer’s make Activity outside 36 months Unrealistic drive time Organizations DETAILS

Customers are separated into four categories Recent: Activity within the last 6 months. Inactive: Activity within 6 to 18 months. Lost: Activity within 18 to 36 months Potential: No History in Dealership Recent: Activity within the last 6 months. Inactive: Activity within 6 to 18 months. Lost: Activity within 18 to 36 months Potential: No History in Dealership DETAILS

Example of Data From DMS 62, % Address Errors 8, % Duplicate Records 9, % Name Errors % No Vehicle Info. 4, % Older than , % Organizations 5, % Other Makes 5, % Outside 36 Months 9, % Outside 50 Miles 1, % Total Fallout 46, % DMS Customers 16, % Example of Data From DMS 62, % Address Errors 8, % Duplicate Records 9, % Name Errors % No Vehicle Info. 4, % Older than , % Organizations 5, % Other Makes 5, % Outside 36 Months 9, % Outside 50 Miles 1, % Total Fallout 46, % DMS Customers 16, %

DMS Customer: Total 16, months: Recent5, months: Inactive5, months: Lost5,717 No History: Potential 12,167 DMS Customer: Total 16, months: Recent5, months: Inactive5, months: Lost5,717 No History: Potential 12,167

…Each customer is geo-coded and mapped

The “80/20 principle” is applied 80% of the customers from 20% of the zip codes

The dealers zip codes are prioritized from greatest to least effective

Post S.M.A.R.T. Analysis Actions Train Service Advisors and Cashiers on program Review Reports with Management Team Train Service Advisors and Cashiers on program Review Reports with Management Team Bar Code Scanner

Components of the

The Service Check Customer Retention & Retrieval Program Includes:

The Closing Percentage for ASM’s is higher with the than the Dealers Average Closing Percentage.

Service Checkbook Web-Based Reporting Logging in is EASY and SIMPLE!!!

Service Checkbook Web-Based Reporting  Provides 7 Service Reports  One Custom Built Report with 16 Options  Customer Intentions to Purchase New Car

Service Check Campaign Assessment

Service Advisor Report

View All Coupons

Customer Analysis Report

RO Custom Report

Scanning a Barcode  Seconds to enter information  Entry can be performed during Idle time  No Software required

Program Fees S.M.A.R.T. Analysis $ 7, Service Checks $ 3.01 Barcode Scanner $ Service Checks Leather $ 3.69

ContactCompanyTitlePhone #Alternate # Steve OzzelloSoutheast Toyota DistributorsDirector of Parts and Service Marketing(954) Thad MixonVista BMW Pompano BeachService Director(954) David LintonATCONChairman of the Board (800) (205) Ken LohrDimmitt Luxury AutomobilesFixed Operations Director (727) Jeff MurrellAllan Vigil FordFixed Operations Director(800) Paul StronzaCentral Florida ToyotaFixed Operations Director(407) Neil RoweyMetro Motor GroupFixed Operations Director(401) Tommy NorrisToyota of EasleyOwner(864) Ryan NorrisNorris FordOwner(864) Brian Finnegan National Trainer(954) Daniel PattersonVolvo of GreenvilleService Director(864) Tommy ParsonsJaguar and Porsche of GreenvilleService Director(864) David ZakaroffDanbury Chevrolet CadillacGeneral Manager(845) Laura LecherHub South Chrysler JeepService Director(414) (414) Fred OliveraArmstrong Ford of HomesteadService Director(305) REFERENCES