Focus on how your customer can get more … not how they can pay less

The Beginning… - 3 Service Advisors and 12 Technicians - Average of 40 ROs per day hrs per RO - $90,000 in average gross profit per month - New Car Sales to Service Retention: 30% - Used Car Retention was not measured other than brand. (Standard was 18-25%) Loyalty Program – GO BIG OR GO HOME!

A New Direction Loyalty Program The new loyalty program would benefit all customers that purchase from the dealership. Program Benefits Include: Complimentary Oil Changes Tire Rotations Multi-Point Inspections Lifetime Engine Guarantee Car Washes Current Complimentary Services (shuttle, towing etc.) Ability to earn points to use off next vehicle purchase

Challenges… 1. How much will this cost? 2. If managed properly, this will be a homerun! 3. If managed poorly, this could be trouble! 4. How much will this cost? 5. This definitely sets the hook for retaining clients! 6. An oil change is a “LOSS LEADER” tool! 7. The tire rotation gives me “carte blanche” to the wheel well! 8. Every vehicle on the road NEEDS at minimum those two items maintained! 9. How much will this cost? 10. I need to “Re-Think” Training!

Training Train the Staff….Educate the customer - A customer spent 3 to 5 hours with the sales staff purchasing a vehicle but they will spend the next 3 to 7 years as a service customer. - OWN the program and know how to explain it to new customers. - Bi-weekly training sessions held as a group. All vehicles require preventative maintenance. Allow us to perform all of your recommended preventative maintenance here at our store and we will guarantee your engine for as long as you own it.

Investment 100% of Purchasing Customers OR 1.5% of those who used your coupon? Cars Sold200 85% Retained170 Avg. Cost of LOF$25 Monthly$4,250 Annual$51,000 Loyalty Program Example: $19.95 LOF Mailer Coupon 6,000 each $7,200 Returned (1.25%)75 Coupon Cost/Customer $96 Annual Mailer Cost$86,400 Annual Cost/Customer (loss per LOF)$4,500 Total Cost$91,000 Vendor Advertising Mailer Sample: You will spend four times the amount per customer capturing new business.

One Year Later….. Before1 Year After Sales to Service Retention30%85% Overall Customer Service Retention26%74% CSI Average Score7891 Average Hours per RO RO Count per day4058 Upsold Services30%52% Employed Service Advisors34 Employed Technicians1215 The service department has added and retained an additional 1,350 customers over the past year…..that’s called growing the business!

Three Years Later…… Internal Changes More change was needed internally due to the increase in traffic and change in workflow. - Re-evaluate technician pay plans - Introduced Synthetic Blend oil to the program - Introduced an “Express Service Lane” - Prospect “the garage” by inviting our retained customers family and/or friends to become part of our “FAMILY PLAN”

Today…. Before1 Year AfterToday Sales to Service Retention30%85%91% Overall Customer Service Retention26%74%89% CSI Average Score Average Hours per RO RO Count per day Employed Service Advisors345 Employed Technicians121520

Recapping The Progress… This dealership started a loyalty program that made an investment in their customer. Investing in a “Loss Leader”… every vehicle owner has the need. Building relationships with people of the community that have absolutely NO reason to take their business elsewhere. The investment has paid off large in branding the dealership that developed a culture within the dealership and the community. Think about investing in your customer... FOR LIFE! Build relationships from that investment. Utilize a loyalty program that will brand your company…set yourself apart from the rest. GROW your business and RETAIN it. Your time is better spent training, listening and developing your staff. Thank you!

Rick Manring VP of Fixed Operations