2. 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

3. STUDY OVERVIEW

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

5. 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

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

7. New definition of loyalty

8. 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].

9. 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.

10. Power of Engagement

11. More engagement = higher retention
Predictive Power
More engagement = higher retention

12. Best Leading Indicator
Digital engagement is best predictor of retention

13. 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

14. Levels of engagement

15. 4 Levels of Engagement

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

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

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

19. 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)

20. Millennials

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

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

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

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

25. Conclusion

26. 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

27. Life After Loyalty White Paper
Learn More
Life After Loyalty White Paper

28. Contact Info
Doug Van Sach
AutoLoop
VP Analytics & Data Services