1

Customer LifeCycle ManagementSM

Tap into YOUR hidden potential with

DPS PerfectCircle Suite of Marketing Capabilities

<Month Day, Year><Your name>

2

…How can you be sure you are optimizing your marketing investment

whenthere is a lot of options, a lot of confusion, and…

Data Modeling

ProfilingIntelligent offers

Vary the media

Web marketing

Point of Sale merchandising Surveys

Actionable dataOwner Rewards

Key tags

Coupon booklets Gift cards

CRM

Gender based marketing

Database marketing

Incentives

Sales Force Automation

3

With everyone essentially buying the same technology, where is the competitive advantage to be

found?

…a lot of cookie cutter programs.

Data Modeling

ProfilingIntelligent offers

Vary the media

Web marketing

Point of Sale merchandising

Actionable dataOwner Rewards

Key tags

Coupon booklets Gift cards

CRM

Gender based marketing

Database marketing

Sales Force Automation

Surveys

Incentives

4

Data ModelingData Modeling

ProfilingProfilingIntelligent offersIntelligent offers

Vary the mediaVary the media

Web marketingWeb marketing

Point of Sale merchandisingPoint of Sale merchandisingActionable dataActionable data

Owner RewardsOwner RewardsKey tagsKey tags

Coupon bookletsCoupon booklets Gift cardsGift cards

CRMCRM

Gender based marketingGender based marketing

Database marketingDatabase marketing

Sales Force AutomationSales Force AutomationSurveysSurveys

IncentivesIncentives

Data ModelingData Modeling

ProfilingProfilingIntelligent offersIntelligent offers

Vary the mediaVary the media

Web marketingWeb marketing

Point of Sale merchandisingPoint of Sale merchandisingActionable dataActionable data

Owner RewardsOwner RewardsKey tagsKey tags

Coupon bookletsCoupon booklets Gift cardsGift cards

CRMCRM

Gender based marketingGender based marketing

Database marketingDatabase marketing

Sales Force AutomationSales Force AutomationSurveysSurveys

IncentivesIncentives

How do you make an informed decision that makes sense for you?

5

First, begin by understanding how customers behave throughout their life

cycle.

CONSUMER

SHOPSHOP

OWNOWN

BUYBUY

Accenture 2004

Not including non-traditional after-sales products/services…

6

Then, Implement a Solid Marketing Strategy……Introducing Customer LifeCycle ManagementSM

•Integrated communications •Sustainable

•Lowers per unit costs•Aligned with behavior

•Keeps options open: (Flexible Customization)

7

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.

What is Customer LifeCycle ManagementSM ?

CONSUMER

SHOPSHOP

OWNOWN

BUYBUY

8

• 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

For the average franchised New Vehicle Dealer:

Why is LifeCycle Management important?

9

• 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.

For the average BMW Center regarding Aftersales:

Why is LifeCycle Management important?

10

Why is LifeCycle management important?

$ 1445 GP per unit

30% of GP is consumed in ad costs

Because current practices are a “going out of business” strategy!

$ 493.00

$ 8.3 Billion is spent each year in conquest advertising.

Customer retention remains around 30%

STOP the Madness!

11

• 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.

Four essential elements for Customer LifeCycle Management:

12

PerfectCircle CLM Strategy

Traditional “Retention Marketing”Cookie cutter

Sold on price or other traditional metricsActivity basedFocused on reminders, and traditional call center activityService dept focusedNot integrated with total marketing and advertising strategy

                           In what way is PerfectCircle CLMSM different?

On Line On Line AdminstratorsAdminstrators

Options:

FlexibleAligned with business objectivesUnique, Flexible, & proactiveEnterprise wide solutionIntegrated communicationsPermission basedConsumer behavior drivenQuantifies value for consumerFacilitates shift in budget for no incremental expenseOptions:

13

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

Why DPS?

Clear Solutions

Measurable Results

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

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

14

• Federal and State Compliance filters

• Customer info & address standardization

• De-duping customer records

• Customer & vehicle records and history

• Op-code normalization• NCOA• CASS Certification• Customer profiling• Customer segmentation• Predictive data modeling• 3rd party list management

DB Management DB Management ServicesServices

• DPS client engagement and business case development model

• Benchmark measurement and follow-up

• Monthly performance reports

Benchmarking Benchmarking ServicesServicesCustomer LifeCycle Management ServicesCustomer LifeCycle Management Services

AcquisitionAcquisition RetentionRetention RenewalRenewal Owner RewardsOwner Rewards

• Voice of the Customer –Service Follow-up

• E-mail “Smart Surveys”• New sale thank you and

service introduction• Maintenance reminders• Voice of the Customer –

non-responder• Major service thank you• E-mailed communications• Mycarpoints.com

personal owner webpages• Owner rewards program• Key tags• Service Maintenance

books• On demand campaigns• Performance reporting

• Voice of the Prospect –Shopper Contact

• Acquisition direct mail marketing

• Dealer Advance lead management system

• E-mail Direct Marketing• On demand campaign

management• Performance reporting

• Voice of the Customer Reactivation

• Reactivation mail• New vehicle sales

campaign• On demand campaigns• Performance reporting

• Promotional kit• Welcome kit• Point accrual, tracking,

account and redemption management

• MyCarPoints.com personal owner web pages

The 4 Cornerstones of Customer LifeCycle ManagementThe 4 Cornerstones of Customer LifeCycle Management

• Federal and State Compliance filters

• Customer info & address standardization

• De-duping customer records

• Customer & vehicle records and history

• Op-code normalization• NCOA• CASS Certification• Customer profiling• Customer segmentation• Predictive data modeling• 3rd party list management

DB Management DB Management ServicesServices

• DPS client engagement and business case development model

• Benchmark measurement and follow-up

• Monthly performance reports

Benchmarking Benchmarking ServicesServicesCustomer LifeCycle Management ServicesCustomer LifeCycle Management Services

AcquisitionAcquisition RetentionRetention RenewalRenewal Owner RewardsOwner Rewards

• Voice of the Customer –Service Follow-up

• E-mail “Smart Surveys”• New sale thank you and

service introduction• Maintenance reminders• Voice of the Customer –

non-responder• Major service thank you• E-mailed communications• Mycarpoints.com

personal owner webpages• Owner rewards program• Key tags• Service Maintenance

books• On demand campaigns• Performance reporting

• Voice of the Prospect –Shopper Contact

• Acquisition direct mail marketing

• Dealer Advance lead management system

• E-mail Direct Marketing• On demand campaign

management• Performance reporting

• Voice of the Customer Reactivation

• Reactivation mail• New vehicle sales

campaign• On demand campaigns• Performance reporting

• Promotional kit• Welcome kit• Point accrual, tracking,

account and redemption management

• MyCarPoints.com personal owner web pages

The 4 Cornerstones of Customer LifeCycle ManagementThe 4 Cornerstones of Customer LifeCycle Management

DPS Capabilities Platform

15

Next StepsNext Steps<list next steps here>