next generation automotive customer...

1The Vehicle Intelligence Company |

Next Generation Automotive

Customer Lifecycle:How Connectivity is Transforming the Buying

Experience for Consumers and Dealers

Carla Fitzgerald, CMO, Spireon, Inc.


SPIREON provides visibility and insights from connected vehicles

to help businesses run smarter and people drive safer

©2018 Spireon, Inc. All Rights Reserved.

Aftermarket Telematics Automotive & Fleet

CustomersConnected Devices Recorded Driving Miles


Survey Instructions


To participate in our mobile surveys:

Visit PollEV.com/Spireon

Skip when asked for screen name


A Pizza Story…


• In 2012: Key to Survival:“An e-commerce company that sells pizza.”

• Two-phase Strategy:

1. Mobile-first

2. Surprise and delight customers

• Stock Price:

2008: $3 a share

2018: $211 a share


The Connected Consumer


GSMA IBM


Consumers EXPECT a Connected Experience



ERA 1: The Connected Car


Data-only Telematics

Consumer Value: Safety, Entertainment, Information, Convenience

OEM Value: Consumer Information, Consumer Relationship, Brand Equity

DEALER Value: ???


ERA 2: The Connected Dealership


1- Vehicle

Data

2- Customer

Data

3- Mobile

Engagement


Connected Dealership Opportunities


CONSIDERATION OWNERSHIPPURCHASE REPLACEMENT

CONSUMER VEHICLE LIFECYCLE

Lease Fit

Trade-in Value

REBUY FROM YOU BUY ELSEWHERE

BLIND SPOTS

Online shopping

On-Lot Activity Vehicle ReadinessVehicle Mileage

Service Preferences


Activity on the Lot – How Much Do You Know?


>50% of Shoppers Walk-in for first contact with dealership

84% of Buyers still test drive first

>50% test drive more than 1 car

DMEAutomotiveAutoTrader


Test Drive Analytics


• Test Drives Per Model

• Peer Benchmarks

(Dealer Group)

• All Dealer Benchmarks


Optimizing Inventory Mix with Customer Demand


High consumer interest

relative to inventory

Low consumer interest

relative to inventory


Consumer Wants to Test Drive Specific Vehicle


How fast can you find

the vehicle she wants?


Connected Dealerships Have Connected Sales People


Find Cars in Minutes -- Reduce purchase time by 35-40 mins.

AVERAGE

TIME TO

FIND TEST

DRIVE

VEHICLES1-5 min.

71%

6-10 min.

24%

11+ min.

5%


Multi-Lot, Multi-Dealer Visibility


Geofenced Dealer/Holding Lots

Target Older Vehicles


Managing Sales by Inventory Age


Inventory carrying cost = $28/day*

90 day inventory cost = $2,520 per unit *NADA


Age Matters


369 vehicle reduction

102 vehicle

reduction

107

vehicle

reduction

465 vehicle increase

Aged Inventory Changes May 1 – May 31

465 vehicle increase

= $1.17M


Battery Management


Monthly Cost: $4,882

• Hours managing batteries: 30 @ $15/hr

• Batteries replaced: 10 @ $100 each

• Deals lost due to bad batteries: 3

• Average profit per vehicle: $1,144*

Annual costs: ~$58,584

20-dealer group: ~$1.17M/year

*NADA


Battery Management at Connected Dealership


• Immediate Visibility to Battery Status

• Reports & Alerts on Low Battery Thresholds

Reduce battery management

time by over 50% on average


Transferring the Connected Experience to Consumers


• 24x7 Location

• Trip History

• Battery Alerts

• Speed Alerts

• Geofence Alerts

• Stolen Vehicle

Recovery

Connected Car

Consumer App


Ownership – Increasing Service Retention and Loyalty


Service retention

average for dealers

Average service bill

per visit, with 2.7 visits

per year

Increased chance of

next vehicle purchase

after single service visit

Increased odds after 5

visits

30%

$178

29%

40%Cox Automotive


Target Customers for Service Using Actual Mileage

Increase number

of repair orders

and labor hours

Provide mileage

for more timely

promos

Predict future service

revenue with mileage

reports

I ©2018 Spireon, Inc. Confidential & Proprietary. Do Not Duplicate.

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Mobile Push Marketing: Service, Trade-In, Recalls, etc.


In App

Messaging

and

Scheduling


The New Normal: Information, Convenience, Personalization

• INFORMATION:

– Last services performed

– Recommended service

– Estimated costs

• CONVENIENCE:

– Click to schedule appointments

– View repair orders for the service appointment

– Receive updates and notifications when each has been completed

• PERSONALIZATION:

– Loyalty Program rewards

– CRM integration


Applying Vehicle Intelligence to Lease Retention and Trade-ins


• Current mileage

• Driver scoring

• Harsh driving/braking

• Location

• Weather

• Accident History

• Trade-in market value

• Dealer inventory

+

Precision Trade-in Value

• Purchase Date

• Maintenance History

+


Mastering the Next Generation Customer Lifecycle


1. Use Aftermarket Vehicle Telematics to:

• Make EVERY Car a Connected Car

2. Use Vehicle Data to:

• Better Manage Inventory

3. Use Customer Data, Vehicle Data and Mobile Engagement to:

• Better Target Customers with Relevant, Timely Services

CONSIDERATION OWNERSHIPPURCHASE REPLACEMENT

CONSUMER VEHICLE LIFECYCLE

REBUY FROM YOU

• Increase Efficiency & Reduce Risk

• Better Understand On-lot Behavior • Improve the Sales Experience

• Create Transparency and Trust


Optimize Inventory

Connected Dealerships Create Lifetime Customers

Increase Revenue

Improve Retention

Drive Loyalty


#DSES

To Learn More About Spireon’s Connected Dealer Solutions, visit:

https://www.spireon.com/kahu/

Carla Fitzgerald

Chief Marketing Officer

Spireon, Inc.

[email protected]

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