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Sprint Telematics Solution Reveals Big Upside For Insurance Carriers.

We applied our Driver Development Solutions technology to our own fleet, and the results have major implications for auto insurers — and companies that self-insure their fleet.

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Insurers and fleet managers are constantly looking for ways to improve driver behavior and engagement while reducing accidents and claims. At Sprint, we did just that using our own plug & play Driver Development Solutions technology — and this use case details the significant, positive effects that it had on our drivers.

“What began as a natural offshoot of our green initiatives

helped us accomplish far more than saving fuel. The results

have big implications for both Sprint and for our customers.”

Chris BrydonDirector - General Business Sales

Like all companies with vehicle fleets, we are focused on developing mindful drivers while reducing operation expenses. At Sprint we are also dedicated to improving the environment. And our efforts have recently been recognized with two

The Challenge ImplementationWe deployed our plug & play Driver Development Solutions technology and gave our drivers the ability to monitor their driving performance within a smartphone application. This application gave participants feedback, and offered insights into individual driving habits. It also provided interactive coaching.

To encourage engagement we also used some very innovative tools including an incentive program. Drivers were able to earn points for achieving performance metrics in four categories — vehicle health,

driver performance, emissions, and fuel usage. Drivers were also able to incent one another by awarding “points from friends,” which encouraged teamwork and collaboration. This aspect of the points system is often referred to as “gamification,” a component generally known for increasing engagement, especially for the millennial generation.

Climate Leadership Awards from the U.S. Environmental Protection Agency. As a part of our green initiatives we set out to further reduce our carbon footprint and reduce fuel usage by leveraging our own telematics solutions.

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This infographic breaks down the financial, safety and environmental impact of deploying the OBDII vehicle monitoring and driver-coaching tools within our own fleet.

Internal Sprint study with 200 vehicles over a three month period ending December 2014. Your results may vary.

Results

Changing Risky Driver Behavior Reducing Fuel Consumption And Accidents

The middle (60%) of drivers self-corrected based on

application feedback

40% reduction in harsh acceleration alerts

The top performing (20%) of drivers maintained good habits

7.8% fewer drivers with idle alerts 9% fewer sharp turn alerts

The highest risk (20%) of drivers did not change behavior

24% decrease in average number of speeding alerts per offending driver

20%

60%20% 24% 40%

7.8% 9%

“I found the program definitely changed my driving habits. I paid more attention to my hard brakes, sharp turns and quick acceleration

and could see the impact of that through the smartphone app. Plus, the points incentive definitely helped me focus even more on the driver

score because I wanted to win the top driver award – and did!” Barry Rice, Sprint Strategic Account Manager

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Key Takeaways Here are three important insights derived from the implementation of our solution.

Put telematics to work for your fleet To learn more about our telematics solutions for insurers visit www.sprint.com/insurance-telematics.

© 2015 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

1. Driver Engagement: Our initial launch was conducted within our direct sales organization. This group is more focused on providing technology solutions to customers than they are on being excellent drivers. Ordinarily, these personnel are not focused on how long their car idles, how fast they make turns or if they exceed speed limits. We knew we had to engage these people in a fun and interactive way, which is why we added the “gamification” component to our implementation.

Salespeople are natural achievers, so our smartphone application and the ability to see the performance of

teammates was critical to increasing active participation. We also communicated with participants weekly, stack-ranking drivers and teams to reinforce the competitive aspect of the program.

2. Device logistics: Thanks to solid planning and close collaboration with our ecosystem technology providers, the distribution and management of physical devices to hundreds of drivers spread across the country was a well-coordinated effort. Warehousing, shipping, activations, gathering defective devices and sending replacements were handled with ease.

3. Winning hearts and minds: Drivers were initially concerned that they were going to be constantly monitored and scrutinized. Once they understood that the data being collected would help us meet several of our corporate initiatives as a team, their concerns quickly faded.

Additionally, study participants had control over their own driving behavior using data presented to them via our smartphone application. By monitoring their own performance, and making adjustments along the way, they saw the positive impact of changing their driving behavior and felt empowered.