CRM Process Implementation For Car Dealers

Phase 1 Automotive Retail CRM Process Implementation Phased Series of CRM Process Implementations I N B O U N D O U T B O U N D INTERNET PHONE SHOWROOM SERVICE UNSOLD FOLLOW-UP SOLD FOLLOW-UP PROSPECTING

Daily Transactional CRM Process Execution I N B O U N D O U T B O U N D INTERNET PHONE SHOWROOM SERVICE UNSOLD FOLLOW-UP SOLD FOLLOW-UP PROSPECTING

Retail CRM Program Customer Contact Process Examples Reynolds Contact Management, combined with ERA, can handle all potential Variable and Fixed Operations CRM processes. Below are examples of 15 CRM processes. Listed below each is the way to use CM to execute daily. Variable Operations: Vehicle Sales Call (New and Pre-owned) Quick add client – track all calls (automatically assigns custom schedule for follow up) Daily Work Plan – shows scheduled call on calendar Sales Appointment Confirmation/No-Show Call Custom schedule puts call on calendar Daily Work Plan – shows scheduled call on calendar Internet Lead Follow-Up Call New Prospect Record created by lead (automatically assigns custom follow-up schedule) Daily Work Plan – shows scheduled call on calendar Internet Lead Management Call Client Profile – Display customer information Create Activity – Log the call

Variable Operations: Unsold Outbound Call Activity automatically assigned by custom schedule Daily Work Plan – shows scheduled call on calendar After Delivery Follow-Up Call Activity automatically assigned by custom schedule Daily Work Plan – shows scheduled call on calendar Initial Buyers Survey (IBS) Call Activity automatically assigned by custom schedule Daily Work Plan – shows scheduled call on calendar Orphaned Owner Call Activity automatically assigned by custom schedule Daily Work Plan – shows scheduled call on calendar Lease Maturation Call Activity automatically assigned by custom schedule Daily Work Plan – shows scheduled call on calendar 15 Retail CRM Program Process Examples (continued)

Fixed Operations: Service Appointment Making Call Handled by ERA (DMS) Service Appointment Making/Confirmation and No-Show Call Handled by ERA (DMS) Service Vehicle Status Call Handled by ERA (DMS) After Service Follow-Up Call RO closed in ERA launches customer Follow Up Schedule in CM Daily Work Plan – shows scheduled call on calendar Service OEM Customer Satisfaction Index (CSI) Call Activity automatically assigned by custom schedule Daily Work Plan – shows scheduled call on calendar Special Order Parts Call ERA (DMS) Notification Function Notified Manager assigns SOP schedule in CM 15 Retail CRM Program Process Examples (continued)

Dealer-Specific Definition is Precursor to Process Execution No Show Show Update Unsold Activity Result Sale No Sale Confirm appointment Update customer welcome board Sold Follow - Up Contact Customer Set Appointment No Appointment Continue Unsold Follow - Up Activity Evaluate Status Close Account - CRM Department - Example: UNSOLD FOLLOW-UP Update Unsold Activity Result Continue Unsold Follow Up Activity Evaluate Status Close Account Sold Follow Up Sale Show No Sale No Show Update customer welcome board Confirm appointment Update Appointment Board Set Appointment No Appointment Contact Customer

Dealer-Specific Definition is Precursor to Process Execution Update Appointment Board No Show Show Follow - Sale No Sale Confirm appointment Update customer welcome board Sold Follow - Up - - Customer Relations Department Capture Customer Data Set Appointment No Appointment Example: INBOUND PHONE Unsold Follow Up Capture Customer Data Set Appointment Sale Show Update customer welcome board No Sale No Show Confirm appointment Update Appointment Board No Appointment Sold Follow Up

Showroom Process Current National Close Rate 18% Realistic Planning Potential is 25% ©2004 The Reynolds and Reynolds Company ® - All Rights Reserved. Daily CM Showroom Traffic Report by Salesperson Metrics Allows dealers to cross reference each showroom prospect and view all previous customer contact history Search Inventory – associate a vehicle with each customer Integrates deals to ERA (create deal), reducing F&I backlog and eliminating duplicate keystroke Technology Greet Customer Collect customer information including email Log information into Contact Management application Generate ERA deal number from CM – required to work deal Process Collect and enter complete customer contact information into Contact Management. Tactical Objectives Deliver a consistently positive experience to all customers that result in the highest possible closing ratio. Strategic Goal Do you have a traffic control system? Measurement? What percentage of prospects receive demo, write up, turned to F&I… What is the sales process? Who created it? Training? Hiring strategy? New hiring strategy? Showroom Internet access? Use net to sell cars? Who talks to customers before they leave? Pains

Inbound Showroom Process Map Example #1

Phone Process Current National Close Rate 4% Realistic Planning Potential is 25% ©2004 The Reynolds and Reynolds Company ® - All Rights Reserved. Customized Sales Call Reports identify source and call volume by staff to track appointments to calls received ratio. Metrics Calls can be automatically entered into CM by 3 rd party call tracking vendors to reduce keystroke entry and capture 100% of calls… CM allows dealers to cross reference each incoming caller and view all previous customer contact history CM integration with DMS reduces keystroke entry and allows sales people to recognize phone customers when they arrive at store Technology Answer calls using scripts Schedule an appointment Enter Customer info and Receptionist routes calls to designated staff Call routing into CM application for accountability Process Use customized phone scripts and process that increase appointment ratios Collect and enter customer contact information into CM Tactical Objectives Deliver a consistently positive response to incoming sales and service calls, designed to generate the highest rate of conversion to dealership visits. Strategic Goal Half a dealers traffic is from the phone … but no system Do you track phone volume, appt %, show %, close % What is your incoming phone lead strategy and process? Do you have an appointment & appointment confirmation process? What type of follow up is done with non-appointment and no shows? What type of accountability is there for phone leads? What type of phone training have your people had? Pains

Inbound Phone Process Map Example #2

Internet Process Current National Close Rate 11% Realistic Planning Potential is 22% ©2004 The Reynolds and Reynolds Company ® - All Rights Reserved. Lead volume by ISM with response time, appointment & closing ratios Metrics Internet leads from ALL sources routed into Contact Management that integrates with DMS, reducing keystroke entry of customer information Wireless device that integrates with CM Technology Respond to inquiry via email within 30 minutes using templates Send email with quotes on several vehicles, set stage for phone Call customer on phone within 2 hours Schedule appointment Confirm Appointment via email AND phone call Process Use a consistent inquiry response process, customized email templates and phone scripts that generate increased customer visits to the dealership Tactical Objectives Convert Internet leads into showroom visitors that buy cars Strategic Goal 20% of a dealer’s traffic is from the net… Does your strategy promote all profit centers including fixed operations (parts and service)? What is your current marketing strategy? Lead providers? What is your submission ratio on your site? Who updates it? Dedicated people? Process? Pricing strategy? Do you monitor and measure visitors, leads, response rate, appt%, show%, close%, profit, CSI, etc… What type of eBusiness training do your people receive? Pains

Inbound Internet Process Map Example #3

Unsold Follow-Up Process Current National Close Rate 2% Realistic Planning Potential is 8% ©2004 The Reynolds and Reynolds Company ® - All Rights Reserved. Contact volume by staff with appointment/conversion/show/closing ratios Metrics Establishes lead follow-up accountability Measure unsold follow-up results against benchmark performance metrics Future follow-up is automatically scheduled based on results of today’s activities Technology CM automatically generates daily customer contact action plan Management conducts daily Save-a-Deal meeting Execute follow-up contact by phone, mail and email Log results of activities into CM Schedule appointment with customer to visit dealership Make appointment confirmation call and send email Process Utilize daily customer contact action plan scripts and templates to execute phone, mail and email contact that is designed to prompt a visit to the dealership that results in a sale Tactical Objectives Convert Unsold opportunities into showroom visitors that buy Strategic Goal 80-90% of prospects do not buy on their first visit… What is your unsold prospect follow up strategy? How do you capture, record and follow up with prospects? Use prospect cards? Gather email addresses? 2 nd phone numbers? 2 nd email address? Best time? Do you send letters? Emails? Multimedia emails? Do you provide automated daily follow-up work plans? Do you monitor and measure contacts, appts, show, sales? Training on customer follow-up skills and handling questions & objections? Pains

Outbound Unsold Follow-Up Process Map Example #4 Business Development Center

Sold Follow-Up Process Current National Close Rate 27% Realistic Planning Potential is 55% ©2004 The Reynolds and Reynolds Company ® - All Rights Reserved. Contact volume by staff with appointment & closing ratios Metrics CM integrates with DMS to automatically schedule sold follow up Results Based automatic scheduling eliminates human error and additional keystrokes CM provides accountability and best practices for specified activities Technology CM schedules a timeline of sold follow-up calls, letters and emails according to dealer and manufacturer specifications Dealer staff completes customer contact utilizing scripts & templates Log activity results to trigger scheduling of future activity Schedule appointment Make appointment confirmation call, send letters and email Process Execute a consistent process of customer contact. Utilize schedules, scripts and templates to simplify and automate process execution Tactical Objectives Manage a lifetime relationship with each customer that builds customer satisfaction and ensures a pattern of repeat business. Strategic Goal Do your salespeople ask customers for permission to maintain contact? Do you gather customer interests for information marketing? Sales personnel always sets first service appointment using dealer web site? Sales personnel sign sold customers up for their personal web page? What is your contact strategy beyond the 1-3 day calls? Letters? Emails? Phone calls? Concern resolution process? Off-lease strategy? Off-retail strategy? Orphan customer strategy? Training? Do you have a loyalty management sales process? Pains

Outbound Sold Follow-Up Process Map Example #5

Service Follow-Up Process 70% of Customers do not continue to Service with their Selling dealer ©2004 The Reynolds and Reynolds Company ® - All Rights Reserved. Service customer completion and appointment rate Service penetration for vehicles sold Metrics Integrates with DMS to automatically trigger follow up Automatically generates work plan activities based on short term follow up and anticipated service needs Technology Advisor closes RO Service to trigger service follow up in CM Dealer staff completes customer contact using scripts and templates Log results of activity to trigger scheduling of future activities Schedule appointment Make appointment confirmation call, send email and/or letters Process Contact every customer who has their vehicle serviced by the dealership to ensure satisfaction, or trigger concern resolution. Sell incremental products and services to service customers Tactical Objectives Manage a lifetime relationship with each service customer that builds customer satisfaction and ensures a pattern of repeat business. Strategic Goal Typically, Dealer contact w/customer decreases as repairs increase, and loyalty decreases… Service Contract Strategy? Service Reminder via letter, phone and email? Service CSI contacts? Service process in service aisle? Incoming phone process? Appointment confirmation? Special Order Parts? Completed service surveys? CRM Staff Training? Pains

Outbound Service Follow-Up Process Map Example #6

Prospecting Targeted Customer Segment Marketing is Proven to be more Cost Effective than Mass Media ©2004 The Reynolds and Reynolds Company ® - All Rights Reserved. Prospect contact completion and appointment rate Metrics Prospects entered into CM are integrated with DMS, reducing keystroke entry of customer information Creates daily work plans based on those people identified as most likely to become customers Technology Identify prospects, create a workable list Contact prospects and identify most likely to do business with dealer Enter prospect information into CM, assign schedule Dealer staff completes customer contact using scripts and templates Log results of activity to trigger scheduling of future activities Schedule appointment Make appointment confirmation call, send email and/or letter Process Target market segments, then acquire prospect data Execute a consistent process of prospect contact Utilize schedules, scripts & templates to simplify/automate process execution Tactical Objectives Target new prospects to increase conquest sales and market share. Strategic Goal What is your Targeted Prospecting Strategy? Do you have the ability to create high quality prospective customer lists? Strategy to handle Manufacturer generated leads? Monitor and measure contacts, appointments, shows, sales… Does your team prospect previously sold customer households & ask for referrals? What about Pricing? Dedicated people? Prospecting Lists? Pains

Business Development Center Outbound Sales Prospecting Process Map Example #7

Service CRM Opportunities Inbound Outbound New & Used Vehicle Sales Walk - In Internet Phone

BDC responsibilities Inbound Service Contacts (Phone & Internet) Outbound Service Contacts (CSI & Appointments) Management of Service Customer Data Sales-to-Service Transitioning (Trial Users) Service Trial User Follow-Up (>Sales-to-Service) Service Customer Follow-Up (Completed RO’s) CRM Process Performance Metrics: By Process Category Service Appointments Generated Appointment Shows/RO’s Generated Total Parts & Labor Profits from those RO’s Profit per Contact by Process Category

BDC Staff Efficiency Variable Cost per Appointment Customer Contacts per Month Appointment to Contact Ratio Appointment Shows to Scheduled Customer Contacts to RO Ratio Scheduled Contact Completion Rate Profit Averages per Outbound Service Call Profit Averages per Inbound Service Call

CRM Benefits to Fixed Operations Consolidate Fragmented CRM Processes Enhance Results from Current Processes Improve Inter-Department Communications Create CSI Accountability Customer Concern Issue Resolution Better Service Advisor Time Management Consistent Customer Follow-Up Uncover Service Fulfillment Bottlenecks Improved Shop Loading/Capacity Optimization Increased Appointments-to-RO Ratio

Inbound Service Declined Recommended Service Authorized Recommended Service Completed Service CSI Follow-Up Service Reminders Unsold ANR Unsold ANM Follow-Up

Improving Fixed Operations with CRM Problems with Most Dealership Service Departments: Staff Experiences Daily Stress… Customer Management Processes Altered or Ignored Commission-Focused Service Managers/Advisors means inaccurate, Inconsistent Concern Resolution Tracking and Follow-up CRM Business model delivers… Accurate, Consistent Tracking and Follow-up Better Marketing Merchandising Labor & Parts Demand Prediction Trend Analysis Allows Service Organizations to Handle Pressure & Stress

OUTBOUND SERVICE FOLLOW-UP Objective: Every customer who has their vehicle serviced by the dealership is contacted to ensure satisfaction and generate repeat business Process: CRM application schedules service follow-up calls Complete customer contact utilizing scripts & templates Schedule appointment Make appointment confirmation call and send email Technology: CRM application integrates with DMS so that R.O.’s automatically trigger next day follow-up CRM application creates action plans based on anticipated service needs Metrics: Service customer contact completion rate by staff member

Service CRM Business Development Points of Opportunity SERVICE Welcome to ABC Motors UNSOLD SERVICE FOLLOW-UP SOLD SERVICE FOLLOW-UP SERVICE PROSPECTING SERVICE PHONE SERVICE INTERNET SERVICE DRIVE SALES TO SERVICE

Top performing Service CRM Dealerships Today: Observations from “Best Practice” Harvests Sales-To-Service (STC) transition: CRM technology supports processes Internet Service Marketing: marketing efficiencies, use of integrated technologies, BDC process execution supported by CRM technology Incoming Phone: Service Advisor efficiency improvements, DMS technology Unsold ANR/ANM Follow-up: use of integrated DMS/CRM technologies, BDC processes that collaborate with Service Managers Sold Service Customer Follow-up: DMS-CRM technology automation Post-Service RO short term follow-up that improves service CSI & loyalty Loyal Service Customer maintenance reminder contacts Service Marketing: best practices, inefficiencies, technology Lost/Inactive Previous Customers: best practices, processes Next 9 slides examine what the best Service CRM dealerships do…

Customers who buy a new vehicle are initially scheduled by the Salesperson for their first service appointment during the sales delivery process BDC contacts each new vehicle customer to validate the appt. set by sales BDC reconfirms first service appt. a week before scheduled, then reminds the customer the day before the scheduled service appt Free oil change certificate – Free tires for life certificate (during delivery) Used Vehicle Sales Customers are contacted by the BDC and transitioned into getting their vehicle serviced by the dealership “ Due Bill” and “We Owe” documents are transferred to BDC upon sale of a used vehicle for the BDC staff to make arrangement and schedule fulfillment BDC manager contacts each appointment turned in by sales staff during assigned time slots to verify that appointment is bonafide and that customer intends to show up at dealership Sales-To-Service (STC) transition

Customer Data collection by Service Advisors Updated Customer Contact information (phone, email & address) is collected by SA’s and entered into DMS integrated with CRM application used by BDC staff for customer contact process execution Customers are queried by SA’s as to their preferred means of receiving service reminders, updates and dealer communications, providing customers with an “Opt-In” opportunity BDC/SA’s use DMS to request ANR/ANM authorization needed via email, completed RO notice sent to customer, along with total money due. BDC follows up to confirm receipt and offer credit card prepay BDC access to activities & resources within the Service Drive Customized ATW inspection is started by Service Porters in the service drive, used by Service Advisors and completed by Technicians, then a copy sent to BDC for use in service sold follow-up and service reminder process execution Close circuit TV’s in Service Drive allow BDC staff to have visual access to Service Advisor work areas, allowing them to better Triage incoming calls Each Service BDC employee works 4 hours/week in service dept. Dealer CRM/DMS email used to communicate between BDC & SA Inbound Service Drive

Incoming Service calls are routed to BDC managed by a dedicated full-time Business Development Manager supervising dedicated service CRM staff working in the BDC during assigned time slots Incoming Service calls are subjected to a documented “Triage” process initiated by automated phone system, then by switchboard operator who determines if customer’s vehicle is, or is not, in the shop. All calls from customers with vehicles that are NOT in shop go to the BDC for handling Service BDC specialists answer inbound phone calls using specialized scripts with information blanks that are filled in during call, each script’s primary objective is to get a service appointment Service Appointments are assigned to dates and time slots by BDC staff during the handling of each incoming call, based on management of shop load and technician availability by type of work BDC has pricing menus (SPG) readily available when making calls Partner S/A’s w/BDC staff for scheduling purposes on inbound calls Telephony – Incoming Service calls come in on toll-free lines assigned to each media, caller ID & Data are captured, tracked & data imported into CRM application used by BDC staff to monitor and report on incoming call sources Inbound Service Telephone Calls

Dealer uses web site to market service, parts and accessories, and make online service scheduling available to customers on a convenient 7 day a week, 24 hour a day basis Service appointment requests and leads routed to BDC staff Service BDC staff schedules appointments in DMS based on incoming Internet requests, then responds to customer’s request within 30 minutes of business day providing date and time confirmation. Email confirmation is followed up with a BDC phone call the day before, or morning of appt. Phone contact is made by BDC to customer who requested service appointment online, dealer visit appointment made, ISM handles all phases from initial response to delivery. Service, Parts and Accessories specials are prepared in email format specific to model lines and then broadcast emailed by BDC to targeted customers by model owned using email addresses in DMS or CRM system Service advisors train their customers to use online service scheduling, which routes service appointment requests to the BDC BDC specialist emails survey to customers who scheduled their service appointment online for completed service quality assurance Integrated Service Marketing

Service Marketing and Prospecting customer contacts are assigned to BDC managed by a dedicated BDC Manager supervising specially trained Service BDC staff BDC offers service contracts to customers at key points in ownership Inactive and “Lost” customers are extracted from dealer’s DMS database by BDC Manager and then scheduled for contact by BDC Staff. BDC Staff contacts each customer and offers a promotional special targeted to bring them back BDC Manager pulls records of vehicles within various mileage categories to target specific offers that are communicated to customers by BDC staff BDC Staff solicits wholesale parts customers from lists of commercial enterprises that buy OEM parts (body shops, independents, etc.) Each day, BDC staff receives a list of “No Show” customers who did not arrive for Service Appointments from previous day. The BDC Staff uses a combination of customized Post Card (we miss you) and phone calls to ensure that customer feels welcomed and is rescheduled for new service appointment BDC has pricing menus readily available for use when making calls BDC utilizes automated outbound customer calling system Service reminder calls - scheduled main, past due and lost/inactive Outbound Service Marketing

Sold Follow-up calls are assigned to BDC managed by a dedicated BDC manager supervising specially trained Service BDC specialists CRM application automatically schedules sold service follow-up calls, letters and emails that are completed by Service BDC staff utilizing pre-written scripts Post-Service follow-up processes recognize customer driving characteristics so that BDC staff can recommend and pre-schedule next service appointment Service BDC staff is trained to implement a Concern Resolution process that includes escalation criteria and a dollar limit to what BDC manager is authorized to spend in addressing a customer concern. Completed concern resolution forms result in BDM meeting with SA, customer is then re-contacted by BDC BDC specialist that handles the original incoming service call contacts the customer after RO has been completed for service process quality assurance Special Order Parts (SOP) Customer contact process is assigned to BDC Service BDC is notified by Parts Dept. when all parts related to a Special Order have arrived and customer can be contacted Service BDC contacts customer and schedules service appointment Status call for all back ordered parts Outbound Sold Service Customer Follow-up

Unsold Additional Needed Maintenance Follow-up calls are assigned to BDC managed by a dedicated full-time Business Development Manager supervising specially trained BDC specialists. Maintenance awareness checklist – Service Dept. forwards to BDC CRM application automatically schedules unsold ANM follow-up calls, letters and emails that are completed by BDC staff utilizing pre-written scripts and extensive training to generate return service appointments CRM application is set up for “results based” triggering of next unsold ANM follow-up steps which allows BDC’s to target specific maintenance specials and promotions to owners that need them, but declined during service visit Unsold Additional Needed Repair Follow-up calls are made by dedicated Service BDC staff Service BDC staff meets with Service Advisors prior to contacting unsold ANR customers to discuss specific details of recommended repairs and why customer declined to authorize the repairs (ANR Save-A-Deal) Service Advisors work with BDC staff to develop a plan to segment unsold ANR’s into manageable, logical “chunks” that are then offered to customer by BDC during unsold ANR follow-up… Segments scheduled over time Outbound ANR/ANM Unsold Follow-up

Customer FAQ's w/Staff response word tracks posted in large font using wall posters at each Service BDC work station to supplement scripts Service BDC phone scripts, email templates and process maps developed for each type of outbound and inbound Service CRM process Uniquely designed pay plans that differentiate between Service BDC staff and Sales BDC staff, using appropriate and relevant incentive levels/plans “ Pull Boards” used as incentives for BDC set Service appointment shows Service BDC position is career tracked for promotion into higher paying roles Tracking of incoming & outgoing call data – customer/number, time, duration, result Service BDC staff has access to, and has been trained to use the DMS service scheduling applications, which become integral part of several BDC executed Service CRM processes Service porters pickup BDC appointment sheets throughout the day (Nike-Net) Appointment confirmation phone calls made by BDC for all service appointments Appointment confirmation emails sent to customers w/captured emails BDC Manager reports to Dealer Principal, General Manager or COO CRM Process Execution/Support Best Practices

Service CRM Process Performance Metrics are tracked and reviewed by Dealer/GM as part of periodic BDC management evaluation and mission execution effectiveness Service BDC process-result tracking of RO revenues and associated profits combined with departmental costing analysis used to evaluate the Service BDC as a profit center Tracking revenue per RO - parts, labor, comparison to non-BDC RO's Tracking service/parts Revenue Per Call (RPC) within each Service CRM process category Use RPC to Prioritize BDC task and activity scheduling during capacity overflow periods Using RPC to determine ROI justification for additional Service BDC staff based on call volume needs by Service CRM category – set ROI threshold for each new resource Staffing levels set by outbound Service CRM call volume needs BDC staff scheduling determined by peak outbound contact success rate time slots, and peak hours of inbound service call activities Tracking performance within Service CRM processes by measuring inbound and outbound calls, appointment ratios, show ratios, revenue per RO on the shows, Revenue Per Contact, Profit Per Contact CRM Operational Metrics Best Practices

Process Mapping that clearly identifies the Service BDC’s activities and tasks related to Special Order Parts customer contacts Examples of Dealership Best Practices

Examples of Dealership Best Practices Inbound Service Phone Call Process Mapping

BEST PRACTICE: Performance Metrics that focus on Customer Contact Results providing R.O.I. validation

CRM Process Implementation For Car Dealers

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