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TMS/ADP Meeting

Ecommerce discussions

Sept 24, 2009

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ADP/TMS Dealer Network Solutions

Introductions Presentations/Discussions: Dashboard Solution, Best

Practices process, Digital Marketing/Advertising, Ecommerace

ADP a Service Provider vs a DMS provider One throat to choke – integration at the OEM level same

as the Consolidators… Lithia, AN Reduce redundancies and crossing over of solutions Enterprise agreement-Earn Back/Commissons. Approx

$4Mil billing today. Earn back 5 - 10%. The power of one source.

Business Intelligence and Performance Improvement

Toyota

September 24, 2009

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Over 1,500 Performance Group members (automotive and non-automotive) Consulting and training for business management, profitability, all aspects of

retail sales and fixed operations Data extraction, financial analysis, composites and reporting

– Under contract to process close to 5,000 financial statements monthly (all DMS providers)

– 1,600-2,000 automated edits and detailed Business Analyst review– Development of standardized financial reporting, charts of accounts,

financial statements and electronic data submission– webComposite financial analysis and benchmarking solution

Composite supplier to National Automobile Dealer Association Current automotive engagements: Honda, Acura, General Motors,

Mercedes-Benz, Mazda, Subaru, Volvo/Mack Truck, smart and Suzuki Non-automotive engagements: Sea Ray, Freedom Roads, Recreational

Vehicles, Marinas (ABBRA), Motorcycles, Outdoor Sports, Hardware

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Business Intelligence Benefits

Deep experience and expertise regarding Dealer and manufacturer performance drivers

Ability to pull data from all Dealer Management Systems, providing daily and real-time updates

Data purification and normalization:– Common labor operations– Electronic edits and Call Center for Dealer data correction

Integrating and reporting data from DMS, internal and third-party sources

Guided problem-solving and “What if” scenarios Training and consulting expertise in all dealership

processes

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Business Intelligence Benefits

http://demo.idashboards.com/idashboards60/

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Questions and Discussion

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Toyota Motor SalesDigital Marketing and Dealer Performance

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The quality of the Client Experience is critical!

The Follow-up over 90 days- Still in the buying cycle

The Disengaged 90 days plus- Re-engaging Customers

The Quality of the Call- Off the Website- Consistent Experience

One Response 30

days

Multiple Responses

30 days

60 day Follow-up

90 Days

Key elements for ILM:The First Response (One Response)

- Speed is important- Quality is CRITICAL

The Engagement (Multiple Response) - Volley for a solid appointment

The Follow-up over 60 days- Keeping engaged till the lead sells

4% 8% 10% 11% 18%

+ 90 days

13%

Call Quality

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Today’s Customer Experience

10

In this sampling 6 out of 7 of Toyota’s Import competitors had more client interaction

A Toyota B C D E F G0

50

100

150

200

250

300

8264

76 80100 100

8055

62

49

59 46

71 67

40

55

42

30

47

26

5750

20 37

18

12

35

13

1450

20 0

Multiple Responses

45 days

30 days

21 days

14 days

This shopping was based on a sampling from 4 regions of 100 stores each brand same market

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Solutions – Process/Skills/Management/Measuring

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Recommendations

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Internet Lead Close Rates Increase by 50% when any 4 of the 5 Key Drivers are Experienced by Consumer

Ten years ago, many of us debated about what the most effective lead management processes were… Today, we know exactly what drives higher closing ratios based on RDR to Lead Match-Backs combined with customer experience survey data

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Keys for Success

Apr May Jun Jul Aug0%

10%

20%

30%

40%

50%

60%

44% 41% 43% 43% 46%

28.2%30.8%

25.3%27.0%

49.6%

11.6% 11.4%8.9% 9.3%

10.6%

Percent Receiving 4 or 5 Key Drivers

Close Rate w/ 4 or 5 Key Drivers

National Close Rate

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The Right Measurements are Critically Important

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Dealer Overview Lead Response Time Leads Details Report

Resources - Metrics

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Dealer Overview - OEM Sourced Leads

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Dealer Overview – 30 Day Match

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Dealer Overview – 60 Day Match

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Dealer Overview – 180 Day Match

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Dealer Overview – Long Term Follow Up

20 Sales in 30 Days25 Sales in 60 Days

29 Sales for 180 Days50% of your customers purchase after 10 Days

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Dealer Overview – Lost Sales

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The shopping process takes about three months for the average AIU

Source: 2007 J.D. Power and Associates New Autoshopper.com StudyBased to AIUs

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Lead Response Time – LRT (Updated Nightly”

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Lead Details

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Lead Details

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May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

4.9%

4.2%4.0%

5.4%5.1%

4.3%

4.0%

4.4% 4.5%

6.9%

7.2%

6.5%6.2%

7.4%

7.7%

6.1%

5.3%

5.9%

6.4%

8.5%

Lead Close Rate Un-Trained vs ADP Trained

Untrained ADP Trained

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It’s not all about the lead

2004 2005 2006 20070%

20%

40%

60%

80%

Online New Car Shopper as % of Total BuyersEmail Lead Requestors as % of Total Buyers

64%

20%

67%

21%

68%

21%

71%

22%

Source: 2007 J.D. Power and Associates New Autoshopper.com StudyBased to AIUs