1. A Service Retention and Customer Loyalty Program for Your Dealership

2. What is Loyalty Trac? Loyalty Trac is A Customer Loyalty program
Built for car dealers
Combines points reward & redemption system with CRM/customer communications enabler
Comprehensive, practical and affordable
In use at hundreds of dealerships in the USA
Loyalty Trac encourages and rewards your customers to:
Service their current vehicle at your store
Give you 100% of their service business
Buy their next car at your store
Participate in marketing your store to others

3. Dealership Branding Car brand loyalty is important but
Dealership branding and loyalty is what we’re all about
LoyaltyTrac builds loyalty to your store and your services, one customer at a time
Millions are spent on car brand loyalty often without huge effect.
It’s time to invest in building Loyalty to what really matters…
…Your Store

4. Who’s behind LoyaltyTrac?
In the USA
MediaTrac LLP (2001)…a media measurement and retail marketing company in California created the product
Now in 500 (+/-) US dealerships & 6 Canadian dealerships
High dealer satisfaction (DSI) with the product and support
In Canada
OSL a leading Canadian marketing and loyalty enterprise (120+ employees, Montreal and Toronto offices, clients eg’s National Bank MasterCard, Aeroplan over 19+ years.
OSL “discovered” LoyaltyTrac, did due diligence and has formed a company (IQ 7/24) to license and sell LoyaltyTrac to Canadian dealers.
A growing team with solid loyalty, CRM and auto retail experience

5. Customer Satisfaction does not mean Customer Loyalty
90% of customers are satisfied with vehicle purchase…but
only 50-65% return for service during warranty…and
only 20% do so after the warranty expires!
Regardless of how you measure service retention, there are opportunities to get more customers coming back more often and spending more money on at least some of their visits…
You do that by making your customers want to be loyal to you…
Sources: NADA and Harvard Business Review

6. We all know that Service Loyalty has a large Multiplier Effect on Profits
% Revenue
% Profit
Service & parts *
16%
New vehicle sales
31%
Service & parts *
55%
New vehicle sales
63%
Used vehicle sales
20%
Used
vehicle sales
13%
Increase parts and service by 5% would return ?% in revenues.
Even though Service represents 16% of total revenues in a dealership… it accounts for over 55% of a dealership’s profit!
* Including F& I and Body Shop…Source : Desrosiers Automotive Consultants

7. But Service Loyalty also leads to more sales
Initial Service Loyalty  Ongoing Service Loyalty
Customers who spend their first service dollar with a dealer are 65% more likely to use the dealer for ongoing service.
Ongoing Service Loyalty  Repeat Vehicle Sales
70% of customers who use a dealer for service on a regular basis will purchase another vehicle from that dealer.
Ongoing Loyalty  Less Ad & Marketing expense
It is cheaper to retain a customer than attract a new one
LoyaltyTrac will help you get more of your customers coming to your store more often to do more things at less cost to you
Sources: NADA and Harvard Business Review

8. Let’s be Really Clear about Customer Loyalty
Customers EXPECT to be satisfied, but
they need to be ENCOURAGED to stay with you
LoyaltyTrac allows you to encourage your customers to stay with you by communicating with them and rewarding them to do so
Service and parts growth is declining as a direct result of increased competition from independent service station and quick lube centers.
The most profitable part of your business is slowing down.

9. Let’s Talk Product
LoyaltyTrac combines a customer points/rewards program that you design and evolve +
effective, inexpensive, targeted communication program that is as automated or self-initiated as you want

10. Generate Revenue with Multiple Member Levels
Many dealerships offer a free base-level card and fee-based Silver, Gold and Platinum up-sell cards.
Dealers can view the service reward program as a revenue generating asset.
Base Card
Gold Card
Here’s how we recommend how this works.
Premium card upsell
What’s their warranty penetration?
Drive success across all aspects or departments of your business by having specialized cards and rewards.
Some dealers use it as a closing tool. Price comparison buyer….buy from us and you’ll get valuable points in our rewards program…
Each card “type” may have a different rewards package.
Unlimited number of different card types.
Can you see how this helps you stay in contact with your customers
Service Platinum
Card
Platinum Card

11. A Rewards Hierarchy
Each customer fits into a “loyalty demographic” based on past spending habits and frequency of visits.
The LoyaltyTrac system builds customer relationships over a period of time through unique, targeted marketing communications.
The end result is upward movement of customers to higher loyalty levels.
Clients are already in these groups.
Need to identify where they are and motivate clients to move up the ladder systematically.
Traditional mass mailing aims at everyone and is not an effective way to generate incremental $ of revenue.
Want to spend on the clients that have the greatest potential to respond.

12. Chose/Design your offers and rewards
You decide on the benefits you want to offer…and when…and to whom…
Each card type will offer Points based on the customer’s spending at the store over time. Customers accumulate points which they can redeem towards a vehicle purchase or selected service jobs (your choice). These are called Earned Rewards. Points can also be given for completing a CSI survey, providing a referral or simply attending a dealer event. These are called Bonus Rewards.
You can attach any number of (complimentary) Privileges to any membership category (e.g. Washes, Service Shuttle, Loaner Car, invitations to a dealership event (theatre or golf)
You could chose to offer Discount Rewards either “all the time” or at particular times on frequently used dealer services
You can provide a credit on an F&I product or a Pre-Paid Service to members who select a premium (fee) card.
And you can always offer Cross Promotions from your local partners (e.g. free coffee at Tim Hortons)
They LoyaltyTrac system is flexible and incorporates the best proven loyalty principles.
Complementary – they assume you do it: car washes, shuttle rides, loaners etc.
Allows you to track the # of freebies you do and monetize them for taxes
Discount - Just because they’re a member they get a discount
Earned - need to keep coming in to get more
Bonus- fill out a survey, come in on a slow day etc.
Again, this will change the psychology to get them to come back because the make a conscious decision to come back to you to earn and use points.
A Benefit Package design expert will consult with the dealer and design a package that drives future business and is economical.

13. E.G. a Basic and Gold Reward Structure
$20 Gold Card
Earn 1 point per dollar spent
50 bonus points for purchasing the card
100 bonus points for setting first semi annual inspection appointment at time of delivery
100 bonus points for attending new owner clinic
400 bonus points for a customer referral
Complimentary 2-way shuttle service
Free car wash with every purchase
$199 Platinum Card
Earn 2 points for every dollar spent
100 bonus points when card is purchased
100 bonus points for setting first semi annual inspection appointment at time of delivery
100 bonus points for attending new owner clinic
400 bonus points for a customer referral
Complimentary 2-way shuttle
Free car wash with every purchase
$100 discount with the purchase of an extended warranty
$100 discount on any complete chemical package
Points are transferable to another family member .
Is it working…….well let’s see what some of our customers are saying
These are measurable results, not fluff!
In 2004 the average dealer spent $384,000 in advertising or $32,000 per month.
LoyaltyTrac can:
Improve Service Retention
Reduce advertising expense
Improve Service Contract sales
Identify dealers most loyalty and profitable customers
Increase car sales (not the primary focus of what we’re selling)
Rewards
points exchanged
$100 spend = 100 points
$25 Dealer Dollars
600 points
25/600
4.2%
$50 Dealer Dollars
1000 points
50/1000
5.0%
$75 Dealer Dollars
1400 points
75/1400
5.4%
$100 Dealer Dollars
1750 points
100/1750
5.7%
$200 Dealer Dollars
3000 points
200/3000
6.7%
$300 Dealer Dollars
4000 points
300/4000
7.5%
Bonus Rewards
Points earned
Value: 1 point = 0.05
Fuel Injection Service 50
$ 2.50
Safety Inspection
100
$ 5.00
Completed Survey
Engine /Transmission replacement
200
$ 10.00
Referral for service
500
$ 25.00
Referral for new car purchase
3000 $
                               
                               

14. E.G. a Basic and Gold Reward Structure
Basic Card
Complimentary Rewards
complimentary 1st oil change
complimentary exterior wash with every service
complimentary coffee in waiting area
complimentary shuttle
complimentary recall check
complimentary windshield stone chip repair
complimentary rentals on repairs over $300.
Discounts
$5.00 discount off all oil changes
no charge to mount and balance with the purchase of two or more tires
$25.00 off all brake pad or shoe replacement
5% off accessories & warrantees purchased in the F&I office.
Gold Card
Complimentary Rewards
complimentary oil change (max 5)
complimentary exterior wash with every service
complimentary coffee in waiting area
complimentary shuttle
complimentary recall check
complimentary windshield stone chip repair
complimentary rentals on repairs over $300.
1 complete vehicle detail
complimentary annual wiper blade replacement for 1st three years
complimentary spring and fall inspections with tire rotations for the life of the car
complimentary winter/summer tire storage
Discounts
$5.00 discount off all oil changes
no charge to mount and balance with the purchase of two or more tires
$25.00 off all brake pad or shoe replacement
10% off accessories & warrantees purchased in the F&I office.
Is it working…….well let’s see what some of our customers are saying
These are measurable results, not fluff!
In 2004 the average dealer spent $384,000 in advertising or $32,000 per month.
LoyaltyTrac can:
Improve Service Retention
Reduce advertising expense
Improve Service Contract sales
Identify dealers most loyalty and profitable customers
Increase car sales (not the primary focus of what we’re selling)
Rewards
points exchanged
$100 spend = 100 points
$25 Dealer Dollars
600 points
25/600
4.2%
$50 Dealer Dollars
1000 points
50/1000
5.0%
$75 Dealer Dollars
1400 points
75/1400
5.4%
$100 Dealer Dollars
1750 points
100/1750
5.7%
$200 Dealer Dollars
3000 points
200/3000
6.7%
$300 Dealer Dollars
4000 points
300/4000
7.5%
Bonus Rewards
Points earned
Value: 1 point = 0.05
Fuel Injection Service 50
$ 2.50
Safety Inspection
100
$ 5.00
Completed Survey
Engine /Transmission replacement
200
$ 10.00
Referral for service
500
$ 25.00
Referral for new car purchase
3000 $
                               
                               

15. Getting Your Customers enrolled…1
In the “normal course of events” buyers of new and used cars and customers of your Service Department will be enrolled into the LoyaltyTrac system database via Internet
Issuance of a readable membership card with an unique number follows enrollment
Frequency of contact is key to building loyalty with members…out of site/out of mind.
Contacts are a blend of offers, birthday greetings, activity statements, satisfaction surveys, and added value correspondence.
Think of us as your Marketing department…everything we do is to support your sales and service objectives.
With Loyaltytrac, you have no administrative responsibility…we do! It’s all automated!
Remember, customers that spend their first $ with you are 65% more likely to return for service.

16. Dealership Point of Sale Materials
You’ll get proven POS materials to help program marketing and enrollment.
Your in store visitors and customers will quickly come to know about your rewards program
Materials directly help build service retention by reminding customers to use your dealership for ongoing service.
Its included! You need to let your customers know you have a program. You want thousands of customers walking around with your card in their wallet or purse. A constant reminder of your program. Hand them out like candy!
Custom designed and supporting your dealer brand, these professional posters and point of sale materials will help sell the program for you.
Drive repeat service by making the loyalty program a required ‘sales’ pitch with the service writers.

17. Customers Like LoyaltyTrac
In our experience*
90%+ of customers choose to join a dealer’s LoyaltyTrac Program
70%+ opt in to receive communications
People generally like Rewards Programs and will alter their behaviour to allow them to accumulate points towards rewards
Unlike some programs, the rewards that can be provided by a dealership are very tangible and seen to be significant by consumers…
People will want to join your program and that will give you the mechanism to ask for and get their address.
*Primarily LoyaltyTrac US
Program is based on communicating to clients on a regular basis with offers, invitation to events.
Make them feel special, privilege members.
To do this affordably…you need to use to communicate.

18. Program Welcome Kit
Delivered via or traditional mail immediately after the vehicle sale or the member enrolment.
Explains program benefits and guidelines.
Serves as an incentive to entice customers back by utilizing a date sensitive offer.

19. Regular contact with your customers
You now have an infinite number of occasions on which to communicate with your member/customers. You may chose to have some pre-set and programmed…say, the sending of a monthly statement or a post-service survey.
These contacts are automated and the dealership has no administrative responsibility in the deployment.
Frequency of contact is key to building loyalty with members…out of site/out of mind.
Contacts are a blend of offers, birthday greetings, activity statements, satisfaction surveys, and added value correspondence.
Think of us as your Marketing department…everything we do is to support your sales and service objectives.
With Loyaltytrac, you have no administrative responsibility…we do! It’s all automated!
Remember, customers that spend their first $ with you are 65% more likely to return for service.

20. Member Activity Statements
Every month, every member will receive an activity statement.
Dealers may elect to include a service offer, event announcement, safety tip or notice of a new product offering.
**You don’t have to be offering discounts or “giving things away”
You can be as creative and informative as you wish (or as you customer wishes!)
Automatically sent out once a month, branded with your name and message. It looks like it is coming from you. It shows their transactions and activities for that period. It also reminds them of any awards they may have earned.
Like your frequent flyer statement.
We’ll custom design coupons for them and automatically include them with each statement.
Can market sales or service promotions.
We spend time with the dealer planning a promotions calendar and then we take care of the rest.

21. Member Opinion Surveys..Automated or Special
Surveys can be automatically triggered and ed to customers based on member activity
Or, they can be designed and sent to gather opinion on special topics
In either event, negative responses will automatically ed to key dealer personnel.
2nd communication is an automatic deployment of a survey.
You set the triggers…service, satisfaction, etc
Ensures you can address customer service issues before the manufacturer’s survey. If anything scores below the standard you set…the system will automatically you with the customer info.
Provides real time barometer on customer’s experience
Requires no dealership intervention…automatically sent.
Do you do this now? Do you pay?
Most dealerships have large $ tied up as a result of customer satisfaction surveys…wouldn’t it be nice to have the chance to rectify a situation with a member?

22. Automotive Marketing Templates
You are not stuck with Pre-set communications, although…
LoyaltyTrac includes scores of marketing templates you can select and personalize in minutes in real time via the web
Templates for every major dealer service:
Oil Change
Brake Service
Scheduled Maintenance
Parts and Accessories
Transmission Service
New Model Introduction…
50 Marketing Templates - covering nearly every service or sales promotion the dealer would want to send to their customers.
All text is pre written by professional writers and provides the member with an easy understanding of why the service is needed.
Dealers simply enter:
Price
What is included in the special
Coupon expiration date
Disclaimer
Imagine sending a message that it’s time to do an oil change or tire rotation because the system tells me they have not done so in the past 3- 5 months!
Coupon redemption is tracked.
What would this cost them to build on their own/through a marketing agency?
We sent out s on a 1x list and it cost us $1700! Your list is GOLD! With LoyaltyTrac, you can send as often as you like. It’s all automated, simple and easy to use.
Most marketing pieces are all about price. The way we’ve built the system is that the message is written by automotive professionals & explains WHY they should rotate their tires, or check their brakes, AND it gives them a reason to come…points and discount. You are differentiating yourself in the marketplace yet again!
Deploy them to your targeted lists anytime you like…..NO ADDITIONAL COST!

23. Automated Owner Clinic or Event Invitations
Special event invitations can be sent based on past purchases.
Reward points and coupons can be offered as an incentive to attend.
A great tool for inviting your best customers to see your newest models.
Do you do new owner clinic’s now? How do you do them? Who’s responsible?
Loyalty trac will do it for you automatically. Reward your customers with points and know who is coming before you order too much food and end up feeding the sales department…..again.
Do you ever have special events?
How about new model introductions. Like I mentioned before, send out new model introductions to owners of new model that are 3-5 years old.
How would you do that now? How much would it cost?
It’s all included, as a part of the service we provide.
Let’s recap:
In the 1st week we’ll have touched the customer 3x
1. Welcome kit; 2. Survey; 3. New Owner Clinic – and you have done nothing! It’s all automated!

24. Reward Your Customers on Their Birthday
Automated (car or personal) birthday greetings can be sent with or without a reward.
(Send at the beginning of the month, with a thirty day expiration)

25. Customize a special Communication &&& communications
A number of custom marketing templates are included…but
You can have us design a special promo when needed
Marketing activities are driven from filtered customer lists based on each customer’s actual buying habits.
If you want something else a little more custom…
Think of us as an extension of your marketing department. We have designers and copywriters on staff who will create as many custom campaigns as you like. All included in the service we provide.
We build it, write it (you proof it) and we send it out!
Filtered lists too! Pinpoint your marketing to where it is not a shotgun, but laser beam focused on the best customers for the message you want to send.
Saves thousands on outside marketing costs, since the dealer can ask us to design and execute as many campaigns as they like.
Customers are more likely to respond to the offers, since they are coming from the Service Reward program.

26. Your Client-Members have Access to their Accounts through their Website
Cardholders have a personal web interface to view their activity, rewards, and dealer offers…
Your store and brand are up-front & prominent.
Tell your customers to come back to you for service and you’ll automatically track their service history for them. No more need for a glove box full of receipts!!
The customer may or may not move, and you may or may not know about it. But, they can and will log in and change their information so they don’t lose their points.
Member site puts all the information your cardholders need in their hands 24/7.
Allows for dealer instant messaging to member based upon their purchases and past visits.
I’ve shown you a lot already and it looks like a lot of work. It’s all automated!!

27. You have Real-Time Program Admin and Reporting
The entire program is accessible by you and your staff (on a selective basis) from one, secure, easy-to-use website.
360 degree view into their most loyal and profitable customers.
Minimal overhead on the dealer’s part – maximum visibility. 1 hour a month for maintenance.
You can see the whole system as a whole, or drill down to one customer etc. Simple and easy to use.

28. Measuring Program Effectiveness is easy
Comprehensive reporting measures movement against an established baseline to determine program performance in real time.
Reporting measures three key metric groups:
 Program Utilization Member Contact Member Behavior
Metrics, reports, trends, results – data from summary down to the individual card member’s activity.
Allows you to continuously adjust your marketing activities based on real results.
# of cards issued,
# of s captured
Etc.

29. IQ 7/24 Client Relations Manager
You are not left alone to make the program a success at your store…
An IQ 7/24 Manager reviews program results and hosts monthly performance calls with dealership as required.
Compensated based on a customer scorecard including:
Capture Rate
Card Activation Percentage
Marketing Campaigns
First Visit Activity
Reward Redemption…
these are the very things you need to know to make sure your program is working!
An investment by IQ in your success.
The IQ Client Relations Manger has a global view of what programs are delivering results and can bring you best practices to help make your program a success.
We didn’t need to do this, we wanted to ensure that your program is successful. I have skin in the game, our CM’s pay plan is directly tied to your success.
You’ve probably bought things in the past and never seen anyone again. That is not the case here. I am here to help, your CM is here to help too! We want you to be successful in increasing your business!

30. Pricing
Pricing is based on number of vehicles sold per month at your dealership (new and used).
If your average monthly vehicle sales are 100 , your monthly investment will be:
Number of Months
24 months
36 months
48 months
Total monthly cost:
2 700 $
2 600 $
2 500 $

31. Pricing Notes
You will be provided with all the cards you need to enroll all your new and used car buyers and your Service Department visitors over the period of the contract.
In the example of a 100 car/store month up to 10,000 membership cards would be planned for allocation and delivered on an as-agreed schedule.
Regular program performance reviews by LoyaltyTrac personnel to help you drive the program, access to all the marketing templates and unlimited deployments are included.

32. Start-Up & Other Potential Charges
A Start-Up cost of $8,500
Program planning support (card types, benefits, redemption etc)
Administrative procedure development support (accounting, data entry etc)
Membership card creative and production
Point of sale creative & production
Card Reader and installation
On-site training for all key personnel ( 2 days + telephone/web as needed)
License to use the technology
As noted, all cards are included. Only other possible extras would be…
our costs to do a direct traditional mail campaign for you or,
Fees to provide additional (post-launch) marketing support and consulting at your request. These would be billed at an agreed rate.

33. Guaranteed Satisfaction
If not fully satisfied, you can choose to cancel your LoyaltyTrac program in the 13th month of our agreement.

34. What LoyaltyTrac Can Do For You
Improve your service retention
Identify your best and most profitable customers
Help you compete against 3rd party service providers
Improve your capture rate
Reduce your advertising spend
Increase your warranty and service contract penetration
Serve as a closing tool for new and used vehicle sales
Improve your bottom line

35. Moving Forward Interested in moving forward?
Letter of agreement and review program terms.
Program design
Schedule for launch and training session
Implementation
Your dealership can be up and running in weeks.

36. Questions ?

37. Loyalty Benefits the Whole Dealership
Sales differentiator
Incentive for future vehicle purchases
Reduces mass-marketing spend
Dramatically improves capture rates
Provides an on-demand marketing platform
Platinum cards—a unique tool for selling F&I services
Increases service contract and warranty penetration
Drives back-end profit
Improves CSI through automated surveys
Increases the number of ROs, spend, and profit
Delivers automated customer marketing
Identifies and tracks your most profitable customers
Retains a higher percentage of customers
Provides an incentive for customers to return

38. Loyalty Results
“The LoyaltyTrac system is delivering an 87% service retention rate with our
Service Rewards customers.”
Ken Dent, Service Manager
Stirling GMC-Pontiac, Washington
“In the first year alone, our Service Rewards program has helped us increase sales in every department, reduce advertising by more than $120,000, and generate more than $1,000,000 from loyalty card members.”
Jim Crutcher, General Manager Berge Ford, Arizona
“We have increased our service retention by more than ten points
in the first six months on the program.”
Bess Wills, General Manager
Gresham Ford, Gresham Oregon
“We’ve been a LoyaltyTrac user for just over a year and it has been
instrumental in helping us achieve our double-digit annual growth. It’s been one of the smartest business decisions we’ve ever made.”
Rory Klein, General Manager
Klein Honda, Everett Washington
Is it working…….well let’s see what some of our customers are saying
These are measurable results, not fluff!
In 2004 the average dealer spent $384,000 in advertising or $32,000 per month.
LoyaltyTrac can:
Improve Service Retention
Reduce advertising expense
Improve Service Contract sales
Identify dealers most loyalty and profitable customers
Increase car sales (not the primary focus of what we’re selling)
                               
                               

39. Optional Phone Response Tracking
Provide your loyalty customers a VIP Service appointment line
Reduce your call tracking costs by using Media Manager to track your advertising effectiveness:
Toll free numbers for each advertising activity
Call tracking and recording
Web-based reporting
Bundled pricing for LoyaltyTrac customers

40. Product Features…A Quick Summary
LoyaltyTrac is a turn key points rewards program including:
Program structure made to measure…points structure, reward structure, Tier level structure
Membership cards customized for your dealership
Point of sale material for your dealership(s)
Powerful engine to allow effective communications with your customer/members
Advanced member data base to allow precise targeting and easy analysis of customer behaviour
Project manager to assist you throughout the contract period
All creative and copy writing
All Admin set up, training and staff orientations
Let’s take a closer look at how it works….

41. LoyaltyTrac gives you a Powerful E Mail Deployment system
is the core communication vehicle for LoyaltyTrac. Using it, you can eliminate many traditional marketing costs.
We capture on average 70%+ of client s!
is a normal part of everyone’s life
Traditional service marketing is expensive. Think of the costs of phone work, survey distribution and direct mail pieces…you might spend $11 or more per customer per year to keep in touch!
5,000 customers = $55,000 every year!
10,000 customers = $110,000 every year!
An infinite number of deployments are included in any LoyaltyTrac contract