1. 1 © 2015 AAA Club Partners – Confidential and Proprietary Connected Car: Ensuring AAA’s Relevance Driving the evolution of AAA’s connected car program Department Name Date

2. 2 © 2015 AAA Club Partners – Confidential and Proprietary Contents Ensuring the relevance of AAA3 Short and long term goals21 Online Garage / SMARTtrek Appendix27 Repair Suite Appendix37

3. 3 © 2015 AAA Club Partners – Confidential and Proprietary Ensuring the Relevance of AAA How will the clubs ensure their relevance in the future?

4. 4 © 2015 AAA Club Partners – Confidential and Proprietary #1 Reason for membership today Average Age of a AAA Member: 57 (53)

5. 5 © 2015 AAA Club Partners – Confidential and Proprietary Cautionary tales from invincible brands Brand Chg. in Share Price Summary Nokia -89% Despite dominating the flip phone market, Nokia knew smartphones were the future and moved fast to develop them. However, execution failures made them late to market with a lemon. Nokia developed its smartphone hardware and software in separate silos and never managed to get good hardware to work with bad software. Blockbuster -99% Blockbuster’s business model depended on assessing late fees on movie rentals. Passed on opportunity to buy Netflix. When a CEO finally decided to ditch late fees and enter the DVD by mail market, shareholders lynched him for hurting profits. Slow to close retail locations, late to streaming video, slow to respond to Redbox… Slow – Late – Slow… Kodak -98% In 1976, Kodak sold 90% of the film and 85% of the cameras in the U.S. Kodak engineers invented the digital camera in 1975, but company leaders failed to see that digital would accelerate competition, slash profit margins and ultimately make film obsolete. Kodak lost big, and shifted too late to digital.

6. 6 © 2015 AAA Club Partners – Confidential and Proprietary AAA continues to be threatened in the market Through apps or integrated with other offerings ERS is across all these brands We must find our role before it’s too late

7. 7 © 2015 AAA Club Partners – Confidential and Proprietary New challenges emerge as a result of a changing landscape How does AAA stay relevant? How does AAA increase and expand membership? How do we achieve revenue growth?

8. 8 © 2015 AAA Club Partners – Confidential and Proprietary Research has uncovered key needs in the market place *Source: 2013 Prophet Drivers currently don’t understand their vehicles, or how much services should cost – they need better, more straightforward information. Drivers are busy and don’t want to invest time and energy into maintaining their vehicle – they need an affordable and convenient way to have their vehicle cared for. Drivers don’t know who to trust with their vehicle – they want a reliable source for car care where they feel in control.

9. 9 © 2015 AAA Club Partners – Confidential and Proprietary AAA is well positioned to address these needs Competitive advantage will come from seamless integration across core assets

10. 10 © 2015 AAA Club Partners – Confidential and Proprietary Opportunity for AAA to continue history of being experts in all things automobile Early 1900s AAA supports legislation to build and improve roads. ERS started as number of drivers increases. Late 1900s AAA creates Approved Auto Repair and AAA.com websites to accommodate consumers who are increasing their usage of home computers. 2000s and beyond AAA creates “Connected Car” experience to meet demand in an era of smart mobility.

11. 11 © 2015 AAA Club Partners – Confidential and Proprietary Vision for connected car Our vision is to provide the best vehicle ownership experience for consumers -- from beginning to end. Throughout these experiences, AAA will always be top of mind, easily accessible and will emphatically work on members’ behalf.

12. 12 © 2015 AAA Club Partners – Confidential and Proprietary The best vehicle ownership experience Thanks to an email alert, I saved $600 by bringing the car in when I did—those brakes were worn to a dangerous level. Thanks for the heads up AAA! Next thing you know my cell rings and it’s AAA. They can see that the battery is the problem, so they recommended their Mobile Battery Service instead of me going to the shop. A few days later I heard from my agent. She had reviewed the crash and seen that it hadn’t been my fault. She even complimented me on my safe driving and reminded me that I still had a 17% discount thanks to safe driving. I called the AAA member being towed in and let him know that I had his part ready and waiting. Amazing what a difference this one call does. I get so many more tow ins!

13. 13 © 2015 AAA Club Partners – Confidential and Proprietary Core connected car modules AAA Insurance with SMARTtrek ® A Digital Glove Box Useful information, features and tools that help simplify vehicle management ONLINE GARAGE ® (MVRM) A tool to help create a meaningful and lasting relationship between a vehicle owner and a shop Lifecycle Marketing Made Easy REPAIR SUITE SM (CONNECTED REPAIR NETWORK) SMARTtrek ® (TELEMATICS) Vehicle health and safety Usage-based insurance FPO Connect To Your Car Rewards For Safe Driving

14. 14 © 2015 AAA Club Partners – Confidential and Proprietary Better Because Drivers don’t have the time or energy to stay on top of car maintenance and keep good records. Online Garage puts all this information in one easy to access place and connects drivers to the AAA help they need. Reason to Believe Only AAA, with its extensive repair network can create a network of information that makes car care seamless and easy for busy drivers -- no matter which networked shop they visit. Description Online Garage is a one-stop resource that manages the care and maintenance for all the vehicles in your household. A Digital Glovebox

15. 15 © 2015 AAA Club Partners – Confidential and Proprietary Repair Suite Lifecycle Marketing Made Easy Description Repair Suite is a shop facing tool that helps shops attract and retain customers while improving both profitability and the customer experience. Better Because Shop owners face challenges from keeping up with auto technology to running a business. AAA provides Repair Suite to equip them with the information they need to easily increase business and build loyalty throughout the customer life cycle. Reason to Believe AAA has a history of providing trusted repair service through shops and roadside assistance. Repair Suite helps strengthen the relationship between the two in order to establish a strong repair network benefiting members, shops and AAA.

16. 16 © 2015 AAA Club Partners – Confidential and Proprietary SMARTtrek Connecting You To Your Car Better Because Drivers don’t understand their cars and often feel helpless when it comes to car problems. SMARTtrek provides the timely, straightforward vehicle health information they need to avoid problems in the first place. Reason to Believe As the expert in all things automotive, it’s a natural extension that AAA would be a second set of eyes on a driver’s vehicle. Description SMARTtrek is a service that connects you to your car’s onboard computer. With SMARTtrek, your “smarter” car communicates with you in a meaningful way so that you get the information you need right when you need it.

17. 17 © 2015 AAA Club Partners – Confidential and Proprietary AAA Insurance with SMARTtrek ® Description A service that rewards safe drivers with the extra savings they deserve and the protection they expect from AAA. Better Because UBI more closely aligns driving behaviors with auto insurance rates — giving drivers the ability to control their costs by adopting safer driving habits. Reason to Believe Members know they can rely on AAA for thoughtful, personal service. Now AAA can provide even more customized value. Rewards For Safe Driving

18. 18 © 2015 AAA Club Partners – Confidential and Proprietary ShopsDrivers AAA grows by strengthening the AAA repair network; thus attracting more members Differentiated service and increased tow-ins bring in more customers Increased network of connected shops provides more value to customers who spread the word

19. 19 © 2015 AAA Club Partners – Confidential and Proprietary Online Garage ® is a foundation on which connectivity services are built Members Smartphone Only Vehicle Independent In-Vehicle Connection Built In Cellular Connection 3G/4G Data Connection Online Garage

20. 20 © 2015 AAA Club Partners – Confidential and Proprietary A way to help AAA meet membership growth targets A good experience for all; the best experience for members FREEMIUM PAID MEMBERSHIP WANT MORE?

21. 21 © 2015 AAA Club Partners – Confidential and Proprietary Short and Long Term Goals What are we building towards?

22. 22 © 2015 AAA Club Partners – Confidential and Proprietary Connected car goals Connect Engage Grow Members AARs/CORs Partners With Better Experiences New Services & Value New Members New Partners New Capabilities

23. 23 © 2015 AAA Club Partners – Confidential and Proprietary 20152016201720182019 Connect EngageGrow 2015 Connect  Shops through Repair Suite  Members through Online Garage 2015: Building the network

24. 24 © 2015 AAA Club Partners – Confidential and Proprietary 2016 Engage  With Members: Deeper Online Garage Engagement  With ERS: Repair Integration  With Shops: Deeper Participation with Shops  With Retail Partners: Develop Personalized Offers 20152016201720182019 Grow 2016: Encouraging network activity Connect EngageGrow

25. 25 © 2015 AAA Club Partners – Confidential and Proprietary 2017 - Grow and Optimize  Repair Network  Member Offers  National Distribution Partners: OEMs 20152016201720182019 Grow 2017: Focusing on expansion Connect EngageGrow

26. 26 © 2015 AAA Club Partners – Confidential and Proprietary Learn More About Connected Car Products At http://cc.aaaconnectedcar.com UsernamePassword YourEmailAddress@aaanwohio.comAAA164 YourEmailAddress@aaasp.comAAA238 YourEmailAddress@mtw.aaa.comAAA066 YourEmailAddress@goAAA.comAAA005 YourEmailAddress@csaa.comAAA840 YourEmailAddress@aaahoosier.comAAA023 YourEmailAddress@aaamidatlantic.comAAA212 YourEmailAddress@aaaok.orgAAA176 YourEmailAddress@aaasd.orgAAA176 YourEmailAddress@aaa-alliedgroup.comAAA007 YourEmailAddress@aaasj.comAAA071 YourEmailAddress@arizona.aaa.comAAA002 YourEmailAddress@aaaclubpartners.comAAA605

27. 27 © 2015 AAA Club Partners – Confidential and Proprietary Department Presenter Phone Thank You Email

28. 28 © 2015 AAA Club Partners – Confidential and Proprietary Online Garage / SMARTtrek Appendix Overview

29. 29 © 2015 AAA Club Partners – Confidential and Proprietary Online Garage ® design: A user centered approach Steps:  1 Discovery  Membership research (MPD)  Total Vehicle Ownership Research  SMARTtrek customer panels  2 Persona Development  Defining the needs, behaviors, perspectives, and environments of potential users  3 Scenario Modeling  Exploring use cases for our primary and secondary personas  4 Rapid Iteration  Iterative feedback on desktop and mobile prototypes  5 Usability Testing  Validating product features with real users through wireframe prototypes  Side-by-side design comp test * Source: Online Garage Design Project by blink. Contact Jeff Rulifson (jrulifson@aaaclubpartners.com) for more detail.jrulifson@aaaclubpartners.com

30. 30 © 2015 AAA Club Partners – Confidential and Proprietary Connected car assumptive persona “Robin, Busy Mom” 42-year-old, married mother of three Works as a School Administrator Holds a Bachelor’s Degree HH Income: $110,000 Robin’s activities are dominated by efforts to get children to school, get to work, and then exhaust the children with various activities by day’s end. With three kids, shopping is done based on price. She’s fine with buying generic store brands rather than high-priced name brands. Robin’s family is big on travel, especially on road trips to the lake, beaches and amusement parks nearby. “I just wish there were more hours in the day.”

31. 31 © 2015 AAA Club Partners – Confidential and Proprietary Car ownership “Owning a car is psychological torture” High Cost Maintenance, repairs, insurance, fees Hard to know/budget maintenance costs over life of car Time & Inconvenience Maintenance, repairs Lack of (Mechanical) Knowledge, Confidence Especially with new cars; increasingly complex, hard to trouble-shoot Increased tech = more to go wrong Older cars – hard to know when it’s worth repairing vs. getting new car Managing Multiple Vehicles Maintenance, registrations, inspections, etc. Especially problematic with teens, adult kids (who don’t advise parents of problems/issues) Trust Ability to trust mechanics, dealers, support services, especially given high cost Making big $ decisions on advice of one entity Hard to ‘shop’ maintenance High need/desire to trust Warning Lights Hard to de-code, de-cipher; creates anxiety * Source: AAA Mid-Atlantic: Connected Car – Insights and Key Findings from Member Research

32. 32 © 2015 AAA Club Partners – Confidential and Proprietary Online Garage ® positioning statement For busy drivers who don’t have time or energy to keep their cars healthy and who don’t have a good way of keeping track of work performed, AAA provides the Online Garage tool to help drivers stay on top of maintenance and save money in the process. Online Garage keeps track of upcoming and past work on all household vehicles so that drivers don’t have to. It also provides savings through guidance on repair costs and relevant repair coupons. Only AAA, with its extensive repair network can create a network of information that makes car care easy and seamless for busy drivers -- no matter which networked shop they visit.

33. 33 © 2015 AAA Club Partners – Confidential and Proprietary Email communications increase AAA’s relevance Registration Request Review Service Request (4 days after service) Appointment Reminder (3 days before service) Maintenance Due Alert – Follow up (2 weeks past recommended service date) Recommended Service Reminder (2 weeks after service) Avg Sends: 2-3 mileage triggered per year; 2-3 appointment triggered per year Car Value Alert* Recall Alert Brake Service Alert Tire Rotation Alert Tire Replacement Alert Monthly Update* Mileage Triggered Appointment Triggered Warranty Alert* Appointment Made Thank You For Your Visit (2-3 days after service) Recommended Service Reminder - Follow Up (4 weeks after service) Month 1 Month 2 Month 3 Month 4 Monthly Update* Maintenance Due Alert *Emails planned for future phase

34. 34 © 2015 AAA Club Partners – Confidential and Proprietary True value of Online Garage ® lies in relevant communications  Service reminder emails are pushed to consumers, helping them stay on top of car maintenance and offering immediate savings (coupons).  Appointment related emails remind consumers of upcoming appointments and about services they may have declined during their last visit.  Emails come right from a consumer’s favorite shop.

35. 35 © 2015 AAA Club Partners – Confidential and Proprietary Drivers can keep track of all household vehicles Find and set favorite shops for each vehicle… See which cars are due for maintenance… See details on maintenance due… Access to service records uploaded by the shop…

36. 36 © 2015 AAA Club Partners – Confidential and Proprietary Tools to empower drivers Repair cost estimator Interactive diagnostic tool Submit questions to certified mechanics

37. 37 © 2015 AAA Club Partners – Confidential and Proprietary Online Garage ® integrates with the SMARTtrek ® experience* * Telematics enabled clubs only. Safe driving feedback and fuel savings information Real-time vehicle health alerts Car locator Enhanced roadside assistance

38. 38 © 2015 AAA Club Partners – Confidential and Proprietary Repair Suite Appendix Overview

39. 39 © 2015 AAA Club Partners – Confidential and Proprietary Today’s repair shop owners face many challenges What owners want to see from AAA:  More sales and referrals through advertising, leads and tow-ins  Notification of incoming tows and as much customer information as possible  To work better together – more trust and communication; improve the partnership, work together on issues and opportunities Common concerns from owners:  Competing with dealerships as connected cars become more common  Challenges in hiring, training and keeping up with technology with a fragmented toolset  How to use technology while deepening relationships with customers * Source: ACP: Repair Shop Processes Research (speckdesign)

40. 40 © 2015 AAA Club Partners – Confidential and Proprietary Repair Suite SM positioning statement For AAA owned and approved repair shop owners who face increasing competition in the marketplace, Repair Suite is a web-based software system that helps shops find new customers, get customers back in the shop faster and stay top of mind with existing customers. Repair Suite provides a way for shops to easily connect with the AAA network in order to receive more tow-ins. Repair Suite also helps shop owners develop relationships with existing and new customers through automated emails that remind customers about maintenance due, upcoming appointments, and vehicle information like recalls. AAA has a history of providing trusted repair service through shops and roadside assistance. Repair Suite helps strengthen the relationship between the two.

41. 41 © 2015 AAA Club Partners – Confidential and Proprietary Online Garage ® and Repair Suite SM Seamless Integration from Shop to Consumer Consumer Online Garage Repair Suite Shop Mgmt System (SMS) Repair Order eMPI Vehicle History Repair Estimator App’t Scheduler Advice Diagnostic Tool Data Sync Nightly Data Sync Nightly Collect New Emails CRM Shop Repair Suite UI Repair Suite UI  Coupons  Emails  Postcards  Reporting  Reviews  Appointments Emails with coupons SMARTtrek VHS module SMARTtrek UBI module Ask An Expert module

42. 42 © 2015 AAA Club Partners – Confidential and Proprietary Easily ensure that bays are kept full Choose when to accept tow-ins Easily edit appointments made online or in the shop

43. 43 © 2015 AAA Club Partners – Confidential and Proprietary Keep a close eye on revenues Compare business from on-program versus off-program customers See how much revenue AAA members bring in versus non-members

44. 44 © 2015 AAA Club Partners – Confidential and Proprietary Track marketing effectiveness See metrics around automated emails Manage customer reviews – turn negative reviews into positive ones

45. 45 © 2015 AAA Club Partners – Confidential and Proprietary Control interactions with customers Define timing around automated customer emails Set different types of coupons based on a customer’s status

46. 46 © 2015 AAA Club Partners – Confidential and Proprietary Increase sales through the use of technology Electronic multi-point inspections help shops build a sales pipeline