1. The Next Generation Dealership- Managing a Completely Digital Shopping Experience Don’t Derail the Online to In-Store Handoff Ali Mendiola Ali Mendiola I Dealertrack Technologies I Senior Manager Business Development Digital Retailing I ali.mendiola@dealertrack.com

2. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Next Generation Shopping Experience DIGITAL RETAILING

3. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com What is Digital Retailing? Online Retailing- Website In-Store Retailing- Using Digital Tool

4. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Both of which are extremely important to the customer. Online Retailing- WebsiteIn-Store Retailing- Using Digital Tool Hand-off The Hand-Off

5. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Intro: Consumers Perception Part 1: Online Retailing Part 2: The Hand-off Part 3: In-Store Retailing

6. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com INTRO: What do customers think of the current process? What do they expect in the showroom?

7. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com

8. Cox Automotive “It’s About Time” Whitepaper 2014 THE TOP 5 CAR BUYER FRUSTRATIONS ARE ALL ABOUT THE BUYING EXPERIENCE Cox Automotive “It’s About Time” Whitepaper 2014 9 10 Out of Consumers want an extremely efficient purchase process.* 2014 Deloitte Automotive Consumer Study

9. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com No patience for traditional process Average acceptable time per dealership phase 2014 Deloitte Automotive Consumer Study No patience for traditional process

10. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com In-Store Digital Experiences are Embraced–and Expected. 47% 31% 29% 27% Interactive touch screens to view car information with pictures and videos. 3D virtual vehicle configuration Virtual test drive stations Cars in showroom have digital info available (e.g., for display on mobile device) Tablet for me to use in the showroom to get detailed information, compare vehicles, configure cars, etc. Ability to transfer data to your mobile device (e.g., vehicle configuration, price offers) 29% 20% 19% 18% 12% 16% 18% Wi-Fi hotspot for your mobile device Ability to transfer data to your mobile device (e.g., contact details, previous configurations) Digital shopping assistant/avatar helping you with your questions Ability to check-in at dealer location via social media (e.g., location check-in via Facebook) None of these 47 % Prefer interactive touch screens to view car info with pictures and videos. 27 % Prefer a tablet to use in the showroom to get detailed info, compare vehicles, configure cars, etc.

11. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Part 1: Online Retailing

12. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com

13. VDP of 2006VDP of 2016

14. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com

15. Move the Consumer through the shopping steps

16. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Keys to a Sucessful Online Digital Retailing Experience 1. Dealer Control, Accuracy, Consumer Preparation a.Pricing- Does the price used to calculate payments include dealer specific discounts?

17. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Keys to a Sucessful Online Digital Retailing Experience 1.Dealer Control, Accuracy, Consumer Preparation b. Trade Offers- Can you stand behind the offer?

18. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Keys to a Sucessful Online Digital Retailing Experience 1.Dealer Control, Accuracy, Consumer Preparation c. Aftermarket

19. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Keys to a Sucessful Online Digital Retailing Experience 1.Dealer Control, Accuracy, Consumer Preparation d. The Online to In-Store Handoff

20. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Part 2 Don’t derail the online to in-Store hand-Off

21. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Easiest Ways not to Derail

22. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Setting up a process for quickly routing and scoring your Digital Retailing leads. Knowing what steps the shopper completed online, and prioritizing leads accordingly. Removing potential roadblocks ahead of time Acknowledging the work your shopper has done online Appointment Setters- Being ready with your shopper’s selected vehicle & next steps when they walk in your showroom Are you derailing in-store? Process

23. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Are you derailing in-store? Technology How are sales consultants accessing consumer deal details? Which steps did the consumer complete? Can the consumer and sales consultant review new inventory, adjust payments, send credit applications from anywhere in the store?

24. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Automotive News Article ‘ Chevy store redo goes above and beyond’ by: Mike Colias- January 26, 2015 McCluskey Chevrolet: 40 iMac computer workstations where salespeople work with customers and process deals.

25. Use the power of Tablet/iPads in the Showroom Source: “2013 JD Power. 52 % Vehicles, Payments & Credit App Higher SSI with In-Store Tablets*

26. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Sales consultant uses the tablet to find shopper information for walkups. The Power of Tablet/iPads in the Showroom

27. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com The Power of Tablet/iPads in the Showroom Lead information reflects consumer’s online activity.

28. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com The Power of Tablet/iPads in the Showroom Sales consultant review program details, save to lead and start credit application.

29. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com The Power of Tablet/iPads in the Showroom Consumer completes credit application. Which routes into your CRM and Dealership Finance Portal

30. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com The Power of Connection

31. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Part 3 In-Store Digital Retailing

32. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com NOW What?

33. Use the power of Tablet/iPads in the Showroom Source: “2013 JD Power. 52 % Vehicles, Payments & Credit App F&I Product / Aftermarket Presentations Contract Review and Signing Higher SSI with In-Store Tablets*

34. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Audi North Shore increases F&I products-per-deal-sold from less than 0.90 to 1.38 Schmitt also attributes greater sales to customized presentations. First, he pre-loads the iPad with a customer’s vehicle model and color. “The customer loves seeing their car on there,” he said. “I think that improves sales because they get that ownership feel.” Next, he tailors his packages to the specific customer….It’s easy to do and unlike a paper menu, it always looks professional.” Dealertrack Blog and Automotive News February 6, 2014 “ Customer Engagement and Customization Pays Off in More F&I Sales – Dealer Profile” Customer Engagement and Customization Pays Off in More F&I Sales – Dealer Profile

35. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Audi North Shore Best Practice Using Surveys to Understand the Customer -Survey results allow F&I Managers to highlight and upsell the right products. - Gives the customer 15 to 20 minutes to view the product presentation, then retrieves the iPad and reviews which products were viewed and for how long. - He advances to the summary screen and uses that as an upsell opportunity to move ‘declined’ products into the ‘accepted’ bucket.

36. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Mercedes-Benz of Coral Gables, Florida “Scott Cooper and his team at Mercedes-Benz of Coral Gables, Florida, have embraced innovative electronic menu technology on an iPad to present aftermarket F&I offerings and “wow” and appeal to today’s tech-savvy consumers.” Initial Results 1) An increase of more than 16 percent in F&I revenue per vehicle retailed (PVR) 2) Average aftermarket sale of more than $2,000 3) More than two F&I products sold per contract for the dealership. Dealertrack Blog January 16, 2014 “Earning More F&I Revenue Per Vehicle with Mobile Technology – Dealer Profile”

37. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com F&I: Thinking “Outside the Box” Leads to Efficiency and Profitability 1.Excited about their new purchase 2.Primed to learn more about your dealership and their car options 3.Let them buy the way they are comfortable ….leads to Improved Wait Time, CSI and Gross.

38. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com

39. Digital Menu Presentations

40. 40 Self Directed Menu Delivers Results Traditional Menu vs. Electronic Menu 70%increase in products sold* 64%more F&I profit-per-deal* $17,000 additional profit-per-month** **Based on results collected from Dealertrack-subscribing dealers from March 1 – October 31, 2015 comparing deals when eMenu for iPad was used to deals when eMenu for iPad was not used. Your dealership’s results may vary. iPad is a registered trademark of Apple, Inc. **Based on results collected from Dealertrack-subscribing dealers from September 1 – October 31, 2015 comparing deals when eMenu for iPad was used to deals when eMenu for iPad was not used. Your dealership’s results may vary. iPad is a registered trademark of Apple, Inc.

41. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com Other Examples of ways to Keep It Digital: eContracting- Digital Eliminates Paperwork

42. Ali Mendiola I Dealertrack I Senior Manager BD- Digital Retailing I ali.mendiola@dealertrack.com

43. Managing a Completely Digital Shopping Experience 1. Whether online or in-store meet consumer expectations- dealer controlled transparency 2. Empower consumers to start the sales process online 3. Don’t derail the online to in-store hand-off People + Process + Technology = Success 4. Higher gross profit on Digital Retailing deals vs Non-Digital deals 5. Step into the 21 st century with electronic contracting- Eliminates physical paper work

44. Share an important takeaway you received from this session using hashtag #DD20 for a chance to win an iPad Contact Info Full Name: Ali Mendiola Company: Dealertrack Technologies Job Title: Senior Manager Business Development, Digital Retailing Email: ali.Mendiola@dealertrack.com