Gruppo Aster

© 2009 Aster Group – Confidential and Proprietary

From Dealership to CRM Leadership Managing Customer Equity

Dr. Domenico Greco, MKTG Director Aster Group

June 17, 2009

Confidential and Proprietary

From Dealership to CRM Leadership Managing Customer Equity

June 17, 2009 © 2009 Aster Group – Confidential and Proprietary

« Corporate Overview « Key Business Challenges « Challenges to Drive Customer Relationship Management (CRM) Strategy

« Aster Group vs. Italian Benchmark: Sales/Services Market Share

« Strategic Vision « Customer Knowledge Management = Opportunity

« Tactical Approach To Implementation « Aster Group Results « Future Plans


Outline

Challenges to Drive Customer Relationship Management (CRM)

Aster Group vs. Italian Benchmark: Sales/Services Market Share

Customer Knowledge Management = Opportunity

Tactical Approach To Implementation


Corporate Overview

« Aster Group founded In 2000 « Located In Cosenza, Italy (Southern Part of Italy) « Brands « Audi, Volkswagen (VW), Seat, Skoka, and Toyota

« 1 st CRM Project (Italy) « VW Dealership

1983 Start Start • Traditional Dealership Business Model • Key Brands Portfolio Enrollment

1998/2000 Change Change Management Management • Change Vision/ Mission/ Governance • Strategy • Investment • New Brands


Corporate Overview

Aster Group founded In 2000 Located In Cosenza, Italy (Southern Part of Italy)

Audi, Volkswagen (VW), Seat,

1998/2000 Change Change Management Management Change Vision/ Mission/ Governance Strategy Investment New Brands

2000/2006 CRM Strategy CRM Strategy • New Technology Assets, Hardware, Software • Multi Service Center • CRM System • Customer Care Office

Today CRM CRM Leadership Leadership • Competitive Advantage Based on Knowledge • Expertise in CRM and HR • IT Partners Specialized • Commercial Partners • CRM Projects with Partners


Key Business Challenges ‘Lateral Thinking’ *

« Performance – Selling Services « Driving Business Areas to Hit Key Performance Indicators (KPI) Metrics to Sell Services § Services Towards the ‘Car’

« Competitive Positioning « Gaining A Stronger Competitive Position § Value Proposition Is Services

« Corporate Growth « Adding New Collateral/Growing A Multitude of Profitable Businesses

« Financials « Finding A Better Economical and Financial Balance § Less Focus On Just Selling A Car

* * “ ‘Lateral thinking’ “ ‘Lateral thinking’ is concerned not with playing with the existing pieces but


Key Business Challenges ‘Lateral Thinking’ *

Selling Services Business Areas to Hit Key Performance Indicators (KPI)

‘Car’ and the ‘Driver’ – Individual Mobility

A Stronger Competitive Position Value Proposition Is Servicesbased

New Collateral/Growing A Multitude of Profitable Businesses

A Better Economical and Financial Balance Less Focus On Just Selling A Car

is concerned not with playing with the existing pieces but with seeking to change those very pieces with seeking to change those very pieces…” Edward de Bono


Car Service Market (2008) Italian Benchmark

« Base: 56 Service Operations « In the last 12 months, there have been 8.29%, on average, service operations performed, for a single car

Circulating Park

30,697,317

Average Operations, per Car

8.29%

Total Operations (In 2008)

254,359,428


Car Service Market (2008) Italian Benchmark

Base: 56 Service Operations In the last 12 months, there have been 8.29%, on average, service operations performed, for a single car

Circulating Park

30,697,317

Average Operations, per Car

8.29%

Total Operations (In 2008)

254,359,428

Data 2008 by


Services Market Share (2008) Italian Benchmark

GDO = IAM = OES =

+1.0%

0.5%


Services Market Share (2008) Italian Benchmark

Data 2008 by +1.5%

+2.3%

+1.0%

0.3%

0.1%

1.0%

0.5%

0.5% 0.5%

+1.1%


Age of Car Market Share Italian Benchmark

« Average Time of Car Substitution is « Less than 20% of Those Drivers Frequently Visit the Dealership

After sales services MKT Share for age of car profiles

1 2 3 Old

MKT

Share

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

48%

38%


Age of Car Market Share Italian Benchmark

Average Time of Car Substitution is 56 years of Those Drivers Frequently Visit the Dealership

After sales services MKT Share for age of car profiles

4 5 6 7+ Old age of car

26%

19% 17% 19%

8%

Data 2006 by


Business Decision Making Questions Driving the CRM Strategy

« How do we retain retain our Customer market? « Dealers are losing Marketing (MKTG) share and customers year by year

« How do we increase increase the Customer Lifetime Value (CLTV) for both car sales and car services?

« How do we add add new services to the core business? « How do we implement effective implement effective « How do we acquire acquire new Customers by selling services?


Business Decision Making Questions Driving the CRM Strategy

our Customerbase in the car services

Dealers are losing Marketing (MKTG) share and customers year

the Customer Lifetime Value (CLTV) car services?

new services to the core business? implement effective implement effective crossselling processes?

new Customers by selling services?


Strategic Vision

« Customer Relationship = Services Opportunity « Focus On Customer Equity Management « Build a Competitive Strategy Based on Three Strategic Goals

Positioning Services based

Customer Equity Management

New Customer Logistic

Oriented


Strategic Vision

Customer Relationship = Services Opportunity On Customer Equity Management a Competitive Strategy Based on Three Strategic Goals

Positioning Services based

New Customer Services

Oriented Customer Driven Organization and

Processes


Customer Knowledge Management

« Customer Profile Attributes « Attended Cash Flow « Potential Value (High) « Loyalty « Lifetime Value (LFTV) State

« Customer Profile Attributes Drive Both Outbound Processes, For Any Customer


Tactics Customer Knowledge Management

Customer Profile Attributes

Attributes Drive Both Inbound and Processes, For Any Customer


Customer Profiling Example Potential Value and Loyalty

« The Aster Group CRM provides the capability to profile customers based on potential value

Loyalty

Potential Value

Σ of Loyalty, Per Value


Customer Profiling Example Potential Value and Loyalty

The Aster Group CRM provides the capability to profile potential value and loyalty

Loyalty

Σ of Value, Per Loyalty

Priority


Tactical MKTG Approaches Examples In Driving the MKTG Mix

« Value Proposition Differentiation « By Customer Profiling

« Customer Benefits Differentiation « For Different Loyalty Value Levels

«MKTG Budget and Methods Differentiation « For Different Customer Value Profiles

«MKTG OtoO* Campaign Objectives Differentiation « Acquire Customers « Retain Customers « Addon Value Services

OtoO = One on One


Tactical MKTG Approaches Examples In Driving the MKTG Mix

Value Proposition Differentiation

Customer Benefits Differentiation For Different Loyalty Value Levels

MKTG Budget and Methods Differentiation For Different Customer Value Profiles

O* Campaign Objectives Differentiation


Tactical MKTG Mix Example Customer Driven Value

Add Add Value Value Services Services

Customer Customer Acquisition Acquisition

Actual Campaign Examples Used In Italy


Tactical MKTG Mix Example Customer Driven Value

Customer Customer Retention Retention

Add Add on on Value Value Services Services


Customer Profiling Example By Customer Lifetime Value (CLTV) Status

Loyalty


Customer Profiling Example By Customer Lifetime Value (CLTV) Status

Potential Value

Status in LTV


Tactical Approach Customer Driven Organization and Processes

« Introduce the Usage of CRM Software to New Sales Processes « In Any Business Area, Focus on Customer Care Needs

« Define A Customer Care Corporate Department for Inbound Customer Care and «More than 20,000 Inbound Contacts, per Year «More than 10,000 Outbound

« Integrate CRM System and VoIP System Software « All Calls To Be Redirected To Increase § Customer Value § Existing CRM Processes § Customer Satisfaction


Tactical Approach Customer Driven Organization and Processes

the Usage of CRM Software to New Sales

In Any Business Area, Focus on Customer Care Needs

Customer Care Corporate Department for and Outbound MKTG OtoO Contacts, per Year

Outbound Contacts, per Year

CRM System and VoIP System Software All Calls To Be Redirected To Increase


Critical Success Factors

« Competitive Benefits « Customer Profile Evaluations « Via Aster Group CRM Analytics

« Assets Outcome « Results Outcome


Critical Success Factors

Customer Profile Evaluations Via Aster Group CRM Analytics


Competitive Benefits Actual MKTG Position, Car Services Market

Car services MKTG share per car profiles

1 2 3

Old age of car

MKT Share

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

48%

38%

26%

benchmark ASTER

91%

Italian Benchmark


Competitive Benefits Actual MKTG Position, Car Services Market

Car services MKTG share per car profiles

4 5 6 7+

Old age of car

26%

19% 17% 19%

8%

65%

35%

10%


Customer Profile Evaluations Customer Acquisition Analytics

« Acquisition Profiles and Equity « Index of Customer Equity (ICE), Per Profile

Start BPR

customer driven

Start MKTG

Knowledge Based


Customer Profile Evaluations Customer Acquisition Analytics

Equity Dynamics Index of Customer Equity (ICE), Per Profile

Start MKTG

Knowledge Based

New Logistic service based

Current and

Prediction Modeling


Start MKTG

Knowledge Based

Start BPR

customer driven

Customer Profile Evaluations Customer Retention Analytics

« Retention Profiles and Equity « Index of Customer Equity (ICE), Per Profile


MKTG Knowledge Based

New Logistic service based

Customer Profile Evaluations Customer Retention Analytics

Equity Dynamics Index of Customer Equity (ICE), Per Profile

Current and

Prediction Modeling


Start BPR

customer driven

Start MKTG

Knowledge Based

Customer Profile Evaluations AddOn Selling Services Analytics

« AddOn Selling Services Profiles and « Index of Customer Equity (ICE), Per Profile


New logistic service based MKTG

Knowledge Based

Customer Profile Evaluations On Selling Services Analytics

Profiles and Equity Dynamics Index of Customer Equity (ICE), Per Profile

Current and

Prediction Modeling


Key Assets Outcome Corporate Growth Results

2000

2008 Employees

Brands in portfolio

8

3

90

45


Key Assets Outcome Corporate Growth Results

Brands in portfolio

New service Competences

Structures

0

0,5 1

1,5

2

2,5

3

3,5

4

4,5

5

3

12

10,000 m2

50,000 m2


Key Results Outcome Sales and Services Growth Results

2000

2008 Service purchase X day

Cars sold per year

800

80

30


Key Results Outcome Sales and Services Growth Results

Cars sold per year ROS

1

2

3

1,800

2.00%

4.50%


Aster Group Recommendations What Every Dealership Should Know

« Understand the Dynamics of the Actual Customer Base « Understand the Effect of Brand Portfolios On the Customer Base

« Research/Placement of Frontline Resources Which Impact Customer Dynamics

« Continuous Customer Evaluation « Previous Customer Experience Within Dealership

« Utilize Real Organizational Process Drivers « Changes Will Impact Customer Equity, Customer Relations and Customer Behavior


Aster Group Recommendations What Every Dealership Should Know

the Dynamics of the Actual Customer Base the Effect of Brand Portfolios On the

of Frontline Resources Which Impact Customer Dynamics

Customer Evaluation Previous Customer Experience Within Dealership

Real Organizational Process Drivers Changes Will Impact Customer Equity, Customer Relations


«MKTG Campaign Evaluation, by ICE « Sales Force Evaluation, by ICE « Dealer Evaluation, By Customer Profile Dynamics ICE

Future Plans Growth/Expansion of the CRM Strategy


Evaluation, by ICE Evaluation, by ICE

Evaluation, By Customer Profile Dynamics and

Future Plans Growth/Expansion of the CRM Strategy

© 2009 Aster Group – Confidential and Proprietary

Thank You! Any Questions?

Dr. Domenico Greco, MKTG Director Company: Aster Group Website: http://www.gruppoaster.com/ Email: [email protected]


http://www.gruppoaster.com/ [email protected]

mailto:[email protected]

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