1© 2015 AAA Club Partners – Confidential and Proprietary
Connected Car: Ensuring AAA’s RelevanceDriving the evolution of AAA’s connected car program
Department Name Date
2© 2015 AAA Club Partners – Confidential and Proprietary
Contents
Ensuring the relevance of AAA 3
Short and long term goals 18
Online Garage Appendix 27
Repair Suite Appendix 32
3© 2015 AAA Club Partners – Confidential and Proprietary
Ensuring the Relevance of AAAHow will the clubs ensure their relevance in the future?
4© 2015 AAA Club Partners – Confidential and Proprietary
#1 Reason for membership todayAAA ERS Calls Per Member
0.50
0.55
0.60
0.65
0.70
0.75
0.80
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
ER
S C
alls
Per
Mem
ber
Average Age of a AAA Member: 57 (53)
5© 2015 AAA Club Partners – Confidential and Proprietary
Cautionary tales from invincible brands
BrandChg. 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© 2015 AAA Club Partners – Confidential and Proprietary
AAA continues to be threatened in the marketThrough apps or integrated with other offerings ERS is across all these brands
We must find our role before it’s too late
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© 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© 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© 2015 AAA Club Partners – Confidential and Proprietary
Opportunity for AAA to continue history of being experts in all things automobile
Early 1900sAAA 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 beyondAAA creates
“Connected Car” experience to meet demand in an era of
smart mobility.
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© 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© 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 SUITESM (CONNECTED REPAIR NETWORK)
SMARTtrek ® (TELEMATICS)
Vehicle health and safety
Usage-based insurance
FPO
Connect To Your Car Rewards For Safe Driving
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© 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© 2015 AAA Club Partners – Confidential and Proprietary
SMARTtrek
Connect 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© 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 forthoughtful, personal service. Now AAA can provide even more customized value.
Rewards For Safe Driving
18© 2015 AAA Club Partners – Confidential and Proprietary
Shops
Drivers
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
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A way to help AAA meet membership growth targetsA good experience for all; the best experience for members
FREEMIUM PAID MEMBERSHIPWANT MORE?
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Short and Long Term GoalsWhat are we building towards?
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Connected car goals
Connect
MembersAARs/CORs
Partners
With Better ExperiencesNew Services & Value
New Members New Partners
New Capabilities
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2015 2016 2017 2018 2019
Connect Engage Grow
Grow
2015 Connect Shops through Repair Suite
Members through Online Garage
2015: Building the network
23© 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
2015 2016 2017 2018 2019
Grow
2016: Encouraging network activity
Connect Engage Grow
24© 2015 AAA Club Partners – Confidential and Proprietary
2017 - Grow and Optimize Repair Network
Member Offers
National Distribution Partners: OEMs
2015 2016 2017 2018 2019
Grow
2017: Focusing on expansion
Connect Engage Grow
25© 2015 AAA Club Partners – Confidential and Proprietary
Next steps to ensure success
1.Create project launch team
2.Finalize project charter
3.Set up legal review
4.Hold club kick-off meeting
26© 2015 AAA Club Partners – Confidential and Proprietary
Learn More About Connected Car ProductsAt http://cc.aaaconnectedcar.com
Username Password
[email protected] AAA164
[email protected] AAA238
[email protected] AAA066
[email protected] AAA005
[email protected] AAA840
[email protected] AAA023
[email protected] AAA212
[email protected] AAA176
[email protected] AAA176
[email protected] AAA007
[email protected] AAA071
[email protected] AAA002
[email protected] AAA605
27© 2015 AAA Club Partners – Confidential and Proprietary
Department
Presenter
Phone
Thank You
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Online Garage / SMARTtrek AppendixOverview
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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.
30© 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…
31© 2015 AAA Club Partners – Confidential and Proprietary
Tools to empower drivers
Repair cost estimator
Interactive diagnostic tool
Submit questions to certified mechanics
32© 2015 AAA Club Partners – Confidential and Proprietary
Online Garage® integrates with the SMARTtrek® experience*
* Telematics enabled clubs only.
Safe driving feedback and fuel savings informationReal-time vehicle health alerts
Car locator Enhanced roadside assistance
33© 2015 AAA Club Partners – Confidential and Proprietary
Repair Suite AppendixOverview
34© 2015 AAA Club Partners – Confidential and Proprietary
Shops can easily ensure that bays are kept full
Choose when to accept tow-ins Easily edit appointments made online
See how much revenue AAA members bring in versus non-members
See metrics around automated emails
35© 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
36© 2015 AAA Club Partners – Confidential and Proprietary
Increase sales through the use of technology
Electronic multi-point inspections help shops build a sales pipeline
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