How a journey to solve a CSI and Service Retention challenge lead to increased revenue, lower cost and outcomes nobody expected.

1. Pohanka
Lexus
LearnhowtheDealerAlliance
helpsdealerswith
Sales
CSI
Retention
LoweringCost

2. Quick
Overview
What started as looking for ways to solve a CSI &
Service Retention challenge took an interesting
turn to an unusual but effective way to help
dealers.
The National Dealer Alliance
Highlights the possible impacts the Dealer
Alliance can have for a dealership.

3. 16
vs
17
Customers using Express Checkout to
finalize payment before picking up
Vehicle in Valet Service Lane (do not
come back into Dealership) – 96% of
customers who use loaners
Customer Service Index (CSI)
Improvement 88.7 to 94.2
Service Retention – up nearly 3 pts. last 8
months – 6.78% above national 8.86% above
DC-Baltimore and 10.95 above Eastern
i
Savings
ii
Transparency
iii
Technology
38%
5.5pts
6.78% Enablers

4. 16
vs
17
Increase In Flat
Rate Hours
August to August
1,155
Increase in
Unique Customer
Visits for August
176
Superior Analytics
applied to Direct
Marketing -
Analytics

5. 16
vs
17
Hours per Service Consultant –
Increase YOY
Tire Sales Increases
16 = 746
17 = 984
Service and Parts Earning Increase YOY
i
Savings
ii
Transparency
iii
Technology
18%
31.9%
22% Enablers

6. $262,594
August17vsAugust2016.
Earnings
IncreaseYOY
DirectMarketing-$9,475
Inactive,Brakes,Tires,Open
Recalls
PointofSaleSoftware$795
CostFactors

7. Annual
CostSavings
$287,328
Payment Processing Technology
Financial Kpi’s
Year over Year
$54,356
$42,762
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Monthly
2016 2017
$14,600
$6,000
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
Monthly
2016 2017
-$8,600
$11,667
$7,916
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Monthly
2016 2017
-$3,750
Payment
Processing
Cost
Cashiering
Efficiency
Overhead
Savings
FinancialImpact
Annualized Direct Financial Impact
-$11,594

8. Summary
Payment Processing and the Underlying Technology provided a
platform to solve some common dealer challenges.
• Customers don’t like to wait in line to pay for services – Impacts CSI & Retention
• POS is a great place to collect customer profile info (email, address verification, cell number,
etc.) Improved Data fed direct marketing lists which enabled dealership to better target
customer message, timing, etc.
• Active delivery in service drive greatly improved customer experience (customers remark
routinely they approach the extra personal touch)
• Technology allowed service advisors to text customers to communicate completion of work,
obtain billing approval, close ticket, execute payment & send payment receipt by text or
email. Customer avoids wait times and can expedite vehicle delivery (wait or pick-up).

9. Summary
Payment Processing and the Underlying Technology provided a
platform to solve some common dealer challenges.
• Virtual terminal (POS) requires cashier login – single cash receipt reconciliation for cash,
check, and credit cards. Greater accountability.
• With user login – reporting can trace credit card downgrades for individual transactions
causing increased cost to payment processing
• Enabled dealership to effectively handle substantial increase in volume, reduce direct costs
for cashier over longer hours and improve customer experience
• Dealership was able to lower its cost of doing business with lower merchant fees (40+ bsp).
• Transparency and improved reporting made daily GL and cash reconciliation easier and faster.