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1. Reynolds and
Reynolds

3. It costs 10X more to gain a new customer than
it does to retain an existing customer!
Source: Automotive News, J.D. Power & Associates, Consumer Reports, R.L. Polk
Subject matter experts on
Business Development &
Customer Loyalty

4. ReducesReduces
AdvertisingAdvertising
ExpensesExpenses
ADVERTISING EXPENSEADVERTISING EXPENSE

5. •It costs 10X more to gain a new customer than
it does to retain an existing customer!
•Today’s consumer is 4x more likely to go
elsewhere for service
Source: Automotive News, J.D. Power & Associates, Consumer Reports, R.L. Polk
Subject matter experts on
Customer Loyalty

6. Total Industry Parts & Labor Sales '99
Aftermarket
80%
Franchised
Dealers
20%
Aftermarket Franchised Dealers
$264.5 Billion
$67.8 Billion
NADA May 25,2000

7. Keeps your customers coming back for
service!
Increases Parts
and Labor Sales

8. $67,800,000,000
$63,540,000,000
$61,000,000,000
$62,000,000,000
$63,000,000,000
$64,000,000,000
$65,000,000,000
$66,000,000,000
$67,000,000,000
$68,000,000,000
Total Sales
Franchised Dealer Parts & Labor Sales
Parts & Service Sales '99 Parts & Service Sales '98
Parts & Labor sales
increased by 6.7% over
prior year in 1999!

9. •It costs 10X more to gain a new customer than
it does to retain an existing customer!
•Today’s consumer is 4x more likely to go
elsewhere for service
•An active customer is 7X likelier to repurchase
than an in-active one!
Source: Automotive News, J.D. Power & Associates, Consumer Reports, R.L. Polk
Subject matter experts on
Customer Loyalty

10. Increases Vehicle Sales

11. •It costs 10X more to gain a new customer than
it does to retain an existing customer!
•Today’s consumer is 4x more likely to go
elsewhere for service
•An active customer is 7X likelier to repurchase
than an in-active one!
•Repeat customers spend an average of $1,200
more per transaction than new customers!
Source: Automotive News, J.D. Power & Associates, Consumer Reports, R.L. Polk
Subject matter experts on Business
Development & Customer Loyalty

12. Increases Profits!

13. Traditional Marketing vs BDC
What do you
sell?
Traditional Retailing
(Mass-Marketing)
BDC
(Targeted One-to-One Marketing)
One product to multiple
customers
Multiple products to
One customer
At appropriate stages in
the consumer’s life cycle
Acquire large numbers of
potential customers
To meet profit and
inventory pressures
Obtain and retain targeted
customers
Customer differentiation
.
Product/Price
differentiation
When do you
sell?
What is your
marketing goal?
How do you
sell?

14. Business Development . . . What is it?
BDC’s are anBDC’s are an enterpriseenterprise approach to managingapproach to managing
and influencing customer behavior throughand influencing customer behavior through
consistent, relevantconsistent, relevant communication to improvecommunication to improve
customer acquisition, retention andcustomer acquisition, retention and profitabilityprofitability..
Right Customer . . .
Right Offer . . .
Right Time . . .
Right Channel . . .

15. BDC’s manage the ownership
cycle from delivery to repurchase
Re-Purchase
Ownership
Delivery

16. One size fits all
Other
Retention
Programs
Other
Retention
Programs
All customers are not created equal...

17. Active vs. Inactive Customers
Actives
52%
Inactives
48%
This report analyzes
of your service customers
within the "Marketable
Universe".
2859
1481
1378
ACTIVE = At least one service visit during the last 6 months
INACTIVES = At least one visit within the last 24 months but not within last 6 months.
Mileage Profile/Retention
0
50
100
150
200
250
300
350
400
450
Units
A c tiv e s 416 326 247 159 139 96 93 67 50 53 40 33 17 19 21 12 16 8 1 5 13
Ina c tiv e s 304 203 206 143 119 82 77 86 72 66 63 60 40 36 36 19 17 9 6 7 16
% A C T IVE 58% 62% 55% 53% 54% 54% 55% 47% 37% 42% 38% 34% 22% 32% 37% 25% 46% 32% 10% 45% 65%
% o f T o ta l 21% 15% 13% 9% 7% 5% 5% 4% 4% 4% 3% 3% 2% 2% 2% 1% 1% 1% 0% 0% 1%
Your customer-base
profile in 10,000 mile
increments.
Customer base Analysis:
•Model year
•Mileage use
•Zip Codes
•Radius
•Etc...
Where are you
Today?

18. Who?
Why?
How?
When?
•Business processes review
•Key Personnel Interviews

19. CRM
Process
Implementation Plan
prepared for
CRM
Process
Implementation Plan
prepared forCustomer Relationship Management
Process Implementation Plan
prepared for
Customer Relationship Management
Process Implementation Plan
prepared for
Retention Process
Re-Activation Program
Conquest Initiatives
Measuring Customer Satisfaction
Maximizing Opportunities
ABC Motors
Reynolds develops
your customized
One-to-One
Business
Development
Strategy

20. Solutions that allow You to:
Better manage the consumer experience
Strengthen Brand & Retailer loyalty
Increase marketing effectiveness
Drive out costs
Increase franchise value.

21. The winning Business Development model will be the one that aggressively collects and
understands consumer data, anticipates buying behavior across many consumer segments, and
executes an integrated, multi-channel approach to influencing the buying decision...
Reynolds Business Development ModelReynolds Business Development Model
Customer
Transactions
DataData
ExtractionExtraction
DataData
SourcesSources
CRMCRM
Data BaseData Base
AnalysisAnalysis
&&
ReportingReporting
OutputOutput
Manufacturer
Data Bases
Other Data
Bases
DMS
Database
Engine
“Point and
click” with
testing and
auditing
Multi-medium
output
production
Customer
or
Outside Systems
Total design
or interface
with Ad
agency
CampaignCampaign
Strategy &Strategy &
DesignDesign
E-Mail
POS
Tele-
marketing
Process Improvement and Integration Consulting
360 Degree Interactive Communication Process
Other
E-Business
Systems
Personalized
Printed Mail