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Service Retention Solutions
 FOR AUTO DEALERS




                                                                    POWERED BY




                                                                                 1

Confidential & Proprietary | Copyright 2012 | All Rights Reserved
2
Problem
  • Check engine light and odometer provide no actionable
    intelligence
  • No direct link between car, car owner, dealer
  • 85% of customers orphaned post-warranty (NADA)


Solution
  •   Create demand awareness of “serviceable event”
  •   De-friction service appointment setting process
  •   Convert demand into service revenue
  •   Raise customer retention and loyalty




                                                            3
Device
  •   Discrete and passive
  •   Vehicles > 1996
  •   Plug and play in OBD-II port
  •   Secure cellular communications


Software Platform
  • Web-based
  • Automated email notifications (to consumer and
    dealer)
  • Closed-loop reporting (retention, revenue, ROI)




                                                      4
How it Works
Customer Email Notifications

 Real-time
 Personalized
 Dealer-branded
 Relevant
 Engaging
 Trackable
 Actionable
Dealer Email Notifications

 Alert Details
 Vehicle Details
 Customer Details
 Current Mileage
 Avg. Dist. From Dealer
 Copy of Customer Email
Closed-Loop Reporting

 By Client
 Macro/At-a-Glance
 Loyalty Ratio
 Repair Order Revenue
 ROI
Why UGT Works for Consumers

  Timely

  Empowering

  Helpful

  Saves Time

  No Risk
Consumer Spending Index




Source: IMR Inc.
Business Model

 DEALER “INVESTS” IN CUSTOMER LOYALTY
 RECEIVES A 4X RETURN FOR EVERY DOLLAR SPENT

 COSTS
 • DEVICE HARDWARE
 • MONTHLY SUBSCRIPTION

 FUTURE
 • CUSTOMER-PAID FEATURES (OPTIONAL)




                                               11
Repair Order Revenue without
UGT
                                         LOYAL           ORPHANS

         Customer Percentage              25%                75%

    Service Appointments per Year         2.5                 0

   Annual Spend per Vehicle Owner        $600                 $0

   Repair Order Revenue over 4 Years    $2,400                $0

           Total Customers                500                1500

               Revenue                 $1,200,000             $0

            Gross Revenue                       $1,200,000
Repair Order Revenue with UGT
                                       LOYAL      ORPHANS      RECAPTURED

       Customer Percentage              25%         20%           55%

  Service Appointments per Year         2.5          0             2

 Annual Spend per Vehicle Owner        $600          $0           $480

 Repair Order Revenue over 4 Years    $2,400         $0          $1,920

         Total Customers                500         400          1,100

             Revenue                 $1,200,000      $0        $2,112,000

          Gross Revenue                           $3,312,000
Why UGT Works for Dealers
  Added-value

  Actionable Intelligence

  Increased Loyalty

  Reduced Attrition

  Improved Marketing Spends

  200%-400% ROI

 Millions in New Revenue
What’s Loyalty Worth To You?

     CUSTOMER                CURRENT            DESIRED
      SEGMENT             RETENTION RATE?   RETENTION RATE?
 New customer cars
 (under warranty)
   Customer cars
   (post-warranty)

  Certified used cars

Non-certified used cars
UGT Networks Management Team

 • Ian Framson, CEO

 • David Glasberg, President

 • Scott Hardigree, Director of Customer Experience
Board of Advisors

 • Phil Englander, Commercial Accounts Manager, Galpin
   Motors

 • Eric Sevim, Co-owner, A+ Japanese Auto Repair

 • Pablo Zacheo, CEO and Chief Engineer, Cartrack GPS
Contact Us

 Phone:      (818) 363-4606

 Email:      info@ugtnetworks.com

 Web:        www.ugtnetworks.com

 Office:     18543 Devonshire St.
             Suite 198
             Northridge, CA 91324

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UGT Networks, Dealer Deck

  • 1. Service Retention Solutions FOR AUTO DEALERS POWERED BY 1 Confidential & Proprietary | Copyright 2012 | All Rights Reserved
  • 2. 2
  • 3. Problem • Check engine light and odometer provide no actionable intelligence • No direct link between car, car owner, dealer • 85% of customers orphaned post-warranty (NADA) Solution • Create demand awareness of “serviceable event” • De-friction service appointment setting process • Convert demand into service revenue • Raise customer retention and loyalty 3
  • 4. Device • Discrete and passive • Vehicles > 1996 • Plug and play in OBD-II port • Secure cellular communications Software Platform • Web-based • Automated email notifications (to consumer and dealer) • Closed-loop reporting (retention, revenue, ROI) 4
  • 6. Customer Email Notifications  Real-time  Personalized  Dealer-branded  Relevant  Engaging  Trackable  Actionable
  • 7. Dealer Email Notifications  Alert Details  Vehicle Details  Customer Details  Current Mileage  Avg. Dist. From Dealer  Copy of Customer Email
  • 8. Closed-Loop Reporting  By Client  Macro/At-a-Glance  Loyalty Ratio  Repair Order Revenue  ROI
  • 9. Why UGT Works for Consumers  Timely  Empowering  Helpful  Saves Time  No Risk
  • 11. Business Model DEALER “INVESTS” IN CUSTOMER LOYALTY RECEIVES A 4X RETURN FOR EVERY DOLLAR SPENT COSTS • DEVICE HARDWARE • MONTHLY SUBSCRIPTION FUTURE • CUSTOMER-PAID FEATURES (OPTIONAL) 11
  • 12. Repair Order Revenue without UGT LOYAL ORPHANS Customer Percentage 25% 75% Service Appointments per Year 2.5 0 Annual Spend per Vehicle Owner $600 $0 Repair Order Revenue over 4 Years $2,400 $0 Total Customers 500 1500 Revenue $1,200,000 $0 Gross Revenue $1,200,000
  • 13. Repair Order Revenue with UGT LOYAL ORPHANS RECAPTURED Customer Percentage 25% 20% 55% Service Appointments per Year 2.5 0 2 Annual Spend per Vehicle Owner $600 $0 $480 Repair Order Revenue over 4 Years $2,400 $0 $1,920 Total Customers 500 400 1,100 Revenue $1,200,000 $0 $2,112,000 Gross Revenue $3,312,000
  • 14. Why UGT Works for Dealers  Added-value  Actionable Intelligence  Increased Loyalty  Reduced Attrition  Improved Marketing Spends  200%-400% ROI Millions in New Revenue
  • 15. What’s Loyalty Worth To You? CUSTOMER CURRENT DESIRED SEGMENT RETENTION RATE? RETENTION RATE? New customer cars (under warranty) Customer cars (post-warranty) Certified used cars Non-certified used cars
  • 16. UGT Networks Management Team • Ian Framson, CEO • David Glasberg, President • Scott Hardigree, Director of Customer Experience
  • 17. Board of Advisors • Phil Englander, Commercial Accounts Manager, Galpin Motors • Eric Sevim, Co-owner, A+ Japanese Auto Repair • Pablo Zacheo, CEO and Chief Engineer, Cartrack GPS
  • 18. Contact Us Phone: (818) 363-4606 Email: info@ugtnetworks.com Web: www.ugtnetworks.com Office: 18543 Devonshire St. Suite 198 Northridge, CA 91324

Editor's Notes

  1. How many of you own a car? How many of you have ever seen this? What do you do?
  2. Problem: NADA (National Automobile Dealers Assn.) says 85%... No nexus… where all work together to properly maintain the car. Customers don’t properly service their cars because they ignore oil change and check engine warning lights until something breaks Most car owners are not familiar with the MFG’s recommended service schedule Internet has destroyed margins Gross profits per department at dealers: New car sales: 4.5% Used car sales: 11.5% Parts: 38.5% Labor: 75% Solution: AND, customers who service their vehicle at a dealership are more likely to buy their next vehicle there too!
  3. Sell to dealers as an investment in their customers Comes out of dealer’s marketing budget Dealer pays for hw/sw Additional customer-paid features later (GPS, Lojack)