1 © 2015 AAA Club Partners – Confidential and Proprietary Connected Car: Ensuring AAA’s Relevance Driving the evolution of AAA’s connected car program

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


Contents

Ensuring the relevance of AAA 3

Short and long term goals 18

Online Garage Appendix 27

Repair Suite Appendix 32


Ensuring the Relevance of AAAHow will the clubs ensure their relevance in the future?


#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)


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.


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


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?


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.


AAA is well positioned to address these needs

Competitive advantage will come from seamless integration across core assets


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.


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.

http://aaast.wistia.com/medias/jrc6mizupi


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!


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

http://stage-api.driverside.com/mygarage/cars


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


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.


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.


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


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


A way to help AAA meet membership growth targetsA good experience for all; the best experience for members

FREEMIUM PAID MEMBERSHIPWANT MORE?


Short and Long Term GoalsWhat are we building towards?


Connected car goals

Connect

MembersAARs/CORs

Partners

With Better ExperiencesNew Services & Value

New Members New Partners

New Capabilities


2015 2016 2017 2018 2019

Connect Engage Grow

Grow

2015 Connect Shops through Repair Suite

Members through Online Garage

2015: Building the network


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


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


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


Learn More About Connected Car ProductsAt http://cc.aaaconnectedcar.com

Username Password

[email protected] AAA164














Department

Presenter

Phone

Thank You

Email


Online Garage / SMARTtrek AppendixOverview


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.


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…


Tools to empower drivers

Repair cost estimator

Interactive diagnostic tool

Submit questions to certified mechanics


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


Repair Suite AppendixOverview


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


Control interactions with customers

Define timing around automated customer emails

Set different types of coupons based on a customer’s status


Increase sales through the use of technology

Electronic multi-point inspections help shops build a sales pipeline

Documents

1 © 2015 AAA Club Partners – Confidential and Proprietary Connected Car: Ensuring AAA’s Relevance Driving the evolution of AAA’s connected car program