Dream CRMNick J. PudarJoyce A.L. Salisbury

Center for e-BusinessAnnual Sponsors Conference

May 19, 2004

2

AGENDAAGENDA

Objectives and Design of Study

Measures of Response

Preliminary Data

Treatment Specific FindingsStatistical

Preliminary Conclusions

Thoughts on Next Year - Idea

Objectives and Design of Study

Measures of Response

Preliminary Data

Treatment Specific FindingsStatistical

Preliminary Conclusions

Thoughts on Next Year - Idea

3

OBJECTIVESOBJECTIVES

Test Effect of Maximum Trust CRM ComponentsCustomized FulfillmentAuto Show in MotionCommunityAutoChoiceAdvisor

Measure Combined Total Impact Through Shopping Process

TrustConsiderationDealer VisitPreferencePurchase

Test Effect of Maximum Trust CRM ComponentsCustomized FulfillmentAuto Show in MotionCommunityAutoChoiceAdvisor

Measure Combined Total Impact Through Shopping Process

TrustConsiderationDealer VisitPreferencePurchase

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DESIGNDESIGN

Prospective Buyers (new vehicle in next 12 months)From Los Angeles, California AreaOn-line Panel

Incentives – Gift Points and Dollars6 Monthly Surveys

Questions on Treatments, Trust and Purchase Consideration

Experiment Design - Factorial (16 cells)

Prospective Buyers (new vehicle in next 12 months)From Los Angeles, California AreaOn-line Panel

Incentives – Gift Points and Dollars6 Monthly Surveys

Questions on Treatments, Trust and Purchase Consideration

Experiment Design - Factorial (16 cells)

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CellCustomized Fulfillment Community

AutoChoice Advisor

Auto Show in Motion

1 0 0 0 02 0 0 0 13 0 0 1 04 0 0 1 15 0 1 0 06 0 1 0 17 0 1 1 08 0 1 1 19 1 0 0 0

10 1 0 0 111 1 0 1 012 1 0 1 113 1 1 0 014 1 1 0 115 1 1 1 016 1 1 1 1

TotalCompletes

Treatment

500 500 500 500

EXPERIMENTAL DESIGNEXPERIMENTAL DESIGN

0 - Treatment Not Given, 1 - Treatment Given500 Observations for Each Treatment0 - Treatment Not Given, 1 - Treatment Given500 Observations for Each Treatment

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MEASURESMEASURES

TRUST Trust Average of Trust Scales (7 pt. Scale)

Consideration% Consider at Least one GM Model (Pull Down Menu)Richness (% GM if Consider at Least One GM)

Dealer Visit Maximum Score for Any GM Vehicle (5 Point Likelihood)

Preference Total GM Points (Allocate 100 Points Across Consideration Set)

Sales Reported Purchases and Polk Matching

Trust Average of Trust Scales (7 pt. Scale)

Consideration% Consider at Least one GM Model (Pull Down Menu)Richness (% GM if Consider at Least One GM)

Dealer Visit Maximum Score for Any GM Vehicle (5 Point Likelihood)

Preference Total GM Points (Allocate 100 Points Across Consideration Set)

Sales

CONSIDER

DEALER VISIT

PREFERENCE

BUYReported Purchases and Polk Matching

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TRUST OVER TIMETRUST OVER TIME

4.55

4.6

4.65

4.7

4.75

4.8

4.85

0 1 2 3 4 5 6

Survey

Trus

t

Trust increased over the first 4 surveysTrust increased over the first 4 surveys

8

00.5

11.5

22.5

33.5

44.5

0 1 2 3 4 5 6

Survey

Num

ber o

f veh

icle

s in

co

nsid

erat

ion

GM cars

Total cars

NUMBER OF VEHICLES IN CONSIDERATION OVER TIMENUMBER OF VEHICLES IN CONSIDERATION OVER TIME

The number of total vehicles in consideration decreased while the number of GM vehicles remained constant

The number of total vehicles in consideration decreased while the number of GM vehicles remained constant

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30

35

40

45

50

55

0 1 2 3 4 5 6

Survey

Con

ditio

nal T

otal

Pre

fere

nce

TOTAL PREFENCE FOR GM VEHICLES OVER TIMETOTAL PREFENCE FOR GM VEHICLES OVER TIME

Preference for GM vehicles increased over the first 4 surveysPreference for GM vehicles increased over the first 4 surveys

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TREATMENT EFFECTSTREATMENT EFFECTS

Statistical Change in measure if received treatment (example: change in consideration if receive and open brochure period 1 to 2)

Multivariate Regression

Statistical Change in measure if received treatment (example: change in consideration if receive and open brochure period 1 to 2)

Multivariate Regression

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CUSTOMIZED FULFILLMENTCUSTOMIZED FULFILLMENTTrust Based Brochures

First based on vehicles of interestSecond based on vehicle attributes considered important

Trust Based Brochures

First based on vehicles of interestSecond based on vehicle attributes considered important

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Measure Increase % Increase

Trust (Base 4.6) +.26 6%

Consideration (Base 40.3%) +5.1% 13%

Richness (Base of 18%) +2.8% 15%Dealer Visit (Base of 1.0) +.31 33%

Preference (Base of 17.8) +2.7 16%

STATISTICS - CUSTOMIZED FULFILLMENTSTATISTICS - CUSTOMIZED FULFILLMENT

Positive impact on all measuresPositive impact on all measures

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AUTO SHOW IN MOTIONAUTO SHOW IN MOTIONCentral Location GM and Competitive Drive

150 vehicles Multiple TracksNo Sales

Central Location GM and Competitive Drive

150 vehicles Multiple TracksNo Sales

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STATISTICS - ASIMSTATISTICS - ASIMMeasure Increase % Increase

Trust (Base 4.6) +.5 11%

Consideration (Base 33.3%) +13.6% 41%

Richness (Base of 18.4%) +7.0% 40%Dealer Visit (Base of .73) +.5 69%

Preference (Base of 18.5) +7.9 43%

Significant impact on all measuresSignificant impact on all measures

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COMMUNITYCOMMUNITYOn-line, Password Protected, Chat Communities Over 12 Weeks

GM generated activities included dialogues and surveys540 respondents participated in at least one activity

On-line, Password Protected, Chat Communities Over 12 Weeks

GM generated activities included dialogues and surveys540 respondents participated in at least one activity

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STATISTICS - COMMUNITY STATISTICS - COMMUNITY Measure Increase % Increase

Trust (Base 4.64) +.12 3%

Consideration _ _

Richness _ _Dealer Visit _ _

Preference _ _

Primary effect is on Trust of GM Trust links to consideration - significant correlation Primary effect is on Trust of GM Trust links to consideration - significant correlation

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0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

1 2 3 4 5 6 7

Trust scale

TRUST LEADS TO CONSIDERATIONTRUST LEADS TO CONSIDERATION%

Who

Con

side

r a G

M V

ehic

le

Correlation between trust and consideration = 0.30 (significant at 99%)Correlation between trust and consideration = 0.30 (significant at 99%)

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AUTO CHOICE ADVISORAUTO CHOICE ADVISOROn-line All Makes and Model New Vehicle Advisor

UnbiasedTrust based

Autochoiceadvisor.com

On-line All Makes and Model New Vehicle Advisor

UnbiasedTrust based

Autochoiceadvisor.com

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STATISTICS - AUTO CHOICE ADVISORSTATISTICS - AUTO CHOICE ADVISORMeasure Increase % Increase

Trust _ _

Consideration +.3 (not significant)

_

Richness _ _Dealer Visit _ _

Preference _ _

Mixed results – sometimes negativeWill do more analysis, but some reasons emergingMixed results – sometimes negativeWill do more analysis, but some reasons emerging

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WHY NOT FINDING STATISTICAL EFFECT?WHY NOT FINDING STATISTICAL EFFECT?

“BRANDS I LIKE”Hard to get GM recommendation if GM brands are not moved to rightToyota/Honda often recommended

GM in Top 5 Similar to Base GM Consideration

“BRANDS I LIKE”Hard to get GM recommendation if GM brands are not moved to rightToyota/Honda often recommended

GM in Top 5 Similar to Base GM Consideration

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NEED REFINEMENT FOR GM BENEFITNEED REFINEMENT FOR GM BENEFIT

More Education Not Allow People to Eliminate GM Based on Old Perceptions (Start Sliders in the Middle)

Include Competitive GM Vehicle More Like ASIMImpact on Trust?

More Education Not Allow People to Eliminate GM Based on Old Perceptions (Start Sliders in the Middle)

Include Competitive GM Vehicle More Like ASIMImpact on Trust?

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COMBINED POTENTIALCOMBINED POTENTIALMeasure Significant

Treatments% Increase

Trust CommunityCFASIM

17%

Consideration CFASIM

57%

Dealer Visit CFASIM

100%

Preference CFASIM

42%

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PRELIMINARY CONCLUSIONSPRELIMINARY CONCLUSIONS

Potential for All TreatmentsCustomized Fulfillment and ASIM Effective in All Stages of the Buying Process - Do MoreCommunity Builds Trust - Learn MoreACA - Needs Refinement for Full Potential GM Benefit (Expose Customers to Best GM Cars)Combined Effect is Significant - Build Trust Based CRM

IssuesHow to Scale Up Need Opt-In for Customized Fulfillment Build Program for Synergy (e.g. Brochure and ASIM, ASIM and Community, ACA to ASIM)

Potential for All TreatmentsCustomized Fulfillment and ASIM Effective in All Stages of the Buying Process - Do MoreCommunity Builds Trust - Learn MoreACA - Needs Refinement for Full Potential GM Benefit (Expose Customers to Best GM Cars)Combined Effect is Significant - Build Trust Based CRM

IssuesHow to Scale Up Need Opt-In for Customized Fulfillment Build Program for Synergy (e.g. Brochure and ASIM, ASIM and Community, ACA to ASIM)

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NEXT STEPSNEXT STEPS

Detailed Analysis of Data from All 6 Surveys

Interactions and Sustainability of Impact

Short Run and Strategic Implications

Next Year - Buyer Advocacy Program?

Detailed Analysis of Data from All 6 Surveys

Interactions and Sustainability of Impact

Short Run and Strategic Implications

Next Year - Buyer Advocacy Program?

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ADVOCACY EFFECTSADVOCACY EFFECTS

GM ADVOCATES FOR CUSTOMER AND CUSTOMER ADVOCATES FOR GM

Household Relationship Building – Cross Sell

PASSIONATE Customer advocacy

GM ADVOCATES FOR CUSTOMER AND CUSTOMER ADVOCATES FOR GM

Household Relationship Building – Cross Sell

PASSIONATE Customer advocacy