BigRoad Award Write Up

2017 North American ElectronicLogging Device (ELD) Solutions

Customer Value Leadership Award

BEST PRACTICES RESEARCH

© Frost & Sullivan 2017 2 “We Accelerate Growth”

Contents

Background and Company Performance ...................................................................................... 3

Industry Challenges ........................................................................................................... 3

Customer Impact and Business Impact ................................................................................ 4

Conclusion ........................................................................................................................ 8

Significance of Customer Value Leadership .................................................................................. 9

Understanding Customer Value Leadership .................................................................................. 9

Key Benchmarking Criteria ................................................................................................10

Customer Impact .............................................................................................................10

Business Impact ...............................................................................................................10

Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices .....11

The Intersection between 360-Degree Research and Best Practices Awards ....................................12

Research Methodology ......................................................................................................12

About Frost & Sullivan .............................................................................................................12



Background and Company Performance

Industry Challenges

In December 2015, electronic logging devices (ELDs) were mandated for use for the

majority of commercial motor vehicle (CMV) drivers in the United States. Since then, a

plethora of solutions have flooded the market aimed at helping owner-operators and fleets

achieve compliance. In an industry already plagued with a rising total cost of ownership

(TCO) and diminishing margins, adding the additional expense of a new device is not easy.

However, ELDs offers a number of benefits including reducing administrative time and

costs associated with log auditing, preventing violations that result in fines, and improving

Compliance, Safety, Accountability (CSA) scores.

The North American trucking industry predominantly features two kinds of truck

operators—the large fleet market and the small- to mid-sized fleet and owner-operator

market. For ELD solution providers, these are two distinct groups of customers even

though they share the common need to achieve regulatory compliance at a minimum

incremental cost. The small- to mid-sized fleet and owner-operator market is the key

segment because it makes up the majority of the ELD market. Small- to mid-sized fleets

(less than 50 trucks) and owner-operators account for more than 35% of the overall ELD

addressable market, whereas ELD penetration in this market was a mere 5% to 6% at the

end of 2016. Thus, this segment is fairly under-penetrated and has immense growth

potential in the coming years. Penetrating this market is not easy though, and key

reasons include:

• Cost—ELD solution prices typically offered in the market are not within the budget

of a typical small-to mid-sized fleet or owner-operator.

• Driver Security—Constant monitoring is considered an invasion of a driver’s

privacy and fundamental rights. Data privacy concerns are also a large issue.

• Purchasing Experience—Crucial factors in satisfying this customer segment

include offering free hardware shipping, an invitation to use free apps, pilot testing,

seamless communication, and online purchasing.

• Hardware and Installation—Reliable and easily installable hardware is a top

priority when purchasing an ELD.

• Post-Sales Support—Dedicated specialists, technicians, trainers, and full-time

employees that can service a customer’s in-field challenges is desired.

Additionally, the two markets have different operational realities and both need to be able

to test services before adopting them.



Customer Impact and Business Impact

Excellence in 4Ps

Ontario-based BigRoad has provided hours-of-service (HOS) compliance solutions to the

North American transportation industry since 2011. In March 2017, BigRoad was acquired

by Fleet Complete, a global IoT provider of mission critical fleet, asset, and mobile

workforce management and telematics solutions. In a cluttered market competing against

larger and older service providers, BigRoad has distinguished itself on the 4 Ps of product,

price, position, and promotion.

Product

BigRoad’s DashLink ELD is a plug-and-play solution. BigRoad has differentiated itself as

one of the few plug-and-play solution providers in the ELD market. This had made

DashLink popular, not just among owner-operators and small fleets, but among cost-

conscious large fleets as well. Drivers use their personal or company-issued mobile

devices (smartphone or tablet) and pair them with the DashLink ELD hardware via

Bluetooth connection. BigRoad’s solution does not require drivers to purchase proprietary

mobile devices so there is no upfront hardware fee for the solution. This is unlike

BigRoad’s competitors that require drivers to purchase expensive and proprietary mobile

devices upfront that pair with their ELD hardware. This makes achieving mandated ELD

compliance a larger financial burden and many drivers/fleets cannot afford this large

upfront capital expenditure, averaging $490. Additionally, with BigRoad there are no

hidden fees and/or extra charges for expanded functionality. Some competitors charge an

additional amount, on top of initial price, for functionality such as International Fuel Tax

Agreement (IFTA) reporting. BigRoad also continues to offer its BigRoad Mobile App

electronic logbook to users for free.

Positioning

In the past year, BigRoad has significantly adjusted its positioning in relation to the

specific needs of various fleet segments. Prior to 2016, BigRoad positioned its products as

a general solution for all commercial motor vehicle (CMV) drivers. Regardless of the

number of drivers, personas, or type of driving being performed, it offered no product

differentiation in terms of offerings, marketing, or training. Through recent market

research, BigRoad has determined that two distinct segments exist within its target

audience and has identified a significant gap in terms of solutions being offered to these

segments. In response to this, BigRoad shifted focus in 2016 and separated its target

audience into two distinct segments: fleets and owner-operators. The company

understood that both segments experience significantly different pain points, have

different technical requirements, and varying timelines for achieving ELD mandate

compliance. By segmenting its audience, BigRoad has tailored its messaging, positioning,

sales cycle, onboarding, training, and support to best meet the unique needs of each

audience. This has enabled BigRoad to better position its product to speak directly to



customer needs, making BigRoad an attractive option for achieving ELD mandate

compliance.

BigRoad is the only ELD provider offering an ELD solution that has made a clear audience

distinction with differentiated messaging, solution selling, and price points. Additionally,

many of its competitors have taken a fleet-focused approach and have left the small to

mid-sized fleets and owner-operator market largely underserved. This has allowed

BigRoad to become the solution of choice for owner-operators and small to mid-sized

fleets, while continuing to support the large fleet market.

Pricing

BigRoad has adjusted its pricing to appeal to its specific audiences. In 2016, it

substantially dropped the price of its DashLink ELD for owner-operators (1-2 truck

operations) from $25.00 per month to $19.50 per month, per unit. This reflects its

commitment to providing affordable compliance for the “little guy” (as it calls its owner-

operator customers), while making it the least expensive solution in the ELD solutions

market.

Additionally, many owner-operators are already using the free BigRoad Mobile App

electronic logbook to track their hours-of-service (HOS). This makes the transition to ELDs

for mandate compliance much more likely because fleet operators are already familiar

with BigRoad’s HOS compliance solution. At $19.50 per month per vehicle (for 1-2 truck

fleets), transitioning to ELD compliance is less of a financial burden for small companies.

Solutions offered by BigRoad’s closest competitors range in price from $20 to over $40 for

per unit, per month and offer no distinction in pricing between owner-operators and fleets.

BigRoad also continues to offer its ELD compliance solution to fleets (3+ trucks) for

$25.00 per month. At this price point, it stays competitively priced in comparison to other

large ELD service providers.

Promotion

On the promotion front, BigRoad is unique in the market with its offers of free use of the

BigRoad Mobile App for drivers, a 30-day free trial of the BigRoad Web App fleet

management tool, and live and recorded product demos. For example, drivers can

download the BigRoad Mobile App and use it for free to track their hours-of-service (HOS).

Fleet managers, on the other hand, are encouraged to start a free 30-day trial of the

BigRoad Web App. Public and personalized demos of the BigRoad solution suite are also

offered weekly, during which the solution’s efficacy in achieving compliance for fleets of all

sizes is demonstrated. This helps customers determine if the BigRoad solution is right for

them before they make a purchase decision.

BigRoad also offers lucrative referral program that anyone can participate in. Referrers

can get a $75 gift card for every driver they refer who purchase a DashLink ELD. New

customers through this program are also awarded a $25 gift card. In addition to free



trials, demos, and referral programs, BigRoad has launched a “Buy now, get 3 months

free” promotion for owner-operators (1-2 truck fleets). When a user purchases a DashLink

ELD on a one-year contract, they get an additional 3 months of service for free. This

makes the monthly cost of ELD compliance $15.60 per unit. As one of the very few ELD

providers that encourages trials and demos, BigRoad offers differentiated products that

are extremely popular among the owner-operator and small to mid-sized fleet segments,

as well as to price conscious fleets.

Another key area that BigRoad differentiates itself from competition is through thought

leadership and industry education. It offers 8 webinars a month to anyone who is

interested, not just BigRoad customers. In these webinars, the company covers product

demonstrations, how to use BigRoad’s solutions, industry topics, ELD compliance, and

more. The company also actively blogs (minimum 8 blogs per month) on industry news,

compliance tips, events, and other areas of interest to keep drivers and fleets up-to-date

on compliance related issues.

Customer Contact Channels and Feedback

At a price point of $19.50 per month for owner-operators and $25.00 per month for fleets,

Frost & Sullivan’s research confirms that BigRoad is one of the most affordable ELD

compliance solutions offered by a reputable provider. Some documented customer

feedback includes:

• “BigRoad has saved us money on fines, out-of-service violations, and fuel. The

roadside inspection risk dashboard has helped my drivers avoid fines and

violations, allowing them to get through inspections quickly and has prepared us

for unexpected audits. Also, the BigRoad Web App has allowed me to perform my

job more efficiently. BigRoad’s ELD solution offers a lot of bang for your buck. I

recommend it to fleets and owner-operators.” - Steven White, Compliance Manager

• “BigRoad has helped Diamond Coach solve the problem of log audit inconsistency.

It has given fleet managers back hours in the work week that were previously

devoted to manual auditing effort. “That is worth every penny.” - Sarah Beth

Imperi, Director of Safety

• “It’s a great program and I’m hooked! The return on investment is amazing! So

how much do I love BigRoad? I’d say the BigRoad Mobile App is all that and a bag

of potato chips.” – Tanya Clevenger, Compliance Coordinator

• “With BigRoad, I don’t have to know every element of DOT compliance anymore.

It’s taken care of for me! That’s a huge comfort! So would I recommend BigRoad?

Absolutely! I would ask them what they’re waiting for.” - Glenn Long, Owner

BigRoad offers a relatively efficient purchasing process to its customers. When ready to

purchase a DashLink, prospects speak with a sales representative who discusses the

prospects specific requirements, and from there will do a customized demonstration. If the



prospective customer is in agreement that the BigRoad solution meets their business

needs, a simple order form is created and sent to the prospect electronically via DocuSign

(an online contract program). The customer digitally signs the contract via a web browser

on a computer or a mobile device and the order is processed. Billing is done on an annual

or monthly basis based on customer preference.

DashLinks and materials are then shipped directly to the customer’s location. To make this

process even more efficient, BigRoad has recently introduced the ability to purchase a

DashLink completely online, cutting out the need to speak with a sales representative.

Customers simply complete a “Buy Now” form and enter their credit card information on

the company website to order their DashLink. Additionally, BigRoad has also listed

DashLink on Amazon to further its online presence and make purchasing more efficient.

This is a unique differentiator, as other large competitors do not currently have the option

to purchase online.

When a new customer is on-boarded, BigRoad gathers feedback on the purchasing process

and other elements. The company’s full-time, in-house, dedicated support team allows

BigRoad to ensure that the on-boarding experience is as easy as possible for the

customer. When issues arise or updates are available, customers are contacted directly.

BigRoad is continuously optimizing client processes to ensure improvement.

The 30-day trial period prior to purchase helps to on-board customers before they’ve even

purchased the solution. A world class customer support system helps the company sustain

customer satisfaction throughout the product usage cycle. Its in-house North American

support team is available 24/7 via phone, email, chat, and social media, and it doesn’t

just limit itself to back office administrators, but offers support to drivers as well. The

team handles a large volume of cases daily and is extremely efficient in doing so. For

instance, during the month of July 2017, BigRoad covered over 1,800 cases—83% of

which were resolved on the first contact and within 24 hours or less. As such, the

customer service team achieved a 90% satisfaction score in 2016.

To better support its customers, BigRoad has also created new teams. In 2017, BigRoad

added a new Customer Success team and an Account Management team. These teams are

responsible for on-boarding new customers, providing personalized training, answering

questions, educating, and managing the transition from the BigRoad Mobile and Web App

to full ELD mandate compliance with DashLink.

Stellar Growth Trajectory

BigRoad has experienced tremendous growth and strong performance over the last year.

The company has over 30,000 fleets using their solutions with over 480,000 downloads of

the BigRoad Mobile App on iTunes and the Google Play Store. A few notable

accomplishments of the company include doubling its revenue growth achievements from

2015/2016, an 89% operating margin in 2016, and doubling the number of in-office staff

by developing its Account Management and Customer Success teams and adding



employees to its Sales, Marketing, Finance, and Engineering teams. BigRoad was also

recognized by Branham300 – a definitive listing of Canada’s top public and private ICT

companies as ranked by revenue. BigRoad was recognized as a Top 250 Canadian ICT

Company, a Top 25 Mover and Shaker, and a Top Growth Company.

Notably, the company was acquired in 2016 by Toronto-based Fleet Complete—a global

leader in mission critical fleet, asset, and mobile workforce tracking and management

solutions. This places BigRoad firmly on the high-growth trajectory of 4x revenue growth

that it envisions for itself.

Conclusion

By December 2017, the Federal Motor Carrier Safety Administration (FMCSA) registry is

expected to be flooded with telematics suppliers and other ELD vendors through self-

certification. However, it is essential for owner-operators and fleets to consider more than

just basic ELD requirements. Because owner-operator and small fleets (less than 50

trucks) occupy more than 35% of the overall ELD addressable market, parameters such as

cost, purchasing experience, customer support, and value-added integration options will

become key value propositions going forward.

With creative product technology, a unique and well planned customer positioning

strategy, and rock-solid customer support, BigRoad has firmly established itself as one of

the finest ELD solution providers in the market - not just for owner-operator and small

fleets, but also for cost-sensitive large fleets. Furthermore, BigRoad’s ELD compliance

platform enables the comprehensive ability to monitor trailer location, capacity and HOS

compliance status. The company believes these combined features will play a major role in

ushering in new and insightful freight efficiency enhancement models.

If customer feedback is anything to go by, and we at Frost & Sullivan firmly believe it is

almost everything, BigRoad’s DashLink is one of the most sought after solutions for

owner-operators and fleets looking to comply with the ELD mandate. The company is

already experiencing 100% growth year-over-year and with its acquisition by Fleet

Complete, it is firmly set to grab market share to become a top 3 vendor in the ELD

solutions market.

With its strong overall performance, BigRoad is recognized with Frost & Sullivan’s 2017

Customer Value Leadership Award.



Significance of Customer Value Leadership

Ultimately, growth in any organization depends upon customers purchasing from a

company and then making the decision to return time and again. Delighting customers is,

therefore, the cornerstone of any successful growth strategy. To achieve these dual goals

(growth and customer delight), an organization must be best-in-class in three key areas:

understanding demand, nurturing the brand, and differentiating from the competition.

Understanding Customer Value Leadership

Customer Value Leadership is defined and measured by two macro-level categories:

Customer Impact and Business Impact. These two sides work together to make customers

feel valued and confident in their products’ quality and long shelf life. This dual

satisfaction translates into repeat purchases and a high lifetime of customer value.



Key Benchmarking Criteria

For the Customer Value Leadership Award, Frost & Sullivan analysts independently

evaluated two key factors—Customer Impact and Business Impact—according to the

criteria identified below.

Customer Impact

Criterion 1: Price/Performance Value

Requirement: Products or services offer the best value for the price, compared to similar

offerings in the market.

Criterion 2: Customer Purchase Experience

Requirement: Customers feel they are buying the most optimal solution that addresses

both their unique needs and their unique constraints.

Criterion 3: Customer Ownership Experience

Requirement: Customers are proud to own the company’s product or service and have a

positive experience throughout the life of the product or service.

Criterion 4: Customer Service Experience

Requirement: Customer service is accessible, fast, stress-free, and of high quality.

Criterion 5: Brand Equity

Requirement: Customers have a positive view of the brand and exhibit high brand loyalty.

Business Impact

Criterion 1: Financial Performance

Requirement: Overall financial performance is strong in terms of revenues, revenue

growth, operating margin, and other key financial metrics.

Criterion 2: Customer Acquisition

Requirement: Customer-facing processes support the efficient and consistent acquisition

of new customers, even as it enhances retention of current customers.

Criterion 3: Operational Efficiency

Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high

quality standard.

Criterion 4: Growth Potential

Requirements: Customer focus strengthens brand, reinforces customer loyalty, and

enhances growth potential.

Criterion 5: Human Capital

Requirement: Company culture is characterized by a strong commitment to quality and

customers, which in turn enhances employee morale and retention.



Best Practices Recognition: 10 Steps to Researching,

Identifying, and Recognizing Best Practices

Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and

assess their fit with select best practice criteria. The reputation and integrity of the

Awards are based on close adherence to this process.

STEP OBJECTIVE KEY ACTIVITIES OUTPUT

1 Monitor, target, and screen

Identify Award recipient candidates from around the globe

• Conduct in-depth industry research

• Identify emerging sectors • Scan multiple geographies

Pipeline of candidates who potentially meet all best-practice criteria

2 Perform 360-degree research

Perform comprehensive, 360-degree research on all candidates in the pipeline

• Interview thought leaders and industry practitioners

• Assess candidates’ fit with best-practice criteria

• Rank all candidates

Matrix positioning of all candidates’ performance relative to one another

3

Invite thought leadership in best practices

Perform in-depth examination of all candidates

• Confirm best-practice criteria • Examine eligibility of all candidates

• Identify any information gaps

Detailed profiles of all ranked candidates

4

Initiate research director review

Conduct an unbiased evaluation of all candidate profiles

• Brainstorm ranking options • Invite multiple perspectives on candidates’ performance

• Update candidate profiles

Final prioritization of all eligible candidates and companion best-practice positioning paper

5

Assemble panel of industry experts

Present findings to an expert panel of industry thought leaders

• Share findings • Strengthen cases for candidate eligibility

• Prioritize candidates

Refined list of prioritized Award candidates

6

Conduct global industry review

Build consensus on Award candidates’ eligibility

• Hold global team meeting to review all candidates

• Pressure-test fit with criteria • Confirm inclusion of all eligible candidates

Final list of eligible Award candidates, representing success stories worldwide

7 Perform quality check

Develop official Award consideration materials

• Perform final performance benchmarking activities

• Write nominations • Perform quality review

High-quality, accurate, and creative presentation of nominees’ successes

8

Reconnect with panel of industry experts

Finalize the selection of the best-practice Award recipient

• Review analysis with panel • Build consensus • Select recipient

Decision on which company performs best against all best-practice criteria

9 Communicate recognition

Inform Award recipient of Award recognition

• Present Award to the CEO • Inspire the organization for continued success

• Celebrate the recipient’s performance

Announcement of Award and plan for how recipient can use the Award to enhance the brand

10 Take strategic action

Upon licensing, company is able to share Award news with stakeholders and customers

• Coordinate media outreach • Design a marketing plan • Assess Award’s role in future strategic planning

Widespread awareness of recipient’s Award status among investors, media personnel, and employees



The Intersection between 360-Degree Research and Best

Practices Awards

Research Methodology

Frost & Sullivan’s 360-degree research

methodology represents the analytical

rigor of our research process. It offers a

360-degree-view of industry challenges,

trends, and issues by integrating all 7 of

Frost & Sullivan's research methodologies.

Too often companies make important

growth decisions based on a narrow

understanding of their environment,

leading to errors of both omission and

commission. Successful growth strategies

are founded on a thorough understanding

of market, technical, economic, financial,

customer, best practices, and

demographic analyses. The integration of

these research disciplines into the 360-

degree research methodology provides an

evaluation platform for benchmarking

industry participants and for identifying those performing at best-in-class levels.

About Frost & Sullivan

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and achieve best-in-class positions in growth, innovation and leadership. The company's

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please visit http://www.frost.com.

360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS

BigRoad Award Write Up

Automotive

Transcript of BigRoad Award Write Up