1 optimizing the power of your data stu zalud nada used car guide october 24, 2012

1

Optimizing the Power of Your Data

Stu ZaludNADA Used Car Guide

October 24, 2012

AgendaAgenda

Questions You Should Be Asking:Questions You Should Be Asking:◦What is my situation today?◦Why should I care?◦How do I protect myself?◦What’s in it for me?

Demonstration of a Good Data Relationship

What is My Situation What is My Situation Today?Today?

–Disruptive Cycle

Remarketers

Lenders

USED NEW

3rd Party Activity

• Data in DMS is valuable• Multiple sources accessing• Rarely purge system to remove

expired or unauthorized access• Transaction data drives valuations of

new & used vehicles • Not all transaction data is equal• Know how your data is used

Why should I care?Why should I care?

How Do I Protect Myself?How Do I Protect Myself?

NADA RoleNADA Role•Represent dealers •Educate dealers•Address dealer concerns over data protection & usage•Monitor how it is used

NADA formed Strategic Alliance with JD Power as part of ongoing effort to help dealers use their data to improve operations while satisfying their legal requirements.

NADA PIN Agreement sets the standard for protection and dealer indemnified:

Dealer owns their data

Data confidential and individual dealer data never exposed to OEM or other dealers

Dealers receive valuable, free reports from JD Power to benchmark

Industry moves to the forefront in using transactional data for more informed decision-making

Dealers receive better representation and services from NADA and have the confidence that NADA is in the forefront of an issue of vital importance to dealers

What's In It For Me?What's In It For Me?

PIN collects electronic point-of-sale information directly from dealers’ F&I systems.

Dealers receive access to a web-based reporting portal – which allows them to benchmark themselves vs. their local market.

Demonstration of a Good RelationshipNADA & JD Power PIN Program

PIN Enrollment is FREE and provides access to PowerDealer:

• PowerDealer monitors sales activity for same make and competitors in their marketplace – the data is updated nightly; not monthly

• Compares new, used and F&I performance versus competition

• Allows dealers to find out in “Real Time” the true market value of traded in vehicles

• Gives dealers an overview of the Captive and Non Captive lending sources in their market

By utilizing PowerDealer, Retailers can:

• Measure pricing and inventory strategy performance

• Improve sales and F&I profitability

• Benchmark and track ongoing performance

Why is PIN a Good Data Relationship?

Available Performance Reports

Provides visual dashboard comparison of key metrics & allows for customized goal setting

Key Performance Indicators (KPI)

TRENDS: Provides visual trend of key performance metrics

Identify model level opportunities in your market

Return on Inventory

Identify models under-performing the market (in volume)

Identify models over-performing the market (in volume)

Identify models over or under-performing the market (in gross)

Are you stocking the right model lines? Is there a missed volume or gross opportunity?

Financing/Leasing See what others in market are financing or leasing

with and at what rate and term

Are you working with lenders that provide the terms and rates that help you close deals?

Customer Sales Google Map

Maps out where customers are coming from

Dealer owns their data

Agreement sets the standard for protection and dealer indemnified

Data confidential and individual dealer data never exposed to OEM or other dealers

Dealers receive valuable reports from JD Power to benchmark for free

Industry moves to the forefront in using transactional data for more informed decision-making

Dealers receive better representation and services from NADA and have the confidence that NADA is in the forefront of an issue of vital importance to dealers

PIN = Good for DealersPIN = Good for Dealers

• Supports initial goal – more accurate Used Car Guide

• Data supports dealer advocacy efforts with OEMs and the government

• Better represent the dealer perspective in the media

• Potential for enhanced 20 Group and Dealer Academy offerings

PIN = Good for NADAPIN = Good for NADA

Thank YouThank You Stu Zalud

◦szalud@nada.org◦843.247.3565

Jim Dodd◦jdodd@nada.org◦703.789.7926

Stop by and see us at

Booth #731