1© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

AAA will become an essential “content provider” for leading connected car solution providers

ACP Leadership Meeting January 2014

2© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Connected Cars are the Future of Vehicle Health & Safety

84% of survey respondents believe connected devices will save them time

Integration may actually be the competitive differentiator in automotive OEM’s connected vehicle offerings

91% Believe that All Cars in the Future Will Connect to the Internet

3© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

2 Pronged Strategy to Deliver the Connected Car Vision

National Partners

Test and Learn

AAA

4© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Critical Rear Brake Service Alert

Get an example of a repair booking screen from Driverside?

5© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Repair Solution Requirements

Technology Infrastructure Requirements Solutions work across CORs and AARs

Agnostic relative to shop management systems Requires a “mainstream” shop management

system (top 40-50)

Integrated with the Online Garage to create a connected experience for customers and members

Provides integration across online booking, electronic inspections, repair orders, invoicing, and CRM

Meets AQS#8 Requirements

Endorsement Partnership

AAR Relationship

Enhanced AAR Program Implementation Provide ACP-wide execution leadership

Listening and relationship building with AARs

Right-sizing networks to meet requirements and business goals

Develop reference sites for repair-facing business models

Communicate business impact and contract new AAR network locations.

6© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Repair Strategy - Infrastructure

Objectives Migrate AAA relationship from rescue to equip and protect Differentiate through a connected repair network Create interest in UBI, SMARTtrek, and membership Improve repair shop performance

Value to shops Low cost connected infrastructure Higher spend per customer plus retention Better customer relationships Integrated into AAA towing = more tows & higher average sale

Value to customers and members Easy to set up appointments No need to speak “mechanic talk” Better experience at repair

7© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

MVRM - Integrating Repair Shops and Consumers

Shop Interface Consumer InterfaceCommon Content

Online scheduling

Repair history

Inspection data

Maintenance reminders

Telematics alerts

Vehicle data

Notification preferences

Vehicle recalls

Guru advice

Integrated shop calendar

Consumer profile

Vehicle profile

Workflow view

E-MP Inspections

Integrated CRM

Mobile and Web

Receipts

Find a shop

Active alerts

Vehicle data

Notification preferences

Guru advice

UBI

MyDriving

8© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Evidence-Based Design

Program Membership research

Total Vehicle Ownership Research

Online Garage Heuristic evaluation

Iterative feedback on desktop and mobile prototypes

Usability evaluation of prototype

Side x Side design comp test

Component test for MyDriving design

SMARTtrek customer panels

Repair COR AAR observations and interviews,

mockup feedback

Interactive wire frames - SME review

Data-driven insights and evaluation drive design decisions

Design by committee Loudest voice in the room Person with most influence

Continuous involvement of people whose work or life you are changing

9© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Vendor Evaluations

Companies

DriverSide RepairPal MyCarFax Napa Tracs Fullslate Octomize Booking Bug Booker Service Dynamics (Shop

Watch) Schedule Max Appointment Plus Smotgo Trackum Service Max XTime

Evaluation Dimensions

Integration across consumer and repair facing experiences

IP Protection (Size of company, nature of relationship)

Market-tested solutions Price at repair Price for millions of consumers SMS read capability SMS write capability Online booking Electronic multipoint

inspections Ability to scale Integrated shop portal Other business assets

10© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Deployment Strategy

Build on the success of others

• Buy solutions when they exist• Enter the market faster, at pace

• Don’t solve problems you don’t have to

• Return to internal development• Learn from external relationships

• Reduce costs in critical areas

• Know “core” vs. “non-core”

• Control sustainable differentiators

11© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Why AARs are critical

1. A comprehensive network is required to differentiate AAAs Connected Car offering.

2. An important element of what national partners want from a AAA relationship

3. Opportunity to provide additional member value and exposure to prospective members A network of reasonable scale is required to provide a meaningful

connected repair value for members

12© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Consumer Website View of the Garage

13© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Mobile Views of the Garage

14© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Questions?

15© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Connected Car Assumption

AAA will not own or control: In-vehicle hardware Vehicle OS or firmware The content store for vehicles The data (cellular) network that passes information to and from

vehicles

16© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Connected Car Assumptions

Aftermarket solutions will connect more vehicles over the next 5 years and represents a bigger opportunity for AAA in both insurance and repair

Cannibalization of top tier insurance customers through competitor UBI programs is an imminent threat

Connecting repair is our key differentiator BIC location aware ERS will be table stakes for AAA Mobile communications will continue to increase in

importance for all consumers

17© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Valued AAA Assets

AAA Brand ERS Repair Network

Insurance

AAA Information/Data (Towing, Repair interactions, etc…)

Discounts AAA Generated Content

18© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Prioritizing Partner Discussions

OEMs Great for RAP business Fragmented and slow to market for winning the connected car Short-term in-vehicle app approach with OEMs

Aftermarket Automatic Labs (BT Solution) Sirius XM Sprint VPX

Platform/OS Smartphone applications

TSPs/Wireless Carriers White label solution – test, learn and insurance Platform play that will ultimately support insurance competitors

19© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Implications of Partner Strategy

National program clearly defined for the federation around 3 elements:

ERS, Repair and Insurance

Supports members and non-members with clear benefits for being a member

Build competencies in mobile application development

Start winning back the RAP business to support the long-term “built-in” strategy

Significant push to become the defacto towing application on smartphones – iOS and Android

Start with relationships that don’t support competing insurance carriers

20© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Everywhere AAA Members Want Us To Be

21© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Choosing the Optimal Path

2013 2014 2015 2016 2017 2018

Volume/Scale

OBDII Cell

Smartp

hone Probe

National P

artners

Lowest cost & Fastest path to scale

Most viable long-term strategy

Best way to test, learn and build

22© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

2014 Priorities & Activity

1. Infrastructure Usage based insurance (0-30%) processes refined and rolled out

Repair systems – Online scheduling, Digital inspections, etc…

AAR model refined, socialized and expansion started

Online Garage (AAA Experience Hub) built and launched

Membership rider defined, tested and expansion plans developed

Smartphone solutions – AAA mobile app and phone as probe

Continued development of OBDII cellular solution and VHS services – refine diagnostics, messaging, improved data quality, teen, incident response, etc…

2. Pilots Connected Car pilots across 2-3 clubs and with CORs and AARs

Validate the shop experience, Online Garage experience, and ROI

Acquire customers and determine value of the integration

3. National Program(s) Defined

23© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Content Strategy

• Focus on content that enables targeted value

• How much is my vehicle worth?

• What is wrong with my vehicle?

• Eventually, what is likely to happen to my vehicle next?

• Participation in GMA Knowledge Base development

• Expert content• Contextually relevant

• At shops

• Through ask-an-expert interface online

As an enabler

24© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

SMARTtrek (VHS) Communications

SALE

Order Confirmation

Shipping Confirmation

Plug-In Request and Reminders

Welcome – Driving

Information Available

Month 3 Month 4

Vehicle Health Summary

Vehicle Health Alert

Battery Alert

Maintenance Alert

VIN Mismatch / Device Connection Error

CoolantAlert

Triggered Communications

Vehicle Health Summary

Survey 2

FPO Be Sure to Update Mileage

Online*

*Item not yet in production.

Registration Request and Reminders(Retail only)

Month 1(plug in ~20 days in)

Month 2(first trip ~30 days in)

Feedback Opt In – Survey 1

25© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

SMARTtrek (VHS) Communications

Month 6 Month 7 Month 8

Vehicle Health Summary

Vehicle Health Alert

Battery Alert

Maintenance Alert

CoolantAlert

Triggered Communications

Vehicle Health Summary

Get to Know SMARTtrek 3* (Fuel Efficiency)

FPO

Month 5

Get to Know SMARTtrek 1*

(Driving Information)

Vehicle Health Summary

FPO Get to Know SMARTtrek 2*

(Vehicle Health Alerts)

FPO

Vehicle Health Summary

VIN Mismatch / Device Connection Error

Survey 3 Survey 4Survey 5

Survey 6

Get to Know SMARTtrek 2*

(Vehicle Health Alerts)

26© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

SMARTtrek (VHS) Communications

Month 10 Month 11 Month 12

Vehicle Health

Summary

FPO

Vehicle Health Alert

Battery Alert

Maintenance Alert

CoolantAlert

Triggered Communications

Vehicle Health

Summary

Month 9

Vehicle Health

Summary

Vehicle Health

Summary

Subscription Ends – Ensure Uninterrupted

Service*

Month 13

NO

PURCHASE

PURCHASE

VIN Mismatch / Device Connection Error Order

Confirmation

Survey 7 Survey 8

*Items in red not yet in production.

Subscription Ends –

Reminder*

Return Device Request and RemindersFPO

Exit Survey*

27© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Plug-In Request

28© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Battery Alert

29© 2013 AAA Club Partners – Confidential and Proprietary – Internal Use Only

Vehicle Health Report