• Tweet this Share on Facebook Share on LinkedIn Share on Google+ Email

Explore how other customers are generating value with SAP technology.

More customer stories ›

Customer Snapshot

Delivering the Best Value, Mile After Mile

44 motor clubs

serving more than
54 million members

 

On every road in North America, 54 million members count on AAA for automotive and travel services. To improve their ability to serve members, the association is using predictive analytics in SAP InfiniteInsight to help its 44 motor clubs in the United States and Canada create customized offers for products, services, and information.


Company

American Automobile Association (AAA)

Headquarters

Orlando, Florida, USA

Customer Website

www.aaa.com

Number of Employees

>40,000

Implementation Partners

---

Line of Business

Marketing, Sales

Industry

Insurance, Professional Services

Featured Products

SAP InfiniteInsight

History

On the road again … and again

From providing roadside assistance to maps to trip planning and travel reservations, AAA has helped motorists and travelers for more than 100 years. AAA originally sought to improve the conditions of roads originally built for horse-and-buggy traffic. Today, AAA continues to send help when a member’s car breaks down. But it also provides financial services and driver education, is the world’s largest travel publisher, and provides members with a unique array of benefits, including discounted lodging, auto repair, and retail purchases.

             

  • 1902AAA was formed with 1,500 members from nine motoring groups; AAA supported federal funding for U.S. highways, and Theodore Roosevelt became the first U.S. president to ride in a car.
  • 1905Published their first map, a hand-drawn, ink-on-linen street map of Staten Island, N.Y.
  • 1911Supervised the first Indianapolis 500 race on Memorial Day through the AAA Contest Board.
  • 1917Issued the first pedestrian resolution, which requires pedestrians to abide by signals of traffic officers, and cross only in designated places. Jaywalking became considered "prima facie" - automatic evidence of carelessness.
  • 1920Launched AAA School Safety Patrol in Illinois through the Chicago Motor Club.
  • 1938 Introduced minimum standard requirements for clubs to operate as AAA travel offices, establishing the foundation for all AAA clubs to become full-service travel agencies.
  • 1940 Published the first AAA driver education and training manual for high school teachers; membership reached 1 million.
  • 1966Helped draft the National Traffic and Motor Vehicle Safety Act of 1966, setting safety standards for automobiles, tires and equipment; membership reached 10 million.
  • 1969 Founded AAA Life Insurance Co.
  • 1973Issued the extensive report, When Politics and Safety Mix—The Selling of the Air Bag, an investigative look at merits of the airbag in passenger cars.
  • 1978 Provided towing services for five million vehicles in one year; Membership reached 20 million.
  • 1981Introduced toll-free emergency information service for members traveling outside their home club area (800-AAA-HELP).
  • 1995Launched AAA Financial Services Corp. to help provide AAA members with financial products and services including mortgages, home equity loans, CDs, credit cards, and auto loans.
  • 2000Formed RESPONSE Services Center, LLC, to launch state-of-the-art, telematics-enabled communications center to provide, wireless mobile emergency assistance and travel information to AAA members.
  • 2011Launched the AAA Insurance app, which walks users through the post-crash process of collecting photos and information and requesting a tow truck.

Business Model

Independent clubs united in serving travelers

The American Automobile Association (AAA) is a federation of affiliated automobile clubs. Each AAA club is an independent, not-for-profit organization, chartered and incorporated in its own state and controlled by its own Board of Directors. In order to be affiliated with AAA, each club agrees to provide certain standard services to their members, as well as members of other AAA clubs. The individual club owns the territory in which it resides, and membership is based on residence.

 

The AAA National Office, based in Orlando, Florida, manages a variety of strategic activities to support AAA motor clubs in their efforts to serve the automotive, travel, financial, and insurance needs of their members. It also manages the AAA brand, service quality, education, traffic safety, communications, and international affiliations of the association.


Success Strategy

Every driver needs an advocate

Since their founding, AAA has been an advocate for motorists and travelers, continually lobbying for driver and passenger rights, fair laws, and safer vehicles and roads. Through affiliations with motoring clubs around the world, AAA provides benefits to members traveling in 130 countries on six continents. Today, one out of every four U.S. households has a AAA membership. Key initiatives to enhance member services include strategic travel alliances with entertainment and rental car partners as well as major air, tour, and cruise companies, and research and development of in-vehicle assistance and navigation devices.

The Challenge

The old system just couldn’t power the vision

To drive member satisfaction and increase the use of their products and services, AAA wanted to create personalized offers for their 54 million members from an extensive portfolio of products and services. But to provide the level of customization desired, AAA needed a way to analyze the large volumes of data they receive via multiple channels – including AAA´s 44 motors clubs and other channels such as the internet.

Enter SAP

Powering up a new system

AAA’s national headquarters wanted a cost-effective, user-friendly solution that leverages predictive analytics to provide collective insight to all of their members, but members typically interact with their motor clubs first. Project leaders were intrigued by the potential for SAP InfiniteInsight to help customers take advantage of the entire spectrum of AAA offerings.

The SAP Experience

Revving up the power

Standard reporting features in SAP InfiniteInsight include modeling results, variable contributions, and gain charts. The solution enables AAA analysts to compile and present the results in ways that help marketing teams at the association’s 44 different clubs improve marketing campaign customization and audience targeting.

Running Better

The perfect tools deliver perfect customer service

With the SAP InfiniteInsight solution, AAA supports their motor clubs with a powerful means of analyzing customer data. It only takes two business analysts to manage and scale predictive models for multiple motor clubs. Equipped with readily available customer insight, motor clubs can now provide customized offers that fit individual interests and needs of their members.

Benefits

A winning solution for customers and employees

AAA's decision to leverage predictive models to improve customer insight and generate effective, targeted communications benefits employees and their members alike. When reaching out to AAA, members can be more confident that they will get offers that meet their individual preferences and needs. For instance, when planning a trip through multiple states or provinces, a AAA club can more easily help customers find the routes, accommodations, and activities that best suit their budgets and interests.

Today

Mapping out the route into a prosperous future

Improving customer experiences with personalized offers has helped reduce customer churn and increase the lifetime value of customers. Thanks to optimized marketing campaigns across channels, several of the motor clubs have also experienced increased response rates from members, resulting in new business opportunities.

 

“SAP InfiniteInsight helps us put the right products and services in front of members at the right time.”

- Daniel Mathieux, Member Insights and E-Business, American Automobile Association (AAA)

Journey Ahead

A route designed with social media in mind

On their road ahead, the AAA National office aims to boost usage of their marketing services and predictive models to each AAA motor club in North America. To reach the masses of travelers that are communicating with AAA via social networks, the association plans to extend their campaign personalization to those channels too, in order to create a consistent experience for all members.

Related Links