kevin hunt - don't waste time on 3rd party leads
TRANSCRIPT
Don’t waste money on 3rd Party Leads:
A guide to selecting the right Independent Internet Marketing Partners
Kevin HuntVP, Sales – Dealix
Page: 46
Agenda
Extending your Internet reach - Making the case for the
Independent Internet
Selecting your Independent Internet Options
Maximizing your ROI on the Independent Internet
Summary – Q & A
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Where Are Today’s Consumers? Independent review sites for unbiased info Mobile sites on their Smartphones or Tablets while
watching TV OEM sites… as many as six or more Search Engines are used throughout the day and
returned to throughout their search Independent automotive internet sites like KBB.com,
AutoTrader.com, Cars.com, UsedCars.com, or a portal like AOL, Yahoo!, and many more
Research on blogs, social sites, and through interactions with friends and family
Who Are You Comfortable Turning Away?How Well do You Know Your Area Shoppers?
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When thinking about a new or used car shopper, they fall into several categories:
Buyer TypeIs it fair to think that all these different buyer types shop on only 1 or 2 websites? How about 20??
Gender Various Lifestyles Economic Factors
Age/Generation Budget
First TimeBrand Loyalist
Brand Defector
Are You Hurting Sales by Being Too Selective?
With So Many Online Choices, Which One is Best?
You might be surprised to hear our answer: ALL of them!
What’s the Consumer Journey look like?• “Independent” internet sites play a leading role in the consumer journey.• Question… What would happen if YOUR DEALERSHIP were NOT present on independent
internet sites, when a consumer is considering which vehicle to purchase and which dealer to buy it from?
Some more insight on “lead submitters”…
Late 2012 Dealix Study – Quick Background & Methodology
• Goal was to develop deeper insight into who is submitting leads at independent internet sites.
• Surveyed 793 online respondents late 2012, who had submitted a request for a New Car quote in the past 60 days.
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Leads: Ready To Buy, Likely to Switch Brands
• The majority of leads are ready to buy… now.– Over one-quarter plan to purchase within the next 2 weeks– 53% plan to buy within the next month
• And the majority is planning to switch brands.– 61% are planning to switch from their current make– Price, mileage and model characteristics are driving this decision
n = 280** Universe of Brand Switchers
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Actively Research prior to Quote Request• Prior to submitting a price quote, buyers do a lot of research.
– Vehicle pricing is the most sought after information– Active comparison of vehicles – including dealer website visits, visited, on average 18 websites
• Pricing info is the MOST important
n = 460n = 460
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Dealer Attributes GREATLY Impact Decision
• Information about dealer shapes decision to submit quote request.
– Dealer reputation, previous experience, and geographic distance are among the most influential factors
Q: How influential are the following factors regarding your decision to submit a price quote? Please rate on a scale of 1-5, where 1 is not at all influential, and 5 is very influential
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•How to select an Independent Internet partner…
Some VERY important questions to ask when considering what Independent Internet partners to add to your marketing “mix”
• What volume of traffic/exposure will the partner bring to my
dealership, and how’s the “shopping” experience for the shopper
and my dealership?
• How customizable is the program? Can they accurately estimate
sales opportunities? Can they scale as my needs change?
• How much real time insight do I get with my advertising/lead
program?
• What are their business terms?
• What’s the reputation of the partner?
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How much REACH and EXPOSURE will the partner get me?
Growing Sales STARTS with extending your dealership’s reach and getting more exposure for your dealership. You’ll want to make sure that you partners will deliver incremental reach and exposure for you.
Key Questions to ask:1. How many “Unique Visitors” consistently visit the Partner’s web site(s)?
2. Can they prove it to me?
3. Will they put that information into terms that I can understand? About my market?
AOL
NAD
A G
uide
s
MSN Autos
How easy is it for the shopper to find me on sites that get A LOT of traffic?
How easy is it for on-line shoppers to find my dealership on sites that get a lot of traffic?
The Dealix USED CARS Network We place our Dealer’s inventory on 30+ popular automotive sites, including
UsedCars.com, AOL Autos, Yahoo! Autos, Motortrend and more!
20 million+ nationwide used car shoppers monthly*
What’s the shopping experience like for the consumer?
You should want a well educated, and informed shopper. Make sure you know how the partner goes about educating and informing the shopper
Key Questions to ask:Learn how the consumer is guided through the dealer and/or vehicle selection process.
1. Does the consumer have control in selecting the car(s) that they want to see (New or Used)? Can they choose the dealer(s) that they want to hear from too?
2. Is it easy for the shopper to find the car(s), and the dealer(s) that they are looking for?
3. How thorough a job is done to “merchandise” the vehicle?
How much consideration will my dealership get on the site? Is the “playing field” a level one for my dealership?
Key Questions to ask:
1. What’s the minimum that I have to pay each month just to get my cars listed and shown on the site(s)?
2. What do I have to pay to get the best placement possible on the site in general search results?
3. Is this “best placement” fee included in my base program fee?
On Used Car sites, how easily can a shopper to find my cars?
How well “merchandised” are my cars by the partner?
04/18/2023
04/18/2023
How easy is it to find a dealer’s location, and how many cars they have?
04/18/2023
How good a job is done showing what I have in stock?
How CUSTOMIZABLE is the program?Key Questions to ask:
1. Can I build a program for just one model? (e.g. a “campaign”?)
2. Can I design a model-specific program that allows me to select ANY area (e.g. zip code(s), where I’d like to be seen by its online shoppers)?
3. Can I create a territory that DEFENDS my PMA, AND allows me to selectively CONQUEST in different markets? Can I do this by Model? By Zip Code?
4. How frequently can I CHANGE the programs parameters:a) the model(s) chosen? b) the territories (e.g. zip codes)?c) the amount of $’s that I’m spending?
5. Can the partner provide an accurate LEAD ESTIMATE for the program, in territories that I want, over time, FAST?
How Flexible are the “Territories” that I can create?Territories by Zip at the Model Level…
Territories using a “Radius” around the dealershipTerritories that can EXCLUDE zips that you don’t want
Territories to get into new market areas with unsold opportunities (based on consumer demand) to help you with your conquest marketing strategy.
Can I create unique/different territories for each model that I want as part of the program?
Can I create a campaign where I can:
• Select a specific MODEL(s) to focus on?
• Market to a precisely defined AREA (e.g. zip code range)?
• Set a specific amount of TIME for the campaign to run?
• Set a specific (not to exceed) BUDGET?
• Set up the campaign to run in addition to my “base” program (e.g. for other models?)
Can I create a flexible “campaign” that’ll give me maximum control of my investment?
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Key Questions to ask:
1. Can I get real time insight into how my program is performing for me?
2. How relevant, and understandable, is the information to me?
3. Will it give me a sense of how I’m doing compared to others in my market?
How much real time INSIGHT do I get from the partner on what I’m getting from the program and how I’m performing?
Do I get access to insight and important metrics when I want it?
Do I get access to insight and important metrics when I want it?
Can they compare my Close Rates to those of my Local and National peer group?
Jan Feb Mar Apr May5.00%
5.50%
6.00%
6.50%
7.00%
7.50%
8.00%
8.50%
9.00%
9.50%
10.00%
New Car Close Rate
Retail DealersNational Dealer GroupsTexas DealersPark Place
Can they provide insight on the consumer’s sales cycle, by state?
Make level Close Rates
Domestic
Import
GMC (H
igh O
pportunity
Mak
e)
Porsche (L
ow Opportu
nity M
ake)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
10.7% 10.7%14.7%
6.3%
12.5% 11.2%
10.9%
6.8%23.2% 21.9%
25.6%
13.1%10.3% 8.9% 9.6%
3.7%
Makes Close Rates
New Car Close Rate Used Car Close Rate Total Close Rate Intended Make Close Rate
What are their business terms?
Key Questions to ask:
1. Do I pay any set-up, or fixed fees for placement on the partners site(s)?
2. Can I set a monthly budget, and change it over time?
3. What’s the partner’s pledge to me? Do I pay for just the sales opportunities from the serious, “in market buyers?”
4. Am I offered real-time access on a 24/7 basis to get what I’ve been promised by the partner?
What Pledge will they put behind EVERY opportunity?
• Will you ONLY pay for opportunities from the serious, “in market” buyers?• How easy is the process to exchange opportunities that are not from
serious, in market buyers?
1. Represent an in market and motivated buyer, looking to buy in the next 90-120 days
2. Have a working phone number – for the person who submitted the lead.
3. Originate from an adult– a person 18 years of age or older.
4. Be unique from another lead delivered by Dealix, or received from another source, in the past 30 days. This includes leads from your own website.
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Do I get access to insight and important metrics when I want it?
What’s their reputation with other Dealers?
Key Questions to ask:
1. How long have they been in business?
2. What‘s their reputation? What do other dealers say about them?
3. Is there a place where I can find this out on a real time basis?
What do other DEALERS say about them?
•You’re ready now right??
•Not quite..
•Let’s talk about one more subject….
•How to maximize your ROI with your Independent Internet partners
Get clear on the “math” behind having success on a advertising/lead program
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How much do LEADS vs. how YOU handle them impact your success with the partner?
Your commitment to a PROCESS effective TOOLS to reinforce it
Your team’s “INTERNET IQ”
Your CAPACITY to handle the leads
The LEADS!!
Follow-up Determines Buyer Engagement
• Follow-up by next day is OK – but buyer question(s) must be answered.
– Preference for email-only follow-up with price– Dealers who respond within reasonable time frame greatly increase likelihood of getting vehicle
buyer into dealership– One-quarter of leads did not received a follow-up
Q: How soon after you submit an online price quote request do you expect to receive a response from dealer?
Q: After submitting a price quote request, what type of response do you prefer from the dealer
Q: Did you receive a price quote for the vehicle or which you submitted a request?
Leads Still at Test Drive Stage• Three-quarters of leads have not yet completed a test drive.
– More than half have not even scheduled a test drive
• Dealer follow-up influences decision to take test drive.– 72% likely to take test drive after receiving price quote from dealer
• Vehicle buyers don’t want to waste time at the test drive stage.– Dealers can pull in leads by ensuring vehicle availability and being flexible– Transparency will improve dealer reputation and increase buyers’ trust
Q: How influential are the following factors regarding your decision to schedule a test drive?
Q: Which best describes your activities regarding the scheduling and/or completing of a test drive?
Q: How likely are you to schedule an appointment with dealer who responds to your request for a quote?
Summary & Conclusion
• Independent internet sites and partners are an essential part of any dealer’s marketing mix if they’re looking for more buyers
• You MUST be thorough in the process that you undertake to select your partner(s)
• You must be clear and realistic about the expectations that you set with the partner
• Your dealership will be well rewarded for the time and effort that you put into the process
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Why do we, and others like us, continue to attract new Clients, and satisfy our current ones?
• They need to Grow Sales, and/or to Reduce marketing costs
• They Value the Internet shopper, and want more of them
• Know that not every shopper will come to their website
• Want Control and Flexibility in their marketing program(s)
• Want to minimize the work, and the risk, with a proven partner
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