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Stop wasting money on valuable opportunities:

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Stop wasting money on valuable opportunities: How to optimize your 3rd party lead program and sell more cars 1 Tiff Arcella Director of Sales, National Accounts & West Division


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Topics Current state of the consumer How to select a 3rd party lead provider How to optimize 3rd party lead programs Best practices for lead follow up


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Who is Dealix? Silicon Valley pioneer in generating quality leads to Dealers Trusted Partner: Awarded #1 in dealer satisfaction (by Dealers) on DrivingSales.com 5 years in a row Largest reach of any advertising partner: 33 million unique (New Car) and 22 million unique (Used Car) Proprietary predictive technology to guide consumer through the buying journey Founded in 1997 Headquartered in Redwood City, CA with offices in Cambridge, MA A business unit of ADP Dealer Services Own and operate UsedCars.com Largest Network of Partners across the Independent Internet Merged with Autotegrity 2014


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Then and now A look at current online car buyer behavior


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Let’s take a look back SHERMAN, LET’S SET THE DIAL FOR 2002 AND TRY TO SHOP FOR A CAR ONLINE


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Let’s take a look back You’ve come a long way, baby!


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Car buyer trends Online car buyers are making purchase decisions faster… …because so much information is now easily available online. Information gathering is expensive because no single site covers everything. But independent auto sites are valued the most for their objectivity.


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Brand and Model choice can be influenced during the buying process Google 2012, Constant Consideration


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Buyers are choosing less dealers to visit and don’t visit until right before they purchase AND JD Power 2012, Sales Satisfaction Index (SSI) Study Cap Gemini 2012, My Car, My Way


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So, how does this information fit into your overall digital marketing strategy? Let’s get real


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Some myths are not myths at all + =


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But, let’s face it most are =


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Top 5 myths about lead partners 3rd party lead companies are dying Nobody fills in lead forms anymore If they do, all they want is a price The lead information is bogus 3rd party lead providers resell leads to multiple dealers, and recycle consumers


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Top 5 myths busted TRUTH: Lead Providers Are Thriving June, 2013: Significant Growth In Mobile Fuels Double-Digit Increase In AutoTrader.com Traffic Dec, 2013: Paul Allen's Vulcan Capital Invests $30 Million In TrueCar.com Feb, 2014: Autobytel Reports 22% Increase in 2013 Fourth Quarter Revenues; 17% Full Year Improvement Feb, 2014: Dealix announces Dealer Satisfaction Rating Award for New and Used car advertising on DrivingSales.com Myth #1: 3rd party lead companies are dying


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Top 5 myths busted Myth #2 Nobody fills in lead forms anymore TRUTH: Lead form activity has remained consistent, decreasing only 2 points since 2008 to over 26% Source: JD Power, New Auto Shopper Study, 2013


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Top 5 myths busted Myth #3: If they do, all they want is a price TRUTH: A consumer that fills in a lead form is an opportunity, answer their questions, YES, including PRICE, and they will reward you with their business.


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Top 5 myths busted Myth #4: The lead information is bogus TRUTH: Quality leads are our top priority. Every lead is instantaneously “scored” against the nation’s telephone databases, plus our own proprietary knowledgebase. Shoppers past history is matched to exclude any consumer that has put in a lead form in the last 30 days. Dealix backs their leads with a “Quality Pledge” to ensure any errant leads that don’t meet stringent requirements are returnable for a new opportunity. Did you know? The “Scrubbing process eliminates Approximately 25% of all lead forms Source: Dealix Platform Study


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Top 5 myths busted Myth #5: 3rd party lead providers resell leads to multiple dealers Consumers select the amount of dealers to be contacted by. On the Dealix network, that number is only 1.5 dealers TRUTH: Lead forms are consumer select


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Now that you know…How to create a winning strategy Selecting the right advertising vendor for your dealership


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How to assess independent internet lead providers Key questions: What volume of traffic/exposure will the partner bring to my dealership? How is the “shopping” experience for both 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 is the reputation of the partner?


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How much exposure do they offer How many “Unique Visitors” consistently visit the Partner’s web site(s)? Can they prove it? What metrics are they using? Will they put that information into terms that I can understand? About my market? How easy is it to find me on top 3rd party sites?


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How easy is it for the shopper to find me on sites that get A LOT of traffic?


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What’s the shopping experience like for the consumer? Learn how the consumer is guided through the dealer and/or vehicle selection process. 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? Is it easy for the shopper to find the car(s), and the dealer(s) that they are looking for? How thorough a job is done to “merchandise” the vehicle?


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Toll-Free Phone Number Premium Seller Dealer Badge Dealer’s Name and Contact Info Chat Presence Pre-Calculated Kelley Blue Book Savings What are your merchandising options? Up to 32 vehicle pics


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26 How easy is it to find my location, and how many cars I have?


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11/25/2014 27 How good a job is done showing what I have in stock?


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28 How CUSTOMIZABLE is the program? What are the territory configuration options: Can I build a program for just one model? 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)? 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? How frequently can I CHANGE the programs parameters: the model(s) chosen? the territories (e.g. zip codes)? the amount of $’s that I’m spending? Can the partner provide an accurate LEAD ESTIMATE for the program, in territories that I want, over time, FAST?


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11/25/2014 What are the territory configuration options Territories by Zip at the Model Level… Territories using a “Radius” around the dealership … Territories 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.


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30 Can I create unique/different territories for each model?


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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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32 How much key insight do you get and how easy is it to understand? Can I get real time insight into how my program is performing for me? How relevant, and understandable, is the information to me? Will it give me a sense of how I’m doing compared to others in my market?


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33 Do I get access to insight and important metrics when I want it?


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34 What are their business terms? Do I pay any set-up, or fixed fees for placement on the partners site(s)? Can I set a monthly budget, and change it over time? What’s the partner’s pledge to me? Do I pay for just the sales opportunities from the serious, “in market buyers?” Am I offered real-time access on a 24/7 basis to get what I’ve been promised by the partner?


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35 What “pledge” will they make? 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? Represent an in market and motivated buyer, looking to buy in the next 90-120 days Have a working phone number – for the person who submitted the lead. Originate from an adult– a person 18 years of age or older. 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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36 What’s their reputation with other Dealers? How long have they been in business? What‘s their reputation? What do other dealers say about them? Is there a place where I can find this out on a real time basis?


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Who you work with matters…


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Resources for vendor reputation When in doubt, ask another dealer… DrivingSales.com Or a trusted expert!


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BEST PRACTICES Getting the most from your third party leads program


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Process is the key to lead handling success 40 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!!


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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 41


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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


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Key takeaways Independent internet sites and partners are an essential part of any dealer’s marketing mix Choose a partner with the volume of traffic and exposure necessary to grow sales The shopper experience is important to my brand recognition and reputation Without easy to use customization, you may be wasting money and opportunity. Who you choose to work with matters: From their business terms to their people. Your process matters! Be relentless in creating a thorough lead handling process, based on personas. 43


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THANK YOU! FOR MORE INFORMATION: www.dealix.com Tiff Arcella Email: tiff.arcella@adp.com


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