How to Set Up and Maximize Your Third Party Providers

Kevin Hunt

Vice President of SalesDealix

Pg. 50

Extending your Internet Reach

A guide to selecting your Independent Internet Marketing Partners

Kevin HuntVP, Sales – Dealix

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?

When thinking about a new or used car shopper, they fall into several categories:

Gender Various Lifestyles Economic Factors

Age/Generation Budget

First TimeBrand LoyalistBrand Defector

Buyer Type

Is it fair to think that all these different buyer types shop on only 1 or 2 websites?

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?

JD Power Leads Submission Data• Share of online car buyers who submit leads has remained stable in the high 20’s for many

years.

• Identical behavior of online shoppers under 30 and in 30’s indicates that lead submission rate will not change in near future.

• What would happen if my dealer did not receive these sales opportunities?

AIU: Automotive Internet Usage

Some insight on lead handling…

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 last fall, who had submitted a request for a New Car quote in the past 60 days.

Leads: Ready To Buy, Likely to Switch Brands

• The majority of leads are ready to buy… now.o Over one-quarter plan to purchase within the next 2 weeks

o 53% plan to buy within the next month

• And the majority is planning to switch brands.o 61% are planning to switch from their current make

o Price, mileage and model characteristics are driving this decision

n = 280*

* Universe of Brand Switchers

Active Research prior to Quote Request

• Prior to submitting a price quote, buyers do a lot of research.o Vehicle pricing is the most sought after information

o Active comparison of vehicles – including dealer website visits

• Buyers want specific information from dealers to help with decision making.o Pricing, incentives, and features / specs are most important

n = 460n = 460

Dealer Attributes Impact Decision• Information about dealer shapes decision to submit quote

request.o 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

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?

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 shopper?

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?

How easy is it for on-line shoppers to find my dealership on sites that get a lot of traffic? AOL

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How easy is it for on-line shoppers to find my dealership on sites that get a lot of traffic?

On Used Car sites, how easy is it for a shopper to find my cars?

How easy is it to search by Dealer for a car?

How well “merchandised” are my cars by the partner?

How easy is it to find a dealer’s location, and how many cars they have?

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 zip code(s) that I want (to market in)?

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 territories zip codes?b) the model(s) chosen? c) the amount of $’s that I’m spending?

5. Can they provide an accurate LEAD ESTIMATE for the program and territories that I want, over time, FAST?

How Flexible are the “Territories” that I can create?

Territories using a “Radius” around the dealership

Territories to get into new market

areas with unsold opportunities

(based on consumer demand) to

help you with your conquest

marketing strategy.

Territories by Zip at the Model Level…

Territories that can

EXCLUDE zips that you

don’t want

Can I create unique/different territories for each model that I want as part of the program?

Can I create flexible “campaigns” that’ll give me maximum control of my investment?

Can I create a campaign that will allow me to:

• Select a specific model(s) to focus on, and get opportunities for?

• Set a specific (and preset) amount of time for the campaign to run

• Set up the campaign to run in addition to my “base” program (e.g. for all models?)

How much real time INSIGHT do I get from the partner on what I’m getting from the program and how I’m performing?

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?

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?

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 that you get from the serious and “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.

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 the partner?

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

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

The LEADS!!

Your CAPACITY to handle the leads

Your team’s “INTERNET IQ”

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.

o More than half have not even scheduled a test drive

• Dealer follow-up influences decision to take test drive.o 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.o Dealers can pull in leads by ensuring vehicle availability and being flexible

Transparency will improve dealer reputation and increase buyers’ trust

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?

Q: How influential are the following factors regarding your decision to schedule a test drive?

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

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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APPENDIX

The Life of a Lead

Searching for “New Cars”

MSN New Car Lead Funnel: Step #1

Select Vehicle:

MakeModel

ZIP code

MSN New Car Lead Funnel: Steps #2-3

Enter Contact Information

Select Dealer:

Retail dealers shown first = more likely to be chosen by consumer;

Up to 5 possible

Request a Quote - Select a Dealer Model AOL

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Territory Customization- New Car Opportunities

Territory Control: Target in-market shoppers based on sold by zip

data. No more guessing on territoryStair-Step Programs:

Target in-market shoppers based on your Stair- Step Program

Overstocked or Trying to Increase Allocation? No Problem!

Precision Targeting can help with both needsBudget Control:

It's your ad spend - you determine how many in-market shoppers you want per model in the

targeted zip code areaComplete Marketing Penetration:

Align Online Marketing to match your traditional marketing campaigns

"Precision Targeting allows me to eliminate unwanted market areas and direct my lead purchasing to

the exact vehicles I have highest in inventory. Precision Targeting™ was simple to implement. I am

now focusing my lead buy in the exact areas I want to and getting many more sales opportunities at

no extra cost. It's a win win!"

- Jaime Webber, Client Care Manager of Ray Catena Auto

Group