Pg. 50


How to Set Up and
Maximize Your Third
Party Providers

Kevin Hunt
Vice President of Sales
Dealix
Extending your
    Internet Reach
A guide to selecting your Independent Internet
              Marketing Partners

                Kevin Hunt
             VP, Sales – Dealix
Agenda

 1   Extending your Internet reach - Making the case for
     the Independent Internet

 2   Selecting your Independent Internet Options

 3   Maximizing your ROI on the Independent Internet
 4   Summary – Q & A
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


                                                                           First Time
                                                                         Brand Loyalist
                                                                         Brand Defector
     Age/Generation                      Budget                           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 = 460
                                                                        n = 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”
    1   What volume of traffic/exposure will the partner bring to my
        dealership, and how’s the “shopping” experience for the
        shopper and my dealership?
    2   How customizable is the program? Can they accurately estimate
        sales opportunities? Can they scale as my needs change?
    3   How much real time insight do I get with my advertising/lead
        program?
    4   What are their business terms?
    5   What’s the reputation of the partner?
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
                                                 AOL
dealership on sites that get a lot of traffic?


                                MSN Autos
 NADA Guides
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”          Territories by Zip at the Model Level…
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.
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                         Your CAPACITY to handle the leads
effective TOOLS to reinforce it




                                                        Your team’s “INTERNET IQ”
  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   Q: After submitting a price quote request, what type of   Q: Did you receive a price quote for the vehicle or which you
you expect to receive a response from dealer?                   response do you prefer from the dealer                    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: How likely are you to schedule an appointment with dealer   Q: How influential are the following factors regarding your
Q: Which best describes your activities regarding the   who responds to your request for a quote?                      decision to schedule a test drive?
scheduling and/or completing of 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?

 1 They need to Grow Sales, and/or to Reduce marketing costs

 2 They Value the Internet shopper, and want more of them

 3 Know that not every shopper will come to their website

 4 Want Control and Flexibility in their marketing program(s)

 5 Want to minimize the work, and the risk, with a proven partner
APPENDIX
The Life of a Lead
Searching for “New Cars”
MSN New Car Lead Funnel: Step #1




                            Select Vehicle:

                                Make
                                Model
                               ZIP code
MSN New Car Lead Funnel: Steps #2-3




                                   Select Dealer:

                                Retail dealers shown
                              first = more likely to be
                               chosen by consumer;
Enter Contact                     Up to 5 possible
 Information
Request a Quote - Select a Dealer Model               AOL




                                          MSN Autos
 NADA Guides
Territory Customization- New Car Opportunities
                                                         Territory Control:
                                        Target in-market shoppers based on sold by zip
                                              data. No more guessing on territory
                                                       Stair-Step Programs:
 "Precision Targeting allows me to          Target in-market shoppers based on your
eliminate unwanted market areas
 and direct my lead purchasing to                      Stair- Step Program
the exact vehicles I have highest in     Overstocked or Trying to Increase Allocation?
  inventory. Precision Targeting™
   was simple to implement. I am                           No Problem!
  now focusing my lead buy in the         Precision Targeting can help with both needs
 exact areas I want to and getting
 many more sales opportunities at                         Budget Control:
   no extra cost. It's a win win!"     It's your ad spend - you determine how many in-
  - Jaime Webber, Client Care             market shoppers you want per model in the
  Manager of Ray Catena Auto                          targeted zip code area
            Group
                                               Complete Marketing Penetration:
                                       Align Online Marketing to match your traditional
                                                       marketing campaigns

Kevin Hunt "How to Set Up and Maximize Your Third Party Providers"

  • 1.
    Pg. 50 How toSet Up and Maximize Your Third Party Providers Kevin Hunt Vice President of Sales Dealix
  • 2.
    Extending your Internet Reach A guide to selecting your Independent Internet Marketing Partners Kevin Hunt VP, Sales – Dealix
  • 3.
    Agenda 1 Extending your Internet reach - Making the case for the Independent Internet 2 Selecting your Independent Internet Options 3 Maximizing your ROI on the Independent Internet 4 Summary – Q & A
  • 4.
    Where Are Today’sConsumers?  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
  • 5.
    Who Are YouComfortable 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 First Time Brand Loyalist Brand Defector Age/Generation Budget Buyer Type Is it fair to think that all these different buyer types shop on only 1 or 2 websites?
  • 6.
    Are You HurtingSales by Being Too Selective? With So Many Online Choices, Which One is Best? You might be surprised to hear our answer: ALL of them!
  • 7.
    What’s the ConsumerJourney 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?
  • 8.
    JD Power LeadsSubmission 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
  • 9.
    Some insight onlead 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.
  • 10.
    Leads: Ready ToBuy, 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
  • 11.
    Active Research priorto 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 = 460 n = 460
  • 12.
    Dealer Attributes ImpactDecision • 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
  • 13.
    How to selectan Independent Internet partner…
  • 14.
    Some VERY importantquestions to ask when considering what Independent Internet partners to add to your marketing “mix” 1 What volume of traffic/exposure will the partner bring to my dealership, and how’s the “shopping” experience for the shopper and my dealership? 2 How customizable is the program? Can they accurately estimate sales opportunities? Can they scale as my needs change? 3 How much real time insight do I get with my advertising/lead program? 4 What are their business terms? 5 What’s the reputation of the partner?
  • 15.
    How much REACHand 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?
  • 16.
    The Dealix USEDCARS 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*
  • 17.
    What’s the shoppingexperience 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?
  • 18.
    How much considerationwill 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?
  • 19.
    How easy isit for on-line shoppers to find my AOL dealership on sites that get a lot of traffic? MSN Autos NADA Guides
  • 20.
    How easy isit for on-line shoppers to find my dealership on sites that get a lot of traffic?
  • 21.
    On Used Carsites, how easy is it for a shopper to find my cars?
  • 22.
    How easy isit to search by Dealer for a car?
  • 23.
    How well “merchandised”are my cars by the partner?
  • 24.
    How easy isit to find a dealer’s location, and how many cars they have?
  • 25.
    How good ajob is done showing what I have in stock?
  • 26.
    How CUSTOMIZABLE isthe 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?
  • 27.
    How Flexible arethe “Territories” that I can create? Territories using a “Radius” Territories by Zip at the Model Level… 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.
  • 28.
    Can I createunique/different territories for each model that I want as part of the program?
  • 29.
    Can I createflexible “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?)
  • 30.
    How much realtime 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?
  • 31.
    Do I getaccess to insight and important metrics when I want it?
  • 32.
    Do I getaccess to insight and important metrics when I want it?
  • 33.
    What are theirbusiness 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?
  • 34.
    What Pledge willthey 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.
  • 35.
    Do I getaccess to insight and important metrics when I want it?
  • 36.
    What’s their reputationwith 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?
  • 37.
    What do otherdealers say about the partner?
  • 38.
    You’re ready nowright?? Not quite.. Let’s talk about one more subject….
  • 39.
    •How to maximizeyour ROI with your Independent Internet partners
  • 40.
    Get clear onthe “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 Your CAPACITY to handle the leads effective TOOLS to reinforce it Your team’s “INTERNET IQ” The LEADS!!
  • 41.
    Follow-up Determines BuyerEngagement 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 Q: After submitting a price quote request, what type of Q: Did you receive a price quote for the vehicle or which you you expect to receive a response from dealer? response do you prefer from the dealer submitted a request?
  • 42.
    Leads Still atTest 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: How likely are you to schedule an appointment with dealer Q: How influential are the following factors regarding your Q: Which best describes your activities regarding the who responds to your request for a quote? decision to schedule a test drive? scheduling and/or completing of a test drive?
  • 43.
    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
  • 45.
    Why do we,and others like us, continue to attract new Clients, and satisfy our current ones? 1 They need to Grow Sales, and/or to Reduce marketing costs 2 They Value the Internet shopper, and want more of them 3 Know that not every shopper will come to their website 4 Want Control and Flexibility in their marketing program(s) 5 Want to minimize the work, and the risk, with a proven partner
  • 46.
  • 47.
  • 48.
  • 49.
    MSN New CarLead Funnel: Step #1 Select Vehicle: Make Model ZIP code
  • 50.
    MSN New CarLead Funnel: Steps #2-3 Select Dealer: Retail dealers shown first = more likely to be chosen by consumer; Enter Contact Up to 5 possible Information
  • 51.
    Request a Quote- Select a Dealer Model AOL MSN Autos NADA Guides
  • 52.
    Territory Customization- NewCar Opportunities Territory Control: Target in-market shoppers based on sold by zip data. No more guessing on territory Stair-Step Programs: "Precision Targeting allows me to Target in-market shoppers based on your eliminate unwanted market areas and direct my lead purchasing to Stair- Step Program the exact vehicles I have highest in Overstocked or Trying to Increase Allocation? inventory. Precision Targeting™ was simple to implement. I am No Problem! now focusing my lead buy in the Precision Targeting can help with both needs exact areas I want to and getting many more sales opportunities at Budget Control: no extra cost. It's a win win!" It's your ad spend - you determine how many in- - Jaime Webber, Client Care market shoppers you want per model in the Manager of Ray Catena Auto targeted zip code area Group Complete Marketing Penetration: Align Online Marketing to match your traditional marketing campaigns