1. Lead Management Process

4. Courtesy has an Internet Department… Does it have Integrated Marketing? “ Consumers are flocking to the Internet to initiate car buying, with 27% requesting a price quote from a dealer online. But the flood of 1.8 million leads monthly results in just a trickle of 165,000 sales, and an appalling lack of control means that this potentially profitable channel instead costs OEMs and dealers hundreds of dollars per vehicle it sells. Automakers and dealers must tighten lead management processes and merge online leads into their overall marketing strategies to boost sales and drive down costs.” - Mark Dixon Bünger; Forrester Research, 6/14/2005

5. Number of leads received and vehicles sold each month ¹ ¹ Source: Nielsen, Wards’s Dealer Business , Automotive News and Forrester Research 9.2% Avg. Close Ratio 3.5% UV/Lead Ratio 57% Response Rate

7. Attributes of Dealer Responses to Sales Leads and their Correlation, or Impact on Customer Satisfaction and Sales Closing Ratios Prepared by: Ralph Paglia [email_address] 505-301-6369

9. A: Increasing Closing Ratios is not “Just About” Response Times… Q: Why the variations?

10. Learn Why: www.AutomotiveDigitalMarketing.com

11. Learn Why: www.AutomotiveDigitalMarketing.com

12. *Survey Respondents received Emailed Survey invitations that were sent 24 hours after they had submitted an inquiry (Lead)… 77,000 Surveys Received during Q1, 2003 Impact of Dealer Response Attributes on Customer Satisfaction : 93% 21 37% 76% 39% Dealer Responded using Customer’s Preferred Communication Method 44% 34 30% 90% 60% Customer Received Price Quotes from Dealer 49% 27 24% 85% 61% Customer Contacted more than once by Email and Telephone 52% 38 34% 89% 55% Dealer Confirmed Availability of Vehicle(s) for Sale and Delivery 87% 53 69% 82% 13% Dealer Showed Genuine Interest in Customer’s Wants & Needs 94% 12 24% 75% 51% Dealer Acknowledged Customer Request 59% 29 26% 84% 58% Dealer made Direct Phone Contact with Customer after sending Email % of ALL Respondents who DID Experience the attribute Statistical Correlation Factor of attribute with Customer Satisfaction GAP Completely or Very Satisfied who DID Experience the attribute Completely or Very Satisfied who DID NOT experience the attribute Dealer Response Attribute Experienced by Customer within 24 hours* of Submitting Lead

13. Impact of Dealer Response Attributes on Vehicle Purchase : *Survey Respondents who Purchased a Vehicle were identified via RDR data cross reference and match, Surveys sent 24 hours after lead submitted, sales tracked 90 days 93% 1 2% 23% 21% Dealer Responded using Customer’s Preferred Communication Method 44% 9 8% 27% 20% Customer Received Price Quotes from Dealer 49% 5 4% 25% 21% Customer Contacted more than once by Email and Telephone 52% 3 3% 24% 22% Dealer Confirmed Availability of Vehicle(s) for Sales and Delivery 87% 2 2% 23% 21% Dealer Showed Genuine Interest in Customer’s Wants & Needs 94% 1 2% 23% 21% Dealer Acknowledged Customer Request 59% 11 9% 27% 17% Dealer made Direct Phone Contact with Customer after sending Email % of ALL Respondents who DID Experience the attribute Statistical Correlation Factor of response attribute with Vehicle Purchase GAP % of Purchase* among the Respondents who DID Experience the attribute Purchase Respondents* who DID NOT experience the attribute Dealer Response Attribute Experienced by Customer within 24 hours* of Submitting Lead

14. Impact of Lead Response Attributes on Vehicle Purchase : *Survey Respondents who Purchased a Vehicle were identified via RDR data cross reference and match, Surveys sent 24 hours after lead submitted, sales tracked 90 days 93% 1 2% 23% 21% Dealer Responded using Customer’s Preferred Communication Method 44% 9 8% 27% 20% Customer Received Price Quotes from Dealer 49% 5 4% 25% 21% Customer Contacted more than once by Email and Telephone 52% 3 3% 24% 22% Dealer Confirmed Availability of Vehicle(s) for Sales and Delivery 87% 2 2% 23% 21% Dealer Showed Genuine Interest in Customer’s Wants & Needs 94% 1 2% 23% 21% Dealer Acknowledged Customer Request 59% 11 9% 27% 17% Dealer made Direct Phone Contact with Customer after sending Email % of ALL Respondents who DID Experience the attribute Statistical Correlation Factor of response attribute with Vehicle Purchase GAP % of Purchase* among the Respondents who DID Experience the attribute Purchase Respondents* who DID NOT experience the attribute Dealer Response Attribute Experienced by Customer within 24 hours* of Submitting Lead Learn why: www.AutomotiveDigitalMarketing.com

16. *Survey Participants who Purchased a Vehicle were identified via RDR data cross reference and matching with Internet Lead Data RCS Marketing research (Q1, 2003) confirms the Best Practices collected during “Best In Class” Dealer Benchmark studies. How to sell more vehicles to customers that submit Internet leads… Without relying on opinion or seat of the pants management! Results Proven Best Practices #4 #3 #2 #1 Top 4 Ways to Close More Sales to Leads Received 11 27% 17% Make Direct Phone Contact with Customer (after sending Email w/availability & prices) 9 27% 20% Send Price Quotes by Email to Customer 5 25% 21% Contact Customer more than once by Email and Telephone (within First 24 Hours) 3 24% 21% Make sure Customers are either Completely or Very Satisfied with the Lead Response Statistical Correlation Factor of Response attribute with Vehicle Purchase % of Purchase* among the Leads who DID Experience the attribute Purchase Respondents* who DID NOT experience the attribute Dealer Response Attribute Experienced by Customer within 24 hours of Submitting a Web based Inquiry (Lead)

17. *Survey Participants who Purchased a Vehicle were identified via RDR data cross reference and matching with Internet Lead Data Marketing research (Q4, 2009) confirms the Best Practices collected during “Best In Class” Dealer Benchmark studies. How to sell more vehicles to customers that submit Internet leads… Without relying on opinion or seat of the pants management! #4 #3 #2 #1 Top 4 Ways to Close More Sales to Leads Received 11 27% 17% Make Direct Phone Contact with Customer (after sending Email w/availability & prices) 9 27% 20% Send Price Quotes by Email to Customer 5 25% 21% Contact Customer more than once by Email and Telephone (within First 24 Hours) 3 24% 21% Make sure Customers are either Completely or Very Satisfied with the Lead Response Statistical Correlation Factor of Response attribute with Vehicle Purchase % of Purchase* among the Leads who DID Experience the attribute Purchase Respondents* who DID NOT experience the attribute Dealer Response Attribute Experienced by Customer within 24 hours of Submitting a Web based Inquiry (Lead) Visit and Join: www.AutomotiveDigitalMarketing.com

22. Offer alternatives Provide value-added content Be conversational – (“smile”) Be clear and to the point Create desire Create sense of urgency Give reasons to choose dealership Ask for appointment - logically Setup choice close Ensure professional content Confirm availability Quote prices Setup follow-up call Manage customer expectations The Science of using Email Templates for improved direct contact ratios and sales results Offer Product Presentation Proven Best Practices

30. Wolfe Automotive Group; Kansas City, MO DP: Jeff Wolfe IMD: Mark Vickery (Consultant:: Ralph Paglia) Wolfe Auto Group Internet Sales Linear Trendline Analysis First 19 months with Paglia LMP

31. 9/13 @ 11:54 AM

32. Thank you for your inquiry on the 2003 Honda Accord EX. Below you will find information regarding the vehicle that most closely matches the vehicle you selected, along with other important information for you. You can view our entire inventory online at: www.jaywolfehonda.com In addition, here are a few other vehicles we selected, based on your inquiry, that you may want to consider: Additionally, the manufacturer may offer special APR’s (interest rates) on select models that are subject to credit approval. Email Response Analysis Year-Make Model Invoice MSRP E-Price Stock # 2003 Honda Accord $19,900 $22,060 $20,400 H31155 Year-Make Model Invoice MSRP E-Price Stock # 2003 Honda Accord $15,407 $16,260 $15,907 available 2003 Honda Accord $17,698 $19,660 $18,195 H32068 2003 Honda Civic $15,094 $16,470 $15,194 H32098

34. The most successful eBusiness Dealers focus on scheduling an appointment by using a form that has a dual purpose of “Information Gathering Tool” and suggested Phone Script during each call… Let’s take a closer look at this tool and how it is used by dealers... Phone Follow-up Analysis Call Made Within 15 Minutes (secret sauce)

37. Before Visiting First Dealer After Visiting First Dealer 89% of Internet Users Go Online Before Visiting a dealership 59% Go Online 3 weeks or more before visiting a dealership Based to IUs

38. Do Dealer web sites generate showroom traffic and phone calls… In addition to the Internet leads we’ve come to expect? 1 Based to total respondents 2 Based to those respondents who pre-contacted dealer by telephone or e-mail. Multiple responses allowed. All Internet Users (IU) Who Visited Dealer after visiting Dealer or OEM Web Site YES ¹ Pre-Showroom Visit Dealer Contact 1 Contact Method 2 Email ² Phone ² Dealers May Not Realize the Showroom Visit or Phone Call Originated from Integrated Marketing… Direct Showroom Visit 1

39. Internet Leads + Phone Leads + Showroom Visits = Integrated Marketing What does this mean? Internet Leads + Phone Leads + Showroom Visits = Integrated Marketing 2,564 1,928 [(200/.39)/ .21]x.79 436 (200/.39)x.85 200 1,924 1,447 [(150/.39)/ .21]x.79 327 (150/.39)x.85 150 1,282 964 [(100/.39)/ .21]x.79 218 (100/.39)x.85 100 641 482 [(50/.39)/ .21]x.79 109 (50/.39)x.85 50 Total Traffic (Lead+Phone +Showroom) Showroom Traffic from Dealer Web Site Visitors formula Phone Calls from Dealer Web Site formula Web Site Lead Volume

40. Vehicle Shopper Behavioral Profiles ¹ 1 Profile Index of 100 equates to the industry average Internet Users (IU) Non-Internet Shoppers (NIS) Non-Internet Users (NIU) Time Investors 137 37 50 Product Experts 113 76 85 Price Sensitive 112 73 91 Dealerphobes 112 89 74 Empowered Negotiators 100 96 103

41. Based to IUs * Small sample

42. Based to All IUs * Small sample