How to Set Up and Maximize Your Third Party Providers

1. Pg. 50
How to Set 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’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

5. 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?

6. 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!

7. 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?

8. 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

9. 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.

10. 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

11. 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

12. 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

13. How to select an
Independent Internet
partner…

14. 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?

15. 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?

16. 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*

17. 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?

18. 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?

19. 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

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

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

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

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

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

25. How good a job is done showing what I have in stock?

26. 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?

27. 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.

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

29. 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?)

30. 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?

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

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

33. 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?

34. 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.

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

36. 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?

37. What do other dealers say about the partner?

38. You’re ready now right??
Not quite..
Let’s talk about one more
subject….

39. •How to maximize your ROI with
your Independent Internet partners

40. 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!!

41. 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?

42. 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?

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. APPENDIX

47. The Life of a Lead

48. Searching for “New Cars”

49. MSN New Car Lead Funnel: Step #1
Select Vehicle:
Make
Model
ZIP code

50. 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

51. Request a Quote - Select a Dealer Model AOL
MSN Autos
NADA Guides

52. 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