While we’d all like to drive more leads with organic search and SEM, 3rd party lead providers are still a necessity among some dealers. With all of the various sources how many different sources are you using for new car leads (eg Autotrader New Car Leads, Cars.com New Car Leads, AutoUSA, Dealix, Autobytel, KBB, Edmunds, etc etc). With, for example, a smaller radius some of the lead sources can be a good source of incremental new car sales with respectable closing ratios. Thoughts?
Hi Chris, Have you ever considered using direct mail as a source for new car leads? Direct mail campaigns can be an excellent way to let 20,30,40 or 50,000 people or more know exactly where your showroom is. And it doesn't always have to mean your conducting some ridiculous "slasher sale". Or, mining your sales and service database for "visiting customers" in your service department and those who are nearing an equity position. We offer many solutions and would happy to discuss them with you at any time. Our dealers are currently experiencing overwhelmingly high levels of results, so if you haven't done mail before or even if you have, this could still be a great time. And it will drive traffic to your store IMMEDIATELY!
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Contact me, Matt Staton at 440-622-5000 or firstname.lastname@example.org
Chris, Narrowing the scope on the lead generation with a tighter radius doesn't always produce the result you might think. Poor quality leads can come at any distance from home. The delineating factor one should always consider when looking for leads are: are they self generated, what criteria quantifies the leads, what is the national charge back on the providers leads.
As a provider of Subprime leads I am often asked your last question as the determining factor is one's decision to purchase my leads, CLOSING PERCENTAGES!
For this I use 4 qualifying questions and place the burden of the answer back on the dealer in this fashion. What is Your Product? I won't sell Subprime leads to a dealer who does not have the proper inventory to meet Lender Requirements. It takes a highly qualified CAR BUYER trained in Subprime Lending to know what Shoe to buy for these sometimes very large feet.
What is your Pricing Matrix? Are your vehicles so highly discounted that you could never absorb the buy fees for a Subprime Deal?
What Personnel are handing your leads. Having a well trained and dedicated Internet Department is a must in the 21st century. Anyone can run a piece of paper back and forth from the Sales Desk to the BOX but it takes a significantly higher level of personal skills to properly work an Internet Lead.
The last question revolves around the Process. I encounter dealers to this day who will PRINT an internet request for assistance with an Automobile purchase and a Sales Manager will simply hand it over to the first hound he runs across on the sales floor! This is not a very PRODUCTIVE PROCESS! Dedicated and Properly Trained Sales Professionals who do nothing but hone their communications skills should only EVER be the persons to handle an Internet Lead. Leads are consuming more of a dealers advertising budgets and to have a piece of paper sitting in the top drawer of a retail salesman's desk that made ONE single phone call before considering the lead DEAD is a waste of Money and Dealer Profit.
My better dealers who have ALL 4 of the P's covered are closing 20% of my leads. The bottom of the scale is still closing 10%! Any dealer who says they are closing higher than 25% or more is not using an ORGANIC lead sources and should be closing much higher than 25% of their own store generated leads.
contact me at 7196846227 or Jeff.S@NexAuto.com
Chris, I generated enough leads with my website and third party display advertising (AutoTrader and Cars.com) that I dropped all of my other lead providers. I didn't even buy the third party leads from the manufacturer. We were a Alpha, Premium dealer with AutoTrader and had new and used car specials with Cars.com. We closed 20% of our leads and accounted for 70% of new and used car sales for the dealership. A Group 1 store, we became the volume leader but our budget was only average for the group.
Direct mail never really left but if you think it did...Direct Mail is Back!
Every Door Direct Mail should go mainstream in 2013. If targeting a specific area fits your dealership, then EDDM can work for you.
One important piece of advice--> The copywriting is key. Your targeting is geographical only so the copywriting better be masterful. Don't just offer to sell them a car. Give something of value in exchange for contact information. Do this steadily and build up your own lead database that you KNOW is real, and advertise to 500, 5000, or more.
Dealer Profit Pros