it's all about the show, baby!!
TRANSCRIPT
It’s All About the Show, Baby!
Speaker: David Metter
About David Metter
• President, Automotive, HookLogic• CMO for a large, privately held dealer group for more than six years• Formerly, a GM, sales manager and one of the top Chrysler salesmen
in the country• Leadership position at Autobase, a leading automotive CRM company• Frequent speaker at industry events including
• Digital Dealer• Global Automotive Conference• JD Power Internet Automotive Roundtable
It’s All About the Show, Baby!
Agenda• How To Identify Quality Leads• Processes For Handling Leads• How To Differentiate And Win • How To Identify The Highest Intent To Buy with Great Data• Q & A
What is your biggest challenge….
Is it?
What is your biggest challenge….
*Data courtesy of AutoUSA
What is your biggest challenge….
*Data courtesy of AutoUSA
What is your biggest challenge….
What is Lead to Show?
What is Lead to Show….
Give your staff more opportunities to close sales
The simple math…• Take the total of your “shows” and divide it by the amount of leads• These numbers can be pulled from your CRM or ILM• More important that closing ratio
Shows = 100Leads = 500Lead to Show = 20%
What is Show to Close?
What is Show to Close….
The simple math…• Take the total of your “solds” and divide it by the amount of shows• These numbers can be pulled from your CRM or ILM• More important that closing ratio
Sold Units = 100Shows = 150Show to Close = 66%
How do you improve lead to show? Incentives
Motivate customers to show up.
Give your dealership more opportunities to close sales
Tip Key Decisions so Customers…• Put your store on the test drive short list• Visit your dealership over competitors• Visit your dealership sooner
Motivate Buying Behavior so Prospects….• Walk in without prompting• Seek out sales staff• Enjoy a “feel good” buying experience
that inspires loyalty
Which dealership should I go to?
Google-like bid engine Increase sales for vendors, new revenue for
retailers
What you may not know about HookLogic..
Expedia Extras: Incentives to tip buying decisions
Advanced behavioral targeting engine Campaigns increase sales 50% or more
What you may not know about HookLogic..
What does Incentivizing a prospect do?
The platform is designed to generate additional walk-in traffic that results in incremental sales, at an exceptional ROI.
Prospects Touched by All of Your Marketing
Prospects Who Buy
HookLogic Incentive
Prospects Who Visit Your Showroom
Bef
ore
Aft
er
© 2011 HookLogic
Targeting capabilities
Target the right incentives to the right customers
• Provide different offers to different prospects to maximize ROI
• Vary offers based on prospects preferences, value to your business or likelihood to purchase
• Target offers based on:• Website behavior• Where visitors arrived from• IP geo targeting• Marketing channel• Lead data• …and more!
Incentive A
Incentive B
No Incentive
© 2011 HookLogic
Convert more website browsers into walk-ins
Generate incremental leads for targeted follow up and understand which walk-ins are coming from your website.
Implementation Strategy:•Offer “walk-in” incentive to website visitors demonstrating in-market shopping behavior
•Prospects submit form to receive printable coupon
Historic Performance Results:•2-4% of users who see offer fill out form•25-38% of coupon holders visit with a sales person (Lead to Show rate)
•55-85% of dealership visitors purchased a vehicle (Show to Close rate)
•Cost per Sale: $115-$135
(Suburban – Web Overlay Unit)
(Suburban- Printable Coupon)
© 2011 HookLogic
© 2011 HookLogic
Case Study: The Suburban Collection
Program Goal:• Drive qualified leads to dealerships for test drives
Implementation Strategy:• Target offers to dealer website visitors demonstrating
in-market shopping behavior• Implement an overlay offering an incentive on key pages,
like dealer inventory pages• Capture key customer data on overlay form; deliver
incentive (gift card) after a test drive
Performance Results:• Of all leads generated and offered incentive, nearly 37%
completed a test drive• Nearly 50% of incented leads who completed a test drive
purchased a vehicle from The Suburban Collection
Printable Coupon
“This has convinced the biggest skeptics, and proved that targeted incentives work. Originally, we were concerned that these might just be leads we would have already gotten. However, after reviewing site traffic, it was clear that the sales driven by HookLogic were incremental.” -- Daniel Boismier, Internet Director, The Suburban Collection
Overlay Unit
But what about the rest of the leads…
Target the right incentives to the right customers
• Provide different offers to different prospects to maximize ROI
• Vary offers based on prospects preferences, value to your business or likelihood to purchase
• Target offers based on:• Website behavior• Where visitors arrived from• IP geo targeting• Marketing channel• Lead data• …and more!
Incentive A
Incentive B
No Incentive
© 2011 HookLogic
Processes for Handling Leads
• FACT: People with higher lead scores buy at a higher rate
• Active vs. Passive Lead Scoring• Incent these leads and ensure they
buy from your dealership – not your competitor
Lead Scoring
• Score leads from all sources• Sometimes third-party leads have higher
close ratio than home-grown• Leads are covered from 1-10 based on
likelihood to purchase• Factors taken into account:
• Lead source• In-market timing• Past buying behaviors• Household demographic data
How to Identify the Highest Intent to Buy
• “Cherry-picking” leads by source may allow quality leads to slip through• GOAL: Drive customers with higher leads scores to the showroom
Source: Polk
Improve close rate of inbound leads
Motivate action while lead is still hot – and stand out from the competition!
Implementation Strategy:• Automatically deliver incentives to inbound leads• Offer walk-in incentives to desirable segments• Target on lead score, lead source, geography, etc.
• HookLogic handles delivery of optimized offer via email
Historic Performance Results:• 15-20% of email recipients click to print coupon
• 10-15% increase in overall close rate• Cost per Incremental Sale: $150-$200 (Example Automated Email)
Subject: Thank you gift from <Dealer Name>
© 2011 HookLogic
Case Study: MileOne
Program Goal:• Drive “most likely to purchase” leads into dealership
Implementation Strategy:• Ran AB test to see impact of targeted offers on vehicle sales• 50% of inbound leads with a Polk Lead score of 8-10 received
$25 Gift Card offer via email• Compared results of both groups to see impact on sales• Pilot group of 12 dealerships over a two-month time period
Performance Results:• 23% open and click rate (twice as high Mile One’s typical email
open rate)• 29% of those who clicked through via email redeemed the
incentive at the dealership• 20% lift in close rate• Incremental cost of less than $200 per vehicle• Generated $60,000 more in gross revenue than dealerships
that were not included in the trail
Sample email
“Through working with Polk, we already had a scientific process to identify the online leads with the highest purchase intent. Adding HookLogic to the mix gave us a way to get these prospects into the dealership and turn them into buyers.” –MileOne
FINALIST
© 2011 HookLogic
Lead Enhancement Option : Real-time market segmentation
• Real-time passing of Leads allows for custom Offer targeting based upon multiple Lead variables (Model, Zip Code, Lead Score, etc.)
• HookLogic generates the proper Offer Coupon and passes Coupon Data to customer.
• Coupon ‘Views’ can be tracked
• Unique Codes per each Customer protect against Fraud
Form passes ADF Lead to HookLogic and
Dealer
System generates targeted Offer based upon Lead
Criteria; passes all related Coupon information to
Dealer
HookLogic drops incentive offer into
Customer Email
Customer clicks Link in Email to View Pre-Generated, Printable Coupon
Customer Prints Coupon or Elects to have Code sent via SMS to their Mobile Phone
Coupon Data
HookLogic increases conversion of 3rd party leads
Historic Results:• 15-20% of email recipients click to print coupon• 10-25% increase in overall close rate• Cost Per Incremental Sale: $125-$175
Partnering with the leading data providers…
© 2011 HookLogic
Customers leave trails and footprints…
© 2011 HookLogic
TV
Target the right customer at the right time..
© 2011 HookLogic
Customer learns about incentive
Through new or existing marketing efforts:
• Website• Email• Direct Mail• Print Advertising• Telephone• Mobile• In Person
How it works
1
New Prospects:• Fill out form to receive coupon code• Lead info sent to dealership in email & ADF feed
Existing Prospects:• Receive coupon codes in email or mail
ADF FEED
2 Customer brings coupon to dealership
Seeks out a sales person to redeem coupon. Salesperson gets an easy intro and opportunity to close sale.
3 Sales person redeems coupon
HookLogic delivers incentive.
TargetedIncentive
© 2011 HookLogic
Typical Results
• Historic Performance Results:• 2-4% of visitors shown incentive offer fill out form• 15-25% of coupon holders visit with a sales manager• 25-40% of dealership visitors purchased a vehicle
Differentiate and Win
• What goes into the internet lead process today?• How can you stand out and win more sales?
Hi, thanks for
visiting!
Hi, thanks for
visiting!
Hi, thanks for
visiting!
Dramatically improve the effectiveness of outbound marketing campaigns
Typical Results:• Increase effectiveness
by 15-30%• Received 2% Walk-in
rate on recent Direct Mail Campaign
Examples of outbound marketing campaigns
© 2011 HookLogic
Analytics that PROVE Positive ROI
Measure Key Metrics
• # of walk-ins by offer, dealership or marketing channel
• % of prospects who see offer that take an incentive code
• % of prospects with code that visit dealership / take action
• Tie in with your sales data to analyze cost per sale
Optimize Incentive Campaigns • Test multiple offers across a variety of
channels
• Optimize campaigns and offers to maximize ROI
• Easily change offers on the fly / as needed
(Web Based Reporting 24/7)
© 2011 HookLogic
Historic Results
Historic Performance Results:• 30% increase in overall show rate• 40% increase in overall close rate• Cost Per Incremental Sale: Under $90
• High level of customer engagement• Increased lead-to-show ratio• Higher show-to-close ratio• Strong sales close rate• Increased sales at low incremental cost• Revenue gains
Thank you!…and that’s that!
David MetterPresident, AutomotiveHookLogictel 877.707.0909cell [email protected]