Zip Code Discrimination Cost Auto Dealers Sales
Posted by admin | Filed under Lead Generation, auto dealers
I’m sure this scenario covers other areas of lead generation just as it does the auto industry, but it’s a topic that the industry in general does not discuss much. It has to do with a sort of wrongfully placed discrimination of zip codes and it’s costing auto dealers nation-wide thousands in car deals each month.
What causes zip code discrimination? While there are other topics that can be discussed regarding zip code discrimination we’ll keep this conversation limited to the fairly standardized way in which auto dealers purchase their auto leads. Typically, they sign a contract with one of the big names you know in the retail lead space and pick out some targeted zip codes. Most auto dealers will choose the primary zip code of their busines and then select a radius of 25-50 miles in which they might be willing to purchase leads.
How are people discriminated against because of their zip code? I can say this with great certainty because I receive emails every day from car shoppers that say something like this. “I live in a rural area and do not have a car dealer in my area. I’m willing to drive 50-75 miles to purchase a vehicle if you can help me.” Car shoppers are unknowingly discriminated against just by not living in the correct zip code or living just outside of a zip code that a car dealer might be willing to accept leads from.
What can be done to stop zip code discrimination? While I won’t pretend to have the best solution, I think it starts with lead generators and lead aggregators educating auto dealers about missed opportunity. Maybe lead generators and auto dealers need to share some of the risk. Maybe the industry developes a tiered system in which a dealer can pay market value for leads within their targeted zones, and then a discounted rated for the wider radius that might present more risk due to the ability to get someone to actually drive 100 miles to the dealership. As a side note, it’s interesting that folks all across the country buy and sell cars on eBay and the cars are shipped or driven thousands of miles to their new owners? Yet, thousands of car shoppers are overlooked because they possibly live 1 mile from a targeted zip code by an auto dealer.
What is Lead Dispatch doing about it? We are currently looking at leads that do not get placed and finding auto dealers willing to work them. If they sell a vehicle we get compensated, if not, we made a best effort to ensure that a potential car shopper and customers got some level of service vs. their application falling into a black hole.
We hope other lead generators and aggregators will join us in finding a better solution than what is available today. It will mean more revenue for lead generators, more potential sales for auto dealers, and more happy customers.
Why Lead Generation Is Like Fishing
Posted by admin | Filed under Lead Generation, Site Info
I was trying to think of a good analogy to describe the process of lead generation and the thought that came to mind was fishing. It doesn’t matter whether we are talking about commercial fishing or hitting your favorite fishing pond. Just as catching fish requires some skill with a bit of luck, so is the art of lead generation. A seasoned fisherman puts in countless hours learning tides, weather patterns, feeding patterns, and a myriad of other factors that can affect the daily catch.
Internet lead generation is no different. The Internet is the ocean we fish in. Our catch or fish are the new leads we generate for our customers. Many times in conversation a customer might bring up the idea of a fixed number or type of leads per day. While it is possible, It’s like telling a fisherman that I want ten red snappers every day before noon. The likelihood of that happening on a consistent basis would be hard to fullfil. Many times a fishing boat will come back into port with the catch of the day. Maybe it’s Cod, Haddock, or Tuna, but no red snapper.
Most fishing communities understand that one fishing boat cannot deliver all of the fish the market or community demands every day. Maybe one boat has five red snappers and another boat has five red snappers. At the end of the day, the buyer got what he or she was looking for. This is why auto dealers rely on multiple lead providers. No single lead provider can deliver all of the leads every day at the quality level that a particular dealership or market might demand.
So what makes a good lead provider? Just as with our fishing analogy, there are fresh leads, quality leads, not so fresh leads, and leads that just plain stink. Over time, auto dealers and lead aggregators recognize lead generators that consistently deliver fresh quality leads. This is the type of company Lead Dispatch is striving to be recognized as.
How do good lead providers consistently bring in a good catch for their customers? Research, knowledge, and a new fishing net every so often. In closing, it is nearly impossible for any lead provider to say with a degree of certainty that they can generate a fixed number of specific leads for their customer each day. But research of the market, knowledge of keywords and marketing strategies that convert, and the ability to test and measure results are critical in developing both the quality and consistency of leads required in a given market place.
Do you have any good fishing or lead generation stories you woul like to share with our visitors?
Multiple or Duplicate Auto Leads: Industry Analysis
Posted by admin | Filed under Lead Follow Up
duplicate auto leads
The image above shows one potential car buyer going through three different companies for nearly one and a half years.
As you can see the first application was initiated on 8/10/2007 and the most previous application generated 2/9/09. What does this say about car shoppers and auto dealers?
Car Shoppers:
- Use the Internet for instant gratification - HELP ME NOW
- Jump to multiple sites - HELP ME NOW
- Persistent - Auto shoppers will keep trying until they find somebody to help them
Auto Dealers:
Even though many auto dealers have a CRM it is apparent that many fall short on long-term follow up with potential customers. Most lead providers have a 30 day duplicate policy. If the lead is less than 30 days old they don’t pay for it, but in the above scenario, the dealership pays for the lead three additional times. What if the dealership worked with this buyer even if they could not purchase the day they came to the store? The customer probably would not have completed multiple applications and the store could have avoided being charged for the same lead multiple times.
It is more important than ever that auto dealers look at every lead as “Timing is of the essence”. The longer a dealership waits to communicate with a potential buyer, the less likely the dealership will be able get that person to their store.
If auto dealers maintain an ongoing relationship with potential customers they are increasing the lifetime value of their leads and eventually reducing the cost of Internet leads.
Again, this is a scenario we see daily across a small handful of dealerships we work with directly. We summize this is a small snapshot of what is occurring in the industry nation-wide.
What are your thoughts on duplicate leads and poor lead follow up?
Automotive Lead Arbitrage: Good or Bad?
Posted by admin | Filed under Lead Arbitrage
For some reading this post you may have never heard the term “arbitrage”. Many lead providers today are engaged in the process of arbitraging leads throughout various networks. Simply put, arbitrage is the making of profit or margin between two markets.
While on one level I don’t see a problem with arbitrageurs making some margin selling leads, I think it is a completely different story when it becomes rampant or abusive. When lead arbitrage becomes abusive everyone looses except for the arbitrageur.
For exemple, many companies or individuals that arbitrage automotive leads may add some value to the equation such as a validation or quality checks, others simply apply the shot-gun principle. Take as many leads as you can grab or “post reject”, throw them out into the marketplace and see what sticks.
For “pure lead” generators such as Lead Dispatch and a few others in the automotive industry that actually generate leads, it’s a loosing proposition for everyone involved to a certain degree. Here’s why:
- Leads that are post rejected or “stolen” may never get placed. The auto dealer loses and the potential customer loses.
- Auto dealers pay more for leads with no inherent value added to the lead.
- Lead overlap - I was told by one lead exchange that there can be as much as 80% overlap on leads that are arbitraged. By the time a lead is broadcast a thousand times no one can tell who actually generated the lead.
- A post rejected lead typically becomes a duplicate across the lead network when it never got placed
- Many engaged in lead arbitrage flat out “steal” by offering a high bid or price for a lead and then once the data is posted, they post reject the lead keeping and selling the data. While many may say they don’t engage in this our research proves the contrary.
- As an industry, we are doing a disservice to the consumer. We seem to forget that at the end of each application or quote is a “real” person looking for our help to solve a problem, not just a piece of data to be traded.
So what can be done?
Until the industry cleans itself up, “pure lead” generators need to stick together and find some interim solutions. Lead Dispatch is looking to offer a few creative solutions for auto dealers and lead providers with retail customers:
- Lead Providers - we can become an extension of your marketing and lead generation efforts by offering enhanced marketing for you in key geographic areas or zip codes. Additionally, we can offer a fixed contract price for leads in specific zip codes. You get exclusivity at a potentially lower cost than leads that go through the bidding process.
- Auto Dealers - We can become your direct lead provider, putting our knowledge and expertise to work for your dealership by sending leads directly to your CRM while saving you money on your Internet advertising.
What are your thoughts on lead arbitrage in the auto industry? Share your thoughts with our visitors by registering for a free account today.
Give us a call today to discuss your Internet lead needs:
Lead Dispatch International
Coppell, Texas
214-432-0613
Leads: Time Is Of The Essence
Posted by admin | Filed under Lead Follow Up, Lead Generation
Occasionally I receive a refund request from other lead brokers or auto dealers that want a refund on a lead in which the explanation for the request is “Customer Already Bought” or “Customer Already Bought Car” or something similar.
I believe this is and will be an area of huge improvement for lead brokers and auto dealers in 2009. “Time is of the essence” is a common phrase you’ll find in a legal contract, but it also applies to Internet shoppers. Typically, when someone is searching for a product or service on the Internet they are looking for instant gratification.
As a company that generates loan applications for auto dealers across the country, we see it all to often with email inquiries within minutes after a customer completes the application. They typically ask how long it will take for someone to get back to them and if they qualified for a loan.
For auto dealers to be more successful in 2009 I believe they will have to put more focus and emphasis on quickly getting back to customer.
Just after the .com bubble burst nearly 10 years ago I worked for a start-up Internet telephony company. We helped Mercedes Benz USA implement a web based click to talk solution. Sales people took turns with a shared cell phone that received all of the incoming calls from the Internet. It was so successful with some of our test stores the salespeople would want to take it home in the evening and on weekends. Why? they new that someone calling from the website was highly interested in their vehicles.
In the same fashion, someone completing an vehicle quote or loan application is also a highly interested shopper or buyer. I believe the next phase or evolution in leads will not just for the lead to go to the dealer’s CRM, but also to the salesperson’s cell phone as a text message.
The key is sales people or dealers need to treat every incoming lead with a sense of urgency understanding that “time is of the essence”. Web shoppers won’t sit idle, good credit or bad credit waiting 24-72 hours for someone to contact them. They will move onto the next web site or auto dealer that can help them immediately. It’s up to the industry to adapt and change if auto dealers want to close more sales in 2009.
Note: There are a couple of lead providers that are currently offering text messaging to cell phones. The question is how tightly is the text communication tied to a CRM or lead management system in the event a sales person does not follow up.
Tags: auto dealer leads, automotive lead technology, cell phone leads, click to talk, crm, lead management system, sell more cars in 2009, selling more cars in 2009, time is of the essence
Are Customers Using Vulgar Language?
Posted by admin | Filed under Lead Over Validation
In continuing on lead over validation in the auto industry; are you loosing potential customers that live on streets with pornographic or vulgar references?
I’ve seen another new post reject flag “bogus or vulgar data”.
Seems that if you have customers that live on “Cummings Rd.”, “Cumberland Drive”, “Titan Dr.”, or possibly “Dickerson Drive” their applications will be rejected for bogus or vulgar data. Again, I think everyone’s intentions are well ment, but at the end of the day it means more potentially legitimate customers don’t get to talk with you the auto dealer about purchasing a new or used vehicle.
What are your thoughts on lead over validation?
Tags: Lead Over Validation, vulgar data
More Lead Over Validation
Posted by admin | Filed under Lead Generation
In looking through my post rejects this past week it appears that the lead industry… the auto lead industry is again coming up with more methods of over validating data. One of the post reject codes I’m seeing is “suspicious phone number” or “suspicious employer”.
When researching the post rejects further it was discovered that a policman’s application was rejected because he was retired. On another application, a military person was rejected because he put his employer as usaf. We all know this is the United States Air Force.
Point is that in both cases these apps are now in the system and will stay there for 30 days as duplicate leads if they are resubbed or the person completes an application on another site.
For the lead generator, they’ve lost potential revenue on these leads that cannot be recovered.
Tags: internet lead validation, Lead Over Validation, lead validation
Auto Dealer Leads: An Alternative
Posted by admin | Filed under Lead Generation
Auto dealer leads shouldn’t be complicated, but the automotive lead industry has brought scrutiny upon itself. Leads that get resold multiple times, lead theft between brokers and lead consolidators, and auto dealers that have gotten lazy.
Lead Dispatch would like to offer an alternative to auto dealers looking to generate leads for their dealership(s). Lead Dispatch will work with you directly as your Internet marketing partner and put together a tailored PPC and organic SEO campaigns exclusively for your store. The best part is you don’t pay unless we perform.
We currently manage over 1 million keywords on Google, Yahoo, and MSN including some tier 2 search engines. Several of our current dealership partners are seeing 30% or more in organic lead generation as a total of all leads generated.
How else do you win? No complicated fax forms or headaches to return a bad lead. If a bad lead is generated… no problem, you don’t pay for it. Also, we’re not looking to replace any current lead providers that might be providing you with good service. We are happy to work with you as another extension or your overall marketing strategy.
Call Richard today at 214-432-0613 for a no-obligation phone consultation to discuss your online marketing efforts or Twitter us at http://twitter.com/internetleads/
Tags: auto dealer leads, auto dealers, auto lead generation, automotive leads
Internet Leads: Does One Size Fit All?
Posted by admin | Filed under Lead Generation
Here’s an article we posted recently with regard to the industry attempt to make one lead fit all every buyer.
Check it out here: Internet Leads: Square Peg Round Hole
Internet Leads: Over Validation
Posted by admin | Filed under Lead Generation
Lead over validation is the automated process of scoring leads too tightly without any human checking or intervention. This process causes valid leads to be post rejected or declined at the ping resulting in fewer “valid” leads to those who need them and overall reduced customer service to our online clientele.
This is where Lead Dispatch feels the lead generation community has got it all wrong along with the end user, or retail customer buying leads such as auto dealers or realtors. We do not want to say there is not a need for strict data scoring in some cases, but let’s stay focussed on what a real lead is. (See - What is a lead?) - Enough information to contact a ready and willing prospect for your product or service.
Let’s explore some examples below of Internet lead over validation and typical outcomes:
- Email Validation - This is a poor data field to post reject a lead on as there are numerous reasons an email address may not validate (network outage, fat finger, email filtering, dns issue, black list, etc.) If phone numbers and address are all valid, call the prospect and ask for a valid email address. This is still a good lead.
- Word Validation - Some lead systems validate data fields to check for vulgar words or common fake names such as Mickey Mouse. Over validating can cause false scoring resulting in names like Virginia being post rejected as a vulgar word for containing “virgin”. Word validation should be filtered to a function where human intervention can confirm manually that the lead name is truly false or just allow the retail customer to receive a credit on a bad lead. (Let’s keep it simple)
- Social Security Number - Many lead wholesalers and retail customers will reject a lead missing a social security number. This is foolish in our opinion. Many folks still feel uncomfortable giving out their socials over the Internet and many wage earners with higher than average incomes don’t want to provide their socials until they meet with the salesperson. Consider this, do you really want to miss out on a potential customer just because they don’t want to provide a social security number over the Internet? is the relevant lead information enough to contact the prospect and set an appointment?
- Phone Numbers - As with email validation, automated phone validation can have its own issues as well. Someone can move, change numbers, phone can be in the name of a spouse, outdated phone directory information or a temporary phone outage as we have seen in numerous cases.
- Zip Codes - We like to call this “lead discrimination” and will be posting some more information on this soon. This occurs when a possible prospect or customer is rejected at the ping or post rejected because they have the wrong zip code. Think about it… if a zip code is off by one digit and being adjacent to an acceptable zip code, that individual or entity is left in the dark wondering why no one will call them. This can be solved with better communication between lead generators, wholesalers, and the retail buyer by asking the prospect completing an online form how far they might be willing to travel or allowing some flexibility in zip code validating to ensure adjacent zip codes don’t go unserviced needlessly.
- Others include - Income, Length of employment, Job Title all of which are subject to being validated incorrectly.
The consequence of leads being over validated on one or multiple fields is that the end user (auto dealer, Realtor, etc.) will miss out on potential business and the online customer becomes frustrated because of little or no communication on the status of their request. Additionally, that online customer is out of play for 30 days as their information cannot be resubmitted over the trading network as it is now deemed as a duplicate lead.
Lead over validation primarily affects the lead generator from a business perspective as lead brokers and retail lead buyers routinely expect the lead generator to absorb the loss of potential revenue on good leads that are falsely rejected. Lead Dispatch is calling the industry out to resolve this issue collectively.