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 443.802.8850david.metter@hooklogic.com