Best lead sources today for internet leads

[joe.pistell]

This data comes from about 6,500 stores, aggregated by the CRM they all use. Sample size = 4.4 million leads.

From my seat, this is the post of the decade.​

 

[BillVaughnKMC]

From my seat, this is the post of the decade.​

What are some of your reactions to the data?

 

[ryan.leslie]

From my seat, this is the post of the decade.​

I was going to challenge you on this, but I think that Jorts post was MORE than a decade ago.

 

[DanMorgan]

that data is incredible. Has to be a national group. But what amazing info and not surprised by the closing ratios by most of the sites.

 

[joe.pistell]

What are some of your reactions to the data?

Hi ya Bill,

assume that 'par' = for every $grand you invest in a platform:

Marketplace	Close Rate	Performance vs. Par (Over / Under)
Autotrader	9.4%	+46.9% (Over Par)
CarGurus	6.8%	+6.3% (Over Par)
Cars.com	6.6%	+3.1% (Over Par)
Benchmark (Par)	6.4%	0.0% (Par)
CarFax	4.7%	-26.6% (Under Par)
Edmunds	4.0%	-37.5% (Under Par)
TrueCar	3.8%	-40.6% (Under Par)

 

[BillVaughnKMC]

Hi ya Bill,

assume that 'par' = for every $grand you invest in a platform:

Marketplace	Close Rate	Performance vs. Par (Over / Under)
Autotrader	9.4%	+46.9% (Over Par)
CarGurus	6.8%	+6.3% (Over Par)
Cars.com	6.6%	+3.1% (Over Par)
Benchmark (Par)	6.4%	0.0% (Par)
CarFax	4.7%	-26.6% (Under Par)
Edmunds	4.0%	-37.5% (Under Par)
TrueCar	3.8%	-40.6% (Under Par)

We're considering the "no 3rd party" experiment here. I'm not 100% sold that 3rd party is dead. Probably helps we convert higher than all of these numbers. My recommendation was to try the barbell approach first before just dropping everything. Just lean heavy into one of them (most likely AutoTrader).

 

[Alex Snyder]

We're considering the "no 3rd party" experiment here. I'm not 100% sold that 3rd party is dead. Probably helps we convert higher than all of these numbers. My recommendation was to try the barbell approach first before just dropping everything. Just lean heavy into one of them (most likely AutoTrader).

A thought:

About 20 years ago, Honda hired a survey company to call customers who owned Hondas, and they discovered that lessees were thinking about their next vehicle after 18 payments. Most of those people were in 36-month terms, so they couldn't move right then, but they were thinking about it.

We've been looking at engagement activity with the VehicleLyfe app and are seeing similar behaviors, but it isn't just lessees. Even people who paid cash start messing with cars they can buy at ~22 months after buying. This isn't every buyer, but it's significant enough for us to notice.

When people dream, they do it on 3rd-party sites and OEM sites. They don't dream on dealership websites, so you're missing the high-funnel traffic. By being where these folks are dreaming, you're building brand awareness and making impressions. "I wonder if Kirksville still has something like that 4Runner I saw in June?"

It may not directly translate into an attributable lead, but these channels still have value. Whether that value matches what they charge is another story.

 

[BillVaughnKMC]

A thought:

About 20 years ago, Honda hired a survey company to call customers who owned Hondas, and they discovered that lessees were thinking about their next vehicle after 18 payments. Most of those people were in 36-month terms, so they couldn't move right then, but they were thinking about it.

We've been looking at engagement activity with the VehicleLyfe app and are seeing similar behaviors, but it isn't just lessees. Even people who paid cash start messing with cars they can buy at ~22 months after buying. This isn't every buyer, but it's significant enough for us to notice.

When people dream, they do it on 3rd-party sites and OEM sites. They don't dream on dealership websites, so you're missing the high-funnel traffic. By being where these folks are dreaming, you're building brand awareness and making impressions. "I wonder if Kirksville still has something like that 4Runner I saw in May?"

It may not directly translate into an attributable lead, but these channels still have value. Whether that value matches what they charge is another story.

GREAT TAKE.

Somewhat of a correlation here, but we've had so much success with Toyota here that we haven't spent much money specifically on Toyota in YEARS. While sales haven't necessarily struggled dramatically on the Toyota side, I believe it's likely because of where Toyota is than us. BUT we are starting to hear more people again who didn't know there was a local Toyota dealer here.

I believe we are starting to see the consequences of not advertising for Toyota in the long run.