- Nov 14, 2011
- First Name
I have been following this and thinking carefully about this topic. This is the best response on this thread and perfectly illustrates the problem with chasing one metric only to create an unintended consequence.We have used this strategy at a handful of dealers and created some pretty interesting data around it. Right wrong or indifferent, leads are a measure of success for agencies, websites, etc. and this is a way to manipulate that metric.
First, while I don't personally like this tactic, and I don't like the UX, I fully believe that you have to test everything, and then retest it. What we like or don't like is irrelevant.
That said, here is some sample data:
*Of the leads received after locking the prices, approximately 60% included legit contact data.
Average Unique New Car Email Leads per Month Average Unique Used Car Email Leads per Month Before Price Lock 150 250 After Price Lock 600 800 Net Lead Increase* 360 480
Now for the important information...None of the following KPIs were positively affected by the increases in leads: Appointments, Ups or Sales. In some cases these actually suffered.
What did we learn from this?
While creating a lead wall does increase one KPI, it does not increase the bottom line, may actually hurt sales by pissing people off and tie up your resources chasing people who have no intention of engaging, they just wanted to see a price. This tactic only manipulates a stand alone metric, it will not change the number of people in the market to buy a car. It's math.
Here is what we are currently testing with a number of our dealers:
Show a price, but use a strike through and use a "Get Today's Price" type CTA. The key is the strike through, and will increase leads by 100% - 200%. The most important part, however, is the email response from the dealership. It has to clearly explain how the dealership adjusts prices daily and it has to either show a better price based on "today's market value" and/or similar vehicles good, better, best style. Our hypothesis is that this strategy provides the best balance in terms of what the dealership wants, what the customer wants and providing a quality user/buyer experience. While the email content may seem like a basic thing, it's often the break point in the process.
Hope this is helpful!
As dealership employees we feel better when we have a lead, we feel better that our marketing converted into something tangible. The vendor feels better as they can point to something valuable.
However feelings don't sell cars. More tests, more data like this is what we need. We are in the epicenter of this at driven data right now and I look forward to studying this more and reviewing this holistically as Gayle did.
Thank you sir for the review, this was hard to put together and communicate as clearly as you just did.