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I have a friend who works for a major automotive lead provider... She sent the following bullet pointed lists to me, and asked that I do not disclose her identity. She copied these lists out of an email that her company's newest VP (who came from True Car and worked directly for Scott Painter) sent to their internal team.
Select Affinity Partners (No-Haggle Auto Buying Program) – Zag traditional model – only premium dealers get these leads
Distribution Partners (TrueCar Price Reports)
I am posting this to the ADM Forum section to generate discussions around the topics referenced in each section and the bullet points that follow... What is your opinion or insight on the listed sections shown?
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Please feel free to use this short-cut URL to refer people to this discussion and to get here without having to start at the ADM Showroom page...
No, they didn't want to be paid, actually, because it was in our agreement that they wouldnt be. ADF/XML leads are time-stamped. I just created a report each month which I sent to each vendor showing which leads I should be credited for.
I was replying to Mike. TrueCar most DEFINTELY demands to be paid on leads that match your system. One dealer reported a customer of 19 years was one of the leads TC demanded payment on.
It just ain't what you dealt with before, Arnold.
I didnt say it was. I would certainly review any contract before signing up and, if a vendor wasnt willing to agree to any terms I needed, I wouldnt sign up with them. I only said I liked performance-based models for leads when I was in retail. Im not saying I would sign up for TrueCar. It depended on what their contract said and what, if anything, I would want them to change and their willingness to do so.
Keith, Couldn't your "we would've sold those cars anyway" argument be applied to ANY NEW car advertising? Why market your inventory anywhere seeing as you wouldve sold those cars anyway? Please differentiate TrueCar vs. Edmonds or AutoTrader or the newspaper or any other form of new car advertising for me.
Arnold, Truecar doesn't charge the dealer if you can demonstrate that you had contact prior to the Truecar certificate being printed. I just wonder how many dealers are actually checking their CRM for these customers. I blame the dealers for not checking, I don't blame Truecar. This is one of the things they got right with their program but I'm sure they offer this because they are confident that many dealers won't check. It reminds me of auto-renewal subscriptions and free trial offers. These companies know that there is a large segment of the population that are too lazy to cancel or send something back.
I agree, Mike. I always cross-referenced leads to customers in the CRM. Whomever I got the lead from first, that's who got sourced (and credited) for the sale in my eyes. Any duplicate leads I was charged for after the fact, got credited and I was certainly vigilant on the leads that we paid per sale. If a dealer is lazy and doesn't check, that's on them, I agree.
@ Mike, they DO push much harder to "own" a customer in Texas because of the laws that "leads" or "introductions" cannot be purchased on an individual basis.
Arnold, why would anyone in this business think they are the same? Please tell me why they are the same to you, but the rest of us get that they are not? Why are they the same to you?
What are you referring to? Youre question doesn't make sense in regards to the reply its under.
It's a reply to this, in this thread, that you posted. It's in the right reply tree. Anyway, if you want an answer go read Andrew's reply in this thread.
Keith, Couldn't your "we would've sold those cars anyway" argument be applied to ANY NEW car advertising? Why market your inventory anywhere seeing as you wouldve sold those cars anyway? Please differentiate TrueCar vs. Edmonds or AutoTrader or the newspaper or any other form of new car advertising for me
Mike - Based on what i have seen documented, TrueCar will eventually reduce the number of consumers they send your way if you are not paying them for the leads on customers you already had before they ever heard of TrueCar. In other words, they will take your existing customers, and customers you are already working with and send them to another competing dealer who is willing to pay the $300 ransom.
I don't get what's wrong with the "$300 ransom" as you put it. I was more than happy to pay $300 for a sale as long as I knew that I was going to need to include it in my quote/price up front. I could structure the $300 into the deal. If I got the sale, great. If I didn't, that's ok too. At Moss Bros., the Dealer and all 6 GMs liked it. At Norm Reeves, it was liked by the GMs as well. I'm ONLY talking about the performance based pricing model, NOT the DMS and data issue. We loved those leads. We wanted MORE of them. Why? Because we sold cars from them and NOT at a loss.
I agree with everyone on the data issue. Police what you're sending from your DMS to vendors. Agree 100%.