Pay-For-Performance Models – There like one big Payday.
Does It Works for Dealerships?
I found a model that does. The time is right for you or your automotive advertising agency to take a look at this type of promotion.
Dealerships are used to paying for internet clicks and impressions, as well as paying for leads. But what about Pay-For-Performance based on actual sales?
Today with technology and new models available, Pay-For-Performance programs are becoming reliable and efficient in delivering sales. In short, they aren’t just driving dealership traffic but real results and you pay only when you sell a car.
What criteria make for a good Pay-For-Performance program? Here are a few items:
1) Analytics – Good Pay-For-Performance programs have solid analytics based on lifestyles and buying characteristics in YOUR market not on national averages. This allows the program to identify and target customers similar in lifestyle to the dealership’s own customers when creating a marketing list.
2) Marketing Lists – Know the make-up of the marketing list. The marketing list will almost always be created from the dealership’s own data base and prospects in the market. Ask how the lists was created, especially how the prospects were identified. Key items: Lifestyles and characteristics of the prospects and are they in the ‘buying cycle’.
3) Marketing Lists [new campaigns] – If you are planning to run more than one campaign, make sure the marketing company changes the marketing list for each campaign! Your marketing lists should always change based on ‘buyers in the market’ cycle. Every good automotive ad agency knows buyers come in and out of the market.
4) Exclusion Lists – Every Pay-For-Performance program should have an exclusion list. This is a list the Dealer provides and eliminates the low hanging fruit. Customers placed on the exclusion list are exempt, meaning dealership does not pay for these customers even if they buy.
5) Time Period – A Pay-For-Program should have a definite start and end date. And you should not be required to pay for units sold after the program has ended.
6) Reconciliation – The reconciliation should be understood 100% before getting started. The best method: the Pay-For-Performance program furnishes a marketing list and the Dealerships provide a list of buyers that have bought within the time period. The dealer pays only for matches excluding buyers that were on the exclusion list.
7) Budget Costs – Many Pay-For-Programs allow Dealership to budget the number cars sold under the program. In other words, if you had a budget of 60 cars and you sold 72 under the program, you would only pay for the 60. This would lower the cost per car.
8) Staff Event or not – Pay-For-Performance campaigns should only use dealership’s employees. Many Pay-For-Performance programs of the past were staffed events and did not use dealership sales people. This often proved disastrous and left the dealerships with a bad reputation in the community.
Guaranteed results! I suggest you take a look at these programs just be sure to follow the points above. If you need any clarification email me or call. Let me know if you’ve tried any other Pay For Performance models.