The exact formula for finance lead generation is illusive and probably varies a great deal based on market and store reputation. However, the following model offers a good guideline for thinking through the key variables: (value of the information provided to the customer + value of the information obtained about the customer) / the sensitivity and quantity of the information required of the customer. I’ll break this down one element at a time.

Lead generation can be measured in quantitative terms, but leads which include credit score are far more valuable than those that do not. Credit score helps the store get the right vehicle and financing in front of the customer early in the process. An increase in finance lead volume at the expense of obtaining credit scores would not be nearly as valuable as the same quantitative increase along with credit scores.

The more valuable the information provided to the customer, the more likely they are to complete the lead form. As an example, receiving a pre-approval notice is of high value to many credit-challenged shoppers.

The value of the information obtained about the customer represents the qualitative value. The most important elements are credit score and contact information. Elements like Social Security number present no direct value to the store and are a sizable liability to the dealership.

Consumers are turned off by having a great deal of information required, and are even less likely to complete the lead form when sensitive information is required, like date of birth and Social Security number.

Using this model, it was determined that an ideal finance lead form would have the following characteristics:

1. No Social Security number required
2. No date of birth required
3. Dealership receives the credit score of the shopper without impacting the shopper’s credit score (soft pull)
4. Promise of an approval notice to the shopper

The exact formula for finance lead generation is illusive and probably varies a great deal based on market and store reputation. However, the following model offers a good guideline for thinking through the key variables: (value of the information provided to the customer + value of the information obtained about the customer) / the sensitivity and quantity of the information required of the customer. I’ll break this down one element at a time.

Lead generation can be measured in quantitative terms, but leads which include credit score are far more valuable than those that do not. Credit score helps the store get the right vehicle and financing in front of the customer early in the process. An increase in finance lead volume at the expense of obtaining credit scores would not be nearly as valuable as the same quantitative increase along with credit scores.

The more valuable the information provided to the customer, the more likely they are to complete the lead form. As an example, receiving a pre-approval notice is of high value to many credit-challenged shoppers.

The value of the information obtained about the customer represents the qualitative value. The most important elements are credit score and contact information. Elements like Social Security number present no direct value to the store and are a sizable liability to the dealership.

Consumers are turned off by having a great deal of information required, and are even less likely to complete the lead form when sensitive information is required, like date of birth and Social Security number.

Using this model, it was determined that an ideal finance lead form would have the following characteristics:

1. No Social Security number required
2. No date of birth required
3. Dealership receives the credit score of the shopper without impacting the shopper’s credit score (soft pull)
4. Promise of an approval notice to the shopper

When vendors look at dealer's marketing and training budgets as a fixed pie, disparaging remarks and misinformation are sure to follow. Virtually everything a dealer can buy to increase sales has been said to not work at some point or another. While every product or service related to revenue generation must be held accountable for the value it delivers, nearly all of them can be justified under the proper circumstances and at the right price point.

The following four-minute video uses animation to demonstrate that performing well with one marketing or training solution often increases the value of complementary opportunities. http://revenuegurutraining.articulate-online.com/8685108185 The more a dealership is fixated on a single solution, the deeper they fall into diminishing returns. The good news is that extreme expertise in one area often enhances the value of other opportunities. We refer to this as The Seesaw Effect. The more dealers understand these seesaws the better equipped they are to place the next investment in the opportunity that will serve the store best.

Dealers will be served best by those vendors who accurately identify the revenue enhancement that will come from investing in their products as well as the complementary products that can be profitably invested in before or after their own product is purchased. Vendors have a responsibility to become trustworthy marketing consultants. When a vendor advises the dealer to invest $10,000 per store per month in their own product and minimize the investment in complementary products and services, it's probably time to hide the checkbook until rational advice can be obtained.

There are some cautions and exceptions. Investing in a branding campaign (usually with TV, radio, outdoor, and general display) is not advisable unless the campaign can be sufficiently funded, a unique selling proposition exists, and there is a commitment to maintain the campaign long term. Still, a great branding campaign can have a positive influence on the production of online listings, newspaper ads, SEM, and even the ability to set appointments and close sales. Conservatively, over $1,000,000,000 in dealer advertising and training budgets are misspent  each year. Thinking through the seesaws within Galbraith's map can go a long way toward cutting your portion of that waste. 

When vendors look at dealer's marketing and training budgets as a fixed pie, disparaging remarks and misinformation are sure to follow. Virtually everything a dealer can buy to increase sales has been said to not work at some point or another. While every product or service related to revenue generation must be held accountable for the value it delivers, nearly all of them can be justified under the proper circumstances and at the right price point.

The following four-minute video uses animation to demonstrate that performing well with one marketing or training solution often increases the value of complementary opportunities. http://revenuegurutraining.articulate-online.com/8685108185 The more a dealership is fixated on a single solution, the deeper they fall into diminishing returns. The good news is that extreme expertise in one area often enhances the value of other opportunities. We refer to this as The Seesaw Effect. The more dealers understand these seesaws the better equipped they are to place the next investment in the opportunity that will serve the store best.

Dealers will be served best by those vendors who accurately identify the revenue enhancement that will come from investing in their products as well as the complementary products that can be profitably invested in before or after their own product is purchased. Vendors have a responsibility to become trustworthy marketing consultants. When a vendor advises the dealer to invest $10,000 per store per month in their own product and minimize the investment in complementary products and services, it's probably time to hide the checkbook until rational advice can be obtained.

There are some cautions and exceptions. Investing in a branding campaign (usually with TV, radio, outdoor, and general display) is not advisable unless the campaign can be sufficiently funded, a unique selling proposition exists, and there is a commitment to maintain the campaign long term. Still, a great branding campaign can have a positive influence on the production of online listings, newspaper ads, SEM, and even the ability to set appointments and close sales. Conservatively, over $1,000,000,000 in dealer advertising and training budgets are misspent  each year. Thinking through the seesaws within Galbraith's map can go a long way toward cutting your portion of that waste.