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New York, NY -- March 16, 2015 -- HookLogic, the global leader in commerce search advertising and premium provider of lead-generating incentive solutions for automotive dealers, today announced that Sarasota Ford in Sarasota, FL is averaging a 68 percent show-to-close rate on leads generated from the AutoHook suite of solutions powered by HookLogic. The Ford dealer also averages a 45 times return-on-investment (ROI) from the leads, generating $45 in revenue for every dollar spent on AutoHook's marketing solutions.
Matt Buchanan, Operating Partner of Sarasota Ford, implemented AutoHook's Web2Show program in 2011. When potential customers are viewing inventory on Sarasota Ford's website, Web2Show offers them a $25 incentive to come into the dealership and take a test drive. "It made sense to me because we were paying about that much for third-party leads and many of those people we never even saw," said Buchanan. "So to only pay that much when a person comes into your showroom is a bargain."
Sarasota Ford also relies on AutoHook's Lead2Show to incent customers who submit leads through third-party sites. "You pay for the third-party lead and then you pay again if the person walks in to your showroom, but the extra cost is well worth it as we can close them (Lead2Show customers) more than 50 percent of the time," said Buchanan. "The Lead2Show program adds value to those third-party leads you're already paying for, as they are more likely to choose you over your competitor."
Sarasota Ford averages a 68 percent show-to-close rate on all leads generated from both the AutoHook Web2Show and Lead2Show marketing solutions. The close rate on AutoHook leads is much higher than the store's close rate for showroom ups without an appointment, which averages 20 percent; and significantly higher than the close rate for appointments with leads from other sources, which averages 50 percent.
AutoHook provides dealers with a unique and industry-leading attribution model. Marketing attribution enables dealers to understand which of their marketing channels and campaigns influence customer behavior during the purchase decision process. AutoHook's attribution reports provide dealers with metrics and insights so they can adjust marketing efforts to deliver the greatest ROI.
Buchanan appreciates the transparency of AutoHook's attribution reports as he can easily track the number of leads, shows and sales. In an average month, the Web2Show and Lead2Show programs deliver 94 leads to Sarasota Ford. Of those, 25 people show up for an average show rate of 27 percent. With a close rate averaging 68 percent, Buchanan can directly attribute an average 15 vehicle sales per month to the AutoHook programs. That's approximately six percent of the 250 non-fleet new vehicle sales that Sarasota Ford averages per month.
Sarasota Ford's results are close to the national averages for all Ford dealerships using AutoHook programs. AutoHook partners with IHS/Polk to track and validate its lead attribution from lead conception all the way to the sale. According to a recent report, in one month Ford dealers using AutoHook generated 32,155 leads and 9,838 walk-ins for a 31 percent show rate. Of those, nearly seven in ten bought a car for an average 68 percent show to close rate.
The higher show and close rates help to substantially boost ROI. Buchanan monitors what he spends with every lead provider. "AutoHook delivers the best ROI hands down. If you count all the gift cards plus the fees, for every dollar I spend I get 45 times the ROI," he said. "The national average for most dealer marketing programs is to spend about $3 to make $45."
According to the AutoHook/IHS/Polk reports for all Ford dealerships, the average monthly cost for AutoHook's program including the leads is $597. This breaks down to an average cost per lead of $7.44, a cost per show of $51.88 and a cost per sale of $76.07.
The low cost per sale of AutoHook leads allows Sarasota Ford to incorporate incentives into other marketing campaigns. Buchanan includes Web2Show incentives in targeted email campaigns to customers, and likes to use Lead2Show for geo-targeting customers on third-party websites.
AutoHook's Lead2Show program incorporates a leading-edge technology called a propensity filter to identify in-market shoppers. When a customer submits a lead through a third-party website, AutoHook is able to determine the likelihood of that customer purchasing based on a number of factors including their previous online shopping behavior.
Lead2Show offers in-market customers who live across town or close to a competitive dealership with higher incentives, such as $50 or $100, to get them to drive to Sarasota Ford. "A couple of times we've had people drive 200 miles just to come see us," said Buchanan. "The higher cost of the card is not an issue because if they're coming this far we'll almost always close them. The amount is not so high that it draws people who aren't serious, because that $100 doesn't amount to much after the cost of gas, lunch and the person's time."
For Sarasota Ford, AutoHook has increased the performance and ROI from its website, third-party and geo-targeting marketing efforts. The Web2Show and Lead2Show programs deliver more leads and increase the value of all leads by increasing the likelihood those customers will come to the showroom. "AutoHook is a show provider, not a lead provider," said Buchanan, "and I really respect the AutoHook team. They put their dealers first."
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HookLogic, the global leader in commerce search advertising, partners with the world’s leading retailers, online travel agencies, and automotive companies to provide marketers unprecedented access to active category shoppers and a clear view into resulting sales attribution. The company’s high-performance vertical marketing programs accelerate sales for product brands, marketplace sellers, hoteliers, and automotive marketers. Network partners and advertisers including Walmart, Target, Intel, Asda, L’Oreal, Expedia, Priceline, General Motors, and Chrysler use HookLogic to increase sales and monetize site traffic. Backed by Bain Capital Ventures and Intel Capital, HookLogic is headquartered in New York City, with offices in Ann Arbor, Santa Monica, Atlanta, and London, UK.