Automotive Industry Lead Generation
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We are interested in general trends in Lead Form submission in the Automotive Industry; specifically on car dealers? websites, automotive classified websites and vehicle manufacturers? websites. Definition of a Lead Form: Companies solicit information from consumers on their website by asking them to provide contact information (name, phone number, email address, etc) on a Lead Form. This allows the company to contact the consumer with information specific to the consumer?s area of interest. For example, a vehicle manufacturer would ask a web visitor to submit a Lead Form for more information on a new model. The manufacturer would then have a customer service rep or salesperson contact the individual directly, usually with the intention of converting to a sale. ***The Question*** We need to know how successful the use of Lead Forms has been over time (trends). A complete answer will address the following: Has the percentage of Lead Form completion increased or decreased over time and why? Are consumers today more or less likely to supply contact info on the internet than in recent history? How willing are consumers to give out their phone, email and address (individually if possible) in exchange for information? Are there any research companies out there that track this specific information? *Note: You must supply sources for your information. Thank you very much!
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Answer:
<Automotive industry lead generation. The data shows that the number of leads generated via the internet has increased over time. In 1997 dealers received an average of 43 leads per month. By 2005 the number of leads had risen to an average of 205 per month. Data sources: American International Automobile Dealers collects information on the number of internet leads generated and internet sales. They provide a monthly snapshot which details the number of internet leads. The reports are free for participating dealers. An annual subscription costs $135 per month. http://www.aiada.org/idealerdata/media/iDealer_Data_brochure_WEB.pdf Internet sales leads during November 2005, were 420. The average international nameplate dealership saw 2,262 new vehicle internet leads November YTD and 536 used vehicle internet sales leads. Approximately 17% of new vehicle internet sales leads were culled from dealership websites, 22% came from manufacturer websites and 54 % from lead generators. The closing rate for new vehicle internet leads November YTD was 7.6% (171 vehicles) and for used vehicles was 12.4% November YTD compared with 11.2% in the previous year. The webpage has a link where the full data set can be downloaded. (Source: AIDA). http://www.aiada.org/article.asp?id=56342 According to this article two-third of leads come from third-party websites. Total new vehicle internet sales leads August ? 344.4 April ? 112 New vehicle internet sales leads from dealer websites August ? 78 April ? 14.4 (Source: AIDA) http://www.aiada.org/images/idealerdata/Oct_2005_Aug_data_formatted.pdf In the first four months of 2005, the average international auto dealership received 466 new vehicle leads from lead generators, compared to just 136 from manufacturer websites and 123 directly from the dealership?s website, according to the iDealer Dashboard. http://www.aiada.org/article.asp?id=42543 2005 A survey of 100 dealerships by Black Book Online found that 55% of dealers said 10% of sales are generated from internet leads. 78% say internet importance is growing. 92% predict internet sales growth over the next year. 65% say they want more leads from their dealership website. (Source: Dealers embrace Internet use. Ralph Kisiel. Automotive News. September 26, 2005.) http://www.autonews.com/apps/pbcs.dll/article?AID=/20050926/SUB/509260742&SearchID=73230839013568 According to Shawn Disbrow, manager of the Internet Sales Department at Crevier BMW-MINI, the largest BMW dealership in the United States, the close rates on internet leads are generally seven percent, but leads from kbb.com (Kelley Blue Book) are almost 18%. http://www.aiada.org/article.asp?id=42002 According to Jupiter Research, 22% of all new car sales will be internet generated in 2004. http://www.aiada.org/article.asp?id=28287 The Auto Web Connection survey conducted a study of Western Pennsylvania?s automobile dealers in 2003 and found that they are receiving an increase in leads over the previous year. 15-25 leads a month ? 29% 25-50 leads a month ? 16% 50-75 leads a month ? 18% over 100 leads per month ? 25% 44% of respondents said that internet leads have increased since last year and 27% felt that the volume of internet leads was the same. In order to view the figures you need to register with the site. (Source: Greater Pittsburgh Automobile Dealers Association.) http://www.pittsburghauto.org/GPADA/main.cfm?section=Survey 2003 The 2003 Dealer lead survey was conducted during November by CarsDirect.com. 25% of dealers manage 200 internet leads per month. Close rates are 20% or better. (Source: CarsDirect.com). http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=27587&script=410&layout=-6&item_id=490692 2001 and prediction for 2006 According to the National Automobile Dealers Association (NADA), in 2001, the average dealership generated 13% of new car sales from Internet leads, but dedicated only 5% of its advertising budget to Internet marketing and advertising. According to Julie Ask of Jupiter Media Metrix (JMM), ?Nearly one in three new car purchases in the U.S. will be an Internet-generated sale by 2006,? representing approximately 5.7 million cars, or 32% of all new car deals. http://www.dealix.com/corporate/shownews.aspx?pressID=283 http://www.dealix.com/pdf/BusinessCaseforInternetSalesLeads.pdf 2001 According to a study by J.D Power and Associates, dealers receive 21 new-vehicle internet leads from their own websites. http://www.jdpa.com/news/releases/pressrelease.asp?ID=121 A 1997 study by the National Automobile Dealers Association found that nearly 30 percent of all U.S. dealerships have Internet e-mail addresses and report an average of 43 leads from the ?Net each month. The average dealer sells an average of 2.5 more new vehicles and 1.6 more used vehicles per month because of their ?Net accessibility?. http://europa.eu.int/comm/internal_market/comcom/newsletter/edition14/page04_en.htm --------------------------------------------- Giving personal information. I have found studies from 2005, 2002 and 1998 that show how likely people are to give different types of personal information. The 2005 Online Permissions Survey, sponsored by Dotomi Inc. provides a comparison of the type of information that people will give to trusted and new sites. The summary below is for new sites. Home telephone 91% Address 82% Business telephone 87% Email address 79% The study also includes figures for information such as mother?s maiden name, date of birth, hobbies, marital status, clothing size, information about family memgers, date of a special event, credit card number, income information, debit card number, social security number, reading interests, nationality and bank information. (Source: Dotomi.) http://dotomi.com/newsevents/articles_5.html A 2005 survey carried out by Princeton Survey Research Associates International (PSRAI) has found that consumers are becoming less trustful of websites due to identity theft issues. 30% have reduced their overall use of the internet 53% have stopped giving out personal information on the internet. 54% of online shoppers are more likely to read a site?s privacy policy or user agreement before buying. 29% have cut back on how often they buy on the internet. Source: Leap of Faith: Using the Internet Despite the Dangers. http://www.consumerwebwatch.org/pdfs/princeton.pdf The 2002 survey found that 73% were not averse to giving their email address name or other personal information to a website. Most of the experienced users (those online at least three years) have given out this type of information (84%) while just under half (47%) of those online for six months or less have done the same. People who don't go on e-commerce sites show more reluctance to give personal information (only 50% have done so) compared to those who visit these sites (81% have done so). Source: A Matter of Trust: What Users Want From Web Sites. Princeton Survey Research Associates. April 2002.) http://www.consumerwebwatch.org/dynamic/web-credibility-report-a-matter-of-trust.cfm#credit A 2002 survey by Jupiter Media Metrix found that 82 percent of online consumers are willing to provide various forms of information in exchange for something as modest as a $100 sweepstakes entry. The percentages that would give particular types of information were: Email addresses ? 61% Full names ? 49% User name and password ? 36% Phone numbers ? 19% Household incomes ? 18% http://retailindustry.about.com/library/bl/02q2/bl_jmm060302.htm This survey carried out in November 1998 found people willing to give the following information. Email address ? 76% Age ? 69% Full name ? 54% Postal address ? 44% Income ? 17% Phone number ? 11% Credit card ? 3% Social security ? 1% (Source: Beyond Concern: Understanding Net Users? Attitudes About Online Privacy. AT&T Labs-Research Technical Report TR99.4.3. Cranor, Reagle & Ackerman.) http://www.research.att.com/resources/trs/TRs/99/99.4/99.4.3/report.htm The Identity Management Survey found that over 70% of consumers will share information such as their name, address, postal code, phone number, account number or give the answer to a security question to an unsolicited call or email. (Source: Privacy Association.) https://www.privacyassociation.org/index.php?option=com_content&task=view&id=81&Itemid=116 US Internet Users? Attitudes Regarding Registering at Web Sites, October 2004 Do not like registering because I have to give personal information, but will do so if it is necessary to obtain content or information really wanted ? 71% Never or almost never register even if I?d like to access content on the site because I have to five personal information ? 15% Like registering my information on Web sites because it allows the site to remember me and to customize the content I receive when I visit it. ? 14% Source: TRUSTe, Taylor Nelson Sofres (TNS), October 2004. http://images.eversave.com/Images/prospectiv/images/whitepaper/Prospectiv_Customer_Acquisition_Whitepaper.pdf> <Search strategy:> <"internet leads" automobile respondents> <://www.google.com/search?hl=en&q=%22internet+leads%22+automobile+respondents> <consumers "personal information" survey percent> <://www.google.com/search?hl=en&lr=&rls=GGLD%2CGGLD%3A2005-17%2CGGLD%3Aen&q=consumers+%22personal+information%22+survey+percent&btnG=Search> <consumers "online forms" respondents name "phone number"> <://www.google.com/search?hl=en&lr=&rls=GGLD%2CGGLD%3A2005-17%2CGGLD%3Aen&q=consumers++%22online+forms%22+respondents+name+%22phone+number%22> <Hope this helps.>
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