NextStep: Pay for Performance Advertising

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	FREQUENTLY ASKED QUESTIONS The following is a list of answers to important questions concerning the Pay-For-Performance program. The questions and answers are grouped into three areas: Pay-For-Performance Campaigns Reconciliation PAY FOR PERFORMANCE (back to top) How does the Pay-For-Performance campaign work? You simply pay only for the cars you sell and only from the buyers Pay-For-Performance targets and markets to. If a buyer bought from you that was not on the Pay-For Performance prospect list, you do not pay. How much do I pay for each car sold? $397 per car. Do I have to pay $397 for every car that my dealership sold? No. You pay only for cars when buyers match from the marketing list provided by the campaign and buyers of units sold listed on your DMS. When do I pay? See reconciliation. Where does the marketing list for the Pay-For-Performance campaign come from? Market analytics based on your own customers and service department records. Demographics, lifestyles, behaviors and owner characteristics of buyers in the market place most likely to buy from you. The common denominator is that all customers targeted are ready to receive offers and purchase cars. How many customers are marketed to? The typical number of prospects targeted and marketed for each campaign is 25,000. How are these prospects marketed? This is a multi-channel marketing program. This means the prospects will receive continuous marketing from three methods: Postal Email Phone How often will these prospects be marketed to? The typical campaign is as follows: Email every 2 weeks Postal every 3 weeks [1st class post card] Phone is subject to the Do Not Call List. What percentage of the prospects is obtained from my own database? On average, over 70% of the prospects are not from your database. What percentage of the units sold represent “new business?” Past campaigns indicate 1 in 3 prospects sold have no sales history. This figure is higher (up to 70%) for many dealers and increases each time the campaign runs. CAMPAIGNS (back to top) What are the campaign options? There are two campaign options. Profit Seeker Plus – runs for 6 weeks. Profit Maker – runs for 12 weeks. What costs are associated with each campaign? There is a licensing fee of $2,994 for each campaign. There is a guarantee on this amount. The licensing fee is used to buy lifestyle, behavior and other critical data needed to identify prospects for each campaign. What is ‘budgeting’ and why is it important? Budgeting is the process where you determine how many units you will sell in a given campaign. You will pay $397 per unit for every match, up to the budgeted number. Dealers are not charged for matches that exceed the budgeted number. The dealer’s expense is capped at the budgeted number. Do dealerships often exceed their budgeted numbers? Dealerships almost without exception reach their budget numbers and have been known to exceed it by 50%. Dealerships that do not reach their budget numbers still only pay for the units they sold. Who determines the budget numbers? The dealer and Pay-For-Performance both will agree on the number before each campaign begins. How is the budget number determined? Typically the budget number ranges between 10% and 15% of the number of new and pre-owned units sold during a normal month multiplied by 1.5 for the 6 week program and multiplied by 3 for the 12 week program. However you can ‘cap’ the number. The minimum number is 30. Note: The higher the budget number, the higher the number of prospects that will be targeted and marketed to. Is there lead time required for each campaign? Yes. Every campaign begins on a Friday and a minimum of 3 weeks lead time is needed to run the campaign. What if Pay-For-Performance determines there are not enough prospects in the market to reach effectively? The analytics used to identify prospects are so successful that statistically it can accurately predicate how many units will be sold for a given campaign for a given market for a given dealership. If Pay-For-Performance determines there are not enough prospects to run a successful campaign, it will not start [the licensing fee will be refunded]. This is the exception to the rule, however it has occurred. RECONCILIATION (back to top) How does reconciliation work? During each campaign reconciliation will be conducted to agree upon matches for billing purposes. Billable matches are determined by matching names from the marketing list who bought with names from polling the Dealer’s DMS. The list of prospects being marketed to will be provided by Pay-For-Performance to the Dealer before the campaign starts. Matches will be billed $397. All sales that match a marketed-to prospect will have a single sheet showing the sale details as well as showing the marketed-to person's details What is an Exclusion list? This is a list provided by Dealers to identify the names of individuals with phone numbers and address that will be exempt from the matching process and thus not be charged even if a sale takes place. This is the responsibility of the Dealer and must be supplied electronically. Who qualifies to be on an Exclusion List? Dealer and Pay-For-Performance will work together to create an Exclusion List consisting of: Names identified from the CRM of prospects who are actively working with sales staff. Names identified from the DMS who are believed to be buyers during the campaign period. Customers coming off of a lease during the campaign period. Other customers based on agreed criteria that would indicate someone about to purchase. Friends, relatives and employees. How large is the Exclusion list? Though your Exclusion list may be in the thousands, typically the Exclusion List that contains the same names as Pay-For-Performance’s prospects list consists between 400 and 1,800 names. How many times does the reconciliation take place? During the 6 week campaign – two reconciliations; one at week two and one three days after the end of the campaign. During the 12 week campaign – there will be four reconciliations. Do you pay for a match if the sale occurred after the campaign finished? No. CALL TODAY! Ron Wheeler or Larry Minter at 800-678-7822! Administered by Wheeler Advertising • Powered by Edifice