A recent article in Automotive News discusses how GM is beginning to send tire and accessories leads which have been collected online to dealerships across the country. Here’s a few reasons why this is only going to get bigger and broader.
- There was a time that online leads were only cost effective if the item being sold had a large profit margin- i.e. mortgage leads. Lead generators have reduced the cost of generation through improved marketing channels and sources, behavioral targeting which lowers overall cost by driving click throughs, and many other efficient processes both through technology and marketing ideas.
- Consumers are growing more accustomed to going online to find a product or service, therefore, the expectation by the client is that they will find a provider through this method. It is increasingly acceptable to shop online first for a list of providers vetted by a service before venturing out to purchase.
- GeoLocal–Technology has improved to the point that leads can be routed down to the zip code level. Reduction of the Internet through technology down to very small, bite size locations allows lead generators to reduce the cost of lead creation, it reduces the cost of the lead for the buyer, and it meets the specific needs of the client. Thus, a cheaper service (for example–tires) can be sourced online in this fashion, still meeting everyone’s cost requirements.
- Just as Refinance leads have morphed into restructure leads, there is a shift away from new sales (cars, mortgages, etc) to add-on and intermediate step leads ( debt repair, restructuring, used car accessories, etc). The time between major purchases is growing larger due to market pressures as well as improved quality and higher prices. Therefore, marketers need to capture the client in between purchases and it is through micro-needs like chrome wheels, new tires, paint jobs, etc.
As marketers continue to find ways to provide value to the client alongside accepted and trusted portals that provide quality suppliers, the intermediate lead or micro-lead market will continue to grow.
