10 May Third Party Providers Suck
“Third party lead providers suck. You’re fired.” This is more than just a quote from a marketing manager for a Ford dealer who partners with PUK Digital— this is a proclamation of his disappointment with the failure of his third party lead providers to produce the same quality leads that he was able to achieve through the dealership’s own digital, lead generation efforts.
For this marketing manager and most dealerships, the gross held on paid lead sources does not come close to the gross gained from organic leads. So, after three years of attempting to collaborate with third parties to produce profitable leads, this manager’s patience and perseverance reached their limits. He fired every one of them and bellowed this declaration that now serves as a guiding principle for PUK.
This Ford dealership is not alone. Although third party automotive websites remain popular because most consumers consider them objective since they offer independent reviews and ratings not typically found on dealer and automaker websites, they are not effective. Treatment, speed, consistency, information, and insight are requirements for turning leads into sales opportunities. Third party lead providers do none of those. The most convincing evidence of this is research conducted by DealerRefresh demonstrating a continuous decline in third party closing ratios over the past 10 years.
Why you are letting these middlemen get between you and your customers is beyond comprehension. Third parties do not generate sales; they generate disappointment. Your dealership generates sales so it simply makes sense to own and mature every opportunity. From the initial point of contact, think of shoppers as an opportunity and not a lead. Start with quality, measure performance along the way, and end with higher returns. You will see the difference in your digital bottom line.
To learn more about ways to stop third parties from taking customers away from you, please tune into our next article.