The ROI of Tiered Site Offers: Most dealer websites present a variety of static, unchanging offers, whether a $50 gift card for taking a test drive, or $500-$1000 towards a new or used purchase. And they often present the highest deal value out of the gate. The dealerships studied used the same behavioral tracking software to re-identify each shopper at each visit, so that the value of published offers displayed (initially passed over) could be ramped up over time. (For instance, a visitor that was initially presented with $250 towards a new-car purchase would see that offer rise to $500 on a subsequent visit, and then up to $750 after several visits.) And this strategy resulted in significant cost-savings and more leads: with more people ultimately filling out forms to claim the deal.
The average dealer studied had over 160 different offer claim forms filled out each month, and the maximum value of the offers “on the table” per dealer was $115,000. But by incrementally ramping up offers to returning visitors (rather than displaying the highest-value offer) the average dealer saved more than $18,000.
And the data also reveals that had the dealers not ramped up the offers from their lowest value, they would have failed to incite the majority of visitors to take action. The average dealer had 71 offers claimed at the lowest dollar value, but 98 claimed at a second or third higher increment. The lowest offer proved sufficient for roughly 40% of visitors to fill out the claim form, while a ramped-up offer drove roughly 60% to pull the trigger.
The takeaways: when dealers present static, highest-value site offers they’re just throwing money away. And when they serve up unchanging, lowest-value offers the majority of their site visitors will not fill out the form to claim the deal, and, hence, turn into an actionable lead. The strategic ramping-up of the value of published offers is the only way to squarely hit more people at their personal ‘deal threshold’ – and the only way to make this happen is by putting tracking software behind your site.
Top Offers Redeemed at Dealer Sites: The 1,000 dealers studied used 21 different published offers, and the top 5 most claimed overall were:
1. $500 towards the trade-in
2. $500 towards the purchase/lease of a new vehicle
3. Free car wash with service
4. $25 gift card for test drive
5. $1,000 towards trade-in
Interestingly, one of the most widely used offers on dealer sites, an oil change special, was at the very bottom of the offers-claimed list.