The Dealer Playbook
The Dealer Playbook

Episode · 1 year ago

Why Last-Click Attribution Is Flawed w/ Bob Lanham

ABOUT THIS EPISODE

In a last-click attribution model, whoever drove the lead gets the credit for creating it. To date, that's how most 3rd party vendors have tried to validate their worth, however, the model is flawed. 

Listen as Bob Lanham, Head of Automotive at Facebook, shares how the largest online retails map their media buying. You'll also discover how they attribute leads and marketing results more holistically rather than focusing only on the last click. 

FlexDealer

You've tried so many different things with your marketing but the dots never align.

Your current agency sends you a fancy report but you have no clue what it means...

That's why more dealers are choosing to partner with FlexDealer. They're the creative marketing people behind some of the auto industry's most envied brands.

"Flex takes an approach unlike others I've ever experienced, and I can honestly say that I trust you guys. It's a strange and wonderful feeling! Being on a team with them and knowing they are in my corner jacks up my confidence and ups the fun factor of the car business. I'm so grateful! - Aaron Lange, Lange and Fetter Motors

Find your best opportunities to grow with FlexDealer's free, immediate website audit. Visit www.flexdealer.com/website-audit 

Hey, before we hop into this episode, let's talk about why your website and digital presence isn't working. Now I know what you're thinking, Michael. We talk all about the Web sites all the time. You talk about the websites, the websites, a hammer yada, yada, yada. We get it. But for real, though, it's shocking to me how much guesswork still takes place and how its having a detrimental effect on what opportunities you are able to leverage now. Over the last decade, especially for the O. G. D P beers, you know, I've poured my soul into assembling a team that cares deeply about the progress of the retail auto industry that believes in my mission to enrich and empower dealers to perpetually grow. Now I'm making my amazing marketing team accessible to the dealer playbook community so that you can start to thrive rather than merely survive. Right now, we're providing a just for you free website diagnostic that will show you exactly what you need to do in a priority sequence so that you can finally get the answers you need. Claim...

...yours by visiting triple W dot flex dealer dot com forward slash website audit that's triple W dot flex dealer dot com forward slash website dash audit. Mhm. Let's just dig into your shark tank. Example, right? Those who measure media media mix their models. They see that right? They see the correlation. But unfortunately in our world, what happens? Well, the vendor, that soul search says Man, look at your last click attribution. Look what I did for your business when in reality it was vendor over here, probably a completely different department. Maybe that even bought it right and maybe in a...

...different rep. But if it's not looked upon, Listen, we have many reports that show any product or service that does. Advertising with us will create a lift and incremental lift in search activity for that product or service, right? But guess who gets the credit for that search, right? Even though we didn't get the click, but the ads shown drove the search. This is why dealers, I'm telling you the second day, map it all out and truly understand what they're buying. First they're going to say to themselves, Man, I could cut some media. I could I could cut some costs, which all that does is increase PVR, which all that does is increase growth. And all that does is put more to the bottom line. But you have to look at it holistically. And I have a passion for it, because when I got into this space, I just I saw, you know, I'd ask a dealer. How...

...many people do you work with? 15. 20 like, Well, how do they work together? Right. And it's like you guys have to bring this all together. Then you'll start to see the impact. And ultimately, you could save some money and, you know, and I don't want This is not about selling against any other platform. But once you have the model down, did you have it all down? You can see, man. I'm spending quite a bit on this one platform like platform A, we'll call it. But could platform be do the same thing? That platform a could do just as well, if not, maybe better, But platform be cost cents on the dollar compared compared, the only way to know that is to model it out and start testing and learning. And the second you do that, you start to see, you know. Yes, I can. I can do what platform they can do on this platform for cents on the dollar and put the balance to my bottom line or to the floor plan or to service bays...

...or wherever they are, wherever they choose to do that. This brings up a really valuable 0.2, which is we know the OEM's spend hundreds of millions of dollars doing R and D. We know that many vendors are spending millions doing R, and Lord knows we have on R and D over the years. But when it comes down to the local business, I'm not even to say dealers, because I see this in, you know, various verticals. We certainly do see it in dealer world, too. What you just said, testing and experimentation. Everybody needs to be comfortable with the fact that that costs money. It just does. And I know you know, as I think back over the last 25 or 30 years, the silos that we live in is because we, you know, if you go back 30 years, it was like, Hey, you need to build a website. If you build it, they will come silo then then you know, Yahoo came along and they were like, Hey, you...

...know, all you need is Yahoo Advertising. Penny Penny adds, if you do that, they will come. And then, you know, all of the other things have kind of compounded on top of that. But I love what you're saying about know, how do we unify these? How do we actually know? Like we need to map this all out to understand what it is that's actually happening. To see how these work together. I love I love people that, you know, kind of the digital doomsday preppers that are like, No, if you have Facebook or Google, you don't need a website anymore. Or if you have a website, you don't need email, marketing or email. Marketing is dead or s e O is dead. And these are just people like that is an indication to me of somebody who is on a soapbox who also lives in a silo, not understanding how all of these channels feed to the whole. And they all cost money because you gotta test if you're not going to spend the money to test, who do you expect is going to do it for you.

Yeah, this isn't hard. I mean, I I don't I hate to say it like, I hate to say it that way, but it really like the auto businesses. So you like? Like no other channel works this way, right? Like every other industry tests, and learns and understands the impact of search into other mediums this now. But for some reason, we get so focused on that last click or that lead gen. And and? And? And if that doesn't happen, I sell nothing. Well, what did Google just come out with their their guidebooks. 74% of people who buy within the month do not do an online action. Do not do an online action. So what are we measuring? So So if you believe that, I'm only going to target people that are gonna buy from me today, we're gonna buy from me this month. Then what do you buy? Right? And more importantly, like, do we really think...

...people are stupid? I mean, do do we like, do we think that, um, you know, if someone does a search for specific brand name if we stick another brand name on there That that person will never go back to that to the original brand name Searched. Right? Come on. Right? Yeah, sure. They may be influenced and they might explore, but, like, that's not how it works. Like people know what they want and where they want to go. Right? I'll tell you. In the dealer space, Michael, you know, most people know what vehicle they want, right? They picked to I want this one or this one. These are the two I'm going to stick with, but they don't know where they're going to buy. And they're doing more research on where they're going to buy versus what they're going to buy. And if you think a price at is the reason why they buy again, we don't understand consumer...

...behavior. And that's what I'm trying to get to meet and greet first, then drive them down. Yeah, the the validation here is literally every world renowned marketer, I hope are you listening, Dpb gang. Every world renowned marketer which now includes Bob adding his voice to this pool, have said and shared this exact same pattern. This is a mission of the dpb. It's to shift the way we think so we can think bigger and break free from this box that we we have placed ourselves inside of, um and and this is just the way it is. We often refer. I don't know if you're familiar with Mollie Pittman. She used to work at Digital Marketer. Now she's with Ezra Firestone. But she says the same thing like, would you ever walk into a bar, see a beautiful person across the room and just walk up and ask to marry them right out of the gates? No. You got to...

...get to know the build a relationship of trust, get to know them. Um and you know, for me, too, I think of every interaction that I've had with with a woman that I wanted to date. Perhaps you know, even obviously with my wife, how many interactions it took for us to feel comfortable enough around each other to get to know each other. I went through moments where it felt like I was failing. Oh, man, I said a stupid thing. She's gonna hate me now like that's the R and d of all of this. But But if I track the overall trend even though on a micro scale. It was doing this, you know? And I pull back. And obviously my scale went up. I scaled upwards and and obviously married this woman. Three beautiful Children, all that kind of thing. And it's the same way my seven year old daughter knows what car dealers sell. Yet that's what we spend most of our advertising telling people we tell. We just keep...

...advertising to tell them the thing we know or they know that we do instead of what you're saying. Why don't you start talking about the things they have No clue that you do or why they should buy from you. So two things. I sold cars for four years. Never once in any training I had never once. I never had a script on this. I was never taught by any trainer to take it up like this. Hi, I'm Bob Lanham. Welcome to target of Sarasota. Can I have your name? Phone number? Email address? Are you gonna buy for me tonight? But but we do that when we're only running by now. Adds by now. Adds legion ads by now. Be better by now. Give me all your information online that that's not how it works. Like the person would turn around and walk away. Now, maybe many dealers did. I keep going back. David Kane, a good friend of mine in the industry, you know, one of the best trainers out there. He he...

...had a slide, and I've traveled with him greatly on a number of road shows. He has a slide that I still follow today, which is the Gallup Poll that measures honesty and ethics and professions. Right. And I've posted this number of times and we chatted about this in clubhouse, Right? We fall, we flip flop between last place and second to last with Congress. That's who we flip flop with every month now, I would show the slider David would show the slide and we'd say, Look, all of you in this room, we know you're not that we know you have a good process. You're good people, your ethical you want to do right? But why in 2000 and 2021 does the Gallup Poll still show where last or second to last? Well, because we don't tell the industry or consumers. Otherwise,...

I will put brand marketing above any other marketing. A dealer does easily, but you know what? They're not sold that they're so legion. Last click last clicks to their website. Low cost per VPs, right? Right. And I'm not saying I'm not saying that's not valuable, because it is. It's a metric. It's a proxy we need to understand. Understand it. But decisions should not be made solely off of one or two metrics again. What does the what's the model doing? Is the model driving sales and then, more importantly, profitable sales? Or is the model not easy? Easy to find out. I'm Michel Cirillo, and you've been listening to the dealer playbook podcast. If you haven't yet, please click the subscribe button wherever...

...you're listening. Right now, leave a rating or review and share it with a colleague. If you're ready to make big changes in your life and career and want to connect with positive, nurturing automotive professionals, join my exclusive dpb pro community on Facebook. That's where we share information, ideas and content that isn't shared anywhere else. I can't wait to meet you there. Thanks for listening.

In-Stream Audio Search

NEW

Search across all episodes within this podcast

Episodes (504)