Behavioral Targeting Of Lot Ups

BlogProAutomotive has a post about the recent rise in behavioral targeting in online advertising and notes that only two companies provide this service within the Auto Industry. Behavioral targeting is interesting because it uses information about a consumer’s behavior on one, or several, web site(s) to glean what types of ads might interest the consumer. Sounds scary to some, but it should make advertisements more relevant.

Behavioral targeting can draw upon a few simple algorithms such as collaborative filtering, regression analysis, or even Bayesian Inference. Without going into too detail, it’s important to note that you can actually do a lot of this work at your existing dealership now. Think of it as behavioral targeting for your sales people. Right now you may use a few simple rules to assign leads to sales people. For example, if you have Spanish-speaking customers, you have them work with a sales person who speaks Spanish. This is a simple rule for behavioral targeting.

What you may not already do is look at all of the data points you have on a customer:

  • Age
  • Gender
  • Credit score (as a range)
  • Lead source
  • Address (zip code)
  • Preferred language
  • Price range on desired car
  • Paying cash, financing or leasing
  • And whatever else might be learned during a needs discovery call

A sales manager could track these data points in a CRM and then look at sales success rates of sales people. Using one of the above mentioned methods the manager could draw conclusions about what sales person will perform best with a given customer. The next time a lead comes in from the net, assign the lead to the best performer with that type of lead. If you are optimizing your Internet advertising, it makes sense to optimize your sales people, too.

2 responses to “Behavioral Targeting Of Lot Ups

  1. This is a nice parallel you have identified. I expect these sorts of methodologies which you have identified to take a good 2-3 years to take hold in automotive Internet advertising.

    One area I think worth considering is the use of bevaioral advertising to lead Internet users to actual cars in stock rather than a portal site with thousands of vehicles. The demographics and data points you suggest make that possible.

    Additionally, there is more than just autos to sell. Service and repair, body work, and after market goods could be bundled into behavioral advertising campaigns as well.

    Thanks for the tips on behavioral marketing algorithms. When I think of the future of behavioral advertising I think of the Tom Cruise movie Minority Report where the retina is scanned when you enter a facility and suddenly the ads begin talking directly to you.

    Who is ready for that?

  2. Good thinking on the service and repair. It will be interesting to see if a CRM tool manages to come out with something in another couple of years. Also, as a possibility, it might be possible to combine the profile data with a direct mailer to identify the best sales opportunities.

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