The Cobalt Group and Respond Launch New Service To Reduce Auto Dealers' Internet Lead Costs: Edmunds.com Signs On As First Lead Distribution Partner
SEATTLE--Feb. 5, 2001--Pick-or-Pass offers alternative to online buying services, providing
dealers with high-quality leads and rapid return on investment
The Cobalt Group , a leading provider of e-business products and services to the automotive industry, announced today Pick-or-Pass(TM), the first e-business service that provides automotive dealers with the ability to control their online lead costs and increase their return on investment associated with Internet leads.
With Pick-or-Pass, dealers view the lead information and "pick" which leads they want to purchase, and "pass" on the unwanted leads, paying for only those leads they want to pursue. Pick-or-Pass offers a low-cost alternative to online buying services that require expensive fixed subscription fees and provide no control over the type or quantity of leads dealers receive.
Cobalt has launched Pick-or-Pass in partnership with Respond, the leading provider of request-driven lead generation solutions that match businesses with buyers. Respond provides the online request technology for Pick-or-Pass while Cobalt manages the network of participating dealers. Edmunds.com, the Web's leading consumer resource for unbiased automotive information, will be the first partner to provide leads to dealers through Pick-or-Pass. Cobalt and Respond plan to expand the network of high-traffic partner sites participating in the Pick-or-Pass program, so dealers will receive high-quality leads from multiple sources.
"Pick-or-Pass gives dealers control over lead costs which is difficult to achieve with existing third-party buying site programs. By partnering with leading automotive content providers like Edmunds.com, we can give dealers access to high-quality leads with documented high closing ratios," said John Holt, president and CEO of The Cobalt Group. "Since dealers only pay for the leads they want to pursue, Pick-or-Pass helps dealers optimize their lead volume and reduce their lead costs, thereby realizing a rapid return on their investment."
Dealers access Pick-or-Pass and purchase leads through Cobalt's MotorPlace.com dealer portal. To enroll in the program, dealers visit MotorPlace.com, provide their lead preferences, including the vehicle makes and zip code range for which they will accept leads. The service is then activated and dealers begin receiving lead alerts the next business day.
A consumer searching for a vehicle on a Pick-or-Pass partner site such as Edmunds.com completes and submits an online vehicle purchase request form that is then sent via e-mail to matching dealers. Before purchasing the lead, dealers are allowed to review detailed lead information including vehicle make, model, year and price, as well as the consumer's zip code and source of the lead, to determine if they want to purchase the lead. The dealer that responds first pays a nominal one-time fee, entitling them to immediately contact the consumer. Once purchased, the lead will no longer be available to other dealers.
Presently many consumer automotive sites generate "orphan leads" which never find their way to a dealer. With over 8,500 dealer e-business customers nationwide, Cobalt can route leads to interested dealers in all regions of the country to match the consumer interest generated by leading automotive sites such as Edmunds.com. Since dealers only pay for the leads best suited to their existing vehicle inventory, Pick-or-Pass offers an excellent return on investment for the dealer's lead generation dollar. In addition, since dealers will make the choice to purchase a lead, it is likely that they will respond quickly, thus increasing consumer satisfaction.
"More than three million car shoppers visit Edmunds.com each month and 80 percent of the people who express an interest in buying an automobile on Edmunds.com actually purchase one within 120 days," said Jeremy Anwyl, president of Edmunds.com. "Pick-or-Pass will enter the Edmunds.com Powershopper service as another effective option for these qualified car buyers to consider when they are ready to make their automotive purchases."
"With the growing number of car shoppers using the Web during the car buying process, there is a real need for technology that connects motivated consumers with dealers," said Lyn Chitow Oakes, president and chief executive officer of Respond. "We see the Pick-or-Pass program as a win-win for car buyers and dealers and we are pleased to extend our lead generation solution into the online automotive retail sector."
Dealers can enroll in Pick-or-Pass today. Edmunds.com will begin sending leads to dealers on March 1, 2001. Cobalt will discuss Pick-or-Pass during the company's press conference today at 11 a.m. PST at the National Automobile Dealers Association's convention and exhibition in Las Vegas, Nevada.
About The Cobalt Group
The Cobalt Group(TM) , headquartered in Seattle, is a leading provider of e-business products and services that help automotive dealers and manufacturers effectively manage their businesses online. Cobalt's suite of e-business solutions includes Web services, Web site hosting, e-commerce applications, Internet-based customer relationship management applications, data management, and best practices training and consulting.
Nearly half of the nation's auto dealers use Cobalt's technology, including 8,500 Web services clients, and approximately 9,300 PartsVoice(R) clients. Cobalt's e-business products and services are endorsed by 15 automotive manufacturers and more than 50 of the 100 largest dealer groups in the United States. Cobalt is the only e-business provider endorsed by the National Automobile Dealers Association.
Cobalt operates MotorPlace.com(TM) (www.MotorPlace.com), an online business management and industry information resource for auto dealers. At MotorPlace.com, dealers utilize Cobalt tools to manage their Web sites, buy wholesale used vehicles, locate and market OEM parts, and access industry information, news, events, and stock quotes. Cobalt also operates DealerNet(R) (www.dealernet.com), one of the most widely visited consumer automotive information portals on the Web. IntegraLink Corporation, a Cobalt company, is the auto industry's premier provider of automotive data collection and reporting services.
Cobalt has offices in Seattle, Wash.; Portland, Ore.; Detroit, Mich.; Columbus, Ohio; and Austin, Texas. For more information, please visit www.cobaltgroup.com or call 800/909-8244.
About Respond
Respond(TM) (www.respond.com) is the request-driven lead generation solution that matches businesses with purchase-ready buyers. Through the Web site at www.respond.com or through Respond's private label services, Respond has created a new channel for businesses to connect with customers and increase revenue. Based in Palo Alto, Calif., the company is funded by The Barksdale Group, Benchmark Capital, Hummer Winblad Venture Partners and Morgan Stanley Dean Witter Private Equity, along with Access Technology Partners, Amerindo Capital Management, Attractor Investments and Index Ventures. Respond was founded in 1998.