How to BUild Targeted Trigger Leads Lists

How to use Auto Trigger Leads to Target In-Market Buyers

What are Auto Credit Trigger Leads?

Auto Credit Triggers are a type of Prescreened Credit Data from the major credit bureaus that can be used to market pre-approved offers of credit via direct mail or cold call efforts. As the name implies, a credit trigger is a credit related event that causes a change in credit status, which triggers information to be posted to a consumer’s credit record.  Also known as a hard credit inquiry, automotive credit triggers indicate that a consumer has filled out a request for automotive financing with their lender or an auto dealership and is in the market to either refinance or purchase a new or used vehicle.

Choose Filters to Build the Perfect Auto Trigger Lead

There are a number of filters that can be used to build the perfect auto trigger lead list such as:

  • Specific credit score ranges
  • Target market areas (Radius, Zip Codes, Cities, Counties, States)
  • Months remaining on trade-in/auto loan
  • Monthly payment information
  • Age of trade-in/loan
  • Eliminators such as bankruptcies and repossessions

Benefits of Incorporating Auto Trigger Leads into the Marketing Mix

Fresh LeadsMake timely (pre-approved/prescreened) offers of credit to consumers that have initiated a request for automotive credit within the last 24 hours. Many consumers solicit credit from their own lenders (i.e. credit unions etc.) rather than shopping for credit with an auto dealer which makes for an ideal situation for an auto dealer looking to win their business.

Low Cost: On average trigger leads cost $0.40 up to a couple dollars depending on volume and additional data services requested. This cost pales in comparison to other automotive lead programs which have much higher costs as well as longer sales time to close the deal.

Targeted Criteria: Choose your lead filters by geography, credit score range and derogatory eliminators in order to receive trigger leads that work well with your financing options. As the old adage goes, time is money. It’s more important than ever to find the most effective and beneficial ways to invest your resources, time, and energy. Auto Trigger Lead filters ensure that only the most qualified prospects are delivered and time is not wasted on prospects that are not the most profitable.

Promotes Competition:  Auto trigger leads promote competition for the consumer’s auto purchase, which in some cases offers other financing options for those that may have been turned down by another dealer. If a competitive dealership has a good subprime department there is a good chance they can capture those deals that were turned down by another dealer before the prospective customer shops elsewhere.

Potential Drawbacks of Pulling the Trigger

Risk of Non-Compliance: Some people in the business contend that there are serious legal and privacy issues raised by trigger leads. It certainly has been controversial.  Rebecca Kuehn, Assistant director of the FTC’s Division of Privacy and Identity Protection, warned F & I Magazine readers:  “If dealers are using these lists, they must be mindful of Section 5 of the FTC Act, which bars unfair or deceptive practices.  That means no false statements, such as ‘Your lender has referred me to you,’ and you have to make sure your outreach people know the ground rules.” This risk can be mitigated by working with a reputable auto trigger lead vendor, such as Endless Resources Inc., that reviews mail pieces and telemarketing scripts for compliance with FTC and FCRA regulations.

Potentially Negative Response to Unsolicited Offers: Consumers are typically unaware that their credit information has been accessed and may be caught off guard and react negatively to unsolicited calls and mailers. The good thing here is that most sales calls are filtered through a dealership’s Business Development Center where the sales people are used to handling rejection and realize that success lies in the numbers game.

May Have Already Purchased: Due to the nature of how trigger leads are generated, there is the risk that many of these leads may have already purchased a vehicle and/or signed a finance contract. According to J.D. Powers and Associates’ 2011 US Automotive Practice White Paper, the average Automotive Internet User shopping for a vehicle physically visits an average of 3.7 dealerships vs. non-Automotive Internet Users who visit and average of 2.4 dealerships. A good percentage of these leads are also still shopping.

No Exclusivity: No Trigger Lead provider/reseller can ever really guarantee you exclusivity. The credit bureaus don’t give exclusivity to anyone. If you are a lender or a company backed by a lender looking to make a firm offer of credit with this information then trigger leads can be sold and purchased without limitation. A data reseller may give you exclusivity as far as not selling it to their other customers but there are other resellers and lenders pulling and using the same information.

Taking the Next Steps with Expert Consultation

Now that we have explored the pros and cons of adding Auto Trigger Leads to your marketing mix if you would like to learn more about Auto Trigger Leads and how many may be available in your market area, contact your Endless Resources representative or call 1-866-430-0514.

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