Rory Holland, Executive Vice President of Marketing for BlueSky Marketing Group – NADA Convention

Tell us a little bit about BlueSky and what you guys do?

BlueSky is an automotive direct marketing and lead generation company that provides auto dealers nationwide with efficient and effective customer acquisition and sales conversion tools to penetrate the lucrative non-prime auto finance market. blueSky’s suite of award-winning lead generation programs are designed to produce incremental vehicle sales without requiring significant change to dealers infrastructure or processes. Current programs include, Real Leads TM award-winning specialty finance Internet leads program that provides auto dealers with a turn-key solution to acquire and convert non-prime auto finance consumers into sales, True Mail TM award-winning direct mail programs that utilize custom credit/demographic criteria that target highly convertible, credit worthy auto finance consumers, and Smart Dealer our web-based lead management tool that provides dealers secure access to efficiently manage and convert auto leads, and integration with the industry’s largest multi-lender platforms DealerTrack® and RouteOne®. blueSky’s been named three years in a row by the Dealers’ Choice Awards as one of the industries top auto lead providers.

How would you say BlueSky differentiates itself from the other competitors out there providing leads?

blueSky’s three-time, award-winning lead generation programs are designed to produce incremental vehicle sales by delivering the highest quality, most complete and convertible auto leads in the business. blueSky’s programs achieve high marks from dealers for several reasons, for our Real Leads program we go beyond simply electronically scrubbing leads and actually partner with dealers to live verify nearly every lead that we deliver. Our live verification process utilizes proven, proprietary processes and methods to achieve the highest contact rate to verify customers “purchase intent” and remove any invalid leads from the dealers system. If a lead is invalid it is automatically removed and replaced with a valid lead at no additional charge to the dealer. If an invalid lead survives the verification process, dealers can automatically return invalid leads through our automated lead return system with a “click of button”. Our True Mail program uses proprietary credit models and the most fresh and accurate lists (through membership with the three major credit reporting agencies) to generate high response and more sales for dealers.

Could you tell us about some of the successes you've had?

We’ve worked with dealerships large and small, franchise and independent all over the country and regularly hear success stories that demonstrate how dealers are leveraging blueSky’s programs to generate incremental vehicle sales. We consistently hear of dealerships that are on our Real Leads program who make it a point to “call every lead and invite them in”, consistently achieving 12 to 15% conversion rates and making $3,500+ per copy. Dealers who also use our True Mail, direct mail program, are typically converting anywhere from 15 to 25 percent. Direct mail customers tend to be highly qualified, willing and able to purchase.

Where do you think things are going right now, especially given the economic landscape? It sounds like BlueSky is well-positioned for this.

Yes, we believe blueSky is well positioned to help dealers in this economic landscape. Even in this challenging market, most blueSky dealers are seeing used car sales and profits steadily grow, because we give them access to a large number of qualified special finance customers that represent the highest margin segment of the auto sales market. More than 80% of blueSky customers’ purchase used vehicles, so dealers have even more flexibility to generate the highest front and backend profits possible.

Tell us a little bit more about your Real Leads program and how that works?

Our three-time award-winning special finance Internet leads program, Real Leads, provides auto dealers nationwide with a turn-key solution to acquire and convert non-prime car buyers into sales. blueSky gives dealers the flexibility to customize their own individual program by selecting their own market radius, monthly lead caps, daily lead flow and minimum income. Real Leads are exclusive, full credit applications and are verified using proven, proprietary lead verification processes that deliver a higher percentage of purchase-driven customers and increase dealers vehicle sales. Leads are delivered real-time through blueSky’s Smart Dealer, web-based lead management system that’s integrated with industry leaders DealerTrack® and RouteOne™.

Can you give us a comparison of rates there?

We find that dealers on the blueSky programs who are contacting every lead and inviting them in are converting anywhere from 8 to 12%, on average, and making $2,500-$3,500 gross profit per copy.

Tell us a little bit about the direct mail programs that you offer.

Our True Mail is a three-time award-winning direct mail program that enables dealers to effectively target and convert in-market special finance consumers in their local area. True Mail blends fresh and accurate data (through blueSky’s direct membership with all three major credit reporting agencies) with proprietary credit/demographic criteria and custom credit models to generate the highest response and conversion to sales for dealers. Responders can apply online, or speak with highly skilled live agents who are trained to assist them with completing their application. True Mail allows dealers to utilize both pre-screen and ITA (invitation to apply) offers to consumers. Leads are exclusive and delivered real-time through blueSky’s Smart Dealer, web-based lead management system that’s integrated with industry leaders DealerTrack® and RouteOne™.

Rory, what tips would you have for dealers as sort of a take-away?

Even in this challenging market, we’re finding that dealers nationwide can leverage blueSky’s award-winning lead programs to effectively acquire and convert more non-prime customers to increase their sales. As dealer owners and principles review their goals for 2008, I hope that they consider special finance (and blueSky Marketing) as a primary option to continue to grow their vehicle sales and profits. Our team at blueSky Marketing has years of experience in special finance and dealer operations and can be a good resource for dealers who are interested in building their special finance sales.