Tricolor Auto Acceptance has implemented Google’s AdWord advertising platform to attract its “very specific consumer” online, Chief Executive Daniel Chu told Auto Finance News.
“We have the ability to align marketing and risk,” he said of the new digital strategy that analyzes specific terms searched on Google to reach the no-file and thin-file Hispanic consumers who would seek loans from Tricolor.
Specifically, Tricolor is developing a lead-generation process to familiarize customers with its value proposition and to do some preliminary underwriting based on risk segmentation. The yearlong project, spearheaded by newly hired Chief Technology Officer Don Goin, will be rolled out in stages.
To start, the search terms Tricolor is testing — and those that have been performing well to date — relate to financing. “Most of us, if we’re going to buy a car, we’ll go online and look for the type of car we want,” Chu said. “Our consumer will go online and figure out who’s going to finance them.”
With the Google platform, Tricolor tracks the click-throughs from each ad campaign via a direct feed into its CRM. “Our CRM is integrated with our loan-origination system, so once a borrower is decisioned, we can correlate the lead-gen channel — in this case, a specific AdWord campaign — with a credit grade,” he said.
If a specific search term or combination of terms leads to the origination of loans that perform well, Tricolor will increase its ad spend for that phrase. Likewise, if a certain phrase leads to loans that ultimately become delinquent, Tricolor will reallocate the funds to other search terms, he said.
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