And so, we’re watching — we’re very excited about it. We’re watching it closely. That’s not as immediate a read as performance marketing. But as we see how that performs this year, we will decide if we should increase that as well. So the short answer is, yes, it’s definitely consideration, but that it also is a trade-off with not just dropping it to the bottom line, but also investing in other things like product and Digital Retail and other areas of innovation for us.
Operator: Our next question comes from the line of Doug Arthur with Huber Research.
Doug Arthur: Yes. Just a quick one. Jason, the reference you made, obviously two transactions being down 75%, and that’s going to become a more important metric. What is the exact definition of transactions? If you could just refine that a little bit.
Jason Trevisan: Sure. It’s what we call net cars moved, which is when there is a — when a car is — has been sold and the sale is complete, and it’s based at the VIN level. And so, we look at it once the vehicle has been — think of it as fully sold at the unique in VIN basis.
Doug Arthur: And does that crossover between IMCO and CarOffer, is that strictly IMCO?
Jason Trevisan: No, it’s IMCO — it’s both. It’s what we think of as wholesale, which is both dealer-to-dealer wholesale as well as Instant Cash Offer. But it’s not related to listings in any way or means.
Operator: Our next question comes from the line of Nick Jones with JMP Securities.
Nick Jones: I guess the first one, on engagement metrics, I know you’re focused on getting kind of higher-quality leads. How should we think about where these engagement metrics will trend kind of over time and maybe where they kind of bottom out and stabilize and maybe return to growth as you refine your focus on leads? And then I have a follow-up on the arbitration.
Jason Trevisan: There’s not really a moment or a quality threshold that once we’ve hit it, we’re then going to go back to volume. I mean, the way — and it’s always going to be a mix. So, you probably heard these numbers or these data points. But just to put it in perspective, if we’re sending a dealer 1,000 leads a month and they sign up for Digital Deal and all of a sudden, 150 of those leads converted multiples and another 100 of those converted to even higher multiples, that dealer is going to be thrilled. And what we look at is total cars sold estimated. We look at various forms of attribution to determine. And so, we have a proxy for all of our dealers about the number of cars we help them sell in a given month, and we watch that closely, and we’re trying to grow that.
And so the formula or the recipe for how we get to that is a combination of some growth, some quality improvement. But ultimately, it’s distilling down to gross profit maximization at the dealership. Now, there’s going to be a point at which — sorry, just to close it out. There’s a point at which we will never be — we’re never going to get 100% of our users through Digital Deal in the next year. And so, at some point, we have to acknowledge that there’s sort of some natural self selection among users. And in which case, if we feel that we’re reaching that local maximum, then we would resort back to growth within the different segments.
