Make 2008 your most profitable year ever: part 3

In the last of my three part series on the right marketing mix for 2008, we’re going to focus on a growing and exciting portion of the automotive industry: new technology tools. This last year brought several intriguing ways to communicate with customers on a 24 by seven basis, including: text messaging, interactive chats or instant message (IM), and blogs.  I think we’ll see an explosion in these communication methods in 2008 and would like to share with you some of the pros and cons for each of these tools. My hope is that by sharing the advantages and disadvantages with you for each marketing method, you’ll be able to determine the right marketing mix for maximum success in your dealership this next year.

  Short Message Service (SMS) or Text Message: Cutting Edge, but Still Limited.  

Take a look at any group of young consumers today and you’ll find the vast majority of them clutching cell phones, texting furiously. Short Message Services (SMS) or most commonly known as Text messages, which can be sent via cell phone, are one of the premier ways consumers younger than 30 communicate with one another today. And why not? Text messaging is like having a 24/7 email system in the palm of your hand. Due to the popularity of the medium and use by the highly lucrative Y generation and under, text represents an excellent way for dealerships to catch the younger generation’s attention. While the technology has many advantages, there are also some things to watch out for before you embark on a text campaign. Interactive capabilities have yet to catch up with the medium (although they’re on the horizon) and text users expect immediate follow up; which takes a large portion of time and commitment.

Pros:

-       Texting helps dealerships market to Generation Y, thought to be the most lucrative generation since the Boomers.

-       Texting represents an easy and inexpensive way to market your services and send automated reminders.

-       New tools coming out this year will help you add coupons and other interactive tools to text messages.

Cons:

-       Due to the speedy nature of text, follow through and timeliness is essential with this medium.

-       While plans are on the horizon to expand capabilities, text messages cannot offer interactive add-ons available through email.

-       Text messages depend on carrier connectivity and availability.

  Live Chat: Potential for Explosive Growth 

After speaking with our dealer clients, I predict one of the buzz –worthy interactive tools for 2008 is going to be interactive chat or Instant Message (IM). An interactive chat is a tool that can be used within your website to give a buyer instant access to your sales, internet department or service staff.  The tool is worth its weight in gold in terms of establishing instant two-way communication. Having a chat feature also shows customers you’re ready to do business on their schedule and in their way. In addition, there are many exciting add-ons currently being developed, for example, the ability to send a link straight to an IM session from an email promotion. While intriguing capabilities will push this communication method far this next year, it’s still a fairly new tool in the automotive space.  

 Pros:

-       Interactive chat provides two-way communication with your dealership at a critical point in the consumer’s online research process.

-       An interactive chat feature shows customers you’re a forward-thinking dealership.

-       Future technology will enable you to link your e-marketing promotions straight into an IM session.  Cons: -       Interactive chat tools have yet to bring in significant leads. -       An interactive chat feature needs constant monitoring so help is available when needed. -       If a chat session is offered, but staff is unavailable, you hurt your dealership’s credibility.    Blogs: Will they Sizzle or Fizzle in 08?  

As readers of my articles in Digital Dealer know, I am a big fan of blogs. They help your dealership establish a brand personality outside of traditional websites, as well as establish two-way communication between you and your customer. However, blogs have not caught on this last year as quickly as predicted and are still a landmine of unexplored opportunities. While they establish an essential two-way communication link between you and your customers, they can also open the door to negative comments. However, if established correctly, your Blog should allow you to view and approve any customer comment prior to being release to your audience. 

 Pros:

-       Allows for timely two-way communications between you and your customers/prospects

-       Visitors have the ability to view important information on your Blog by category or key word search

-       Allows for video messaging and links to other important articles/sites

  Cons: -       Without a timely update process in place, blog posts can do as much damage as good to a dealership’s reputation. -       Blogs require constant attention in terms of new and worthy content.  

I hope this series have given you a good base for determining which tools will help your dealership lead the way in customer communications in 2008. While the vast array of technology can be confusing, remember that above all,  the way a message is delivered is just as important as the message itself. All my best for a fantastic 2008.

Digital Dealer, Issue 49
December 6, 2007
Vol. 2 Issue 49