Dealers using e-mail and texting to cut traditional advertising spend

28 April 2008

 

Dealers are increasingly using closely targeted e-mail and text-based CRM techniques instead of traditional newspaper advertising, according to dealer management systems specialist Pinewood.

 

The company says that its findings from regular research into dealer strategy shows that they are increasingly aiming tightly focused messages at small groups of potential customers rather than using wider “scattergun” marketing channels.

 

Managing director Neville Briggs explained: “Newspaper advertising and mass mailshots dominated dealer marketing strategies for decades but that has now begun to change.

 

“We see more and more use of our systems to carefully target relatively small groups of existing and potential customers with highly specific messages through e-mail and SMS.”

 

Briggs said that the use of these techniques was often relatively simple, such as using the DMS system to see which vehicles were due for servicing and texting the driver. However, there is also huge scope for more creative thinking and much more sophisticated marketing.

 

He said: “You could have a six month old car coming into stock that you want to move on quickly. So, you can look at the DMS system, generate a list of people who bought a similar car two-to-four years ago and then text or e-mail them to see if they are interested in upgrading to the newer model.

 

“The contrast to newspaper or mailshot advertising is enormous. The process can be done in moments and costs almost nothing, yet you could easily complete a sale within 48 hours. It is a much more efficient way of working.”

 

Briggs added that newspaper advertising and other traditional marketing methods such as general mailers would probably always have a place in dealer marketing - but that IT-based CRM tools were becoming increasingly important.

 

He said: “This is something that we see developing month-on month with more sophisticated use of CRM techniques.

 

“It is certainly a key way in which more forward-thinking dealers are tackling the credit crunch, by using IT to ensure that they are maximising the opportunities in front of them whilst minimising their advertising spend.”

 

 

For further details please contact Simon Wells at
Paperchase Public Relations on 01283 711311
or e-mail simon@paperchasepr.co.uk