Your Message in Stereo

October 29th, 2014 | Written By: admin

yourmessageinstereoI’ve read several articles lately about email being a dinosaur and direct mail actually increasing in effectiveness.  There are also plenty of articles out there on the power of push notifications.

In a time when we are all being asked to do more with less, the question of how to improve ROI becomes that much more important.

So which marketing method should you use?

“All of the above” is the answer in this case because all three channels are important in their own way.   Each has a time when it is the best method, and a time when it is not.

If you use a variety of channels, such as, direct mail, email, mobile app push messages, etc., you can achieve the perfect blend of direct & digital marketing and get your message heard in a way that positively affects your bottom line.

We recommend using multiple channels in an integrated way because email and app notifications support other channels of communication better than they replace them. Consumers respond to a website, for example, better if they receive direct mail first: 16% more site visits; 22% more page views; and 15% more time on site. *

Need another reason to use a mix?  With email you could be missing up to 79% of your customer base.  Cost is always a factor, and emailing can save you money on the front end.  However, if you don’t have email addresses that your customers actually receive and read, you aren’t reaching your intended audience.

On average, our dealership clients have a valid email address for only 21% of their customers.  When tested over time, the core group of loyal “clickers” represented only 1% of all the customers that received the emails.

But emails can fit the needs of a time-sensitive or urgent situation.  If the offer is strong and the sense of urgency high the response to an email campaign can be what helps to save a slow month.

We’ve helped our clients achieve an average increase in repair order dollars of 29% when we’ve added an email component to a direct mail campaign.  Our case studies have determined that the use of email with direct mail is a more profitable tactic than just using mail alone.

Using push notifications is a very effective way to reach your customers that have downloaded your app and opted-in.  Push messaging campaigns can result in open rates averaging 7%.  But again, that’s a targeted segment of your overall client base and leaves many of your customers unreached.

Direct mail, although it has been around a long time, and is sometime thought of as past its prime, has proven staying power. Campaigns can be highly targeted, personalized to the customer and branded to your dealership.  Mail makes it easier to absorb the message and is more likely to grab the reader’s attention and elicit a response.

Very generally, an investment of $1 in direct marketing returns, on average, $12.18 in incremental revenue across all industries. In comparison, non-DM ROI returns, on average $5.26. Overall, direct mail offers response rates of 1.1 to 1.4% versus 0.03% for email and targeted directed mail boasts a 4.4% response rate, compared to email’s rate of 0.12%.

So my advice, integrate your efforts and send your message in stereo to improve ROI and build traffic.

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