• Stop being a LURKER - join our dealer community and get involved. Sign up and start a conversation.

Does Text Messaging work for Dealers?

I think the use of text is not only good, but is going to be needed for dealers in the future. If you look at our society, it is the norm with the younger generations. I think the key is finding a system that uses all of the features available. We are using text 2 drive, and I used it at my previous dealership. We have huge success on the service side for confirming appointments, and follow up. It really helps find a problem right after service, and not at the survey time. It also lets the customer text a short code and get info on a vehicle on the lot or in an ad, and gives us the capability to text that customer back. All with opt outs. It is does intigrate with elead CRM, but the stand alone version is very powerful.
 
Text2Drive provides an entire platform for Dealers on both the sales and service sides. (disclaimer: I'm the CTO). We see wildly different results from dealers, its like anything else, you get out what you put in. First suggestion - start in service and make sure your program is low effort for the front line.
 
As per text message marketing - I have seen little to none of it, especially with the big players in industry (eg. McDonalds who collected a ton on text addresses, but did not use them). I know there were serious legal concerns about marketing via text messages, and many companies were avoiding it until they knew it was legally safe.

With that said, we have found that if you are able to text directly with a potential shopper (using compliant opt-in/opt-out tools that many CRMs can provide for you), the odds of you closing that shopper significantly rise. We have only seen about 7% of our shoppers that want to text, but when they do, they buy at a much higher rate than our average closing rate. This makes sense as most people see texting as a more personal relationship than email, and if they are texting with you, they are more likely to like you, and trust you, and buy from you...


As a salesperson on the floor. Customers who allow me to text them, have a higher close rate. No question.
 
  • Like
Reactions: 2 people
I need to get Tom Harsha from iMagicLab on this thread, he could give you all some amazing data on text messaging. Oh Tom, where are you?

My usual stealth movement never seems to get past Jerry's radar :)

Text messaging initiated via a dealers CRM can be a very powerful form of one to one communication with a potential or existing customer. I shared with Jerry at Digital Dealer last fall some of the raw text messaging data that we see from our dealers to and from their customers. The increasing number of text based "conversations" is staggering. The most interesting data point that I've been able to pull from the conversations is the amazing level of detailed information the customer is willing to provide via text. I've been watching phone and email contact rates decline over the last 12 - 14 months but text is skyrocketing.

Based on this trending and the clear advantage for dealers using text I'm recommending to our top dealers that they incorporate creative new ways to initiate text in the conversation as early as possible. One of the ideas I've been working on is incorporating a "Pricing Urgency" or "Pricing Choice" option integrated into each site form submission. The user interface would offer the customer multiple speed and pricing options but everything would be weighted to the "immediate" or "text" option to engage the site visitor in an opt in text based conversation from the beginning of the process.

There are some obvious legal concerns as Kevin already accurately noted in this thread. But any time you invest now dreaming up new ways to legally incorporate text into your processes with be rewarded in the future. Text along with a couple new emerging "conversation" tools will become the predominant methods of communication with your current and potential customers in the future.
 
  • Like
Reactions: 4 people
It's interesting and awesome to see that kind of growth in text. With leads and calls declining, it's great to know that dealers can hone in on still communicating with customers. Just don't overdo it! Based on the way some dealers set up their auto-pilot emails. I can only imagine what could happen if they initiated a texting strategy the same way.

Great input on here from all angles!!
 
My usual stealth movement never seems to get past Jerry's radar :)

Text messaging initiated via a dealers CRM can be a very powerful form of one to one communication with a potential or existing customer. I shared with Jerry at Digital Dealer last fall some of the raw text messaging data that we see from our dealers to and from their customers. The increasing number of text based "conversations" is staggering. The most interesting data point that I've been able to pull from the conversations is the amazing level of detailed information the customer is willing to provide via text. I've been watching phone and email contact rates decline over the last 12 - 14 months but text is skyrocketing.

Based on this trending and the clear advantage for dealers using text I'm recommending to our top dealers that they incorporate creative new ways to initiate text in the conversation as early as possible. One of the ideas I've been working on is incorporating a "Pricing Urgency" or "Pricing Choice" option integrated into each site form submission. The user interface would offer the customer multiple speed and pricing options but everything would be weighted to the "immediate" or "text" option to engage the site visitor in an opt in text based conversation from the beginning of the process.

There are some obvious legal concerns as Kevin already accurately noted in this thread. But any time you invest now dreaming up new ways to legally incorporate text into your processes with be rewarded in the future. Text along with a couple new emerging "conversation" tools will become the predominant methods of communication with your current and potential customers in the future.

Tom Harsha is tremendous asset to the industry and has been for years.

Great insight Tom, we have been seeing similar trends across the last 24 months. My fear for many dealers out there is that they might get into legal trouble with their zeal to pursue this. CRM tools like iMagic and VinSolutions (not exclusive) are providing simple and compliant texting solutions that help dealers take advantage of this communication tool...
 
We've tried modifying our lead form so that the customer has an option to check if they would prefer TXT communication. Web provider said they can't do this for legal reasons ...

We ask in our email templates if the customer would like to text. I am surprised your web provider says they cannot do this for "legal reason". Are they worried about opt-in? Or are they resistant to encouraging an online shopper to text which might make their website conversion (only counting forms and phone calls) not look as good...