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Does Text Messaging work for Dealers?

Text messaging absolutely works , and Contact at once has the most effective system that I'm aware of... Our internet team sets at minimum one to two appointments per day per team member from this text program. Customers are more likely to reply when the text ask for their permission to have a text conversation...
 
How texting saves deals.... Saturday a sales rep and one of my BDC guys were walking an internet customer to used cars looking for an F-150 we had advertised. Both of these guys are new here. They made the mistake of asking a veteran salesman where the truck was and they were told by him that it was sold.

It wasn't. It was back in detail. BDC called the guy back after he left and he just thought we were full of it. He thought he was being toyed with.

His phone number was not in the Cell Phone field in the CRM, but like I always preach, I copied and pasted his home phone into the Cell field and then texted him through the CRM (it is compliant, sends out an opt-in message first). My message came as a manager, apologizing for the confusion. I offered to take pics and send to him via email. He texted right back that he appreciated me digging into it. Long story short, he was at another dealer looking at another F-150 when he got the text.

We stopped him from buying there. He came back here. We have him scheduled for delivery today.

Saved by the text!
 
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Texting scares the hell out of me, for legal reasons alone, but it can still be very effective. Kevin Frye is correct when it comes to a compliant opt-in/opt-out request. Many salespeople believe that they can send them from their personal devices, because they are not "the company", but truth is that they are held to the same statutes as any corporation.

For that reason, if you are going to send text messages to a prospect, it MUST be done through your CRM service provided they are using the legal opt-in/opt-out requests. If you send a text through the software and it is declined, all texting ends right there. However, even though it is being sent through a tool, it NEEDS to be written personally. The one absolute NO-NO and something I urge you to run away from is automating any text messages or SMS campaigns through a tool. Opt-in or not, if just one uninvited text slips through the cracks, you can be in serious sh-hot water.
 
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Texting absolutely works!!! We have developed a tool that identifies the used vehicles that you need, matches those to the vehicles in your area that are for sale by owner, automatically sends that person a text that you are the buyer for xyz chevrolet, you need their vehicle, you can provide a check today and would like to try and buy it. Sellers get the text, call the number and away you go. Texting is totally a contemplative media and the sellers are not offended in any way. Their vehicle is for sale and they hope for contact. For more information, please feel free to contact me directly. Scott
 
Texting scares the hell out of me, for legal reasons alone, but it can still be very effective. Kevin Frye is correct when it comes to a compliant opt-in/opt-out request. Many salespeople believe that they can send them from their personal devices, because they are not "the company", but truth is that they are held to the same statutes as any corporation.

For that reason, if you are going to send text messages to a prospect, it MUST be done through your CRM service provided they are using the legal opt-in/opt-out requests. If you send a text through the software and it is declined, all texting ends right there. However, even though it is being sent through a tool, it NEEDS to be written personally. The one absolute NO-NO and something I urge you to run away from is automating any text messages or SMS campaigns through a tool. Opt-in or not, if just one uninvited text slips through the cracks, you can be in serious sh-hot water.

More and more people are finally getting out of the perception that "blasting" sms is the right thing to do. Personal, legit contact not only is the only legal way to communicate via SMS right now, it's also far more effective.

Sadly, dealers ask me all the time about making a tool mass communicate via sms.
 
As a consumer, I would love texts for things like service follow ups - or service appointment making ("Hey Chip, what's your mileage looking like? Do you need to schedule an oil change?"). At the very least I'd respond back with my current mileage so they can update their data...and would book right over text if possible. I would not like to be mass marketed to over text.

We have developed a tool that identifies the used vehicles that you need, matches those to the vehicles in your area that are for sale by owner, automatically sends that person a text that you are the buyer for xyz chevrolet, you need their vehicle, you can provide a check today and would like to try and buy it.

That kind of data I'd prefer in an email...photos, a link, details about the car(s) etc... Something I know I can read through quickly (and opt of out easily if necessary).


 
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From the marketing side of things, yes, text marketing can be effective when done properly, but should only be done occasionally and you want to be sure to have a 100% verified opt-in list of people who want to receive text marketing from your dealership. If you do not, then you're just asking for trouble.

On the service side of things, 2-way text communication is an incredibly effective way for dealers to communicate with their service customers, get authorization for repairs fast and improve the overall service department productivity. In a recent survey of our dealers, we found on average, 36% of service customers wish to communicate via text rather than a phone call. Its not always easy for customers to take a call, but they can easily respond to a text message from their advisor.

On another note, many dealers are using our text solution internally as well to communicate between their parts and service department for special ordered parts, etc.

Finally, I do not recommend texting from a cell phone for two reasons. First, when you send a text to a customer, by working for the dealership, you are representing the dealership and if you should mess up and send the wrong message to the wrong customer, the dealership is liable. Second, you want to use a system that stores all text communication indefinitely in the event of a customer dispute or audit. Its also handy if you need to go back and print out the text history when a customer authorizes a repair via text so it can be attached to the RO.
 
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...

Not a bad idea to add it into the e-mail template, but dang, would really like to have it as an option on the initial lead form. Not 100% on the legality, but I'm pretty sure it has to do with the opt-in. That would be my hunch anyway.
 
Not a bad idea to add it into the e-mail template, but dang, would really like to have it as an option on the initial lead form. Not 100% on the legality, but I'm pretty sure it has to do with the opt-in. That would be my hunch anyway.

There's no reason why you could not have it as an option in the initial lead form. You would just need a check box for the customer to confirm they would like to be contacted via text. I would also recommend including a pop-up or info button with a disclaimer like "standard text messaging rates may apply. You may opt-out from receiving text messages at anytime by replying with the word STOP to any message."
 
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...

They are correct to be cautious when sending an SMS message to a customer. You can face some hefty fines if not done correctly.

We had to research this extensively before we integrated SMS sending into our CRM and iPhone and iPad apps. The main thing to remember is to always provide the customer with a STOP message for each and every single message you send out. We have to comply with some pretty strict opt out guidelines and provide the customer the ability to control if they receive any further messages.

We have had a dealer or two ask if we can change this for them (i.e. remove the opt out messages) and unfortunately, we had to let them know we were unable to do that for legal reasons. But, I think it's a win-win situation for everyone. The dealer still gets to send text messages their customers (which is an extremely effective form of communicating with customers) if the customer wants to receive it. And we (or whatever marketing/CRM tool you are using) protect the dealership from any legal liability in this area of marketing and communication.

I would say one thing for sure - be careful if you are texting back and forth with a customer outside of your CRM tool or another marketing tool that you use. If you are just texting them via your phone or a marketing tool that doesn't follow the guidelines from the FCC you could really open up your dealership to some large fines.

I am reminded of this story just last May:

How Avoid SMS/Texting Lawsuits: 4 Quick Tips to Keep Your Dealership Safe - Automotive Digital Marketing Professional Community

Late last year, a 2.5 million dollar lawsuit was won against Lithia Motors Inc. for sending unwanted text messages to customers without giving them the option to opt out of the text messages. According to AutoNews.com, Lithia was hit with a class-action lawsuit for broadcasting to 57,800 consumer cell phones text messages that failed to adequately allow the recipients to opt out of future texts. A second Lithia broadcast text went to 48,000 of the previous recipients, 6,190 of whom said that they tried to opt out but were unable to.

None of the above is meant to scare anyone away from texting their customers. However, just make sure you follow the guidelines and you should be ok.

We have seen wonderful results from the dealerships we have worked with to send and receive messages with their customers. Over 2,049 incoming messages within the last 4-5 months alone. That is incoming from customers - not outgoing. That lets us know that it is definitely a great tool to use if done properly. :)

Doesn't matter if you use us or one of our competitors. I think we all want to be in the business of avoiding lawsuits. :)