Editor's note: This story is part of the WardsAuto digital archive, which may include content that was first published in print, or in different web layouts.
While online car purchases remain the exception rather than the rule, e-mail marketing is likely to become standard practice in dealerships throughout the world, according to 6gear, an e-mail marketing service based in San Francisco.
As advertising companies scramble to get people’s attention in an increasingly chaotic market, e-mail marketing gains permission to deliver service reminders, trade-in appraisal tools, and newsletters where customers want them: in their in boxes.
“The beauty of email marketing is that suddenly auto retailers have a window into the mind of the customer,” explains John Boas, CEO of 6gear. “Since they have a choice about whether to interact with you, the ones that do tend to spend more and stay loyal.”
So what about the all-powerful delete button? “It’s a blessing, not a threat,” says Mr. Boas. “As people ‘opt out’ of dealer e-mails, the address list only becomes more valuable. The people that agree to receive your messages have been shown to spend five times what non-recipients spend. Considering the significant numbers of people who read and respond to dealer messages, that adds up to serious profits.”
San Francisco Honda, which uses e-mail marketing, reported more than $33,000 in revenue generated by a five-week service and trade-in campaign. Message recipients who came into the store spent twice the store average.
