The Guide to Texting at Your Dealership

Transcription

1 The Guide to Texting at Your Dealership CHAPTER 1 Understanding the Power of Text CHAPTER 2 Avoiding Text Pitfalls CHAPTER 3 Implementing Dealership Texting the Right Way CHAPTER 4 Texting Is the New Norm; Make It Yours

2 CHAPTER 1: Understanding the Power of Text Smartphone Users Mobile Users Smartphone Users Mobile Users Smartphone Users If you re an auto professional reading this white paper, the chances are great that you fall into one of two groups: 7 Billion 7 Billion 1% 9% GROUP ONE UNDERSTANDS THE POWER OF TEXT. You re ready to implement text messaging to engage your customers and lift sales. 6 Billion 5 Billion 6 Billion 5 Billion 8% 7% GROUP TWO IS STARTING TO SEE THE TREND... but you want to know more about the technology and what your next steps should be before taking action. 4 Billion 4 Billion 6% 5% You ll notice we didn t include a group called opting out of texting and other mobile conveniences. To remain relevant in almost every industry, staying on top of technology is a must. And mobile is the fastest-growing technology in human history, spurred on by more affordable devices and network expansion. 1 Just take a look at this timeline: 3 Billion 2 Billion 1 Billion 3 Billion 2 Billion 1 Billion 4% 3% 2% 1% billion people in the world. Not one mobile-phone subscriber About 7 billion people in the world. 6 billion mobile-phone subscriptions 2 (1 billion of which are smartphones 3 ). 214 About 4.55 billion mobile users and 1.75 billion smartphone users worldwide Estimated smartphone penetration is over 9% for the U.S. population, ages

3 What This Growth Means for Your Dealership Mobile is driving big changes in the world of auto sales, from showrooming to texting. How big? U.S. vehicle shoppers using an automotive website or app on a smartphone increased 73 percent between 212 and A full 35 percent research their purchases exclusively on mobile. 7 And they continue that research right through the buying process. Once they arrive at your dealership, smartphones offer your potential customers real-time access to the online information they want without leaving your lot. According to a 214 Placed Inc. study, 6 63 percent of your shoppers will use their mobile device to research and shop online while at a dealership, which is often called showrooming. Retailers in many industries have become accustomed to various forms of showrooming a shopping tactic that s been used by consumers for years and has been given new wings with mobile technology. 8 It can have a big impact on buying decisions. Before making almost any large purchase, mobile shoppers can compare price and inventory on the same or similar product at other retailers, there on the spot. So it s no surprise that today s vehicle shoppers often use smartphones to determine if a nearby vehicle better matches their wish list or is priced more closely to their budgets. With this in mind, transparency is key. Dealers who understand and offer quick, mobile-friendly access to inventory and any other information they seek stand the best chance of winning the competition for the mobile consumer s dollar. Texting is one way to provide the instant access and interaction these consumers seek. WHAT AUTO CONSUMERS COMPARE VIA SMARTPHONES 6 The percentage of shoppers on your lot comparing: 7% 7% 7% 7% 7% 6% 5% 51 % 6% 5% 6% 5% 6% 5% 6% 5% 4% 3% 2% 4% 3% 2% 29 % 4% 3% 2% 4% 4% 3% 25 3% 17 % % 22 % 2% 2% 1% 1% 1% 1% 1% Price, payments & offers Inventory Vehicle or dealer reviews Competitor s pricing Competitor s inventory Source: Placed Inc. and Cars.com, January 214 THE GUIDE TO TEXTING AT YOUR DEALERSHIP 3

4 Why You Can t Ignore Texting With the mobile evolution in consumers shopping and research behaviors, it s only natural that their communication preferences might change as well. That s where mobile text comes into play. Here are four reasons texting is a business practice dealerships can no longer ignore: 1. A CHANGING CONSUMER BASE 2. TEXTS VS. S 3. TEXTS VS. PHONE CALLS 4. TIMELINESS Numerous articles have been written about the growing importance of the millennial generation and their purchase power in all areas of business, including car buying. It s worth pointing out again that this generation grew up with digital tools, including texting. And that means they tend to expect a more personalized, instantly responsive interaction even in business-to-consumer communications. 9 This expectation isn t limited to the millennial age group, either. It s a mindset that many of today s mobile-savvy shoppers have. To learn more about doing business in the digital age, read The Game Has Changed: 8 New Rules for the Car-Shopping Process : Real-Life Example Why not just customers? There s nothing wrong with sending s to a database of past and potential customers, but you probably already know it s an effort with unreliable returns. Although enthusiasts will offer benchmarks, there is no typical open rate. According to Campaign Monitor, the rate obtained for any list will depend on a number of factors, including how it was measured, when it was sent, the size of the list, etc. But if your open rates are between 2 and 4 percent, you are probably about average. 1 Text message open rates blow that out of the water. With texts, 98 percent of sent messages are opened 11 more than three times the open rate of s! I truly believe texting and instant chat ups will overtake phone ups in the near future. I can see a major switch in two of our markets toward the text and chat options we have with Contact At Once!. The customer s comfort level added in with the ability for instant chat or text answers on their schedule will only make this a more popular feature in the future. Chad Sabatka, ecommerce/internet Director, Anderson Auto Group For consumers, texting is the winner of this comparison hands down. A few years ago, the average number of text messages per month numbered 764, compared to only calls almost five times the number of calls, according to Nielsen s 213 Mobile Consumer Report. Forrester adds that individuals send or receive about 35 messages per day, or more than 6 billion messages worldwide. 12 Businesses like dealerships need to pay attention, as text messaging often can achieve the same goals as a phone call through a distribution channel that many consumers and employees prefer. Obviously, calls are still important, but global enterprises increasingly relied on text messaging in 214. Wired.com notes texting s ubiquity, reach, and ease of use as reasons for this communication s rise in business almost all mobile users, regardless of their phone types, locations or data plans, can send and receive text messages. 12 That s a lot of consumers with whom your dealership and its associates could engage! Open rates and reach aside, consider the speed of texting. After all, the faster you can respond to a shopper the more likely you are to influence her or him. Automotive News reported on a study that showed how car shoppers who received replies within five minutes were three times more likely to visit a dealership than those who received a slower response. 13 Keep in mind, then, that s are read within an average of 6.5 hours, 14 and people often ignore phone calls from numbers they don t know. On the other hand, text messages are read within three minutes of arrival on mobile phones. 15 Speed. Accessibility. Open rates. Mobile convenience. Add it together and texting presents a huge opportunity for a dealership to keep customers engaged in the buying process, an enormous asset when negotiating a sale. THE GUIDE TO TEXTING AT YOUR DEALERSHIP 4

5 Texting in the Auto Industry Many dealerships aren t ignoring the benefits of texting their mobilized customers. According to the 214 Contact At Once! Dealer Survey: 1% 2% 3% 4% 5% 6% 7% 8% 9% 1%? JUST HOW ARE DEALERS USING TEXT? 94 % of respondents said they would miss opportunities if they didn t use SMS texting to communicate with customers. 16 To encourage and influence more hand-raisers (shoppers text in questions) 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% To give customers an easy way to set appointments (sales or service) 92 % of the salespeople who responded said they personally text with customers. 16 To follow up faster (and in a way shoppers notice) To send personalized videos 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% To re-engage previously unresponsive leads of respondents said text and chat are what 9.8 % millennial shoppers prefer. 16 To be seen as more available and ready to help 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% 75 % said they re more likely to get a response from a lead when they follow up via SMS vs. a phone call. 16 THE GUIDE TO TEXTING AT YOUR DEALERSHIP 5

6 CHAPTER 2: Avoiding Text Pitfalls So is texting good for your dealership? By now we ve made our point: Yes, it s not only good for your business, it s a necessity when communicating with today s consumers. The issue, of course, is how to do it right. Let s start by taking a look at how not to do it. DON T Let Salespeople Text From Personal Accounts If your plan is to let your team text customers from personal mobile numbers and accounts as they wish (it s their relationship, right?), you could be in for pain down the road. Little control, no tracking, more risks First, texting from personal accounts can t be monitored or controlled by your dealership. How, for example, did your employee get the customer s phone number to begin with? When your associates text customers, do you have A record of the customer s written consent to be texted? A transcript of the text conversation? Control over the opt-out message? And where are the leads and customer data does your dealership have complete records of such information in case a salesperson is no longer with you? The answer is likely no. Despite the issue of lead control, this presents a bigger risk. All businesses must comply with federal Telephone Consumer Protection Act (TCPA) regulations that require you to ask customers to opt in, give them permission to opt out, and ensure that your employees messages pertain to the original topic of discussion (to mention a few). 17? WHAT IS TCPA, ANYWAY? The Telephone Consumer Protection Act (TCPA), aimed at restricting telemarketers, established updated regulations in 213 to protect consumers from unwanted text messaging. To comply Unsolicited commercial messages (phone calls and texts) must include the ability to immediately opt out. You must get unambiguous written consent before sending telemarketing calls or texts via automatic telephone dialing systems. And remember: established business relationships with consumers no longer relieve you of the written consent requirement.? WHAT YOU CAN DO To make sure your team texts customers in a way that complies with regulations, consider investing in a software solution that helps manage and monitor such texting. Then make getting consent to text part of the process when it comes to gathering follow-up information and consult your attorney with any questions. For more information on TCPA, download the guidebook, What Should Your Dealership Know about TCPA? : THE GUIDE TO TEXTING AT YOUR DEALERSHIP 6

7 DON T Rely on CRM Texting A few dealership solutions offer built-in texting features that work fairly well if in a limited manner. For example, dealers can send a text message (like a service reminder) through some CRM systems to specific contacts with everything tracked and recorded. DON T Make It All About You When companies take what s popular in society and try to use it in business, they often destroy what people initially liked. To implement texting effectively at your dealership, then, you can t just focus on capturing lead data or answering a text only to force a shopper into a phone call because that s what your team prefers. The problem? Such texting doesn t move beyond customer care, nor is it easy on your team.? WHAT YOU CAN DO After all, you re using a solution that s not built as a mobile messaging app; it s built as a CRM. That means it s not optimized for conversations on the go (in other words, sending those CRM texts from a mobile device is a pain). Not only is it difficult to type, it s difficult to keep up with multiple conversations simultaneously. Plus, CRM texts are used exclusively for outbound conversations. Shoppers can t initiate texts to your dealership. Basically, relying only on CRM texting is like trying to do business with earplugs in and one arm tied behind you. You handicap your team with a slow mobile process and prevent them from hearing and helping more mobile shoppers.? WHAT YOU CAN DO Look for a solution that helps you use texting to its full potential: true twoway, mobile-friendly conversations for all involved, including your team. The solution should help you capitalize on all mobile shopping behavior, from texting customers about service to quickly answering questions that shoppers text you from your site or ads. And the easier it is for dealership personnel to use on the go, the faster those responses will come. Understand what people like about texting and make sure your texting process offers customers the same benefits. For instance, texting is: Private & flexible It can be a discreet way to find out if the car they re interested in is available for a test drive that evening while in a meeting or at another dealership. Play to this benefit by 1) offering text and 2) being ready to answer shoppers texted questions. Fast Since consumers like the immediacy of texting, make sure you re readily available. Slow responses can make your dealership look unfriendly or unprofessional; they can even kill a deal. Instead, give your team mobile app access to your texting solution (so they can respond anywhere via their own devices), or back them up with a managed answering service. Succinct & efficient Some consumers just don t like wasting time on the phone, from playing phone tag to hold time and small talk. They prefer the efficiency of getting to the meat of a message, which texting encourages. So be prepared to answer as much as you can via text, which can become an ongoing sales conversation. Escapable & somewhat anonymous Consumers can also feel cornered or defensive on a phone call or at a dealership. Those who do may prefer to text since they have the power of the next response. They may even be more willing to reach out earlier in the shopping process if they can text. (You can always offer the option to call or chat once the shopper becomes comfortable with it.) THE GUIDE TO TEXTING AT YOUR DEALERSHIP 7

8 CHAPTER 3: Implementing Dealership Texting the Right Way How can you make texting a true component of your sales and customer service strategy? How can you graft it to your current processes, monitor privacy regulations and ensure you get the most wheel for your deal? Use the following implementation checklist. Step 1 TAKE THE 1-MINUTE DEALER TEXT TEST First, you need to understand where your dealership currently is when it comes to texting. Send a text to the phone number used on your website or in your latest ads. Most likely, nothing will happen; no response except for maybe an error message. With what we know now about mobile customers (particularly millennials) is that acceptable? What about other forms of texting? What is your team already doing? From personal texting with customers to sending CRM texts, note where this communication already fits into your dealership s daily activities. Step 2 DECIDE WHAT YOU WANT FROM TEXTING Once you know your text situation (or lack thereof ), you can fill in the blanks. Where could the convenience of text help you? Do you want a quick way to shout out appointment reminders, marketing messages, coupons or special offers (like a mobile microphone)? There are texting services that provide such one-way mass marketing or automated reminders, but that s not the type of texting addressed any further here. Do you want to both influence mobile shoppers and nurture customers with added conveniences? There are two-way, one-to-one texting solutions that make it easy for both mobile shoppers and the dealership. Mobile shoppers can ask quick questions, request appointments and get answers right on their smartphone. Dealerships can capture lead information, influence that shopper and even use texts to work unresponsive leads or remind customers of upcoming appointments. The remainder of this document will discuss how to choose and set up a one-to-one texting solution for your dealership. Real-Life Example We had a shopper text in about a car while on a competitor s lot...and were able to win his business! Our service department also really loves the Mobile Text Connect solution; it just makes connecting with customers easier. We can quickly let them know if extra work is needed or if their car is ready, a convenience that adds to their overall experience and hopefully leads to repeat business. Ryan Mays, BDC Manager for Cadillac of Mahwah, Buick GMC of Mahwah and Hawthorne Chevrolet T H E G U I D E T O T E X T I N G AT YO U R D E A L E R S H I P 8

9 Step 3 Step 4 Step 5 GET AN OFFICIAL, DEALERSHIP- CONTROLLED TEXTING SOLUTION Let s say either you re ready to start texting back and forth with customers or you ve realized your salespeople already are and you need to help them do so safely. (As mentioned in Chapter 2, all businesses must comply with TCPA regulations.) The next step is investing in a software solution to manage that one-to-one texting. The key is to find a solution that both reduces your risk of TCPA non-compliance and helps you take full advantage of texting. Look for a solution that can Provide your dealership with a specific number that customers can call or text. Automate opt-out permissions. CREATE TEXTING POLICIES What your employees say via text message can affect people s perception of your dealership, just as , phone or in-person interactions can. So don t forget to institute an official texting policy and train your team on it. You likely have some type of communication policy already on the books. When you adapt it to include guidelines for communicating via text message, make sure you address: How to gather appropriate written consent from customers (map out the processes you ll take). How to follow up with customers who text in questions (from the actual process to the speed of response expected from your team). TRAIN YOUR TEAM No matter what software solution you invest in, it s only as good as the people using it. To get the best results from your texting initiative, you need team buy-in. That takes more than awesome technology and carefully crafted policy guidelines. Offer webinars and one-on-one help sessions that train dealership personnel on how to use the texting solution and why they should use it. (Your software provider should offer free training sessions on a regular basis.) Keep the training going. People often retain very little of the initial training and turnover is inevitable. Continuous training is important for bringing everyone up to speed and making sure the technology is being used to the fullest measure. Track and store text conversation transcripts for easy monitoring. Sync with your CRM to update lead and customer profiles. Provide documentation of those consent permissions and conversations to help prove TCPA compliance (if the need arises). Help influence mobile shoppers in more ways (like recording and texting videos of the vehicle of interest). Be used by employees from their desktops, laptops or personal mobile devices (tablets or smartphones) without losing any of the dealership control and without sharing employees personal phone numbers with the customer. What sort of information to share with customers via text. What sort of information to try and capture via text. How to address customers via text in general (use of abbreviations, capitalization, emoticons, etc.). The right software solution can then help monitor the texting your team does to ensure your new policies are being followed. Encourage accountability. Once your team knows what you expect of them text-wise, hold them to it. You could make it fun by creating a competition: Who takes the most text conversations? Who has the best lead data capture average or is able to turn the most texters into shows? Start small. Sometimes it helps to roll out in phases. You can focus on a select few teammates, get them texting and let others see the extra opportunities that can come from it. Get buy-in from the top. If a dealer principal or GM is a believer in text, it can help drive adoption of your new text solution throughout the dealership. THE GUIDE TO TEXTING AT YOUR DEALERSHIP 9

10 Step 6 Step 7 CONSIDER TEXT BACKUP Even if you have real text fanatics on your dealership team or a dedicated BDC, plan for the times when no one is able to respond quickly enough. How will you handle customers who text in after hours or when everyone is busy assisting other shoppers? Remember, these mobile consumers want to get everything resolved quickly on their smartphone. If they can text a business, they tend to have higher expectations of that business s availability. So instead of answering that text message at your team s convenience, consider having an outsourced answering service to help you respond at the shopper s convenience right that instant. Certain texting solutions offer answering services as part of their packages, from fully managed coverage (they answer all texts on your behalf) to hybrid coverage (your team answers when possible; the outsourced agents answer if you can t). If such backup is going to be part of your texting implementation, make sure that you can: Provide those agents with scripts. Monitor all the outsourced text transcripts. Receive any leads gathered via text for further follow-up. ADD TEXT OPTIONS EVERYWHERE, INCLUDING YOUR FOLLOW-UP PROCESS It does you no good to go through all this setup if customers don t know they can text your dealership. So shout it from your digital rooftops! Mobile Promoting the text us option on your mobile sites and ads is rather obvious. For best results, create a tap-to-text button that can immediately launch a text conversation with your team when shoppers press it. And, of course, display those buttons prominently! Everywhere else digital Add the text number everywhere, from multiple locations on all your websites (VDPs, contact pages, call-to-action buttons) to thirdparty ad listings, digital marketing campaign pieces ( s, ads, landing pages), social media and more. You can even add a widget to your desktop sites that enables shoppers to initiate texts: They add their number, type their question and agree to be texted the answer. Print To add the dealership s text number to any print pieces you create (dealership signs, window stickers, ads), you can either write out the number itself or use a QR code. If shoppers have a QR code reader app on their smartphone, they can then scan the code to launch a text. Follow-up Don t forget to implement texting into your official follow-up process and re-engagement campaigns, either. As mentioned in Chapter 1, texts can be more effective and efficient in getting a response than playing or phone tag. From Chat to Text Shoppers who chat might be more responsive to follow-up done via text. Some software solutions let chatting shoppers request (and pre-approve) the dealer to text with them right in the chat window. Real-Life Example We , call and text our leads, usually in that order, said Aaron White, Assistant Internet Manager at Jake Sweeney Chevrolet in 214. For example, if someone ed in a direct question, they d answer it via and follow up with a call. If they didn t get a response, they d try texting. And it worked! Over 5% of previously unresponsive leads responded to a text in one month. 18

11 CHAPTER 4: Texting Is the New Norm; Make It Yours At this point, we hope those who were in Group Two at the beginning not quite sure if texting was right for their dealership have joined Group One as text believers. Are You Ready to Make Text a Reality? As you search for your texting solution, set up an official dealer text number and start integrating texting into your teams communication processes, remember: Aim for both convenience and safety. Your texting strategy should include a one-on-one approach that allows shoppers to easily text questions or requests and get swift responses from your team. You can do this and protect your dealership from unintended privacy issues. The key is choosing a solution with built-in features to help with legal compliance, one that can be used from anywhere dealership, lot, home, on the go so you can engage when those shoppers interest and need for information are greatest. Real-Life Example Customer service in general has gotten so poor that when you can actually meet or exceed their expectations by answering as quickly as possible, you stand out. Anytime we can open up a new portal for customers to communicate with us, it will be valuable... provided we handle it appropriately. Douglas P. Scott, Director of Marketing for Team Toyota Auto Group Just One More Statistic Before You Go Meeting and exceeding customers expectations this way is all well and good but can texting actually affect your bottom line? Yes. Yes, it can. In 214, an IHS Automotive analysis found that almost one out of every four identifiable shoppers who opted to text with a dealership ultimately purchased a vehicle. 19 So while adding texting to your sales (and service) process requires changes in standard operating procedures, it can be worth the effort. Follow these steps to put it to work at your dealership, and you ll be well on your way to integrating the ease and speed of mobile communication into your team s daily business interactions the right way. Happy texting! 22 % of identifiable shoppers who opted to text with a dealership ultimately purchased a vehicle. 19 THE GUIDE TO TEXTING AT YOUR DEALERSHIP 11

12 Resources 1. Fierce Mobile Government. Mobile Broadband Is Fastest Growing Technology in Human History, Says New UN Report. Dibya Sarkar. September 24, fiercemobilegovernment.com/story/mobile-broadbandfastest-growing-technology-human-history-says-new-unrepor/ MIT Technology Review. Are Smartphones Spreading Faster Than Any Technology in Human History? Michael DeGusta. May 9, news/427787/are-smart-phones-spreading-faster-than-anytechnology-in-human-history/page/2/ 3. CBS News. Study: Number of Smartphone Users Tops 1 Billion. Sara Dover. October 17, com/news/study-number-of-smartphone-users-tops-1- billion/ 4. emarketer. Smartphone Users Worldwide Will Total 1.75 Billion in 214. January 16, com/article/smartphone-users-worldwide-will-total-175- Billion-214/ emarketer. Big-Picture Perspective on Consumers and Marketing in an Always-On, Digital World. August 4, Cars.com Insights - Placed Inc. Mobile Device Use at the Dealership: How Smartphone Shopping Is Impacting Automotive Retailing. January uploads/214/1/placed-mobile-device-use-study- Jan-214.pdf 7. Mobile Marketer. Mobile Increasingly the Only Tool Used in Purchasing Decisions. Chantal Tode. June 3, Retail TouchPoints. Combatting Virtual Showrooming. Andrew Scarbrough. July 8, retailtouchpoints.com/features/executive-viewpoints/ combatting-virtual-showrooming 9. Fast Company. Texting, the Great Untapped Business Resource. Naveen Gupta. March 11, fastcompany.com/36745/texting-great-untappedbusiness-resource 1. Campaign Monitor. All About Open Rates. help.campaignmonitor.com/topic.aspx?t= Mobile Marketing Watch. SMS Marketing Wallops with 98% Open Rate and Only 1% Spam. Michael Essany. August 6, sms-marketing-wallops- -with-98-open-rate-and-only- 1-spam-43866/ 12. Wired.com. SMS Is Best: Your Mobile Priorities Might Be Overrated, Underperforming. Steve French. March 3, Automotive News. Study: Online Shoppers Demand Fast Responses. David Barkholz. November 4, study:-online-shoppers-demand-fast-responses 14. FourOFive. vs. Text Marketing: Guess What? You Can Do Both. July 1, blog/214/7/1/ -vs-text-marketing-guess-what-youcan-do-both#.vfpvwvnf_6i= 15. Ocala Mobile. SMS Text Marketing Brings Over 97 Percent Open Rate. September 21, ocalamobile.com/sms-text-marketing-brings-97-percentopen-rate/ 16. Contact At Once! 214 Dealer Survey (North America). July Contact At Once!. New Texting Regulations: What Your Dealership Salespeople Need to Know. Aaron Hassen. October 23, Contact At Once!. Dealer Text Tips: Jake Sweeney Chevrolet. Aaron Hassen. April 18, autodealerchat.com/jake-sweeney-chevrolet 19. Contact At Once!. Last-Mile Connections: Helping Shoppers Move From Online Search to Showroom Visit. July THE GUIDE TO TEXTING AT YOUR DEALERSHIP 12

13 CREATE CONNECTIONS. BUILD RELATIONSHIPS. Contact At Once! software boosts engagement by making it easy for consumers to connect with auto dealers and ask questions at the moment their interest is piqued. More engagement can translate into more sales, and that s why 13, dealers, the world s busiest automotive classified sites and many automotive manufacturers rely on the Contact At Once! platform to build relationships with online shoppers. It s also the only platform that can integrate text and chat conversations from dealership sites, digital advertising, OEM sites and even print ads into a single user interface for easier management and more proactive control. In fact, we ve been #1 in dealer satisfaction for 5 years running at the DrivingSales Dealer Satisfaction Awards. Call or Text: marketing@contactatonce.com Contact At Once!, LLC. All other trademarks are recognized as proprietary to their respective owners.