Using Direct Mail Marketing to Generate Dealership Revenue

It’s easy to overlook traditional marketing methods such as direct mail in today’s digital age. In the automotive, RV, and powersports industries, direct mail is still a useful tool for boosting sales and profits. Let’s explore this time-tested strategy to reach potential customers.

Why Direct Mail Still Works

Direct mail provides distinct benefits that actually outweigh methods that might appear to be more successful on the surface, such as email. In one recent study, direct mail received the highest ROI of 112% across all mediums, followed by SMS (102%), email (93%), paid search (88%).
Direct mail is trusted, tangible, personal, and cuts through crowded inboxes and social media feeds. This approach means a better chance of getting your message to potential customers.

Targeting the Right Audience

One of the biggest strengths of direct mail is its ability to reach specific demographics.

Dealerships can tailor their campaigns to:

  1. Owners with lapsing factory warranties: These buyers are targets for vehicle service contract marketing from your dealership. It’s important to time promotional campaigns correctly so that these customer receive your direct mail pieces as their factory warranty runs out.
  2. Customers intrigued by specific vehicles: Use past purchases or interests to suggest model types. For instance, send SUV promotions to families or truck deals to contractors. This can also be triggered by a vehicle turning a certain number of years old or a recent customer visit where they looked at a vehicle but weren’t ready to purchase yet.
  3. Individuals needing service drive assistance: Target customers based on their vehicle’s age or mileage. You can send brake service reminders to vehicle owners approaching 50,000 miles.

Segmenting your audience ensures your message reaches those most likely to respond.

Crafting Compelling Offers

Successful direct mail campaigns create offers that resonate with their audience.

Consider these ideas:

  • Exclusive discounts on new models: Offer a “direct mail only” deal on popular models. This exclusivity and urgency can drive customers to your dealership.
  • Unique financing options for returning customers: Reward loyalty with attractive financing terms. Include lower interest rates or reduced down payments for previous customers.
  • Free maintenance: Bundling upkeep with new cars may motivate buyers by addressing cost and care concerns.

Your offer should provide clear value and inspire action.

Promoting Vehicle Service Contracts

One effective way to leverage direct mail is by promoting vehicle service contracts. These extended protection plans can be a significant profit center for dealerships.

Here’s how to approach it:

  1. Highlight extended coverage benefits: Explain the coverage under the service contract. Focus on how it protects against unexpected repair costs and provides peace of mind.
  2. Emphasize why they can drive confidently: They can rest easy knowing the dealership will cover mechanical repairs that are out of the factory warranty coverage. Use language that appeals to emotions. Show how a service contract can remove financial stress.
  3. Offer limited-time discounts: Create an urge by offering time-limited discounts on service contracts. Motivate the customers to act rather than put off the decision.

Focus on the protective aspects of these contracts and tap into the desire for security and reliability.

Personalizing Your Message

Personalization boosts the usefulness of your direct mail campaign.

  • Address recipients by name: Go beyond “Dear Valued Customer.” Use the recipient’s name in the greeting and within the body of the message for a personal touch.
  • Reference or past buys: Citing specifics about their vehicle or prior dealings shows you value their business.
  • Tailor offers based on buying history: Use past purchases to create relevant offers. Offer upgrades to customers who have bought entry-level models.

The more relevant your message, the more likely it is to resonate.

Building Customer Loyalty

Direct mail attracts new customers and is an ideal tool for building loyalty. Your dealership can use direct mail in a few ways to further appeal to customers.

  • Celebrate milestones: Send birthday or anniversary greetings to show customers you care. Include a small offer or discount to encourage a visit to your dealership.
  • Reward loyal buyers: Create a loyalty program with increasing offers for long-term customers. Use direct mail to inform them of their status and available perks.
  • Host special events for loyal customers: Send personalized invitations through the mail. You could include preview nights for new models or exclusive service clinic days.

These personal touches help strengthen your relationships and encourage repeat business.

Direct mail marketing allows dealerships to stand out and connect with potential customers. Target the right audience, craft persuasive offers, and personalize your message to drive results.

Direct mail helps promote new vehicles and service contracts or build customer loyalty. So why not give it a try? Your next big sale might be a mailbox away.

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